Wednesday, August 19, 2009

Ron Paul's "End the Fed" is coming next month

And Michael Nystrom at has a pre-publication commentary on it.

Paul thoroughly condemns the Fed on moral grounds. Nystrom writes:
In its simplest definition, morality is the ability to know the difference between right and wrong. The Fed has a power granted to no one else in society - except counterfeiters. It has the ability to create money from thin air. In fact, the Fed is essentially the largest, most revered, officially sanctioned counterfeiter in the world. It creates money from nothing, which is distributed via Congress to the politically most well-connected individuals and institutions. . .
We should remember that every other counterfeiter is considered a felon and manufactures money without a hint of government reverence. On the other hand, the government grants the power to counterfeit legally to the Fed and only the Fed, by virtue of the Federal Reserve Act of 1913.
As more money is created to fund bailouts, stimulus measures and just about everything else under the sun, the currency in existence is devalued. Savings are eroded. Wealth is redistributed from the poor to the rich. And all the while, the government and the Fed say the measures taken are necessary, and for the benefit of all. . .
[Earlier in his political career] Dr. Paul had the opportunity to ask a Federal Reserve official about the morality of diluting the money supply and how it differs from a farmer diluting the milk he sells:
"By what moral right do we have to create purchasing power out of thin air? Whether it is done by the creation of credit or Federal Reserve notes or whether it's the creation of SDRs [special drawing rights] and international in scope, by what right do they do this? Is it any more moral to dilute the purchasing power of the money you hold in your wallet than it is for the farmer to dilute the milk supply with water?"
As Nystrom points out, we'd no longer trust the farmer who diluted his milk and would buy our milk from someone else. We have that choice with milk farmers -- but not with the nation's money supplier, the Fed, which holds a government-granted monopoly on the issue of notes.

If Ron Paul's Audit the Fed bill gets passed without dilution, might we expect the government that created this monster to come under closer scrutiny, as well?

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