Summary: End The Fed By Ron Paul

1. Summary of End the Fed
“End the Fed” by Ron Paul argues how the federal reserve (Fed) is detrimental to the economy and the nation. Although, the Fed claims that its role is to keep inflation in control, implement a solvent banking system, regulate financial system and also keeps the business cycle in steady state, Ron Paul disagrees on the above mentioned points and argues that the Fed has ironically created more problems than resolving them. By drawing examples from American history, experiences from his political career as well as his knowledge, Ron Paul put up a strong argument on how the Fed is corrupted, immoral and unconstitutional through a philosophical, economic and libertarian point of view. At the end, Ron Paul emphasises on …show more content…
He advocates that the economy should work on a free market where the free market set prices and interest rates. Only then, the economy will break free from the boom and bust cycle, rising interest rates and weakening of dollar. Ron Paul suggested that the solution to an imminent economic disaster is to end the fed, go back to gold standard, be transparent on costs of war and fiscal spending, base credit on savings and lastly, operate on a free market …show more content…
Even though the concepts mentioned in this book are hard to grasp, it has successfully illustrated how the central bank works through a unique point of view. In my opinion, I have never doubted the solutions or strategy taken by any government institutions as I felt that it would be the best way out during an economic downturn. Ron Paul has changed my view towards this by explaining how the central bank creates an illusionary wealth by tempering with the interest rates. As a marketing student back in my school, I had little interest in the world’s economy and also the assumption that an individualistic country like United States would operate based on a complete free market economy where prices are mostly determined by supply and demand. I have since corrected this assumption after understanding how the economy goes through a boom/bust cycle caused by the central bank when controlling inflation and interest rates. Likewise, I always thought that the collapse of housing or stocks market is the cause of a free market economy. I was provided with another point of view by Ron Paul who showed the role of Fed behind the creation of housing bubble as well as the collapse of the bubble. This book not only allowed me to discover more on the role of the central bank, but also greatly sparked my interest in the economy and financial markets. However, I also learnt to not