GOLDBUG: The Federal Reserve allows Congress to borrow and spend!

On Sunday, I heard a caller call into Bob Brinker and point out Ron Paul’s call for the end of the Federal Reserve. Bob went off the deep end on the fellow. The fellow’s point was that Ron Paul had been right on predicting the trouble coming with all these bail out issues.

Bob misstated Ron Paul’s remedy as “Abolish the Fed and return the control of money to the Congress.”

I agree that, if that was what Ron Paul advocated, it would be a terrible idea.

What Ron Paul did advocate was not that but:

*** begin quote ***

In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.

*** end quote ***

So, what Ron Paul advocated was a return to the Constitutional definition of money as gold.

But, no one follows the Constitution anymore.


Sorry, Bob, have to disagree with you on this one.

*** begin quote ***

I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve.

*** end quote ***

The lack of any competition in the definition of “money” allows the “Sovereign” to adulterate the money supply without the bother of clipping coins, adding base metals to gold coins, or redefining the unit of account. Commodity money prevents the welfare / warfare state from writing itself a blank check. The politicians love the current system just fine. It’s the ordinary working stiff, pensioner, or other non-elite person who pays for their excess.

Wrong, Bob!

Repeal the legal tender laws and watch the free market take off as politicians have to justify the tax burden. It would be the end of their Ponzi schemes. Want to pass a perscription drug benefit, great! Where’s the money for it? Want to wage war in foreign lands, fine! Where’s the money for it?

You want accountability in Congress? Take away their “blank checkbook” given to them by the Federal Reserve!

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2 Responses to GOLDBUG: The Federal Reserve allows Congress to borrow and spend!

  1. Ron says:

    The Federal Reserve is Guilty of Helping Create the Global Financial Meltdown

    Many investors and concerned citizens around the world are showing their outrage at what the Federal Reserve has done to the American economy with their easy money policies which caused the credit & real estate bubble and subsequent global financial meltdown.

    Join the thousands who are signing & commenting on the Abolish the Federal Reserve Petition at

  2. We are tax activists in Indiana with a solid track record of successes.

    Mike Pence, our courageous Senior Congressman from Indiana, was first to stand down the Fed against the bailout.

    Please call and fax his Indiana Office. Tell him to hold his ground and to co-sponsor HR 2755! There is much ground support and he’s getting calls from high places to co-sponsor the Act to Abolish the Federal Reserve.

    The numbers below are for his campaign office. People will be there this weekend. If no answer, send a fax and leave voicemails. It doesn’t matter if you are not from Indiana.

    PHONE: 765-643-9503
    FAX: 765-643-9514

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