Ron Paul Statement On The Fed's Bailout Of Europe

Tyler Durden's picture

From Ron Paul

Statement on the Fed's Continued Euro Bailout

The Fed's latest actions in cooperating with foreign central banks to undertake liquidity swaps of dollars for foreign currencies is another reason why Congress needs enhanced power to oversee and audit the Fed.  Under current law Congress cannot examine these types of agreements.  Those who would argue that auditing the Fed or these agreements with central banks harms the Fed's independence should reevaluate the Fed's supposed independence when the Fed bails out Europe so soon after President Obama promised US assistance in resolving the Euro crisis.

Rather than calming markets, these arrangements should indicate just how frightened governments around the world are about the European financial crisis.  Central banks are grasping at straws, hoping that flooding the world with money created out of thin air will somehow resolve a crisis caused by uncontrolled government spending and irresponsible debt issuance.  Congress should not permit this type of open-ended commitment on the part of the Fed, a commitment which could easily run into the trillions of dollars.  These dollar swaps are purely inflationary and will harm American consumers as much as any form of quantitative easing. 

The Fed is behaving much as it did during the 2008 financial crisis, only this time instead of bailing out politically well-connected too-big-to-fail firms it is bailing out profligate government spending. Citizens the world over deserve better than this. They deserve sound money that cannot be manipulated and created out of thin air by central planners who promise printed prosperity. Fiat money caused this European crisis and the financial crisis before it.  More fiat money is not the cure. The global fiat currency system has proven itself a failure, we need real monetary reform. We need sound money.

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slaughterer's picture

Wonder if this Paul missive heats up Fed attacks amongst the Congess Critters. 

junkyardjack's picture

No matter how many times they call the Fed in front of Congress, it'll continue to do what Goldman wants

Troll Magnet's picture

Anybody noticed how NPR is avoiding Ron Paul?  I listen to their morning & evening programs on my way to work/home and they never, ever mention Ron Paul.  I used to respect them a bit but it goes to show that they're just part of the propaganda machine.

Spend a minute and voice your complaint at their Website.  They need to hear from more of us. 

Pladizow's picture

Not-so stealthy QE3 Bitchez!

bigdumbnugly's picture

if a tree falls in the forest of the MSM, does it make a sound?

Mr Lennon Hendrix's picture

Not if it lands on the presstitutes.

trav7777's picture

But I'm sure that the REST of the MSM's message on a lot of "sacred truths" is totally 100% true, eh?

Mr Lennon Hendrix's picture

If you believe the opposite of what they say on everything except peak oil then you will be 99% correct (small margin of error due to slight humility).

trav7777's picture

the MSM is *correct* on Peak oil?  WTF

boiltherich's picture

WAIT:  Look over there, Iran is on fire!  Pay no attention to the chairsatan behind the curtain. 

Dear Mr. Paul:

I know that it will be impossible for you to win with zero news coverage but I want you to fight on anyway, and I am planning to cast my last ever vote for you as a write in no matter what because there is not another person running besides you that even I could not do better than, not a big ego here but a very dim view of all other candidates. Today the Fed set aside the last pretense of American freedom by bailing out European banks/governments, and congress and the president applaud.  Aside from the utter lack of shame on the part of Europe which refuses to get it's own house in order and would rather take trillions of our dollars than actually fix their own mess, the Fed should not have the authority to do this.  Congress has also decided to ratify the indefinite imprisonment of American citizens, without charge.  I cannot live in such a nation. 

Thomas's picture

All of the MSM outlets are now blacking out any mention of RP. I guess if you are going to purchase the media, you make sure you purchase the entire media. Given the constitutional importance of the media, I would call this sort of control treasonous.

bernorange's picture

It's up to individuals like you to help spread the word and start pressuring your Congressional Representatives.  Sound money if you want it.  Have you asked your Congressman to co-sponsor or support HR 1098?

LFMayor's picture

oh yes, by all means call your representatives.  As if those fuckers are going to do a damn thing to spill the soup bowl they're eating from

They wouldn't piss on you, (or any of us) if you caught fire at their very feet. 

bernorange's picture

Fortunately, a bunch of people took a more constructive attitude in telling their reps to support an audit of the Fed back in the day.  It finally forced Barney Frank to let Ron's bill have life after more than half the House was co-sponsoring it.  If your Rep only hears from one or two constituents, it's not going to bother him.  If he hears from enough mad as hell voters though, self preservation instincts kick in.  At any rate, it costs you much less to pick up the phone or send an email / letter / fax than to do nothing and give tacit support to their shenanigans.

LFMayor's picture

Whew, glad that bill passed,  we're saved!

their shenanigans will be their undoing.  Time and Greed have gotten us to this point, near the crux.  they couldn't help it, it's in the sociopaths nature to destroy himself  Soon they'll learn all about self-preservation instincts, and not because of stern talking to's from over the phone.

bernorange's picture

You totally missed my point.  I understand your fatalist POV, but it is still possible to pressure Congress to act according to the will of their constituents.  Constituents have to be willing to speak, however.

smlbizman's picture

let me ask......when your constituents provide you with 2 trll a yr in revenue..

and your other constituents provide you of at least 10 trll a yr....

who is your constituents?

Real Money Wins's picture

Citizens Arm Yourselves

The time for talk is over!

Let the Traitors swing from the Liberty Oak Trees!


Sic semper tyrannis

Steaming_Wookie_Doo's picture

I think the Bawney Fwank exit is very interesting, considering he could do damn near anything with total impunity. Why go now? Is he leaving because he's going to suck off the private industry teat (vs what he's used to sucking), or is he in the "unfavored" category now?

whirlybird rules's picture

with all due respect, is doing nothing better?

LFMayor's picture

Fair question.  Nothing, or spending your free time networking locally, reloading, prepping, learning? There's a big difference.  refusing to waste time in a rigged game is not nothing, it just means I have that much more time to spend elsewhere than upon self ensnarement.

There is no saving the system.  you cannot win because that's the way it was designed.  It's just an illusion to keep you placid. 

Join 10k other protestors at the reflecting pool in DC
Give to United Way

All designed to make you feel like you're making a difference.  All amount to nothing.  All designed to trap you into an unerring faith in the very system that's trapped you.

The Big Ching-aso's picture



"Sound" money to some people these days is the unique ringing noise certain types of coins make when dropped.

Lester's picture

Exactly!  +1000


Members here mostly, Want To Believe?  Wasn't that the X-Files movie title?


If Ron Paul had a clue about how he could "make a difference", he would already have done so.  The men we entrusted to safeguard our money have stolen it ALL and used a tiny portion to bribe our elected officials and government workers wherever the money we entrusted to them needed to be applied.

These are the same fucking bastards from Wall St. and City Of London who fomented the Bolsheviks and Communist Revolution to rob the Tsar and keep Russia and the rest of the world off-balance while it looted them as well.


Grow the fuck up.  The system has been perverted into their perfection and they have looted U.S. continually over the past 3 years.  Every bit of money that could be looted under auspices of Federal, State, and Local govt has been LOOTED or put onto the publics back using debt financings based on FRAUD.

Your vote means even less than your opinion.
If you haven't taken action to secure the future for your family by now, you have failed to observe what the Looters have arranged for you; namely, destruction, starvation, or outright murder.

Only you can take the steps which might mean your bloodline will survive.
The elections have been rigged for years and nothing ever is changed or repaired.
All the seedstock has been eaten, and there is nothing left to build on or plant; UNLESS you make provision for self & family.  The political circus is just a charade.

Paul ought to be leading a Revolution, rather than scratching his head in wonder and being Mr. Nice Guy.  He is too old, too timid, and knows there is nothing to save should he actually gain power.  We are long out of what Naomi Wolfe called "that awkward stage", but nobody will voice what must be done to those who put America and Americans into financial ruin and made sure there could be no rescue...

whstlblwr's picture



LFMayor's picture

Obama is Ron Paul is Newt.   Just like Dole was Clinton was Perot.
It's always two wings, same shitbird.  The 3rd (or Green, Libertarian, Independent) is just an insurance policy of distraction and divisiveness.  Play their game and you lose.

Save you gas money and time and buy silver rounds or 7.62 instead.  They won't fail you.

whstlblwr's picture

Most idiotic comment ever on ZH. Bullshit. You tell this to Gene Sharp and see what he has to say about it.

redpill's picture

Ron Paul is the only sane voice in the chorus of global madness.

Mr Lennon Hendrix's picture

There are a few I like, but Paul is the best because I agree with him on monetary policy and the constitution.

I have a hard time with some of his policy because it is obvious that there will be systemic failure.  Then I remember I am an optimist when it comes to human ingenuity, and I realize that we will remake this once great Nation into how we see fit.

For example:

I wish we could have public schools for all.  But the problem is that the public school system has turned into a prison system for children.  Once it collapses I think maybe there will be more freedom.

I can only be an optimist and stand up with people to decide our fate.  Taking power of our destiny is our only choice.

wanklord's picture

By appealing to tons of bullshit about the Constitution and other patriotic crap, Congressman Ron Paul is able to seduce his brute and ignorant constituency while doing nothing at all in Congress (a clever way to make easy money). He is just part of the establishment while pretending to be a "genuine patriot." Dr. Paul is also a mediocre version of one of Leo Strauss' categories of society: the Gentlemen

The gentlemen, are lovers of honour and glory. They are the most ingratiating towards the conventions of their society – that is, the illusions of the cave. They are true believers in God, honour, and moral imperatives. They are ready and willing to embark on acts of great courage and self-sacrifice at a moment's notice.

Besides that, Americans are a bunch of stupid animals easy to manipulate and subdue. The sooner the US economy collapses the better, so these brutes will finally learn NOT to live beyond their means.

whstlblwr's picture

No one can under estimate the measure status quo will take to undermine Ron Paul election.

Those who live in closed primary state, change your voter registration to Republican to vote for Paul in primary. In some states registered independents can't vote for Republican.

Closed primary states:
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Rhode Island
South Dakota
West Virginia

Mr Lennon Hendrix's picture

Paul voted against the Patriot act, he voted against Bernanke's renomination, he voted against the Afghan and Iraq wars....come on, he walks the walk.

The Constitution is all we have to defend ourselves from the fascist government(s).

You tell me Americans are stupid, but how about that there are plenty of stupid people in the world.  But we do not care about them, they are followers, and they will be lead to water or not.  We must lead now, and Paul is a proven leader.

mayhem_korner's picture

Paul voted against the Patriot act, he voted against Bernanke's renomination, he voted against the Afghan and Iraq wars....come on, he walks the walk.


Let me point out the obvious, albeit unpopular truth: ALL of those things passed despite Paul's vote against.  Which reinforces my point about Paul: resonant and effectual are very, very different concepts.

Mr Lennon Hendrix's picture

Effectual, in this congress?  You are saying Paul is inefectual, because of the Congress that surrounds him?  This thought lacks sound logic.

mayhem_korner's picture



You say he's a proven me what he's led that actually has been passed.  How many followers does he have in Congress?  He is an isolated element, even if he's the most sane one in there.

Don't get me wrong.  I think the guy is a great voice.  I'm just pointing out the reality of what it amounts to in practical terms. 

TruthInSunshine's picture

You're right, MK, we'd be much better off with no one like Ron Paul, because he hasn't won the battles (the War still lay ahead, however), rather than someone like him, who has influenced millions and planted seeds that will inevitably grow into might oaks.



mayhem_korner's picture



Actually, I was thinking we'd be better with 454 Ron Pauls.  Just turn your lens around and you'll see what I'm really saying.  :D

TruthInSunshine's picture

If that were the case, I'd think you'd be lauding his accomplishments, rather than dwelling upon what you are at least implicitly alleging to be his legislative failures (which, as you and I both know, were the result of a corrupt majority in Congress and the Executive Branch, and not the fault of Ron Paul).


*have not junked you.

mayhem_korner's picture



No, what I'm saying is that if you remove the impediment of the people around him, you might get something done.  That, sir, is more practical than expecting him to overcome the current situation.  Transforming him from ineffectual to effectual has to do with changing the people around him.

Eventually you'll latch on to this and realize I'm on your side, dood.

TruthInSunshine's picture

As a practical matter, don't you have to replace those people "around him" with people who have the same or similar core beliefs about federalism, adherence to the Constitution, etc., as Ron Paul?

And if so, wasn't Ron Paul's tenure in Congress necessary as the seed that sprouted into a changing of the corrupt guard?

I don't see how real, productive change is possible if you supplant the criminals in Congress of today with criminals in the future.

Capt Tripps's picture

Just once, I wish somebody would call me "Sir"... without adding, "You're making a scene..."

trav7777's picture

You can't get rid of them.

Imagine Bartlett's statement in a boardroom in a conference.  ONE guy understands the exponential.  He tries to convince the group that at time X, the expectations will be 32x present.  The rest of the room can't grasp it and they say, naw, it won't be higher than double now (because they did a linear extrapolation).  Smart guy uses maths on the board.  Rest of group doesn't get it and VOTES that their estimation is correct.  The decision comes out which is provably, mathematically, apodictically WRONG.

This is the Downing Effect; it happens ALL THE TIME.  I have nothing but issues at work with these people because I am expected to SELL or use political means to make the right outcome happen.  The truth simply doesn't cut it.

I would wager that most of the Congressclowns have the "pure heart, empty head" that we discussed in law school.  They don't know, they can't grasp, so they hide in the safety of superior numbers or else wrongly believe that such a thing is simply beyond ANYONE's grasp (because they don't get it).

Advanced mathematics strikes most people as a con job.

saints51's picture

First post and glad to be here.


My question is how can the man be a leader when the rest of congress is a bunch of puppets? Hard to lead Congress when the majority are bought and paid for. All congress knows how to say is "yes master."

whstlblwr's picture

The whateveryoudodon'tvote trolls are out in force. Means some polling we don't see looks good for Ron Paul!

mayhem_korner's picture



Focus your energy on replacing the people around him.  :D

Michael's picture

The bigger we can make the debt bubble bomb for maximum effect before it explodes the better. I say print another hundred trillion.

mayhem_korner's picture



LOL!  Your placement in this thread is comedic timing at its best.