Economy

Ron Paul: Don't End Fed—Just End Secrecy

Javier E. David|Special to CNBC.com
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Texas Republican Ron Paul said his efforts to audit the Federal Reserve were less about "ending the Fed" and more about making its actions more transparent, the firebrand Libertarian told CNBC in an interview.

Ron Paul
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The former Republican presidential contender, whose “Audit the Fed” bill receivedwide Congressional backing last week but is expected to languish in the Senate, conceded that his legislation’s chances of passage “were not all that great.” Still, he vowed to continue highlighting what he insists is Fed Chairman Ben Bernanke’s penchant for secrecy with taxpayer dollars.

Monetary policy decisions are “very political,” Paul said. “We have an obligation and a right to know what the Fed is doing in secret when they bail out their friends and bail out the banks, and get involved in overseas financing, as they are prepared to do in Europe right now.”

Paul disputed the idea that he wants to shutter the Fed  completely, which he said would result in “total chaos.” Nonetheless, he called for broad changes in how monetary policy decisions are made, and had strong words for the Fed’s monetary stimulus efforts.

“Politicians and bankers are addicted to the drug of easy money and easy credit,” Paul said.