CNBC Poll: Should the Fed be Abolished?
September 19th, 2009Via: CNBC:
“Nothing good can come from the Federal Reserve,” writes Texas Congressman Ron Paul in his latest book hitting shelves this week, titled “End the Fed.”
“It is the biggest taxer of them all. Diluting the value of the dollar by increasing its supply is a vicious, sinister tax on the poor and middle class.”
Paul makes the case that the Fed is the main culprit responsible for the current economic mess the country faces through the destructive policies of cheap credit and excessive money printing.
“Prosperity can never be achieved by cheap credit,” says Paul. “If that were so, no one would have to work for a living. Inflated prices only deceive one into believing that real wealth has been created.”
The Federal Reserve, created in 1913, has been acting as the main central bank of the United States for nearly one hundred years. Many Americans are either not sure or not interested in what role the Fed plays in managing the economy. “The economic crisis has changed everything,” writes Congressman Paul.
Paul is currently pushing for passage of a bill, H.R. 1207, that would allow for an unprecedented audit of the Federal Reserve. The bill has 289 co-sponsors, and is gaining solid momentum in the House of Representatives.
“The worse the economy gets, the more power Congress is willing to grant to the Federal Reserve. Trillions of dollars created and distributed by the Fed with no requirement to submit to any oversight” argues Congressman Paul.
“End the Fed” is a sharp counter to Keynesian economic theory, and takes aim at the hazards of a managed economy.
Paul, a strong advocate of free-markets and the Austrian school of economics counters those looking to blame the near collapse of the financial system on capitalism by penning, “Manipulating the money supply and interest rates rejects all the principles of the free market, and so it cannot be said that too free a market caused this mess. The market was not free at all. It was manipulated and distorted.”
