Rand Paul

Most things that come out in government, if you look beneath the surface, they all have pretty names.

They have acronyms that say patriotism, the Patriot Act.

You must be anti-patriotic if you're not for the Patriot Act.

But most of the things they say, it's the opposite.

Or someone has put something forward that really is about, like, let's say it's a banking regulation.

You say, this is going to protect the poor people.

But it turns out the banking regulation is easier paid for and absorbed by big banks.

And so what happens to your small local bank, you say, how come all the small banks get gobbled up by big banks?

It's because you put regulations on that who favored?

The big banks favor the regulations because it puts the small bank out of business.

They get absorbed by the big bank.

And then the new banks trying to come in can't afford the compliance cost.

Right now, one of the extraordinary things we're doing with banks, and I don't think many people know this, the Federal Reserve is now paying interest to big banks on keeping reserves at the Federal Reserve.

There's $3 trillion there.

Last year, the big banks, primarily the big banks in New York, got $187 billion in interest.

Previously, that interest would go back to the treasury to offset the debt.

That's about 10% of our debt.

So our debt is 10% worse because we're now paying and we never did this before 2010.

We never paid interest on reserves.

And what it means to pay interest on reserves is that it's an incentive for the Fed just to leave it there.