The following is the skinny on the Federal Reserve and the Federal Reserve Act.

Founded in 1913 the Federal Reserve is to: furnish an elastic currency (abandon the gold standard), allow for rediscounting commercial paper (create new money at will), and supervise banking in the United States (expand credit).

The truth is that since the creation of the Federal Reserve, Americans have fallen to the mercy of cyclical monetary policy and recessive economic conditions. In other words, it is because the Federal Reserve consistently floods the market with money that artificial growth, in various sectors, is followed by recession. This is a direct cause of the devaluation of the dollar and the increase to the national deficit.

Paul wishes to put an end to the domestic issues and political ramifications that Federal Reserve policies have on the United States. He realizes that without a gold standard, congress is free to continue spending recklessly; under the assumption that monetary expansion will correct the negative infringement on the economy.

In a statement presented to the U.S. House of Representatives in 2002, titled Abolish the Federal Reserve, Paul noted, “policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender.” Why silver, why gold?

Because precious metal is what the market chose! Remember the term laissez-faire? If not, here is the Encarta Dictionary definition: the principle that the economy works best if private industry is not regulated and markets are free.

Dr. Ron Paul is no idiot. He merely sees through big business lobbyists and supporters, and attends to the people who truly matter—you and me. His theories on how to address the issues which affect American’s, aren’t to favor his personal objectives or to help secure his legacy; they are to better the lives of those he is sworn to represent—the citizens of the United States of America.

RJ