Rep. Ron Paul, the Texas Republican who wrote a book about auditing and abolishing the Federa Reserve Bank, is assumed to be plotting such a move in the 112th Congress where he will be chairman of a House Financial Services Subcommitte with oversight authority for the controversial institution.
But in an interview with Bloomberg Television, Paul sounds a rather cautious note, saying he won't be lighting torches and grabbing pitchforks on the opening day of the new Congress:
"Even in my book about ending the Fed, I do not talk about turning the keys and locking the doors. I talk about a transition and why don't we legalize the Constitution and allow legal tender to compete with paper money," Paul told Bloomberg.
"Today it's the opposite. We are forced to use depreciating money and they do a very good job of depreciating money. At the same time, the Constitution still says that the only thing you are allowed to use is gold and silver. All I want to do is legalize that and if nobody cares, if nobody likes gold and silver, in paper assets and put their savings accounts in paper money."
Interestingly, despite the fact the two men have diametrically opposed ideological perspectives, Paul has good things to say about Rep. Barney Frank, the Massachusetts Democrat who will become the committee's ranking minority member after four years as its chairman.
"We are good friends. We talk about the Fed a whole lot, and although he did not vote to audit the Fed, he was very sympathetic and we wouldn't have that bill put into the financial reform bill if it hadn't have been for him. He could have prevented that," Paul said.
"In many ways, he is a subtle ally in that he wants to know more about the Fed and look into the Fed, although his conclusions on what to do with monetary policy wouldn't be the same."