Former US Representative and spiritual leader of American libertarians, Ron Paul decided to celebrate the 100th anniversary of the Federal Reserve system by publishing an essay demanding its abolition.
Ron Paul’s crusade against the Federal Reserve has been going on for several decades. He made several attempts to initiate a Senatorial audit of America’s central bank but has never found enough support even among the members of his own Republican party. Now, the former US Representative for Texas’ 14th and 22nd congressional districts continues his battle against the Federal Reserve by publicly criticizing its failures that hurt the US economy.
Ron Paul is concerned by the fact that Americans don’t want to recognize that “Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning.”
The Federal Reserve botched its stated mission. America’s “private central bank” was created with the stated goal of preventing financial crisessuch as the Panic of 1907. History proves that the Fed failed multiple times. The Great Depression, the recession of 1973-1975 and the recent financial crisis of 2008 happened on Fed’s watch and its critics argue that the central bank’s actions have exacerbated the damage done to American and global economies. Ron Paul points out that the Federal Reserve monetary policy has long term negative effects: “Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank.”
Few American politicians have the courage to say that the Fed does its best to generate profits for a selected group of big banks even if those profits hurt the society as a whole. The former Representative of Texas is one of such politicians. “We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street”, he wrote in his essay published by the Free Foundation.
It is a safe bet that nobody in Washington would dare to dismantle the Federal Reserve but when the second wave of the crisis generated by the Fed’s policies hits the US, they won’t be able to say that nobody tried to warn them about the imminent disaster.