Conservative Donnybrook

End the Fed is an interesting read.  Dr. Paul mixes facts and economic theory with unsubstantiated allegations, isolationistic tendencies and anti-government feelings to keep the reader’s attention.  The book is probably most effective at reaching those that (for what ever reason) already agree with Dr. Paul’s position regarding the Federal Reserve and fiat currency system.  It does little, however, to educate or persuade those looking for real answers.

Paul’s strongest argument in the book is not so much anti-Fed as it is anti-accounting methods and lending practices.  His elucidations on the practice of fractional reserve banking are spot on.  It is impossible to argue that taking from Peter to give to Paul creates wealth.  It surely does redistribute it, but can not create new wealth.  Likewise, Dr. Paul’s scathing remarks for Paulson’s, Greenspan’s, Geithner’s and Bernanke’s handling of the current economic crisis are well founded.  His assertions that bad economic policy and affirmative action in housing directly led to a housing bubble are hardly within doubt.  His observation that the current crisis was largely caused by an unholy alliance of GSE’s, the federal government and private corporations has never been seriously challenged.  Paul’s observations that inflation acts as a silent thief on American pocket books is also absolutely true.  His position that corporations desire private profits and public losses is no false accusation: We are in the midst of a Federal-Corporate taxpayer screwing of significant proportions.  Continue Reading »