#1 Enemy of the middle-class...

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#1 Enemy of the middle-class...

Postby Indaswamp » Thu Mar 05, 2009 9:17 pm

The Federal Reserve...

Statement of Congressman Ron Paul

United States House of Representatives

End the Fed

February 25, 2009



The Federal Reserve’s low interest rate policy is a big mistake; it is not a panacea.


Artificially low interest rates are achieved by inflating the money supply. Low interest rates penalize the thrifty and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.

The policy of artificially low interest rates caused our problems and therefore cannot be the solution. The market rate of interest is crucial information for the smooth operation of the economy. A central bank setting interest rates is price fixing and is a form of central economic planning. Price fixing is a tool of socialists and destroys production. Central bankers, politicians, and bureaucrats can’t know what the proper rate should be. They lack the knowledge and are deceived by their own aggrandizement.

Manipulating the money supply and interest rates rejects all the principles of the free market. Ironically free markets and sound money generates low rates, but unlike the artificially low rates orchestrated by the Fed, the information conveyed is beneficial to investors and savers. The Congress, by conceding this authority, conveys extraordinary economic power to the elite few. This is a power that has been abused throughout history. Only the Federal Reserve can inflate the currency, creating new money and credit out of thin air, in secrecy, without oversight or supervision. Inflation facilitates deficits, needless wars and excessive welfare spending.

Debasing a currency is counterfeiting. It steals value from every dollar earned or saved. It robs the people and makes them poorer. It is the enemy of the working man. Inflation is the most vicious and regressive of all forms of taxation. It transfers wealth from the middle-class to the privileged rich. The economic chaos that results from a policy of central bank inflation inevitably leads to political instability and violence. It’s an ancient tool of all authoritarians. Inflating is never a benefit to freedom loving people. It destroys prosperity and feeds the fires of war. It is responsible for recessions and depressions. It’s deceptive, addictive and causes delusions of grandeur with regards to wealth and knowledge. Wealth cannot be achieved by creating money by fiat. It instead destroys wealth and it rewards the special interests.

Depending on monetary fraud for national prosperity or a reversal of our downward spiral is riskier than depending on the lottery.


Inflation has been used to pay for all wars and empires. And they all end badly. Inflationism and corporatism engenders protectionism and trade wars. It prompts scapegoating: blaming foreigners, illegal immigrants, ethnic minorities, and too often freedom itself for the predictable events and suffering that result. Besides, the whole process is unconstitutional. There is no legal authority to operate such a monetary system. So let’s stop it. Let’s restore a policy of prosperity, peace, and liberty.

The time has come. Let’s End the Fed.
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Re: #1 Enemy of the middle-class...

Postby Botiz630 » Thu Mar 05, 2009 9:29 pm

Thanks for posting this. I love Ron Paul for reasons just like this. I do not understand how Bernanke doesnt realize that he is making things worse. I dont get it.
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Re: #1 Enemy of the middle-class...

Postby A5Mag12 » Thu Mar 05, 2009 10:11 pm

The guy now in the Oval office in the new #1 enemy of the middle class. :mad:
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Re: #1 Enemy of the middle-class...

Postby buckmeister » Sat Mar 07, 2009 2:13 pm

By sound money he means the Gold Standard right?
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Re: #1 Enemy of the middle-class...

Postby Indaswamp » Sat Mar 07, 2009 6:59 pm

Yes...but not necessarily, research the greenback issued by Lincoln. It was sound money because it's value was not manipulated. Gold is the quintessential sound money. Unfortunately, The international bankers control 2/3 of the worlds supply of gold. And gold is easily manipulated. Silver is not as easily manipulated....but there still is not a large enough supply.
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Re: #1 Enemy of the middle-class...

Postby Indaswamp » Sat Mar 07, 2009 10:52 pm

Botiz630 wrote:Thanks for posting this. I love Ron Paul for reasons just like this. I do not understand how Bernanke doesnt realize that he is making things worse. I dont get it.


Because Mr. Bernanke works for the International Bankers...The Federal Reserve is Private. They really don't care if things get worse. They make money either way.
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Re: #1 Enemy of the middle-class...

Postby dudejcb » Sun Mar 08, 2009 8:54 am

I like Ron Paul, but he, like most of us, isn't perfect and there are some questonable statements and conclusions in here. Here's my parsing...
Indaswamp wrote:The Federal Reserve...

Statement of Congressman Ron Paul

Artificially low interest rates are achieved by inflating the money supply.
I thought inflating the money supply lead to inflation and higher interest rates. How'd I miss that one? Could have sworn we experienced this in the late '70 & 80's...

Indaswamp wrote:Low interest rates penalize the thrifty and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.
Being thrifty is always a good practice.

Low interest rates encourages investment which stimulates the economy so hard to see the destructive proposition put forth.

Immoral? Yikes! Sounds a bit incendiary and a non-sequitur linkage to morality in general. This is economics and business.

Indaswamp wrote:Manipulating the money supply and interest rates rejects all the principles of the free market.
not sure Adam Smith would agree. The genreal intent is to suppress the highs and lows of the economy, which is when people get hurt. So what does he consider "sound" money?

Indaswamp wrote:Inflation is the most vicious and regressive of all forms of taxation. It transfers wealth from the middle-class to the privileged rich. .... Inflating is never a benefit to freedom loving people. It destroys prosperity and feeds the fires of war. It is responsible for recessions and depressions.
The first statementis fine, although it's not a tax and it steals most from those with the least, but it does transfer wealth. Next statement is where the wheels come off. Some inflation, very little, means you earn by saving (some interest on savings is good) so this conflicts wih this earlier statement: "Low interest rates penalize the thrifty and those who save are cheated."


Indaswamp wrote:Inflation has been used to pay for all wars and empires. And they all end badly. Inflationism and corporatism engenders protectionism and trade wars. It prompts scapegoating: blaming foreigners, illegal immigrants, ethnic minorities, and too often freedom itself for the predictable events and suffering that result. Besides, the whole process is unconstitutional. There is no legal authority to operate such a monetary system. So let’s stop it. Let’s restore a policy of prosperity, peace, and liberty.

The time has come. Let’s End the Fed.
Okay this is pandering and blemaing everything on one issue, which in itself doesn't make sense. I'm not defending the FED but I am suggesting we look at hyperbole critically, question some of the assumptions and assertions, and think for ourselves.
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Re: #1 Enemy of the middle-class...

Postby Indaswamp » Sun Mar 08, 2009 10:07 am

I thought inflating the money supply lead to inflation and higher interest rates. How'd I miss that one? Could have sworn we experienced this in the late '70 & 80's...


It does...if left to the market. but these current interest rates were artificially manipulated lower. Also remember that this period (70's and 80's) occurred right after Nixon took us of the gold standard-making our money a currency...and the market did not like it. this was a major reason for the high interest rates. The market knew that the money supply would be tampered with ...it was a defensive approach.
Low interest rates encourages investment which stimulates the economy so hard to see the destructive proposition put forth.


"Artificially" low interest rates manipulated down penalize savers. If the market set the rates, they would reset higher and savers would benefit...but this would slow down debt creation( fewer loans...etc), which would contract our money supply since debt is money in this system. And contractions cause depressions.

Some inflation, very little, means you earn by saving (some interest on savings is good) so this conflicts wih this earlier statement: "Low interest rates penalize the thrifty and those who save are cheated."


Inflation is the effect of the real problem of the devaluing of the dollar. Thus, as the more the dollar is devalued, savers are losers.... their currency is 'worth less' in real terms of buying power than it was before. Banks rarely pay more interest on savings accounts than what is lost by inflation.
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Save the Marsh, Eat a Nutria!

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Re: #1 Enemy of the middle-class...

Postby Help is here.... » Mon Mar 09, 2009 9:34 am

The #1 enemy of the middle class is the republican party.

Where have you been the last 30 years. :huh:
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Re: #1 Enemy of the middle-class...

Postby Indaswamp » Mon Mar 09, 2009 4:55 pm

Help is here.... wrote:The #1 enemy of the middle class is the republican party.

Where have you been the last 30 years. :huh:


You have no clue...it's both parties. did you read Ron Paul's statement to congress? Do you understand what he is saying? if not, then you need to do some research.

This outta help you out...

http://www.youtube.com/watch?v=g0cWUhStbE4&NR=1
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