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Showing posts from November 13, 2009

Ron Paul talks about the Fed, monetary policy and fractional reserve banking.

Below is an interview of Ron Paul on CNBC.  Steve Leisman is his usual obnoxious and pretentious self, but that is only because he has no idea what the hell Paul is talking about.  This is probably the best I have seen Paul as he sticks to the talking points and covers a wide range of important issues.   He does however make the usual Paul-like commentary that I have written about before whereby he makes allegations that he KNOWS are controversial. In this case the subject matter is too defense for most people and most certainly for the CNBC staff so they let him slide, but when Paul asserts that reserve banking is fraudulent he is walking a fine a line.  Before the Great Depression, it would have been considered fraudulent only because the dollar was backed by gold.   People deposited the gold into banks and banks issued certificates granting the ability to withdraw the gold.  As the gold sat there, banks figured they could make loans assumin...