(Kitco News) - Former U.S. Congressman Dr. Ron Paul doubled down on his long-standing call for the abolition of the Federal Reserve, arguing that the institution is unconstitutional, illegal, and detrimental to the U.S. economy, which is already showing significant cracks.
In an interview with Kitco News, Paul stressed the urgency of addressing the Fed's unchecked power and its impact on the dollar's value.
"The whole system is illegal and unconstitutional," Paul told Kitco News anchor Jeremy Szafron, expressing concern over Fed Chair Jerome Powell's assertion that the president cannot fire him. Paul found it ironic that Powell would invoke the law to defend his position while simultaneously overseeing an institution that Paul considers fundamentally unlawful.
Paul describes the Fed as the biggest taxer in the country. To hear his reasoning, watch the video above.
Paul criticized the Fed's lack of transparency and accountability. "If you're worried about deficits, you can't deal with that unless you deal with the printing presses coming out of the Federal Reserve," he said. "The evil emanates from the fact that we have fiat money."
The Fed's ability to create money through fiat currency has led to runaway deficits and fueled unsustainable economic growth, according to Paul. "All empires will go away one way or the other, and I think we're seeing the cracks in that," he stated.
Paul drew parallels to historical examples like Venezuela and Zimbabwe, warning that the U.S. is headed toward a similar fate if the Fed's power is not curtailed.
"Debasing a currency is counterfeiting [and] leads to political instability and violence," he noted, echoing sentiments from his 2010 book, 'End the Fed.' "The end-stage goes very rapidly – when people rush out of the dollar system. It won't happen next month. But there is going to be some incident." To hear more about what this incident could be, watch the video above.
Paul expressed support for initiatives aimed at reducing government spending and promoting fiscal responsibility. He commended President-elect Donald Trump's plan to establish a Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, with a mandate to cut federal spending and streamline government operations.
To get insights on what he would focus on with this initiative, watch the video above.
Paul told Kitco News that the moves in gold prices this year reflect growing concerns about the dollar's stability.
He remains a staunch advocate for gold ownership, arguing that it provides a hedge against inflation and economic uncertainty. For his thoughts on a return to a gold-backed currency, watch the video above.
Paul added that gold will continue to appreciate as the flaws in the current monetary system become more apparent. "You'll see gold double, triple, and quadruple if we don't do the right thing. Those who want to cut spending and tie it into monetary policy have a very important job," he said. "In the last year, there was an explosion of interesting gold. Gold is going to continue to [rise]. When gold exploded in the 1970s, it went from $35 up to $800."
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