7 Comments
  1. aitrader says

    I’ve always been a fan of Ron Paul’s views. I just can’t forgive him for putting forth a good idea like ending the Fed without any roadmap for how to get there. I guess that’s why no one in Congress or other political branches pays much attention.

    Getting rid of the Fed means the Treasury or some other possibly new body must take over the creation of money. And when that occurs will it still be debt based (which I hope is not the case) or creation based (money is created as currency and used to pay for gov’t projects as done here – http://prorev.com/moneyreform.htm )? How will banks provide loans – based solely on savings, the current fractional reserve, by government gift of currency, or what? These are just some minor examples of the myriad details RP conveniently ignores in his quest to end the Fed.

    As usual RP’s instincts are right on the money (sorry, couldn’t resist) but the lack of a viable roadmap marginalizes him to a solitary fringe libertarian voice sqeaking among a sea of Federalists.

    1. Edward Harrison says

      I like on Paul too, but ending the Fed is a political non-starter. We can’t even get a change in too-big-to-fail, Obama wants the Fed to have more power, so how is ending the Fed realistic?

      1. aitrader says

        I agree for the current sitch. We’ll have to wait until the Fed is far too big a political and economic liability to keep around. (Which isn’t very far down the road IMO). But hey, it’ll only be the third central bank we’ve gotten rid of in our short history as a country. Eventually we’ll learn. Maybe.

      2. Vangel says

        Even his supporters are figuring out that Obama is way over his head and that he is certainly not the man they hoped he was when they voted him into office. Giving the Fed more power will not play well on main street and will make him out to be an even bigger hypocrite than he has already shown himself to be.

        From what I can see, some of the ideas that Ron Paul is talking about are gaining traction on campuses and among working people. They are inspiring people to let their wishes be known to their representatives and are having some effects on local elections. It seems to me that many people are looking at the Austrian school as an alternative to the failed economic analysis provided by the monetarists and Keynesians. That is a good start on which others will have to build.

    2. Vangel says

      “I’ve always been a fan of Ron Paul’s views. I just can’t forgive him for putting forth a good idea like ending the Fed without any roadmap for how to get there. I guess that’s why no one in Congress or other political branches pays much attention.”

      Dr. Paul is not a central planning type. He has seen the Fed for what it really is and understands that the only way to protect the purchasing power of workers and savers is to take away its power to create money out of thin air. He certainly does not believe that the government should do the same thing and has made it clear that money has to be backed by gold or some other commodity, just as it was under the gold standard.

      Why you would prefer to keep a system that is designed to transfer wealth from the masses to protected insiders is something that you have to figure out. After all, even if you preferred such a system you certainly can see that it will come to an end when either the currency or the economy collapse. What will the Fed supporters do then?

      1. aitrader says

        “Why you would prefer to keep a system that is designed to transfer wealth from the masses to protected insiders is something that you have to figure out.”

        This is an effect of the debt-based money creation system with interest that we currently have. It acts as a conveyor belt lifting wealth to the banks from the debtors.

        This is not the only way to create money. Several other methods have been tried and many have worked quite well. See the link I provided above for a discussion of many alternatives.

        Going back to the gold standard is a non-starter. There just is not enough of it to go around with today’s population and money needs. I don’t think it is a viable alternative whatsoever. But many other (better) alternatives exist.

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