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Before the US House of
Representatives, February 4, 2009, introducing the The Federal Reserve Board
Abolition Act, H.R. 833.
Madame Speaker, I
rise to introduce legislation to restore financial stability to America's
economy by abolishing the Federal Reserve. Since the creation of the Federal
Reserve, middle and working-class Americans have been victimized by a
boom-and-bust monetary policy. In addition, most Americans have suffered a
steadily eroding purchasing power because of the Federal Reserve's
inflationary policies. This represents a real, if hidden, tax imposed on the
American people.
From the Great
Depression, to the stagflation of the seventies, to the current economic
crisis caused by the housing bubble, every economic downturn suffered by this
country over the past century can be traced to Federal Reserve policy. The
Fed has followed a consistent policy of flooding the economy with easy money,
leading to a misallocation of resources and an artificial "boom"
followed by a recession or depression when the Fed-created bubble bursts.
With a stable
currency, American exporters will no longer be held hostage to an erratic
monetary policy. Stabilizing the currency will also give Americans new
incentives to save as they will no longer have to fear inflation eroding
their savings. Those members concerned about increasing America's
exports or the low rate of savings should be enthusiastic supporters of this
legislation.
Though the
Federal Reserve policy harms the average American, it benefits those in a
position to take advantage of the cycles in monetary policy. The main
beneficiaries are those who receive access to artificially inflated money
and/or credit before the inflationary effects of the policy impact the entire
economy. Federal Reserve policies also benefit big spending politicians who
use the inflated currency created by the Fed to hide the true costs of the
welfare-warfare state. It is time for Congress to put the interests of the
American people ahead of special interests and their own appetite for big
government.
Abolishing the
Federal Reserve will allow Congress to reassert its constitutional authority
over monetary policy. The United States Constitution grants to Congress the
authority to coin money and regulate the value of the currency. The
Constitution does not give Congress the authority to delegate control over
monetary policy to a central bank. Furthermore, the Constitution certainly does
not empower the federal government to erode the American standard of living
via an inflationary monetary policy.
In fact,
Congress' constitutional mandate regarding monetary policy should only permit
currency backed by stable commodities such as silver and gold to be used as
legal tender. Therefore, abolishing the Federal Reserve and returning to a
constitutional system will enable America to return to the type of
monetary system envisioned by our nation's founders: one where the value of
money is consistent because it is tied to a commodity such as gold. Such a
monetary system is the basis of a true free-market economy.
In conclusion,
Mr. Speaker, I urge my colleagues to stand up for working Americans by
putting an end to the manipulation of the money supply which erodes
Americans' standard of living, enlarges big government, and enriches
well-connected elites, by cosponsoring my legislation to abolish the Federal
Reserve.
Ron Paul
www.house.gov/paul
Congressman Ron Paul
of Texas
enjoys a national reputation as the premier advocate for liberty in politics
today. Dr. Paul is the leading
spokesman in Washington for limited constitutional government, low taxes,
free markets, and a return to sound monetary policies based on
commodity-backed currency. For more information click on the Project Freedom website.
Published with the authorization
of Dr. Paul.
Copyright Dr. Ron Paul
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