I never understood why Ron Paul and his supporters would rant (and chant) about why the government should "End the Fed." But after reading that the Government Accountability Office's first-ever audit of the Federal Reserve Bank shows $16 trillion in loans to private corporations worldwide, I became curious.
My curiosity eventually led me to the well-made YouTube video below. After watching, one can at least understand (although not necessarily agree with) the thought behind ending or reforming the Federal Reserve.
There are several arguments embedded in this piece, but the video explains them more thoroughly than I do and is certainly worth your time:
Argument 1: Secrecy
1. No one is allowed inside the Federal Reserve. Not Congressmen, the president, Supreme Court, CIA, or FBI. Not anyone.
2. This secrecy should not be tolerated by an institution which has the power to print U.S. dollars.
Argument 2: Corporate Influence
1. Big banks back the Federal Reserve because these banks can request loans from the Federal Reserve at low interest rates.
2. Many bankers and private shareholders sit on the board of Federal Reserve Banks (like JP Morgan CEO, Jamie Dimon).
3. The Federal Reserve is largely influenced and controlled by private corporations because of their interest in keeping interest rates low and increasing the amount of money loaned to them.
4. Government institutions should not be heavily influenced by private corporations.
Argument 3: Increased U.S. Government Debt
1. The Federal Reserve can order the U.S. National Mint to print money and oftentimes does so to loan money to banks.
2. The Federal Reserve then loans money to the U.S. government at interest.
3. The U.S. government then taxes its people to pay for the loans with interest.
Argument 4: Increased Inflation
8. The Federal Reserve's increased printing of money leads to inflation.
9. Inflation has the side effect of increasing the price of goods.
The video takes you through these arguments and along the way shows the beginning (and the purpose) of banking and the history of government banking in the U.S. If you're interested in the Federal Reserve Bank or just curious about what those crazy "Paul Bots" think, this 30-minute video will help to explain their arguments and give you a better understanding of our economic system.
For more information on these arguments, you can also visit The American Dream.