October 16, 2009
End the Fed
By Ron Paul
210 pp. Grand Central Publishing 2009
How many politicians are capable of writing a book, nay, a paragraph that would be worth reading? Watching them on TV, they seem the most spineless, uninteresting group of people imaginable. It seems obvious why. In the same way diversity leads to a culture that appeals to the lowest common denominator, a popularity contest involving the general population favors the smallest men imaginable.
An exception is Ron Paul, a man who lives a life of ideas and action, as the Founding Fathers did. The congressman has spent a lifetime as a champion of liberty and his greatest enemy is the Federal Reserve. Fresh off his 2008 presidential campaign he wrote End the Fed.
Our Government the Thief
According to Paul, the best case against the Fed is simply that it’s immoral. When government prints a new dollar, the value of each one in circulation goes down. The government shouldn’t be allowed to print money for the same reason you or I aren’t allowed to counterfeit.
If that’s not enough for you, there is the constitutional argument. The Tenth Amendment to the Unites States Constitution says that whatever powers not explicitly granted to the Federal Government are left to the people or the states. There is nothing in the Constitution about centralized banking. And the states aren’t allowed to declare whatever they want as money either. Article 1, Section 10: “No state shall…make anything but gold and silver coin a tender in payment of debts.”
The economic argument that centralized banking is needed to deal with the boom and bust cycle is like a tobacco company saying that their goal is to fight lung cancer. It’s the Fed which mandates artificially low interest rates and creates imagined wealth in the first place, leading to the bust phase. Unfortunately, Paul doesn’t explain this clearly enough and I think he may expect too much from the casual reader. The author proceeds as if it’s common knowledge what the Fed is and what it does, or even how money works. Had I not read Murray Rothbard’s Amazon.com: The Case Against the Fed (9780945466178): Murray N. Rothbard: Books@@AMEPARAM@@http://ecx.images-amazon.com/images/I/410kB9hpiNL.@@AMEPARAM@@410kB9hpiNL I would’ve been lost. Both books along with those of others by Mises Institute scholars are recommended under suggested reading.
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