Ron Paul: "The Fed Steals From The Poor And Gives To The Rich"

Tyler Durden's picture

Submitted by Ron Paul via The Free Foundation blog,

Last Thursday the Senate Banking Committee held hearings on Janet Yellen's nomination as Federal Reserve Board Chairman. As expected, Ms. Yellen indicated that she would continue the Fed’s “quantitative easing” (QE) polices, despite QE’s failure to improve the economy. Coincidentally, two days before the Yellen hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE "the greatest backdoor Wall Street bailout of all time.”

As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market!

It would be a mistake to think that QE is the first time the Fed's policies have benefited the well-to-do at the expense of the average American. The Fed’s polices have always benefited crony capitalists and big spending politicians at the expense of the average American.

By manipulating the money supply and the interest rate, Federal Reserve polices create inflation and thereby erode the value of the currency. Since the Federal Reserve opened its doors one hundred years ago, the dollar has lost over 95 percent of its purchasing power —that’s right, today you need $23.70 to buy what one dollar bought in 1913!

As pointed out by the economists of the Austrian School, the creation of new money does not impact everyone equally. The well-connected benefit from inflation, as they receive the newly-created money first, before general price increases have spread through the economy. It is obvious, then, that middle- and working-class Americans are hardest hit by the rising level of prices.

Congress also benefits from the devaluation of the currency, as it allows them to increase welfare- and warfare-spending without directly taxing the people. Instead, the increase is only felt via the hidden “inflation tax.” I have often said that the inflation tax is one of the worst taxes because it is hidden and because it is regressive. Of course, there is a limit to how long the Fed can facilitate big government spending without causing an economic crisis.

Far from promoting a sound economy for all, the Federal Reserve is the main cause of the boom-and-bust economy, as well as the leading facilitator of big government and crony capitalism. Fortunately, in recent years more Americans have become aware of how the Fed is impacting their lives. These Americans have joined efforts to educate their fellow citizens on the dangers of the Federal Reserve and have joined efforts to bring transparency to the Federal Reserve by passing the Audit the Fed bill.

Auditing the Fed is an excellent first step toward restoring a monetary policy that works for the benefit of the American people, not the special interests. Another important step is to repeal legal tender laws that restrict the ability of the people to use the currency of their choice. This would allow Americans to protect themselves from the effects of the Fed’s polices. Auditing and ending the Fed, and allowing Americans to use the currency of their choice, must be a priority for anyone serious about restoring peace, prosperity, and liberty.

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Rainman's picture

Audit the Fed..? hahaha all be way corpsed before that happens. Nobody even really audits Fannie Sham or Gubmint Motors,....hahahahaha .  funny

Anusocracy's picture

Government exists so that those operating it don't have to earn a living.

They're not going to put their con at risk.

Harbanger's picture

"Audit the Fed..? hahaha all be way corpsed before that happens."

Bullshit. Central planning by the professed "elite" is failing again.  Long live Individual Liberty!!  Down with control freaks and sociopaths.

Rainman's picture

yeah...reminds me of the old " peace and love " bullshit back in the day. Where the power ?....humans can't galvanize into acheiving results when they don't pay attention...simple as that

Harbanger's picture

"the old peace and love " bullshit back in the day."  -was just that, BullShit led by neo-statists in power.  The sheep only pay attention when moved by personal circumstance, ie. direct financial problems or a contradiction to inherent beliefs about the system supporting them, ie, obamacare wil help you.  The march of statism is being exposed for what it is by information through the internet.  This conflicts with their "belief" that the state represents them.

CH1's picture

More and more people are paying attention, my friend.

MontgomeryScott's picture

I finally saw the Honorable Congressman from the great state of Texas, Dr. Ronald E. Paul, make a mistake. I never thought I'd actually catch him doing it...

He referred to that future Fed Chair as 'MS.' Yellen.

For future correction and eludication, the term is 'MR.' Yellen, Doc. MISTER Yellen.

Thank you, President Paul, for allowing me to correct you on this small matter.

A Nanny Moose's picture

Are those the people who advised never trusting anybody over 30? How old are they now? Who is in charge of this shit?

rubiconsolutions's picture

Auditing the Fed is like auditing Al Capone. A thief is a thief is a thief. Period. The Federal Reserve steals by way of inflation and its fractional reserve system of money creation. Besides, they probably have two sets of book - one for any auditor and the other for insiders. By calling for an audit it just attempts to legitimize an illicit and immoral entity.

baby_BLYTHE's picture

An "audit" would accomplish very little since we already know the system is rotten to the core and the FED is its centerpiece. The buck begins and ends with congress as it always has: !

rubiconsolutions's picture

Actually, the buck stops with the American people who continue to tolerate this. The congress is complicit to be sure but it's the people who continue to enable their behavior by electing them over and over again.

Devotional's picture

How do you, Americans, not have this man as your president?

Gringo Viejo's picture

Because the electoral process is a compromised illusion.
Our Presidents are corporate lackeys.
If you don't believe me
ask John Kennedy.

Xibalba's picture

When corporations have more power than the individual... 

wahrheit's picture

Yes, "corporate personhood" has a lot to do with this.  Corporations shouldn't have more rights than individual humans.

A Nanny Moose's picture

Corporations are a construct OF humans. Corporations do not exist without government.

RaceToTheBottom's picture

We base our presidential decisions on whether you would be a good person to drink a beer with....  Ideas don't enter the equation...

Terminus C's picture

A quick look at who he opposes should answer that one for you.  Most Americans, or people in any "western 'civilized'" nation for that matter, would not even understand (nor care to understand) what this article was saying.

TeamDepends's picture

We were delegates for him back in '08.  Got to see the belly of the Republican beast.  The horror, the horror.

vulcanraven's picture

Thanks for at least giving it a shot in their rigged game.


Harbanger's picture

It's more than just a shot in the dark, the liberty movement is growing day by day, person by person.  That's all that matters to me.

Bro of the Sorrowful Figure's picture

downvote me if you want, but there needs to be a radicalized arm of the liberty movement. im thinking that a few of the heads of project for an american century and some top bankers need to be, ahem, rolled if we want any real shot at tipping this clusterfuck in our favor. if a non politician gets taken out theyll start tripping over themselves and making all sorts of idiotic mistakes, i dont really think they anticipate that type of thing. plus at least then we'll be 100% sure there's one gun incident by a "tea party activist" that wasn't a false flag.

Bro of the Sorrowful Figure's picture

maybe leave a little note, a calling card if you will: "first they came for the executives, then they came for the board members...."

666's picture

Because most Americans are on the dole and will only vote for whoever gives 'em the most without their having to do any work whatsoever.

Waterfallsparkles's picture

Time to go back to the poll tax.  You either own property or pay a tax to vote. 

If you are on total Government Welfare or subsistance you should not be able to vote.  You should not have the right to take away someone elses property and give it to yourself.  That was the reason for the poll tax in the first place.


Xibalba's picture

Except now they are fighting over the illegal immigrant vote. 

XitSam's picture

You meant to say "undocumented Democrats".


waterfall           Soros would just have some choom outside the poles to give out poll tax money and nothing would be done about it.

nc551's picture

RP came out as a major contender against Romney very early.  As soon as he was over 20% in the polls they started to marginalize him by completely ignoring him or calling him names.  At the same time they also wheeled out Santorum and Bachmann and Gingrich.

I'm not a fan of John Stewart for his usually status-quo supporting rhetoric but he hit the nail on the head in one piece: search for "ron paul 13th floor" or follow this link

HardAssets's picture

Devotional:  "How do you, Americans, not have this man as your president?"

Americans have been purposely dumbed down in mandatory public 'schools' for a century. They have been propagandized by mass media. For the last 60+ years they have sat drooling while watching mindless t.v. junk.  Drive through any neighbood in the evening and you will see the bluish glow through the windows , of t.v. sets as you drive by. Raise the idea of not having or watching a t.v. and most Americans will react with shock. Many will react with anger. - - -Most Americans don't read a single book after leaving high school. 42% of American college graduates haven't read a single book after leaving university. Some receive higher, university level technical training but critical thinking is limited to their professions. Its not uncommon to run into engineers, doctors, and scientists who are as ignorant about the broader world as the rest of the population. Ask a scientist or doctor "What is fiat money?" or "What is the Federal Reserve ?" and most of them don't know. Ask just about any American "What is a democratic Constitutional republic ?"  and they likely won't know the answer to that question.

Thomas Jefferson warned that a nation cannot be ignorant and remain free

These are a few of the reasons why Ron Paul is not president.

A Nanny Moose's picture

It's impossible to compete with Satan Claus.

rubiconsolutions's picture

"How do you, Americans, not have this man as your president?"

Because, as HL Mencken said - "As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."

Unfortunately, president Obama represents the 'inner soul of the people' and Ron Paul does not.

HardAssets's picture

Mencken is one of my favorites. I didn't down arrow you, but I disagree about the 'inner soul' of people.

John Taylor Gatto did a great deal of research on education in America and was an experienced teacher who was voted NY state and NYC TEACHER OF THE YEAR.  He taught all over NY - in poor schools in Harlem and rich schools in uptown Manhattan.  He found, after the rough edges were accounted for, - chilldren were all capable of learning and achieving wonderful accomplishments. (Often the poor kids did better than the ones from rich families because they were survivors in an environment with predators, so could quickly adapt and thought better 'on their feet'.)

The oligarchs dumbed down school for a reason - to advantage their off-spring.

Before this happened Americans were accomplishing many things starting at a young age. This was noted by people around the world as the American Character - independence and creativity and energy not bound by class restrictions.

That American inner soul is the human inner soul. Its time to release it again. The oligarchs fight tooth & nail to prevent that and keep people thinking they are small and insignificant.

bigdumbnugly's picture

the fed is obviously robin hood's evil alter ego

BlackChicken's picture

Does anyone remember an old Monty Python skit where one of the cast played Robin Hood? He ripped off the rich until they were poor and kept giving everything to the same family until there was nothing left to give.

Then they had a song that went something like: he steals from the poor and gives to the rich...that lousy bitch.

Now it is Jabba's turn where Benny left off; how fitting.

Gringo Viejo's picture

If memory serves, I thought it was the Sheriff of Nottingham that did it.

world_debt_slave's picture

A workaround the talking ads on ZH, just click on it and close that website and stops the irratating ads.

Shad_ow's picture

Ghostery for Firefox and you never have to see them.

bunzbunzbunz's picture

That's a good way to help ZH get more money.

Zero Point's picture

I tell people to stop watching TV too.

No networks have come to kill me yet, so I reckon they're unfazed by my activism.

Charles Nelson Reilly's picture

Fuck you GreenBernEllen!


Fed induced inflation is as much redistribution of wealth as the welfare system.

Terminus C's picture

No, the welfare system is propaganda... mere public relations, and a useful scapegoat.  Inflation is the real wealth distributor.


Terminus C               WalMart would be out of business without that propaganda PR scapegoat......that's some scapegoat.

Terminus C's picture

Sure, but in the scheme of the grande con, wally world is small potatoes.