End the Fed Review part 01 of 02

"I've written this book to explain why I think the system of Fed domination must come to an end." --p4

As usual, I am overwhelmed with excitement to read a new book by Ron Paul. Weighing in at 210 pages, and only of modest page area, it is good for multiple reads. A dedicated reader can finish it in an afternoon, or a week in the lavatory. The hardback edition is under $13 on www.amazon.com I ordered three copies.

This book is more easily digestible, and more approachable that his previous works. A Foreign Policy of Freedom for example consists of mainly transcripts of his speeches on the House floor, without annotation or explanation. This is to my mind why Ron Paul was not overly successful two years ago. He doesn't really fill in the back story, to understand him you have to be at least roughly familiar with certain documents (like the Constitution). Things that are obvious to him (like states' rights) are not obvious to the average American.

End the Fed is really a misnomer. While that is certainly one of the main thrusts, the book deals with the basics of the banking system overall. The book could have well been called Sound Money.

Chapter 1 is entitled "Why you should care" and in plain language explains the connection between the life of the average Joe and the role of the Fed in manipulating money. This is not conspiracy theory. It's not a bombastic tirade. It's done in the tone of a detective presenting the facts to the victim of a burglary.

There is a healthy dose of folksiness in there. Ron Paul talks about his old coin collection, his grandmother's land, his breakfast with the Fed Chairman. This is not contrived, it rather connects the dots in a memorable and human fashion. Sort of like chocolate chips in a cookie.

There is also a golden nugget in there that mimics a thought I've been having: the real problem is the very concept of Fractional Reserve Banking. The concept of banking (other than its role to warehouse commodities/money and facilitate transfers) is rotten to the core. If the common man understood it he would not take part in it. But that's another topic.

Here are some of my favorite quotes from the book so far:

"If you solve the money monopoly problem by ending the Fed, you solve many other problems, too. Essentially you take away from the government the capacity to use financial trickery to expand without limit. It is the first step to restoring constitutional government. Without the Fed, the federal government would have to live within its means. It would still be too big and too intrusive, just like all state governments are today, but the outrageous empire at home and abroad would have to come to an end. There are other benefits as well, such as stopping the business cycle, ending inflation, building prosperity for all Americans, and putting an endo thte corrupt collaboration between government and banks that virtually defines the operations of public policy..." -p7

"For an answer [to the cause of centralization of power] we can turn to a monumental study published in 2006 by Spanish economist Jesus Huerta de soto. He places the blame on the very institution of fractional-reserve banking." --p15

"Just so that we are clear: the modern system of money and banking is not a free-market system. It is a system that is half socialized-- propped up by government-- and one that could never be sustained as it is in a clean market environment. And this is the core of the problem." --p18

"The market, or the black market if necessary, will always set the real prices of everything." --p49

"Imagine an irresponsible teenager with an unlimited line of credit. The parents, teachers, pastors, and authorities in his life are ultimately powerless to change his habits. Now imagine that teenager armed to the teeth and also immune even from the rule of law. This is what we have with a government backed by a central bank." --p67

"Very simply, there can't be a more immoral system of money than tone based on a banking monopoly that can counterfeit money in secret with no oversight and protection of the people. The moral argument against the Fed[eral Reserve] should be enough for decently well-informed people to dispense with it posthaste." --156

Anyone who follows this blog knows that I am not overly fond of banks. This is a reasonable position. I am still working on figuring out a system by which the common man can free himself in a practical and peaceable and legal manner. Every book I read gets me a step closer.



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