I love Ron Paul for his views on liberty but his knowledge of the banking system is very flawed. He keeps on saying the Federal Reserve "creates money out of thin air", well, the system is "credit", if it's not created out of thin air where is stored?
All "credit" is created out of thin air, always has, always will. Just like love is created out of thin air.
He has also expressed a desire to go back to a gold standard, well, sounds good on paper but you ran out of gold to support the credit system back almost a century ago. If he with Peter Schiff had been elected the system would have collapse instantly.
THERE IS NO SUCH THING AS A GOLD STANDARD IF PEOPLE BORROW AND LEND WITH COMPOUNDING INTEREST ATTACHED because eventually you run out of the underlying asset, how do I know this... it happened in 1930. Actually, it happened before that but that is when stupid humans went running to the bank.
What Ron Paul is suggesting is the exact same system you have now, he just doesn't want the government involved, well it's going to rise then one day it's going to collapse into a big heap of a mess and people are going to have to be liquidated.