Skip navigation.
   Candidate & issue information
Informing Hawaii's voters

Toward Sensible Monetary Policy

Monday, January 10, 2011

by Congressman Ron Paul (R-TX)

Last week the 112th Congress was sworn in. I am pleased that I will be chairing the Monetary Policy Subcommittee of the Financial Services Committee, which has oversight of the Federal Reserve. Obviously, this position will facilitate my efforts to ensure the Fed provides the American people with more information about what they have been doing with and to our money. Not surprisingly, since my chairmanship was announced, apologists for the Fed have been recycling the old canard about how increased transparency threatens the Fed’s so-called political independence.

By independence, they are referring to the Fed’s ability to greatly impact the economy with virtually no meaningful oversight. We only recently learned that the bankers at the Fed were able to use the latest financial crisis to bail out Wall Street cronies and foreign central banks with billions of dollars that were created and wasted, instead of appropriated and voted on by representatives of the people. The Fed and its supporters in Congress vehemently fought even this small bit of transparency and without this one-time provision in the financial reform act forcing disclosure, we would still not have this information. Indeed, we are in the dark on so much of what the Fed has done. This is extremely dangerous for our country, yet this power and secrecy is defended as some kind of public good, which is patently ridiculous.

Our government is based on a system of checks and balances. With no check on the Fed, it is no surprise it has thrown the economy wildly off balance. The solution is not to re-inflate the bubbles the Fed created, or to continue to devalue the currency, or to throw billions at failing banks and corporations. The solution is to return sanity and freedom to monetary policy. Forcing the entire country to use a medium of exchange that is subject to the whims of elite bankers and their cronies on Wall Street is not sanity. Hoping that an unchecked, all-powerful, behemoth banking cartel will solve any economic problem is not sanity.

The problems the Fed was originally created to solve now look minuscule compared to the problems it has created. If “political independence” erodes the purchasing power of the currency by 98 percent, destabilizes the economy with radical booms and busts, all while increasing unemployment and tipping us ever closer to hyperinflation, perhaps it is time to try a little transparency and accountability instead. Better still – we should try giving the people true economic freedom.

Make no mistake: the Fed is not truly independent of political pressure. Its chair is appointed by the President, and it is a creature of Congress. Congress has a duty, albeit a neglected one, to exercise oversight of the Fed. However, even if it were politically independent, it is not independent of the influences of Wall Street. One only has to look at the revolving door between the Fed and the big banks to know that. Disclosures on TARP funds confirm this.

It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing. It is high time Congress insists on getting complete information on what the Fed has been doing and for whom. My hope is that exposing the truth will demonstrate the insanity of the status quo and more people will call for sensible changes, such as legalizing competing currencies.

Ron Paul on Handling the Soaring National Debt

New Law Prohibits Ethnic Studies Propaganda

Newly passed law prohibits ethnic studies courses from inflaming racial hatred and anti-Americanism

A new law took effect in January 2011 which prohibits ethnic studies courses in the public schools and charter schools from being used as propaganda factories to build racial solidarity and anti-Americanism. The law targets courses which attract primarily students of any particular ethnicity, where the curriculum fosters hatred toward other racial groups by portraying them as oppressors -- courses that promote anti-American, secessionist attitudes by describing America as invader and occupier of the ethnic homeland.

What? Did local media last year fail to report a law enacted by the Hawaii legislature or Congress? Will we now see a major cleanup of racial hate-mongering and anti-Americanism in the "Hawaiian-focus" charter schools, Hawaiian language immersion schools, the "Hawaiian studies" curriculum throughout all the public schools and perhaps even the University of Hawaii and community colleges?

No. The law was passed by the Arizona legislature because of concerns over the "La Raza" curriculum in that state's ethnic studies courses. Instead of taking the usual American History required for graduation, students substitute a special ethnic-branded "studies" course: Mexican-American, African-American, Asian-American, or Native-American studies.

The La Raza curriculum teaches that nearly all Mexican-Americans have at least one drop of Mayan or Aztec blood, making them "indigenous" people with special rights. Large parts of the American Southwest were part of Mexico until the U.S. invaded and incorporated the lands and people into America. La Raza teaches that the "illegal immigrants" invading America by the millions today have every right as part of a "reconquista" because "We did not cross the border, the border crossed us. This is our homeland. It's the Anglos who are the illegal invaders."

The La Raza curriculum is dangerous because it fuels Mexican nationalist hatred toward America, and racial hatred toward Anglos (Caucasians), in the hearts and minds of Mexican-American teenagers; using taxpayer dollars.

Anyone who wondered whether the first paragraph of the present essay was describing Hawaii has good reason to be confused. Claims for reparations and sovereignty asserted by Mexican-Americans sound very similar to the claims asserted by Hawaiian sovereignty activists -- claims which are the main focus of the U.S. apology resolution to Native Hawaiians in 1993, and repeated in every version of the racial separatist Akaka bill. There are close similarities between the La Raza curriculum and the Hawaiian Studies curriculum in the way they foster ethnic nationalism, anti-Americanism, and racial hatred toward Caucasians.

The New York Times printed an article January 8, describing the Arizona law and its effect in one ethnic studies class in Tucson. It was slanted to make liberals feel sympathy for Mexican-American kids "targeted" by the law. But the law is race-neutral. The "Raza" curriculum targets itself because it's the only "studies" program which routinely violates the law. It's ironic that the day the New York Times trashed the Arizona law was the same day when a gunman in Arizona killed several people and gravely wounded an Arizona Congresswoman at a meet-and-greet event in a supermarket parking lot. That massacre was white-on-white and apparently had nothing to do with Hispanic-focused issues, but it surely does show the need to teach children the importance of mutual respect and civil discourse, and to stop inflaming political passions. There is a long history of "violence and threats of violence in the Hawaiian sovereignty movement" -- see

Here are the preamble and four main requirements of the the Arizona law: "Pupils should be taught to treat and value each other as individuals and not be taught to resent or hate other races or classes of people. ... A school district or charter school in this state shall not include in its program of instruction any courses or classes that include any of the following: 1. Promote the overthrow of the United States government. 2. Promote resentment toward a race or class of people. 3. Are designed primarily for pupils of a particular ethnic group. 4. Advocate ethnic solidarity instead of the treatment of pupils as individuals." Very reasonable! The law further states that it is not to be applied against portions of curriculum that contain individual lessons about particular groups and historical events such as the holocaust.

Wouldn't it be wonderful if we could have a law like that in Hawaii?

As it happens, the Honolulu Star-Advertiser published a version of the New York Times article in its online edition of January 8, but not its print edition. They published the article online in the wee hours of the morning but later deleted it, probably because some Hawaiian Studies advocate told an editor it hits too close to home!

The same Star-Advertiser of January 8 also published its regular weekly Hawaiian-language column. This particular column was by Keao NeSmith, who often engages in the sort of history-twisting America-bashing haole-hating rants which the Arizona law would prohibit from being used in a Hawaiian-studies curriculum. Just read it for yourself and you'll see.

Oops, it's in Hawaiian, so 99.9% of you can't figure out what it says. Publications in Hawaii often respect their readers by printing English translations side by side with Hawaiian: for example, the OHA monthly newspaper, the Big Island Weekly, the Kamehameha School Song Contest lyrics. But not the Honolulu Star-Advertiser.

For further details, including footnotes with internet links to the Arizona law, the newspaper articles, more analysis of NeSmith's column and the Hawaiian Studies system in Hawaii, go to

Slain Girl's Father Interviewed

Christina Green is the nine-year-old girl killed in the political shooting yesterday in Arizona that left six dead and 14 wounded, including Congresswoman Gabrielle Giffords (D-AZ). Christina's father is interviewed by Megyn Kelly of Fox News.

Warning: a heartbreaking story.


Christina Green is Dallas Green's granddaughter [Honolulu Star-Advertiser]

Daniel Hernandez, Man Who Helped Save Rep. Giffords

Daniel Hernandez, just 20-years old and on Congresswoman Gabrielle Giffords' staff for a mere five days, rushed to her side when he realized she'd been shot. He rendered first aid and other assistance to the grievously wounded Giffords, who had just taken a bullet through her brain.

In Shooting Aftermath, Govt Criticism Being Demonized

Mike Adams, who knew Congresswoman Gabrielle Giffords (D-AZ) personally, is appalled at how the shooting tragedy is being spun, saying in an email,

The mainstream media immediately latched onto this story and tried to say the shooter was some sort of anti-government nut. He was a nut alright, who rambled unintelligibly about burning the American flag, sleepwalking through life and being visited by colorful birds sitting on his shoulder.

On Mike's Natural News site, he writes,

That she [Giffords] has been violently attacked by an individual who is obviously mentally deranged is shocking and extremely disturbing. Almost as disturbing is how the mainstream media has latched onto this story as a way to demonize anyone who believes in the U.S. Constitution.

Read more . . .

Those Who Betrayed Got Rich

July 2010

William K. Black, professor of economics at the University of Missouri at Kansas City, explained back in July what the Finance Reform Bill means to us. The President signed it into law shortly after this interview.

Black says the bill has loopholes for derivatives trading and that the rating agencies are set up by Wall Street to be grossly inaccurate.

Imran Khan: War in Afghanistan Long Since Lost by U.S.

Imran Khan, a former leader of Pakistan's cricket team who is now a prominent politician, says that U.S. policy in Pakistan and Afghanistan is dead wrong. Further, instead of winning hearts and minds, we're losing them.

Bodies Still at Scene after Arizona Mass Shooting

Congresswoman Gabrielle Giffords (D) was shot through the brain at point blank range but is expected to live, although the damage is grievous. She was outside a Safeway at a shopping mall hosting a political gathering for her constituents.

Her aide, Arizona's top federal judge, a nine-year-old girl and three others are dead. The 22-year-old gunman was tackled during his shooting spree and is now in police custody, where he is said to be cooperating somewhat. Thirteen people, including Giffords, were wounded.

Congresswoman Gifford in an interview yesterday.

Rep. Gifford's husband is astronaut Mark Kelly, his brother is another astronaut.

Syndicate content