Ron Paul Lunch in SF - Federal Reserve and Liberty (5 of 6)
We have just a few more minutes, but I do want to talk about a subject that I've talked about since the very first time I ran for Congress, which was in 1974. I first decided to run in 1974 as a consequence of my study and understanding of Austrian economics, which preaches real free-markets, has nothing to do with free-enterprise system that we might be taught in our colleges. It has to do with true free-markets and no government intervention. But the study in that system of economics in the 60's, the conviction that the Brenton Woods monetary system was ripped down came about on August 15 of 1971. And it was a disastrous day, I can remember on the Sunday that it occurred, and what happened on that Monday, because it was announced by Nixon that the gold window was closed; there would be no restraining on the printing presses. It would be huge tariffs placed on... there would be wage and price controls. And all this authoritarian placed on us to keep together this free-enterprise system.So it was at time that I decided, "Well, at least I want to talk about this. And I will run for Congress." And I knew with a great deal of confidence that I that I couldn't be elected, because I wouldn't promise to play Santa Claus and promise to re-distribute wealth. It was to my surprise that a few people did listen in Texas, and now I am finding that there are a lot of people in this country, including people in San Francisco, who are ready to join me in this...(Applause).But the issue of money is very important. If you believe in civil liberties and anti-war position and the marketplace... you have to be in support in a commodity-standard of money. This whole idea that a people can turn over to a secret banking system the control of money where politicians can spend endlessly and then deliver the bills to a secret bank that creates money out of thin air and then circulates it. It's absolutely absurd. And it's economically very, very dangerous. But the worse part about it: it encourages politicians to act even more [irresponsibly] than they ordinarily do, because they don't have to actually pay for the bill.So if they want to promise welfare to the country, sure, promise them. We'll tax and we'll borrow and in the end the Feds will take care of it and print the money. OR, if they want to fight a war, they don't have to act responsibly. Just fight the war, and inflate the currency. So if you believe in limited-government, you really, really have to look into the issue of money.The whole idea of the destruction of money means that there is transfer of wealth. Poor people and the middle class get wiped out, and the wealth is transferred to the wealthy class, the rich class, Wall Street people are involved, the banking class. This has been happening for a long time. Ultimately, though, it leads to political dangers and political chaos, which is the greatest danger to our liberty. So nobody is absolutely protected. And we certainly know what happened in Germany in the 1920's with runaway inflation. And we're not immune from it. So it is a very, very important issue. If we truly follow a sound monetary system, there would be tremendous restraints placed on the government and people's freedoms would be better protected. So there are reasons to be optimistic that we can restore those principles. They have been in our system. It isn't a brand new idea. We can improve on the old ideas. It's not brand new in this country. We do have traditions in private property and contracts and sound money. And so it's not any more complicated than saying, "What do we need to do?"Well, let's start by legalize the Constitution once again.