Ron Paul's Statement on the Fed's Continued Euro Bailout
"The Fed's latest actions in cooperating with foreign central banks to
undertake liquidity swaps of dollars for foreign currencies is another reason
why Congress needs enhanced power to oversee and audit the Fed. Under current
law Congress cannot examine these types of agreements. Those who would argue
that auditing the Fed or these agreements with central banks harms the Fed's
independence should reevaluate the Fed's supposed independence when the Fed
bails out Europe so soon after President Obama promised US assistance in
resolving the Euro crisis.

Rather than calming markets, these arrangements should indicate just how
frightened governments around the world are about the European financial
crisis. Central banks are grasping at straws, hoping that flooding the world
with money created out of thin air will somehow resolve a crisis caused by
uncontrolled government spending and irresponsible debt issuance. Congress
should not permit this type of open-ended commitment on the part of the Fed, a
commitment which could easily run into the trillions of dollars. These dollar
swaps are purely inflationary and will harm American consumers as much as any
form of quantitative easing.

The Fed is behaving much as it did during the 2008 financial crisis, only
this time instead of bailing out politically well-connected too-big-to-fail
firms it is bailing out profligate government spending. Citizens the world over
deserve better than this. They deserve sound money that cannot be manipulated
and created out of thin air by central planners who promise printed prosperity.
Fiat money caused this European crisis and the financial crisis before it. More
fiat money is not the cure. The global fiat currency system has proven itself a
failure, we need real monetary reform. We need sound money."