How Rand Paul Can Free Americans From The Fed

Tyler Durden's picture

Authored by Tho Bishop via The Mises Institute,

Ever since entering the Senate, Rand Paul has continued his father’s work in advocating for an audit of the Federal Reserve. This week, writing for the Daily Caller, Senator Paul renewed his efforts, illustrating how the recent era of unconventional monetary policy has made an audit all the more important:

In 2009, then-Fed Chairman Ben Bernanke was able to refuse to tell Congress who received over two trillion in Fed loans, and it took congressional action and a Bloomberg lawsuit to force the Fed to reveal the details of what it did in more than 21,000 transactions involving trillions of dollars during the 2008 financial crisis.  A one-time audit of the Fed’s emergency lending mandated by Congress revealed even more about the extent to which the Fed put taxpayers on the hook.

When pushed to defend the lack of transparency for the Federal Reserve, officials like Janet Yellen and Treasury Secretary Steve Mnuchin point to the myth of the Fed independence - a position that requires outright ignorance of the history of America’s central bank and the executive branch. Of course it’s quite usual for the Senate to base the merits of legislation entirely off of fallacious arguments, so they have continued to be the legislative body holding up a Fed audit with little indication they are prepared to move.

Given that reality, it is time for Senator Rand Paul to change his approach and introduce another piece of legislation from his father’s archives: the Free Competition in Currency Act.

While not as catchy as “End the Fed”, this piece of legislation – inspired by the work of F.A. Hayek – was perhaps Ron Paul’s most radical pieces of legislation. The idea was quite simple: eliminate legal tender laws mandating the use of US Dollars and remove the taxes Federal and State governments place on alternative currencies - such as gold and silver. While the original legislation did apply to “tokens,” an updated version should explicitly include the growing market of cryptocurrencies as a good with monetary value that should not be taxed.

What this would do is create a more even playing field between the dollar and alternative currencies, allowing an easy way for Americans to safeguard their wealth if they ever have reason to doubt the wisdom of the Federal Reserve’s policies. Just as Senator Paul advocated for the ability of Americans to be able to opt-out of the failing Obamacare system, this bill would grant Americans a lifeboat should the weaknesses inherent with the Fed’s fiat money regime expose themselves.

Unlike most examples of monetary policy reforms, which tend to be the products of ivory tower echo chambers, competition in currency would reflect active political trends. In recent years, states like Texas, Utah, and – in 2017 – Arizona have passed laws allowing the use of silver and gold for use in transactions. Meanwhile, other countries have looked to embrace the potential of cryptocurrencies for their monetary regimes. This makes this not only an idea that is good on paper, but one whose time has come.

As alluded to before, simply because a policy makes sense does not mean the Senate will act on it. That doesn’t mean the conversation and debate isn’t worth having. While it may still be on the horizon, there has been a steady drumbeat in Washington for the Federal Reserve to face some sort of reform. For two Congressional sessions in a row, the House has passed legislation explicitly calling for the Fed to embrace a “rules-based monetary system.” While this approach may sound better than today’s PhD standard, it doesn’t solve the problems inherent with central banking and fiat money.

Monetary rules such as “NGD Targeting” – which has the support of a rare coalition including the Cato Institute, Mercatus Center, Christina Romer, and Paul Krugman — should never be seen as a “reasonable compromise” for those skeptical about the Fed. Instead it’s simply another way of disguising central planning in a way to make it more palpable to the public, and therefore more difficult to stop. By putting this bill out there, Rand Paul can help frame the debate and bring a real solution to the table. Something that wouldn't force the Fed to change a single thing, only making them compete on the market like the producer of other good or service. 

After all, as is the case with healthcare, or shoes, the best sort of “monetary policy” is competition on the market. Not one dictated by government. 


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VWAndy's picture

They pay his salary.

J S Bach's picture

Thanks for the laugh! So, the guy who genuflected at the Wailing Wall is going to (*choke*) end the Fed? (Pardon me, I couldn't hold back another chuckle.)

BullyBearish's picture

if it's not BLOCKCHAIN, it's not real...

ultraticum's picture

Well intentioned 1/100th of the Senate.  But there is hope:  we don't really need thieving Uncle's blessing to use math privately between two people, anywhere.

sarz's picture

J S Bach, I agree it's pretty disgusting to see politicians ass-kissing Jews. Some do it because they are whores and maybe some because they are biding their time. Like Bannon? Trump? 

The Russia sanctions vote had two senators and three representatives voting nay. (((They))) used sll the dirt at their command and even had Tulsi by the balls. But Rand Paul declared his indepenfence. (((Bernie Sandsrs))), who had saved the Fed by amendment-gutting the Audit the Fed bill of which he himself was the Senate sponsor, was of course told to look less like a Jew and more like a man. Hence his 'no' vote. 

Time to cut Rand Paul some slack. Who else is there? 

Implied Violins's picture

Ah, and this illustrates the differences between chuckled, while I taste vomit.

Justin Case's picture

How Rand Paul can join JFK

Give Me Some Truth's picture

If the Fed has nothing to hide, they should not fear such an audit.

If the press really cares about transparent government and serving as a watchdog for the most powerful entitites in the world, they would be demanding this ... instead of fighting it.

Thank you, Senator Paul. For a while there, I was worried that you had forgotten all about this issue.

I will tell you that Trump ain't supporting no freakin' Audit the Fed. (or, perhaps more specifically, his Goldman Sachs advisors ain't supporting no audit. He opposes what they tell him to oppose.)


rubiconsolutions's picture

Sometime I want to throw a fucking rock at my computer. Why the hell do we need a "Free Competition in Currency Act"? I mean really, another feral government sanctioned law to tell me I can use whatever currency I want? Shit! I don't need anyone to tell me what I can use as currency. Especially the government. If I want to use gold or silver or Bitcoin or African trade beads or cigarettes or whatever I want I will. People keep looking to government for solutions and they ain't there folks. Rand Paul may have good intentions but listen, he's a government hack like all the others suckling from the teat of the taxpayers. Is it too early for a whisky?

Give Me Some Truth's picture

Is it too early for a whiskey, dang, don't have a cow or drink that whole bottle. The Ron Paul "answer," now endorsed by ZeroHedge (thank you!) is nothing to go ballistic over. It would be an immense improvement over the Status Quo. 

If you "want to use gold or silver" today feel free to give it a whirl. You can find people who will trade it for its real value, but most people in the world will look at you like a zombie if you try to offer them, say, a silver dollar to buy 11 gallons of gas.

Competing currencies is one of Ron Paul's best ideas. As it does look like "Audit the Fed" will get nowhere with our great new "populist" president, maybe this is the path we should be pursuing. May the best money win!

On that whiskey, remember when a cowboy used to sauter into the saloon and buy himself a whiskey, sometimes even the entire saloon, and for payment he threw a silver or gold coin on the bar? 

That actually happened over and over, in our nation's history. Silver and gold were universally accepted forms of payment, even if the coins or medallions didn't have "official currency of the U.S. government" written somewhere on it. That is, this is NOT a radical proposal. And: If the U.S fiat currency is so dang great, the U.S. government shouldn't fear any competition, right?

SybilDefense's picture

As a DDS I hand out Silver Dollars on Halloween instead of candy.  I had some left over and tried to pay for breakfast the next morning with them. The waitress AND cashier both denied me using them because they had to check with the manager who wasn't there at the time.  Instead of creating a scene and trying to educate these folks, I used my card.  I still have the roll as a suvenier of that day.

Crazy times my friend.  I like Rand btw as much as one can like a politician.

N2OJoe's picture

You already can use whatever currency you want, so long as it's call the US Dollar. Otherwise you are free to pay taxes out the ass on anything that's not called US Dollar and run afoul of Legal Tender laws.

The Wizard's picture

I believe Rand would agree with you if we didn't have a central bank and their owners controlling the currency system. However, in order to undo damage from central banking and government it requires legislation to do it.

Honey-Badger's picture

As always this will be shut down in the senate/congress, the only way to fix the situation is to roll the guillotines.

c2nnib2l's picture

Ron Paul or Rand Paul should take Gary Cohn place

lester1's picture

Owning physical gold and bitcoin frees you from the Fed !!

Yes Peter Schiff.. Bitcoin is an asset outside of the Fed's control.

We know you're lurking here..

American Psycho's picture

haha.  As a Schiff fan that comment made me laugh.

TVP's picture

I'm a former Schiff fan, own several of his books.  

But his ramblings about Bitcoin show him to be either an insider shill or an ignorant fool.

He makes statements that demonstrate a fundamental ignorance of blockchain technology, and assumes that he's right based on them, that his arguments have any soundness at all.  Things like saying "bitcoin is only big because it was first", having no idea that it's the most secure, making it the most valuable.  He states that "no one accepts bitcoin as payment", being completely oblivious to the fact that many of his beloved gold hustlers offer a discount for direct bitcoin payments, not to mention Overstock, Expedia, and the list is growing.  He's just pumping his failing Goldmoney business.  

And he doesn't seem to be aware of any of this:

"Within three years, two firms plan prospecting missions to passing asteroids. When even a modest space rock might meet demand for metals like platinum or gold for centuries..."    <Article from 2013>

Goldbugs, meet your roundup.  Peter Schiff, suck one.  

malek's picture

"...having no idea that it [bitcoin] is the most secure, making it the most valuable."

So you're such a security guru, that you cannot only tell how safe bitcoin is but even have evaluated all competing crypto-currencies?
And we should simply believe your word on that?

And my bullshit-detector just exploded.

HRClinton's picture

That's right, Pete. It's time that you, as a Freedom-loving American libertarian, came out fully for the...

PARALLEL ECONOMY. The Economy of Free People.

Free to use BARTER, CASH, CRYPTO, GEMSTONES and PRECIOUS METALS as Real Money. Money that isn't fiat and fraudulent currency of a private and secretive money cartel, but is based on real assets.

Any Congress critter who is opposed to this, shall automatically be placed on the List as an Enemy of the People and the Constitution. The consequences of being on said List are... severe and final. No more Talk, Delays, Redirection or Blocking. It's "Do or Die" time.

(BTW, it's also time for some retarded assholes on this blog to get a grip and stop being pre-programmed shills, advocating one form (PM) and dissing other forms (Crypto or Gems. Such dissing makes it clear that they are either 'regards', or shills.)


hardmedicine's picture

expecting a couple shipments today!

Chupacabra-322's picture

Get this man 24 hour round the clock Security.

gatorengineer's picture

He doesnt need it, he is a deep state Neo-Con in Camo.  Just like daddy

JonNadler's picture

the idea that Rand Paul alone could take on the FED is beyond stupid

anarchitect's picture

Yes, which is why it will take legislation to audit the Fed or remove capital gains taxes on monetary metals.  Hmm, I wonder if the latter includes copper, nickel, and more recently, zinc.

BandGap's picture

Then fucking do it. Audit the Fed, and then introduce legislation to either 1.) do the will of the people or 2.) go die.

Enough of the talk already, fucking do SOMETHING.

Justin Case's picture

The Fed owns USA Inc.


Subject:  .The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303
Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:

 "Mr. Speaker, we are here now in chapter 11.. Members of Congress are
official trustees presiding over the greatest reorganization of any Bankrupt
entity in world history, the U.S. Government. We are setting forth
hopefully, a blueprint for our future. There are some who say it is a
coroner's report that will lead to our demise.

 It is an established fact that the United States Federal Government has
been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1,
Public Law 89-719; declared by President Roosevelt, being bankrupt and
insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint
Resolution To Suspend The Gold Standard and Abrogate The Gold Clause
dissolved the Sovereign Authority of the United States and the official
capacities of all United States Governmental Offices, Officers, and
Departments and is further evidence that the United States Federal
Government exists today in name only.

The receivers of the United States Bankruptcy are the International
Bankers, via the United Nations, the World Bank and the International
Monetary Fund. All United States Offices, Officials, and Departments are now
operating within a de facto status in name only under Emergency War Powers.
With the Constitutional Republican form of Government now dissolved, the
receivers of the Bankruptcy have adopted a new form of government for the
United States. This new form of government is known as a Democracy, being an
established Socialist/Communist order under a new governor for America. This
act was instituted and established by transferring and/or placing the Office
of the Secretary of Treasury to that of the Governor of the International
Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part:
"The U.S. Secretary of Treasury receives no compensation for representing
the United States."

bluskyes's picture

Then the Federal government needs to be liquidated

fbazzrea's picture

but not until AFTER we've repo'd all the Fed's illegitimately issued $trillions. otherwise, the banksters will just use their "fake" fiat (double-fake) to purchase America.

c2nnib2l's picture

never going to happen but at least we can dream about it


I woke up's picture

Yeah, right up there with all those Obamacare repeals under Obama and then they can't pull it off when Trump is willing to sign

detached.amusement's picture

Yall forget that the Officers of The Corporation will not go against their directives, which have ZERO to do with The Constitution For The United States of America and everything to do with the corporate bylaws of some corporations based out of puerto rico, and elsewhere.

fbazzrea's picture

and defended in courts with Admiralty Law's yellow-fringed flags.

Erwin643's picture

I hear all this stuff about freedom from the fed, bitcoin and precious metals, blah blah blah.

But I'm currently doing really well trading (the lack of) volatility in these markets.

You got to think like the big dogs to win at this game.

Chupacabra-322's picture

"It's over Johnny." The following is from March 2015.

Renowned economist Laurence Kotlikoff recently testified at the U.S. Senate about the runaway U.S. budget. How bad is it? Kotlikoff says, “I told them the real (2014) deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. . . . The government is 58% underfinanced . . . . Social Security is 33% underfinanced . . . . So, the entire government enterprise is in worse fiscal shape than Social Security is, but they are both in terrible shape.” So, how much is America on the hook for in the future? Kotlikoff contends, “If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justices’ salaries, Social Security, Medicare, Medicaid, welfare, everything and take all those expenditures into the future . . . and compare that to all the taxes that are projected to come in, and the difference is $210 trillion. That’s the fiscal gap. That’s our true debt.”

Professor Kotlikoff goes on to say, “It will collapse. It is just a matter of when.

Catahoula's picture

Rand the savior. Lol

VWAndy's picture

Whores are going to audit their pimps?

medium giraffe's picture

I think it's safe to say that you've stripped this argument down to its most basic essentials.

TVP's picture

I don't think any other rhetorical question could possibly have described this better.  You sir, are a wordsmith of epic proprotions.  

wmbz's picture

Rand could call for an audit from now until the day he dies...It will never happen!

HRClinton's picture

It's beyond his means to do anything but expose these bribed and corrupted Traitors.

These Traitors have ZERO motivation to change course, given who pays them: Banksters. 

There is only one way to remove them from office, but removed they must be.

bunkers's picture

Rand is not Ron.

detached.amusement's picture

And the Corporate Officers' actual constituency is the owners of the central banks



this is why its laughable thinking anything will get done before there's some sort of overthrow of it and an article V mess to sort out.

omi's picture

He can't, he's a politician.

unplugged's picture

Here's a better idea for Rand that requires NO new legislation....


No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.

Every day, all 535 members of Congress wake up and willfully ignore the law.

Every day, all 9 members of the Supreme Court wake up and willfully ignore the law.

Every day, the President of the United States wakes up and willfully ignores the law.

And many more in the federal govt who have sworn to uphold the Constitution.

Not only the law, but the supreme law of the land – The Constitution – that they all have decided to ignore – every day that they are on the job.

How can any citizen of the U.S. have any faith in any member of the federal govt under this condition?  How can any citizen of the U.S. trust any member of the federal govt do to what is right and just?  Right now we are a “nation of men” and not a “nation of laws” – otherwise known as a “dictatorship”.

U.S. Constitution - Article 1 Section 10

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Control of the Congress.

No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.


Wake up tomorrow and make the right decision to follow the law. Practice genuine leadership.

rejected's picture

No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.

Yep,,, and only refers to the individual States. Not the Federale's

No State Shall.......

Abaco's picture

Congress has the power to coin money and regulate the value thereof.  It has no power to create a central bank or issue fake "notes."

Mena Arkansas's picture

You already missed your golden opportunity to free the US from the claws of the central bankers while you had them conveniently cornered in Jackson Hole. Guess you'll have to wait till next year for Operation: End The Fed.