Fed chairman attempts to redefine inflation, suggests after the fact audit would hinder daily monetary decisions
Wednesday, July 22, 2009
Texas Congressman Ron Paul yesterday slammed Ben Bernanke, the chairman of the Federal Reserve, directly blaming the Fed for creating the financial crisis and systematically compounding the problems with its ongoing policies.
Paul’s opening statement to Bernanke at the House Financial Services Committee hearing contained a fierce flurry of facts, figures and statements that hit the Fed head with a ferocity of boxing champion’s knock out blow.
The Congressman did not mince his words, opening with the following immutable statement:
“The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen.”
Paul then delivered a two and a half minute barrage of truth, succinctly encapsulating the Fed’s complicity in the financial collapse of America.
“The foolish notion that unlimited amounts of money and credit created out of thin air can provide sustainable economic growth has delivered this crisis to us.” The Congressman blasted.
“Instead of economic growth and stable prices, (The Fed) has given us a system of government and finance that now threatens the world financial and political institutions.”
“Pursuing the same policy of excessive spending, debt expansion and monetary inflation can only compound the problems that prevent the required corrections.” Paul continued
“Doubling the money supply didn’t work, quadrupling it won’t work either.” he said bluntly, glaring at Bernanke and shaking his head.
The Congressman implored that the only way out of a debt crisis is to pay off or liquidate the debt, “we are doing neither” he concluded.
“Buying up the bad debt of privileged institutions and dumping worthless assets on the American people is morally wrong and economically futile.” Paul counseled.
Watch the Congressman’s opening statement in full below:
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During his five minute questioning window, Paul challenged Bernanke on quotes attributed to him that suggested The Fed chairman had said that HR1207, Ron Paul’s bill to audit the Federal Reserve, would interfere with the Fed’s interest rates decisions.
The Congressman maintained it would do nothing of the sort, while Bernanke attempted to suggest that giving the Government Accountability Office the power of audit over the Fed would inhibit and restrict the Fed’s ability to make decisions on monetary policy by politicizing it.
Paul fired back stating that it is preposterous to suggest that the Fed isn’t already overtly politicized:
“Just the fact that they can issue a lot of loans and special privileges to banks and corporations, that’s political. This idea that it would be political because we know what happened afterwards just doesn’t seem to add up.” Paul beseeched.
Paul then challenged Bernanke on the definition of inflation after he implied that buying debt and printing more money was not inflationary.
Watch the Congressman questioning Bernanke below:
After Congressman Paul’s time was up, Rep Bill Posey (Florida) continued the line of questioning on inflation stating “purely printing new money doesn’t cause inflation, that’s really news to me!”
Posey also questioned Bernanke on the effort to audit the Fed, stating that in his opinion an after the fact audit in no way interferes with the everyday decision making of the Fed.
“I just don’t see why there shouldn’t be one hundred percent crystal clear transparency of every single function of the Fed after the fact.” Posey implored.
“Because we have to be extraordinarily careful that the markets and the public don’t think that Congress is trying to influence monetary policy decisions.” Bernanke responded.
Yes, God forbid that elected officials should have any say in how the country is financially run. God forbid that Congress should be allowed to enforce any kind of accountability upon a privately owned bank that has seized control of the US monetary system and driven the world toward the brink of ruin! And God forbid that the US taxpayer should know anything about the decisions made on it’s behalf by a private corporate entity.
Watch the exchange in full below:
The Congressman has also made several TV appearances in the last 24 hours to publicise the effort to audit the Fed, a selection appears below.
Ron Paul on MSNBC:
Ron Paul on CNBC:
Ron Paul on Neal Cavuto, Fox Business:
Ron Paul on Bloomberg News:
This article was posted: Wednesday, July 22, 2009 at 10:46 am