Ron Paul is the powerhouse behind the "Audit the Fed" bill.
Fed policies removes the free market on interest rates
and instead institutes price controls on rates
Ron Paul believes that savers and borrowers should be the only ones who set the interest rates between them in a free market price determination and equates today's situation, where the Fed has the power to set interest rates, as price controls.
Ron Paul accurately describes prices as economic information.
How does one know how much to sell his home without knowing the prices other homes like his sold for? All home appraisals work this way.
How does one know if he can sell his house next year without knowing what the interest rate will be? A too high interest rate, and he cannot sell his home.
Yet, price fixing the interest rate gives a distorted view of the value of a home, as the interest rate greatly determines the monthly mortgage bill.
Fed policies throw away the Constitutional gold standard
and in turn removes price controls on paper money
Then too, when the fed turns on the printing presses as they did after the Dot.Com-9/11 recession and Iraq/Afghanistan inflationary spending, inflation accelerates, causing home values to "look like" their rising, and causing bidding wars to get into homes before one is priced out altogether.
Putting the two Fed factors of interest rate setting and inflation of the money supply, and American citizens get a distorted view of home prices, causing us to make bad economic decisions.
Hence, the real reason for the housing bubble -- The Fed!
Therefore, in Ron Paul's analysis, instead of causing market stability, the Fed is the cause of market instability.
Fed policies are governmental in nature
and we should know about the international treaties they sign
When the Fed enters into negotiations with other nations to implement and set financial agreements, to establish monetary policy, it is engaging in international treaty making in the name of the United States government.
This clearly is an executive level function and is subject to the approval of the United State Senate, both of whom are responsible to the voters of this country.
And this is clearly not Constitutional.
NY Time Question of Dr. Ron Paul:
Some argue that your view on returning the United States to the gold standard is simplistic and not applicable to today's sophisticated and interconnected financial system. How do you respond to that?
Dr. Ron Paul responds:
I think the system we have is not a very good system and it is in the process of causing us a lot of trouble. We had the biggest financial bubble in the world just burst and the dollar reserve standard has literally come to an end, so I would say everything we've had, especially since 1971, has been very, very impractical and has not worked anyway.
Leave it to a foreign media source to inform Americans on real news.
This is a great refresher course of everything Ron Paul believes -- from the fed to war to the economy to drug usage.
Ron Paul Part I
Ron Paul Part II
You can read further at The Problem.
You can read further at The Solution.
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Last Hope for America Christian Libertarian:
Church and State