Last week I had the opportunity to bring up spending and transparency in two important hearings. On Wednesday I questioned Federal Reserve Chairman Ben Bernanke on some highly questionable uses of funds at the Federal Reserve, and on Thursday I asked Secretary of State Hillary Clinton about exorbitant spending at the State Department.

It is extremely important to continue bringing these issues up, especially in light of our difficult economic times, when so many are out of work, as I saw up close in my district at the Oceans of Opportunity Job Fair in Galveston two weeks ago. Those who are working live with the fear of losing their jobs as they struggle to pay bills. Meanwhile, Washington is talking of increasing their taxes, something voters were promised, clearly and adamantly, would not happen in this administration.

Government also struggles with money, but the struggle centers on how to get more of your money into government coffers. Rather than expanding the Federal budget in the face of economic downturn, we should be focusing on eliminating waste and being the very best stewards of public funds that we can possibly be. Most businesses have had to streamline and cut back in order to survive, and so it is only fair for our government to do the same.

Instead, the State Department is building a $1 billion embassy in London, the most expensive ever built. The plans even include surrounding it with a moat! I asked the Secretary of State about this massive expenditure, and she claimed the funds for this were coming from the sale of other properties. If money can be saved, then save it! Don't spend it on such an extravagant structure overseas when people back home can't find jobs or pay bills. Not only that, but the administration has committed to doubling foreign aid. That is one promise that is likely to be kept, despite our economic crisis.

I asked Chairman Bernanke about Federal Reserve agreements with foreign central banks and if he had had any conversations about bailing out Greece, which he flatly denied. However, he recently announced that the Federal Reserve will be looking into Goldman Sachs' derivative agreements with Greece. Goldman Sachs, as we know, has "too big to fail" status with the Fed, so it is conceivable that any Greece-related catastrophic losses at Goldman Sachs will once again be passed on to taxpayers.

Perhaps most sinister are the revelations in Robert Auerbach's book "Deception and Abuse at the Fed" that $5.5 billion was sent to Saddam Hussein in the 1980s - money that allowed Iraq to build up its military machine to fight Iran prior to the first Gulf War, the very machine turned against our brave men and women within just a few years! I agree with Bernanke's characterization of this it is indeed "bizarre" to think that Americans at the Federal Reserve could engage in this type of behavior, which some have called "criminal". However, Professor Auerbach served as a banking committee investigator, and as an economist at the Treasury Department and at the Federal Reserve. His claims are hardly without merit. In fact, they are solidly backed by court rulings and other evidence.

The lack of accountability and transparency in our leaders on government spending is appalling. We simply must keep pressing these issues and voicing our objections if we are ever to reverse our failed policies.

Ron Paul is America's leading voice for limited constitutional government, low taxes, free markets, and a return to sound monetary policies.

Last week marked the one year anniversary of the American Reinvestment and Recovery Act, or the stimulus bill, passing into law. While the debate over its success has been focused on whether or not it is stimulating the economy and on various questionable uses of funds, in my estimation this legislation is accomplishing exactly what it was intended to accomplish — grow the government.

Those of us concerned about the ever increasing level of government debt gasped at the astonishing $787 billion cost estimates for this bill. True to form it has actually cost 10 percent more at $862 billion. We heard over and over that government could not sit around and do nothing while people lost their jobs and houses. The administration claimed that unemployment would not go above 8 percent if the stimulus bill passed. Now, a year later, the government estimates that unemployment is over 10 percent. The real number is closer to 20 percent. It appears that those promises were total fabrications in order to close the deal.

In any case, the American people know that more government spending obviously equals more government. If the goal was to strengthen the private sector, Congress would have allowed businesses and individuals to keep more of their own money through meaningful tax cuts. Outrageously, the administration claims that they did "cut taxes" by reducing withholding, and that they have stimulated the private economy by increasing the amount of money in every worker's paycheck. What they fail to mention is they did not change the total amount of taxes due. This means that all that money not withheld from paychecks will add up to a big unpleasant surprise when returns are filed this year. Many tax preparers are already seeing shocked taxpayers having to come up with big checks to the government when they normally expect a refund. Stimulus, indeed!

The administration also claims that thousands of jobs have been created or saved by this massive spending bill, but these are just more government jobs, and counterproductive in the long run. Funding for the public sector necessarily comes at the expense of an overtaxed private economy. But, it makes sense that government would seek to expand its payroll since every new bureaucrat becomes a likely advocate for big government, when an increasing number of Americans are demanding the opposite. But the more the burden, the closer the government parasite comes to killing its host.

Rather than learning the lessons of the past year, the administration is moving full-speed ahead to do even more economic damage. With the stimulus bill set as a precedent and victory declared, another "jobs" bill is in the works. And, in order to address the unavoidable issues of our massive deficit, the administration has named a bi-partisan commission to find ways to decrease it. Tax increases on the middle class are notoriously back "on the table", exposing that campaign promise as another instance of merely saying what the people wanted to hear. If the obvious solution to our spending problems was seriously put forth, that is, getting back to the constitutional limitations of government, I would be shocked. More likely, this will be a tactic to increase taxes and spending in a way that passes the political buck.

Article written By Ron Paul
Published 02/23/10

Texas Congressman Ron Paul has delivered a riveting “State of The Republic” address on his Campaign for Liberty website, orating his thoughts on where the U.S. stands as a nation and what the future holds.

Paul warns that if the country continues along the course it is on, we will witness a three stage slide into social and political chaos, beginning with the current financial crisis, a coming dollar crisis, and culminating in mass unrest.

“Reality is setting in,” the Congressman urges, adding that the only way to prevent social breakdown is to embrace liberty and self reliance and reject the nanny state and government dependency.

“We are rapidly moving toward a dangerous time in our history. Society as we know it is vulnerable to political and social unrest. This impending crisis comes as a consequence of our flawed foreign and domestic economic policies, a silly notion of money, ignorance about central banking, ignoring the onerous power and mischief of out of control intelligence agencies, our unsustainable welfare state and a willingness to sacrifice privacy and civil liberties in an attempt to achieve safety and security from an inept government.”

“Dangerous times indeed.” The Congressman states, stressing that a street fight to restore liberty is not a good option.

“The only way that we can prevent blood from running in the streets is to offer a better idea of the proper role of government in a society that desires, first and foremost, liberty.”

“The social unrest will illicit cries for the government to exert unusual force to head off a complete breakdown of law and order. The ultimate trap will be set for a system of government claiming to protect a free society.” Paul states.

“If more power and police authority are not given to the Federal government, it will be argued that only anarchy will result. If more government policing power is given, it will mean a lethal threat to civil liberties.”

The Congressman also warns that it is naive to assume that the American people will not be the eventual target of draconian laws and restrictions already introduced in the wake of 9/11.

“Our civil leaders will not be hesitant to use these powers to maintain order, tragically, the people may even demand it.” he says.

The Congressman elegantly lays out the intricacies of the financial crisis and its history, specifically pointing the finger of blame at the Fed and in particular Ben Bernanke, referring to the crisis as Bernanke’s “very risky experiment with the health of our country and the wealth of our economy.”

“The worldwide financial system built on a foundation of paper has received the shockwaves of an impending collapse. The wild speculation in the derivatives market, the stock market bubble, the insurmountable debt, public and private, and the massive malinvestments have been shattered.”

Paul points out that doubling the money supply can hardly be a solution to a problem stemming from the creation of excess credit.

“It wouldn’t make much sense for a doctor taking care of a very sick patient from severe infection, to deliberately give the patient another infection – yet that is what the PhD doctors are doing to our very sick economy.”

“The only solution so far offered has been to print more money faster, keep interest rates low, at practically 0%, and remove all stops for controlling deficits. These are the very policies that caused the disequalibrium, and doing more of the same, but only faster, can hardly help our economy.” Paul comments.

“When it is revealed that the insider friends of the Fed and Congress get billions of dollars in bailout at the expense of the middle class, it’s no wonder the people are taking to the streets and directing their hostilities towards both Republicans and Democrats in Washington.”

Watch The Congressman’s State of The Republic Address in full:

Ron Paul was the lead guest on the Glenn Beck show, December 3, 2009, discussing Ben Bernanke, the Fed and fiat money.

I was appalled to learn of the denial of life saving treatment for Sherry Peel Jackson.

Sherry was one of the former IRS agents featured in Aaron Russo's America: Freedom to Fascism.

Here is a copy of a letter Sherry wrote detailing how the feds denied her medical care in prison and right now she IS IN THE PROCESS OF DYING.

From: "Colin L. Jackson"
Date: November 30, 2009 12:34:03 PM PST
Subject: Sherry Peel Jackson

Hi Friends and Family,

Please, pray for my wife, Sherry Peel Jackson. She's still having challenges while she's incarcerated. Thank you, in advance, for your prayers and encouragemenet. Here's a letter from Sherry to our Congressman, concerning her current situation.

God bless you.
In Christ, Colin

Dear Congressman Johnson

I am Sherry Peel Jackson, your former CPA. I am writing you because I am concerned about my health and my life. Prior to becoming a political prisoner I was the picture of health. In late June, 2009 I started experiencing a rapid heart beat on an irregular basis.

Since this had happened infrequently in the past I did not think much of it. However, in Mid July it started happening on a regular basis and I became concerned. I went to the medical staff twice in Mid July only to be given a one-minute EKG test and powerful meds without proper diagnosis. I did not take them because I had not been seen by a specialist. One week later, on July 21 at 12:45am I left the dorm in flip flops to go tell the officers that I was having a heart attack. The officers on duty called the ambulance and the ambulance checked my heart on their portable EKG machine. It was beating at 150 beats per minute. They took me to Leesberg (spelling) hospital where I remained until Friday, July 24th at 11:30pm. During the hospital stay it was determined that my heart was healthy but my thyroid was producing too much hormone, thus speeding up my heart.

This is called hyperthyroidism or Graves disease. I was given two medications by the hospital - Methimazole, which is an anti-thyroid agent used to reduce the amount of thyroid hormone produced by the body and Metoprolol, which is a beta blocker used to slow the heart.

The hospital doctor told me that in four weeks (approximately August 21) the prison medical unit was to do blood tests to determine how the thyroid medication was affecting my body.

The blood test was taken in late August and I was told that I would be placed on the appointment schedule to come over and review the results. I was never called. I went over in early September and inquired of Dr. DeLeon as to how to get blood test results. He told me to put in a request to staff, so I did that on September 15th. It simply asked to see the results of the tests.

Sometime after September 23rd I received a response in writing, from Ms. Marich, that stated that I could either make a sick call (come over early in the morning wait in line and fill out forms) or come to Open House to see the results. Open house is held only on Thursdays from 3:00pm to 3:30pm. I went to Open House Thursday September 30th and was told by Ms. Marich that she could not find the results! I watched her look through and around several piles of folders in her office but at no time did she look on a computer for them. She told me to check back later. On Wednesday October 28th I passed out around 4pm and was taken to medical and cleared.

On Friday October 30th my lips started turning black as if I had been a lifelong smoker. By Sunday November 1st my lips were fully black.

My boss, the Chaplain, called medical and a male nurse was sent over from the medium security men's prison on this complex (there are two maximum security, one medium security and one low security men's prisons on this complex with the women's camp). He took my blood pressure and oxygen and said there was nothing else he could do. He told me to go to sick call Monday morning, which I did.

I showed Mr. Coucho my lips and told him that something was wrong with my blood, I could tell. (I am leaving out gross details here).

He said I would be put on the schedule. However, the very next day, Tuesday morning, November 3rd, I found blood in my stool and rushed over to medical because I am smart enough to know that this is a major problem. I was chewed out for coming over to medical without a staff member telling me to come. I told Charlie, the female nurse and Mr. Coucho the PA that I was in the hospital in July, never got the blood work results and something was terribly wrong.

I am 46 years old and I know my body! I finally convinced them that I was not playing and was not stupid, so they 'treated' me with a packet for a stool sample test. Mr. Coucho looked on the computer for the blood test results from August and found them there!

The blood test showed a problem with the thyroid way back then!

He said I would be put on the schedule for new blood work later that week because these results were too old. He had a short conversation with Dr. DeLeon in Spanish and then said the thyroid count was off.

This was November 3rd. I administered the stool tests and returned them to Nurse Charlie on Friday November 6th.

Today is November 26th, Thanksgiving. I have not received the results of the stool test. I have not been given any new blood test.

My neck is swelling up like a blow fish and I am having trouble talking. I have been feeling very ill for the last two weeks.

Congressman, I don't want them to kill me in here. As you well know, I am being punished for exposing government fraud. However, millions of people don't file tax returns and I was just used as an example by the DOJ for their new program called the Tax Defiers Initiative.

I have a wonderful husband and two beautiful children. I have already spent 21 months in prison for a non crime, and I refuse to come out dead or maimed for life. I have not caused these people any problems. This is no threat but just for your information.
I also wrote the warden today. Things can't go on this way as I languish in here for someone's political gain. God doesn't like ugly and He is the ultimate judge and vindicator.

Sherry Peel Jackson 59085-019
FCI COLEMAN MEDIUM
FEDERAL CORRECTIONAL INSTITUTION
P.O. BOX 1032
COLEMAN, FL 33521

Wake up America! We cannot allow the government to exterminate Sherry simply because she cried out, "SHOW ME THE LAW!".

Learn more about how political prisoners are suffering because they demanded our government follow the Constitution they have sworn to uphold.
http://www.newswithviews.com/Devvy/kidd320.htm

As Washington continues debating healthcare reform the rest of the country is primarily concerned about jobs and the economy. It is still uncertain what policies will be implemented, but I am certain about one thing: It will only further devastate our economy and our dollar.

The leadership has come up with a proposal they are confident will be what they consider fiscally responsible, only to have it scored as nearly twice as expensive by the nonpartisan Congressional Budget Office. Estimates of past healthcare spending programs have been off by as much as 100 percent so there is no telling what the actual cost will be.

The past century should have taught us one thing: that government intervention is expensive. Government programs lend themselves so easily to waste, fraud and abuse. Combine that with overall inefficiency and it all adds up to a hefty price tag for the taxpayer, with not much leftover for actual services. An outright takeover of an entire sector of the economy, especially one as important as healthcare, is something that we just cannot afford for the government to do right now. Not to mention the fact that it is completely unconstitutional. But Washington insists on torturing the numbers and tinkering around the edges rather than facing this truth.

If healthcare reform does indeed pass, we should not be under the illusion that it will be free. The money to pay for it will have to come from somewhere. They say they will get the money from cutting waste, fraud and abuse, but all of that is seemingly intrinsic to government programs. Since they want to expand the government's reach we have to assume we will be trading waste, fraud and abuse for waste, fraud and abuse with a bigger budget. The powers that be have insisted the money won't come from higher taxes, it won't come from rationing of care, and it won't come from higher premiums. This can only then put more pressure on the Fed to print the money out of thin air. We already have a weakening dollar. They are accelerating everything that weakened it in the past. Adding this new, monumental pressure could very well be the straw that will break the dollar's back.

Foreign creditors are already nervous about continuing to invest in the US because of our skyrocketing debt. The explosion of debt that is certain to accompany the enactment of this national health care bill can only add to that nervousness.

Ironically, enactment of the health care bill could help the cause of liberty by hastening the day when Congress is forced by economic circumstances to stop increasing the welfare-warfare state and return to the Constitution.

There are many problems with our current healthcare system, to be sure. There are many tragic stories to be told. However, we need to look at the root of our problems in order to address them properly. More government intervention and bureaucracy injected into healthcare will take a flawed system and make immeasurably worse.

By Ron Paul
Published 11/10/09

It has been an interesting week indeed for the Federal Reserve. Early this week, it was announced that President Obama intends to reappoint Fed Chairman Ben Bernanke to a second term in January, signaling a vote of confidence in him. Bernanke seems to be popular with the administration and with Wall Street, and with good reason. His lending policies have left big banks flush with newly created cash that covers up old mistakes and allows for new ones. By buying up mountains of Treasury debt he has also enabled spending to soar to ridiculous levels that should startle any responsible economist, and scare any American concerned about the value of the dollar. However, these highly sensitive decisions about our money are not made by economists, they are made by politicians. Bernanke, like most of his predecessors, is the politician’s best friend. However, there is no reason to believe any other central planner would behave any differently, considering the immense political pressure on the Fed.

Fed policies have been as bad for the economy as they are good for politicians and bankers, as the recently released numbers on the debt and deficit demonstrate. For the first time since World War II the annual budget deficit is projected to be over 11 percent of the nation’s gross domestic product. It is also projected that by 2019 the national debt will be 68% of GDP. Our path, if unchanged, is completely untenable.

The administration claims that it inherited a dire situation from the last administration, which is absolutely true. However, that hasn’t stopped them from accepting all the policies and premises that got us here, and accelerating those policies to rapidly make a bad situation much worse. The bailouts started with the last administration. They have gotten bigger with this one. The last administration gave us expanded government involvement in healthcare with a new prescription drug benefit. This administration gave us a renewal and expansion of SCHIP, and now the current healthcare takeover attempts. In reality, we can afford none of this, but shady monetary policy allows Washington to continue along its merry way, aggravating all our economic problems.

Not everyone in government finds it acceptable that the Fed wields so much power and privilege in secrecy. Last week, a federal judge ruled against Fed secrecy, compelling them to release under the Freedom of Information Act information regarding which banks received emergency loans, and under what terms. The Fed will, of course do everything in its power to fight this ruling and it is certainly not the last word on the issue. Still, it is encouraging to see that the interests of the taxpayers were defended victoriously in court, while the Fed only sees the plight of its big banker friends.

Meanwhile HR 1207 and S604, legislation to open up the Fed’s books to a complete audit, continue to gain momentum in Congress as the people continue to insist on real transparency of the Federal Reserve. One way or another, the days of Fed autonomy are coming to an end, as well they should. No one should have the power to debauch the currency and gut the economy as they do. It is time they answered for their actions, so the people can understand that we truly are better off with freedom instead of Fed tyranny.

By Ron Paul
Published 09/01/09

During August recess, many legislators have heard an unexpected amount of discontent from their constituents about what is happening on Capitol Hill, particularly regarding healthcare. Some people are justifiably terrified at what the government could do to healthcare, should it get its claws even further into it. Others demand a public option for health insurance and are adamant that healthcare be treated as yet another absolute entitlement. One thing everyone agrees on is that the final bill needs to be read and understood by all legislators before a vote is taken. To any American, this is common sense. In Washington, that is unlikely to happen.

There is much confusion and debate over what is and is not in the reform plan being considered. Are there or are there not so-called death panels? What are the end-of-life consultations really for? How will private insurance be affected? Can you keep your current plan or will you eventually be forced into a government plan? Will it pay for elective abortions or not? What are the implications for medical privacy? The truth is no one knows what will be in the final bill until it is on the House floor, and provisions could be added in and taken out in the wee hours of the morning before.

In February, the House was forced to vote on an over 1,000 page "stimulus" bill that had first been posted on the internet just after midnight the morning of the vote. It passed. Then in June, House leaders rushed a vote on the cap-and-trade bill, even though an over 300 page "manager’s amendment" making substantive changes to the bill, was introduced shortly after 3:00 a.m. the morning of the vote.

Washington thrives on crisis. If enough people can be convinced that we are in an emergency, they will more likely tolerate rushing legislation to the floor like this. Last minute changes will be slipped in, benefitting who knows what special interests and at what expense to the taxpayer. But the mantra is repeated over and over: We are in a crisis. We must act immediately.

It should be unconscionable for legislators to vote in favor of legislation they have not had the opportunity to read. This is why I have re-introduced the Sunlight Rule, H.Res 216. The Sunlight Rule prohibits any piece of legislation from being brought before the House of Representatives unless it has been available to read for at least 10 days.

The Sunlight Rule allows citizens to move for censure of any House Member who votes for a bill in violation of this act. Because the Sunlight Rule could never be waived, any Member could raise a point of order requiring any bill in violation to be immediately pulled from the House calendar until it can be brought to the floor in a manner consistent with this rule. This rule does not require that Members read the bills. It merely guarantees the opportunity to do so. It has 4 cosponsors.

Justice Louis Brandeis famously said, "Sunlight is the best disinfectant." The Sunlight Rule would do much towards negating the cycle of pseudo-crises and cleaning up the legislative process here in Washington. I sincerely hope this is the year Congress remembers its deliberative duties and passes it.

By Ron Paul
Published 08/25/09

Last week I was very pleased that hearings were held on the independence of the Federal Reserve system. My bill HR 1207, known as the Federal Reserve Transparency Act, was discussed at length, as well as the general question of whether or not the Federal Reserve should continue to operate independently.

The public is demanding transparency in government like never before. A majority of the House has cosponsored HR 1207. Yet, Senator Jim DeMint’s heroic efforts to attach it to another piece of legislation elicited intense opposition by the Senate leadership.

The hearings on Capitol Hill provided us with a great deal of information about the types of arguments that will be levied against meaningful transparency and how the secretive central bankers will defend the status quo that is so beneficial to them.

Claims are made that auditing the Fed would compromise its independence. However, by independence, they really mean secrecy. The Fed clearly cherishes its vast power to create and spend trillions of dollars, diluting the value of every other dollar in circulation, making deals with other central banks, and bailing out cronies, all to the detriment of the taxpayer, and to the enrichment of themselves. I am happy to challenge this type of “independence”.

They claim the Fed is endowed with special intellectual abilities with which to control the market and that central bankers magically know what the market needs. We should just trust them. This is patently ridiculous. The market is a complex and intricate thing. No one knows what the market needs other than the market itself. It sends signals, such as prices, that should be reacted to and respected, not thwarted and controlled. Bankers are not all-knowing and cannot ignore the rules of supply and demand. They might act as if they are, but their manipulation of the market just ends up throwing it wildly off balance, which gives us the boom and bust cycles.

They claim the Fed must remain apolitical. No organization is apolitical that relies on the President to appoint the Chairman. In fact, it is subject to the worst sort of politics – power to create trillions of dollars and affect the value of every dollar in the country without the accountability of direct elections or meaningful oversight! The Fed typically enacts monetary policy that is favorable to particular administrations close to elections, to the detriment of long term considerations. They do this partly because of the political appointee process for the Chairmanship.

The only accountability the Federal Reserve has is ultimately to Congress, which granted its charter and can revoke it at any time. It is Congress’s constitutional duty to protect the value of the money, and they have abdicated this responsibility for far too long. This was the issue that got me involved in politics 35 years ago. It is very encouraging to finally see the issue getting some needed exposure and traction. It is regrettable that it took a crisis of this magnitude to get a serious debate on this issue.

- Dr. Ron Paul, U.S. Congressman

Our country currently finds itself in the midst of the worst economic crisis since the 1930s and, as during all economic crises, people search for the answer as to why this has happened. Not only have large financial firms been affected, but also mainstays of American industry such as GM and Chrysler, all the way down to the Mom & Pop stores on Main Street. The easy way out is to blame the traditional scapegoats: foreign governments, fraudulent businessmen, and greedy speculators. But the real villain is far more sinister; the organization entrusted with maintaining a stable dollar and touted as the guarantor of economic stability – the Federal Reserve.

In the United States, monetary policy has been the domain of the Federal Reserve since its inception in 1913. Since that time we have had a number of cyclical recessions, each one following a boom caused by the Federal Reserve's loose monetary policy. The problem with the Federal Reserve is that it interferes with market pricing functions. Interest rates are a price just like any other and arise because of the fact that people prefer to consume in the present rather than in the future. The extent to which people defer present consumption is reflected in interest rates, which in a free market are determined by the spontaneous interactions and decisions of millions of people.

Fed intervention to set prices throws markets and interest rates out of equilibrium. When the Federal Reserve pushes interest rates below what the market rate would be, everyone wants to borrow money for long-term projects. Shortages of loanable funds would occur, except that the Federal Reserve has the ability to create bank balances out of thin air. The Fed can create a bank ledger on paper, or on a computer, establish a balance of millions or billions of dollars, and then spend these dollars out into the economy.

Loans become cheap, and the result of these lower interest rates is an economic boom which eventually manifests itself as a bubble. Beginning in 2001, the Federal Reserve pushed interest rates to as low as one percent, which after adjusting for inflation meant that the real interest rate was negative, so businesses were actually making money by taking out loans. This was the fuel for the housing bubble and the reason there are 19 million empty houses today.

Because of this awesome power to create money out of thin air, the Fed has jumped in to stabilize ailing financial firms by pledging over $7 trillion through various guarantee programs and credit facilities. This is equivalent to over half of the entire nation's GDP. Over $1 trillion of this is already in play, propping up banks and other institutions that should be allowed to fail. All of this has taken place with no oversight by Congress. The Fed was created by Congress, and it is unconscionable that we have allowed it to act in such a way without our oversight. Currently the Federal Reserve's credit facilities, open market operations, and agreements with foreign governments and central banks are all exempt from any sort of audit or oversight. Earlier this year I introduced the Federal Reserve Transparency Act, HR 1207, that would remove all restrictions on Federal Reserve audits and call for a f ull audit of the Federal Reserve System to be completed by the end of 2010. At this writing, 245 of my fellow Congressmen have cosponsored this bill and we hope to have hearings in the near future. In the Senate, Republicans Jim DeMint, Mike Crapo and David Vitter have cosponsored S. 604, companion legislation introduced by Bernie Sanders. I am very encouraged by the tremendous growing momentum on Capitol Hill.

Our Founding Fathers never intended for a single entity such as the Federal Reserve to have this much power. In fact, there is no authority in the Constitution for the federal government to create a central bank, to enact legal tender laws, or to print paper money. The Tenth Amendment is quite clear that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The states themselves are prohibited from emitting bills of credit, i.e. paper money, arising from the Founders' negative experiences with paper money during the Revolutionary War. Cheap, un-backed, easily counterfeited paper money nearly lost the Revolution, until the government returned to minting gold and silver coins. Unfortunately, like too many other lessons learned by the Founders, the painful experiences of paper money have been forgotten by those living in the pres ent. We even ignore the experiences of Germans in the 1920s, Argentines in the 1980s, and Zimbabweans over the past decade. The Fed doubled the monetary base last fall in a matter of months, and God help us if any of this high-powered money begins to make its way through the economy.

An audit of the Fed is only the first step towards returning to where our Founders intended this country to be. The Founders knew that paper money could ruin a country, and drafted the Constitution in such a way that they thought would ensure sound, commodity-backed currency. Unfortunately, the Constitution was dispensed with long ago, and we find ourselves now suffering under an unconstitutional regime of un-backed paper money. Until we abolish the Federal Reserve and return to a stable currency that is not able to be manipulated to create boom and bust cycles, we will continue down the path of economic ruin.

Written by Ron Paul
Congress Ron Paul serves the fourteenth district of Texas and is honorary chairman of Campaign for Liberty. His new book, End the Fed (Grand Central Publishing) will release on September 16th and is available for pre-order on Amazon.