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    Ron Paul: Federal Reserve is Like Drug Addiction

    It's no secret that Rep. Ron Paul is no fan of the Federal Reserve, but today he likened the system to drug addiction--something that feels good at the time but will end in destruction.

    "It's a deception," he said of the central banking system this morning at an event sponsored by the libertarian CATO Institute.

    "It's sort of like a drug. You get some benefits if you keep using it--you know, run up debt, run up inflation, monetize the debt, make a bigger bubble," he explained. "Just like a drug addiction, the drug addict feels better when he keeps getting drugs."

    [Read about why Ron Paul's foreign policy makes sense (or not).]

    But the high can't last forever, and like so many cases of drug addicts, "if you don't do something about it, you kill the patient," Paul said. "And right now the patient is very, very big, and that's the worldwide economy."

    Paul's answer? Go back to the gold standard, which tied the value of paper dollars to the value of gold.

    Paul advocates a decentralized banking system in which states regulate fraud and abuse--he said they do a better job than federal financial regulatory laws such as Dodd-Frank and Sarbanes-Oxley.

    [Check out Ron Paul's secret to energy in a grueling 2012 campaign.]

    Paul also favors allowing private entities to issue gold and silver coins and wants to prevent federal and state governments from taxing those precious metals.

    Paul reads the Constitution's requirement that "No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts" to mean the departure from the gold standard in 1933--and in the 1970s when ties were completely severed--was unconstitutional.

    But, he added, he wouldn't end the Federal Reserve in one day. Such a sudden change would be damaging, he said, as would letting the system collapse on its own, which he warned will happen eventually if the Fed is not reined in.

    "The Federal Reserve will close themselves down eventually when they destroy money," he said. "But I don't want that to happen."

    --Find out why Ron Paul (probably) won't leave the GOP.

    --Read: Ron Paul's $1 trillion spending-cut plan targets five cabinet departments.

    --See a roundup of political cartoons on the 2012 GOP candidates.

     
    • incredulous  •  5 mths ago
      We keep hearing about all the debt we have in this country. We can no longer support social programs and are cutting back on essential services such as the postal service, schools, public works, etc. But we seem to have infinite money for wars for trumped up reasons and top secret "security" programs which are actually targeting us citizens, rather than real or imaginary enemies. The way the Patriot Act reads, anyone who criticizes the government is already a terrorist. Now we have this new bill which makes it possible for the government to arrest and all of us for no reason whatsover and put us in jail indefinitely. I guess those 94 who took an oath to uphold the Constitution were all lying.
    • incredulous  •  5 mths ago
      The Fed has used its printing presses to create trillions out of thin air with nothing to back it up. If we did this, we'd all be in jail for a long time. They rig the system so they are the only ones profiting. They have ruined millions of lives. All this FIAT currency causes massive inflation. The last time they did this was right before the Stock Market crash in the late 20's. And look what that got us. Why should it be any different today. If people are calling social security a racket, then what do we call people who hide behind layers of secrecy creating trillions for themselves while still robbing every person in the country who has any kind of loan? They are taking their ill gotten cash and purchasing land, gold and other tangible items of value so only they will have value after the whole system falls like a house of cards. No wonder the bank owned media goes to such lengths to discredit people who actually identify our real problems and have solutions to fix them. Look at the nonsense these right wing candidates are spouting. It's the same old red herring issues they float every election cycle. The country is in big trouble. We are living on borrowed time and we are still focusing on gay marriage and fencing out illegals, who really are not the problem.
      • zero point motion 5 mths ago
        Yet people keep voting in the same smiling pretty faces with meaningless promises. Bush, clinton, bush, obama all the same neocons from both parties.
        What is left other than voting for proven track record, ethics, morality etc
        Ron Paul
    • incredulous  •  5 mths ago
      Even as we speak the Tio Tinto company, owned by the Rothschilds is planning a huge gold mining operation in Alaska. They must know something we don't. Who gives the right to steal American precious metals out of soils without paying for it? They will also be creating one of the biggest open pit mines in the world that will ruin the habitat for wild animals and disrupt where the salmon start to spawn before moving down into this country.
    • AdanR  •  6 mths ago
      That's why I hate economists who say all this #$%$ about Paul's economics. They are just to retarded to understand the long term ramifications.
      • A Yahoo! User 6 mths ago
        Another stoner "ronbot" who conufses "to" for "too." "Ronbots" have severe cognition problems due to pot abuse.
      • Janet J. 6 mths ago
        Look here mustache Jesus...all I hear from the freaks like you is insults, but never ideas or solutions. You all prefer to live on your credit cards and loans indefinitely. It's unsustainable. We know who the crazies really are.
      • Blackdeth 6 mths ago
        Hey it's DeseTBob again! Funny you would go after someone for thier grammer and make totally ignorant sterotypes instead of explaining why Ron Paul is wrong on what he says. It's pretty awesome for Paul and his supporters that most of his opposition resort to name calling. I guess your counter-argument is just that strong.
    • Charles  •  Norfolk, United States  •  6 mths ago
      Ron Paul nails it on the head.
      Vote for Ron Paul 2012
      • aarroozz 6 mths ago
        America has realized the deception by the media and the train has been turned and is rapidly gaining speed, Ron Paul 2012!
      • mark d 6 mths ago
        Ron Paul is hated by the lobbyists and specially the Jewish lobby the leader of the pack , the lobby exist in every other lobby you name it from the media lobby to right wing lobbyists.
      • Walter S. 6 mths ago
        Ron Paul never studied economics nor American history. Banks were regulated by states and still are (state chartered banks unless one is nationally chartered which means regulation by Fed Reserve). As for the gold standard, it makes recessions a lot longer...why did we get out of Gold Standard years ago? No duh! Ron Paul needs to go back as a doctor. He ain't no economist PhD.
    • Janet J.  •  6 mths ago
      Dr. Paul is ignored in the media because his views and ideas threaten the people who make a living by ripping people off, whether it's through the tax code, corporate welfare or otherwise.
      • Michael 6 mths ago
        Very True - succinctly stated
      • aarroozz 6 mths ago
        Write letters to your elected public servants and let them know you would like them to endorse Ron Paul.
    • ROB  •  6 mths ago
      ron paul is right
      • aarroozz 6 mths ago
        We have until February to get people prepared to vote in the primary and actively supporting Dr. Paul.
    • Paul  •  King of Prussia, United States  •  6 mths ago
      Ron Paul is by far the most sensible candidate there is. If he doesn't get the nomination it will only be because people don't want to hear the truth.
    • damage done  •  6 mths ago
      I am supporting RON PAUL, but i am afraid the people will never embrace an honest person for president,we seem to buy what ever the news media is selling and their not selling ron paul. RON PAUL 2012.$$$$$$$$$$$$$
    • M M  •  Green City, United States  •  6 mths ago
      Be nice if people took the time to actually study what Paul says about it and read his own words than relying on an article here and there.
    • Lee  •  6 mths ago
      Had to run outside and make sure the sky wasn't falling. The media actually covering Paul, I still can't believe it. Don't worry, I'll wake up and it will be a dream, oh and fk the fed.
    • Janet J.  •  6 mths ago
      JFK: "As not what your country can do for you..."

      Patrick Henry: "Give me liberty or give me death!"

      Ron Paul: "All initiation of force is a violation of someone else's rights"

      Herman Cain: "I got all this stuff twirling around in my head"
    • Clever  •  Reedley, United States  •  6 mths ago
      The majority of Americans are too stupid. They say they hate lobbying and crap like that. But every person that ran for the presidency or is a president. Has gotten huge amounts of money by those large corporation. Including Obama. Then you get Ron Paul, who gets his money from us regular people. Yet the continue to vote for the other guy. Then they #$%$ about how nothing changes
    • Lisa  •  6 mths ago
      Paul's solution is to allow for competing, commodity-backed currencies -- a true free market approach, not simply returning to the gold standard. The Federal Reserve and its manipulation of fiat currency is a deception that we have fallen for for far too long.
    • libertarion  •  Dallas, United States  •  6 mths ago
      West : Cutting billion in tax revenue will not hurt economy as long we close all military bases around the world, stop injecting money to military industrial complex , eliminating Freddy-May mortgage loans, changing Social Security/ medicare,medicaid system which will not guarantee having fund in 30 yrs. Ron Paul wants to fix those problems which will getting worse in the future. Peace, Liberty and Prosperity.
    • Jeff  •  South Bend, United States  •  6 mths ago
      Ron Paul is incredibly smart, especially when talking about economics. If he doesn't get elected, everyone is going to find out just how right he is.
    • M  •  6 mths ago
      Ron Paul = my hero.
    • ToughUSA  •  Washington, United States  •  6 mths ago
      Ron Paul 2012 !!!. Iowa Rocks. Now we need New hampshire.
    • Vixen  •  6 mths ago
      Well, you know, he's right! RON PAUL 2012!
    • SteveH  •  Fort Worth, United States  •  6 mths ago
      With decades of consistency and integrity on the record, Ron Paul cannot be influenced by lobbyists or bought off by the wall st bankers. He is a man with basically “nothing to lose” who will fight the wash dc “insiders” to get our country back on track.
      He will fight for term limits on congress and a balanced budget amendment. He will cut as much govt waste as he can. He will bring our troops home from wars that ended long ago. He will secure our borders and fight to cut all govt assistance to illegals.
      If our great country is to survive these very challenging times, then we need to elect a man who cannot be swayed by the political winds. A man who is honest and consistent. A true American patriot who will fight for the middle and lower classes and not the mega-rich elite, wall st or the bankers!!
      Ron Paul 2012!!
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