Sunday, February 8, 2015

RAND PAUL EXPLAINS WHAT THE DOLLAR IS BACKED BY: “USED CAR LOANS, BAD HOME LOANS, DISTRESSED ASSETS AND DERIVATIVES”

Paul unleashed a blistering attack on the Federal Reserve


Image Credits: Gage Skidmore via Flickr
by ZERO HEDGE | FEBRUARY 8, 2015

Having recently exposed the mainstream media’s lack of objectivity in “slanted and distorted” interviews, Rand Paul has turned his focus to another staple of the status quo – his father’s arch-nemesis, The Fed. As WSJ reports, Sen. Rand Paul unleashed a blistering attack on the Federal Reserve in Iowa on Fridasy evening, calling for an audit of the institution’s books and blaming it for fueling income inequality. “Once upon a time, your dollar was as good as gold,” he explained, adding “then for many decades, they said your dollar was backed by the full faith and credit of government.” Do you know what it’s backed by now? “Used car loans, bad home loans, distressed assets and derivatives.”

As The Wall Street Journal reports,
Speaking to an enthusiastic crowd of Iowa activists, Sen. Rand Paul on Friday evening delivered a blistering attack on the Federal Reserve, calling for an audit of the institution’s books and blaming it for fueling income inequality.

Mr. Paul, a Kentucky Republican and likely 2016 presidential candidate, said the central bank’s monetary policies had contributed to a weakening of the U.S. currency and represented a threat to the stability of the economy.

“Once upon a time, your dollar was as good as gold,” Mr. Paul said, speaking at an event organized by the libertarian-leaning group Liberty Iowa. “Then for many decades, they said your dollar was backed by the full faith and credit of government. Do you know what it’s backed by now? Used car loans, bad home loans, distressed assets and derivatives.”

In his appearance, Mr. Paul delivered a speech heavy on libertarian themes—calling on fellow members of Congress to support his proposal to audit the Fed before pivoting to other themes such as privacy, surveillance, marijuana and changes to criminal sentencing.

“I think there needs to be some sunshine. I’m going to fight ’em, and we’re going to get a vote on audit the Fed,” he said to applause from the crowd.