Before the US House of Representatives, February 4, 2009, introducing the The Federal Reserve Board Abolition Act, H.R. 833.

Madame Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In addition, most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve's inflationary policies. This represents a real, if hidden, tax imposed on the American people.

From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial "boom" followed by a recession or depression when the Fed-created bubble bursts.

With a stable currency, American exporters will no longer be held hostage to an erratic monetary policy. Stabilizing the currency will also give Americans new incentives to save as they will no longer have to fear inflation eroding their savings. Those members concerned about increasing America's exports or the low rate of savings should be enthusiastic supporters of this legislation.

Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government.

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.

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.

In conclusion, Mr. Speaker, 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.

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Thanks for posting this Morgan! I didn't realize he was going to make another run at this. For any who don't know, this is something he has pushed off-and-on for quite a while now; and only briefly touched on turn his bid for presidency.

Many people don't realize that the Federal Reserve actually is not a part of the federal government; it is a privatized central bank that Congress delegated control of our monetary policy to. Although not detailed specifically in our founding documents, the founding fathers and politicians for years afterward strove to prevent a central banking system because they saw it corrupted in Europe. The Federal Reserve Act was pushed through Congress late in 1913, and enacted by Woodrow Wilson's signature in December of 1913.

By 1916 Wilson realized his mistake, and even voiced it: "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."

Central Banking and the Federal Reserve is the reason we have income tax. In the shortest most basic explanation, the government borrows money from the Federal Reserve to distribute to the population; the Federal Reserve charges the government interest on that money, so the IRS collects taxes to make the interest payments. It really is much more complex than that, but that is the simple short of it. The government can never get out of debt from the monster it created, and our tax dollars are wasted feeding the monster.

I've referenced the Zeitgeist Movie a few times in the past, cause it has a great section on religion and the debunking of the Jesus Christ mythology. It also has a good section on banking and the Federal Reserve in America; its part 3 of the movie if you are interested.

I would also encourage anyone who supports this act or the idea of it to contact your elected officials.

Ron Paul has the article Morgan posted, an article about the Federal Reserve, and several other articles that might be eye openers for some people.
thanks for the reply Johnny! This is now featured :)
Ah libertarians ...

All the problems we have now come from the amount of power thats been given to corporations and banks to screw the middle class over as much as possible and for ppl like Ron Paul the answer is to destroy even more of the basic rights of the middle class, to give supreme ultimate power to corporations, to make sure that there are no ethics and morals when it comes to business at all.

So let me get this straight, corporations have too much power and have been bleeding money and crushing rights from the middle class for over 30 years and the way to fix that is to give them ultimate power ...


Do americans just ignore europe?

Stop watching fox news and thinking business and money is all that matters, geeze ...
Now I don't agree with all Ron Paul says, and some of the libertarian views are a little too out there for me. But this is one of his moves that I think makes sense, even if it does seem a little extreme.

I'm curious where you're coming from with the comments like "for ppl like Ron Paul the answer is to destroy even more of the basic rights of the middle class, to give supreme ultimate power to corporations."

Corporations (and banks) currently control our economy and currency, and hold too much sway over the government. Congressman Paul wants to remove that power from the banks and corporations and return it to the government and the people. While the measures he wants to take do seem extreme, it seems obvious to me (even though I don't understand it) that the current economic situation needs something extreme.

You're contesting with a "don't drink the cool-aid" comment, but not providing any reason why this is the wrong flavor of cool-aid.
You should read Ron Paul's book "Revolution A Manifesto". He explains the economy very simply. I had a hard time grasping it until I read that. The basis of it is very simple. Odd huh?
I fear for RP's life sometimes, he is standing up against a mighty enemy.
Check this:
“ I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."  --Thomas Jefferson-- 1802

I don't understand ArghMonkey's comments regarding Ron Paul; if we have a single ally in congress, Ron Paul is it. Fox News? They are the outlet trying to characterize RP as a crazy radical. Johnny is right, the Fed is illegal as well as the tax we're levied to pay interest on the money they print. The gold standard should return.
Anyone who says the libertarian idea has anything to do with the "big corporations" who screw the middle class need to read "atlas shrugged". Hank Rearden treated his employees with respect and payed them well. He had high morals and standards. These corporations who screw the middle class are not the libertarian idea of a capitalist. You need to read before you throw your ideas about it out there. You know nothing about the philosophy and idea behind the free market capitalism from a libertarian stand point. Most people can't hold the standards set in that book. You should seriously read the contrast between the libertarian ideas of a business versus the corporations that screwed this country over in the book. They are extreme opposites. Read before you type your garbage. You sound like an idiot when you do that.
Also Ron Paul's views are not extreme. Our country held that view until the fed was created. Going back to the constitution is not extreme. We pretend to follow some of it now and do follow some of it now.
Argh, have you read all of Ayn Rand's books? I know that a books with over 1,000 pages is a daunting task, and "The Virtue Of Selfishness" is so dry and compounded that have to take a break after every page, but you should before you comment on the subject.
I'll have look into those books, thanks.

Its not that 'going back to the constitution' is extreme. Its the thought of abolishing the Federal Reserve that seems an extreme idea. Even after you know some of the details behind it, and realize how horrible it is, not to mention unconstitutional - you have to admit that to most people the thought of abolishing the Fed seems like an extreme idea. Additionally think about how it would throw our financial system on its ear for a few years; I think that scares the shit out of some people, and of course the bankers will oppose it.
I totally understand what your saying. I guess you can say any return to the basic principals of this country now is extreme, from eradicating the welfare state to the fed, even to people who understand it and especially to most people who have no idea about it.
I don't think it could upset the economy any more then the boom and bust bubbles they create, the first depression, or the money they print out of the air.
I just wonder what congress does anymore. They don't use their power to coin, declare wars, and they obviously don't read the damn bills they pass. I think most of them are no better then the welfare state mother who only has kids solely for the checks from the government and from their baby's daddy.
How can you say that those are misstatements?
Congress shall have the power....To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
They don't do that. The fed does.
Is that not what we are talking about?
If congress did read all of the bills before them then why do they need such a huge staff to read it for them? How does congress read a bill completed at 12am and passed at 4am? I can't remember where I heard it but a congressman said something to the extent of if we read all the bills we pass then none would get passed. It's common knowledge. The bills are too big and bulky to read. How many Christians? do you know that talk about the bible like they have read it but have only read pieces here and there. Did you try to read the stimulus plan? How about the patriot act? If they did, they would have known how unconstitutional it was. Has congress officially declared war yet? I'm pretty sure they haven't.
1.So it took almost a year of war for congress to declare war? Is that common practice for laws to be enforced before they are signed into law?
2. Every congressman should read every single word of every page. Not someone. It is their job. Their lack of reading allows huge bills full of pork, big spending, and last minute changes to pass. I think bills should be read to them on the floor and they should sit through it. they should understand every word of every sentence.


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