Dr. Paul vs. Bernanke - The Final Chapter

[cheguevara]

Today marks the final time ever in the history of civilization that Dr. Ron Paul will question the Fed Bernanke in the House of Financial Services Committee.

After Dr. Paul is done, the Fed will be free to finish off the US economy and thus the American Civilization once and for all :bang

http://www.thenewamerican.com/usnews/congress/item/12107-ron-paul%E2%80%99s-final-questions-for-fed-chairman-ben-bernanke

some interesting questions that Dr. Paul should ask, but is too much of a classy gentleman to do it :(

Mr. Chairman, one of the roles of the Fed is to maintain a stable dollar. Would you explain, once again, for the benefit of myself and for the committee, how the Fed has managed to meet that role in light of the fact that, according to a popular web-based inflation calculator, it would take $2,317 in today’s money to buy what just $100 would have bought a hundred years ago? Just how do you explain that, please?"

“Mr. Chairman, what is your understanding of the difference between real money backed by gold and silver versus the paper money that has no backing today? Specifically, what actually backs up the paper money in our system today?"

“Mr. Chairman, can you explain for us the morality involved when the Fed creates new money, which it then lends out to its member banks on which those banks charge interest? In other words, what is the morality of charging interest on money created out of thin air?”

“Mr. Chairman, a year or so ago Huffington Post did an extensive analysis of the Fed’s role in quashing dissension by buying up most of the economics profession through contracts, grants, or other financial incentives. For instance, over a three-year period ending in October 1994 the Fed awarded $3 million in contracts to some 200 professors, while in 2008 the Fed spent $389 million for those same services, a number that, according to HuffPost, jumped to $433 million in 2009.

“In light of our current economic weakness — as you carefully noted yesterday in your testimony in the Senate — and your promise made back in 2002 when you said:

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna [Friedman]: regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.

:lmao :lmao :lmao :lmao :lmao :lmao:lmao

[boutons_deux]

Randian Paul making a ridiculous fool of himself by wanting to go back to the gold standard

[Clipper Nation]

Randian Paul making a ridiculous fool of himself by wanting to go back to the gold standard

Because fiat money has worked so well for us lately.... :lol

[mercos]

The Federal Reserve System will be 100 years old next December. The US reached its greatest heights under that system during the 1950s and 60s. To blame it for our problems is to ignore the facts. I'm not saying the Fed is perfect, because it is not, but the Fed is also not wholly responsible for the mess we are in. Our current problems have more to do with government policies that have made things easier on those at the top of the economic spectrum at the expense of the rest of the country, ie free trade, lax regulations, slashed marginal tax rates, etc.

[Clipper Nation]

Son, it's a known fact that while fiat currencies can work in the short term, they always eventually fail.... look up the Roman denarius, the Chinese fiat, all THREE of France's failed experiments with fiat money, etc.

[boutons_deux]

Rome failed due to a greedy plutocracy and an over-extended, too-expensive military empire.

There's Nothing New Under The Sun.

[cheguevara]

The Federal Reserve System will be 100 years old next December. The US reached its greatest heights under that system during the 1950s and 60s. To blame it for our problems is to ignore the facts. I'm not saying the Fed is perfect, because it is not, but the Fed is also not wholly responsible for the mess we are in. Our current problems have more to do with government policies that have made things easier on those at the top of the economic spectrum at the expense of the rest of the country, ie free trade, lax regulations, slashed marginal tax rates, etc.

other ppl might say the mighty American Empire could have lasted HUNDREDS of YEARS on a continiuous DOMINATION. But thanks to the FED that lifespan was cut exponentially.

Remember Icarus, his beautiful wings were burned due to him being so close to the Sun. Printing money out of thin air is similar practice

[cheguevara]

Randian Paul making a ridiculous fool of himself by wanting to go back to the gold standard

what are our current dollars backed by?

[cheguevara]

Rome failed due to a greedy plutocracy and an over-extended, too-expensive military empire.

There's Nothing New Under The Sun.

Rome also lasted 677 years

We done fucked this one up in about one third of the time

:lmao

[mercos]

:lol I'm afraid the reports of our demise have been greatly exaggerated. If our government can get its act together and show some fiscal discipline (slightly higher taxes, some budget cuts, and reformed social programs) we will be fine. If America falls, it will have NOTHING to do with the Federal Reserve, and everything to do with policies set forth by the Federal Government. You can't spend hundreds of billions on your military each year, billions more on the social safety net, AND cut taxes. The Federal Reserve has nothing to do with that fallacy.

[cheguevara]

:lol I'm afraid the reports of our demise have been greatly exaggerated. If our government can get its act together and show some fiscal discipline (slightly higher taxes, some budget cuts, and reformed social programs) we will be fine. If America falls, it will have NOTHING to do with the Federal Reserve, and everything to do with policies set forth by the Federal Government. You can't spend hundreds of billions on your military each year, billions more on the social safety net, AND cut taxes. The Federal Reserve has nothing to do with that fallacy.

except that it's a proven fact that the FED's involvement has caused the Recessions, caused dollar value to dilute, caused the wealth gap, caused the financial/internet/real estate bubbles

every single financial transaction since the FED's establishment has been orchestrated by the FED itself.

The FED is the debt machine of which you speak of. Who do you think facilitates the US with the billions and billions for military, social safety nets and tax cuts?

but oh no, the FED has NOTHING to do with America's Financial Downfall

:lmao

[mercos]

Educate me then. How did the Federal Reserve cause the previous recession?

[boutons_deux]

che is a RP supporter, so you know he's got his facts wrong and fails most reality testing.

[cheguevara]

Educate me then. How did the Federal Reserve cause the previous recession?

which one? housing?

wonder who was in charge of the interest rates? wonder who missed the entire bubble bursting? mmmm

[cheguevara]

che is a RP supporter, so you know he's got his facts wrong and is fails most reality testing.

:lmao a blue teamster talking about reality

:lmao thinking blue team is less of a puppet to the banks than red team

[Clipper Nation]

Educate me then. How did the Federal Reserve cause the previous recession?

By doing what they always do... juicing interest rates for short-term political expediency, leading people and businesses into malinvestments (housing and autos in the last recession) and creating an unstable boom-and-bust economy...

[scott]

Mr. Chairman, one of the roles of the Fed is to maintain a stable dollar. Would you explain, once again, for the benefit of myself and for the committee, how the Fed has managed to meet that role in light of the fact that, according to a popular web-based inflation calculator, it would take $2,317 in today’s money to buy what just $100 would have bought a hundred years ago? Just how do you explain that, please?"


What annual rate of inflation do you feel would constitute a stable dollar?

[mercos]

which one? housing?

wonder who was in charge of the interest rates? wonder who missed the entire bubble bursting? mmmm

Interest rates were not the cause of the housing bubble, nor its bursting. The housing bubble was created when banks lowered their lending standards to create lucrative mortgage backed securities. These securities made the big banks a TON of money, so they needed as many homeowners and mortgages as possible to feed the machine. They wrote loans that were doomed to fail, and when they did the economy went with it.

Lowered standards led to many new homeowners joining the market, creating high demand for homes. That is why home values sky rocketed during the past decade. This led to home equity credit fueling the economy for much of the last decade as well. When the market collapsed, and home values plummeted, consumers were left with no where to run. Jobs were shipped overseas, their credit cards were tapped out, and now even their home equity was gone. Millions have underwater mortgages.

That is the real reason behind the housing crisis and the recent recession in a nutshell. Not interest rates. Not the fed. Not Bernanke.

[scott]

What annual rate of inflation do you feel would constitute a stable dollar?

[cheguevara]

What annual rate of inflation do you feel would constitute a stable dollar?

instead of looking for a golden number you should ask yourself, why is it that median income families are so much poorer everytime the Fed devalues the dollar. And why is it that millionaires and corporations that buy protection don't even flinch and actually make more millions when dollar devalues??

why does this organization called the Fed work outside of the boundaries of Congress? not even the CIA or Navy Seals have as much power and freedom to operate

the Fed's operations and playing with the interest rates are for the benefit of the Fed's members and runners. The big banks, wall street, biliionaires, etc, etc

the Fed does not operate for THE PEOPLE. it does not give a shit that the masses are poorer. it does not give 2 shits about you or your family and their economic well being.

[cheguevara]

Interest rates were not the cause of the housing bubble, nor its bursting. The housing bubble was created when banks lowered their lending standards to create lucrative mortgage backed securities. These securities made the big banks a TON of money, so they needed as many homeowners and mortgages as possible to feed the machine. They wrote loans that were doomed to fail, and when they did the economy went with it.

Lowered standards led to many new homeowners joining the market, creating high demand for homes. That is why home values sky rocketed during the past decade. This led to home equity credit fueling the economy for much of the last decade as well. When the market collapsed, and home values plummeted, consumers were left with no where to run. Jobs were shipped overseas, their credit cards were tapped out, and now even their home equity was gone. Millions have underwater mortgages.

That is the real reason behind the housing crisis and the recent recession in a nutshell. Not interest rates. Not the fed. Not Bernanke.

the fed's playing with short term and long term interest rates caused the rates of ARMs to be record low and encouragedd ppl to take these risky loans in order to obtain property. That combined with the tax and other policies brought in ppl that normally would not be able to buy houses. Then in 2005-2007 as the Fed increased the rates, ppl started defaulting and thus the bubble burst.

[scott]

instead of looking for a golden number you should ask yourself, why is it that median income families are so much poorer everytime the Fed devalues the dollar. And why is it that millionaires and corporations that buy protection don't even flinch and actually make more millions when dollar devalues??

why does this organization called the Fed work outside of the boundaries of Congress? not even the CIA or Navy Seals have as much power and freedom to operate

the Fed's operations and playing with the interest rates are for the benefit of the Fed's members and runners. The big banks, wall street, biliionaires, etc, etc

the Fed does not operate for THE PEOPLE. it does not give a shit that the masses are poorer. it does not give 2 shits about you or your family and their economic well being.

Yawn.

[cheguevara]

good refute to my claims :lmao

[scott]

Your claims have nothing to do with the question I posed, why would I bother refuting them?

[cheguevara]

http://www.bostonherald.com/business/general/view/20120719ben_bernanke_voices_opposition_to_ron_paul s_fed-audit_bill/

Ben Bernanke voices opposition to Ron Paul’s Fed-audit bill

Federal Reserve Chairman Ben Bernanke, completing his second day of testimony on Capitol Hill, voiced his opposition Wednesday to a Republican-backed bill that would subject the Fed to outside auditors - and, he said, unhealthy political pressure.

"To eliminate the exemption on monetary policy deliberations would effectively - at least to some extent - create a political influence, or a political dampening effect, on the Federal Reserve’s policy decisions," Bernanke said in testimony to the House Financial Services Committee.

Bernanke said he agrees with Paul that the Fed needs to be transparent and accountable. He said it has been doing so with statements, testimony, quarterly projections and news conferences. :lmao

[cheguevara]

Paul Rips Bernanke

http://politicalnews.me/?id=15770&keys=ERNANKE-GRILLING-FEDERAL-RESERVE

In what Congressman Bacchus called “a double dose,” Texas Representative Ron Paul grilled Fed Chairman Ben Bernanke on two occasions on Tuesday at the House Financial Services Committee. Congressman Paul scolded the Fed Chairman for being “secretive” while claiming that the financial crisis is “far from over…”

After facing a relatively tamer Senate Banking Committee, the Fed Chairman’s feet were held to the fire by Ron Paul & Co.

While the exchange was rather one-sided, Ron Paul made his points heard. He first criticized the Fed for equivocating independence with secrecy, noting that about $15 trillion had been used for overseas bailouts during the crisis, via currency swaps, which the Congress could not monitor.

Ron Paul then noted that when Bernanke claims the Fed stands ready to support Europe and other geographies during times of financial and economic crisis, it’s actually the American tax payer that is shouldering the burden. The Fed Chairman responded by noting that it is Congress which delegated the responsibility to manage monetary policy to the Federal Reserve.

While the Fed Chairman tried to avoid engaging Ron Paul, he did show his ideological bent when he told Ron Paul that while Congress could eliminate the statue the makes the Fed an independent body, it would result in a more inefficient central bank and ultimately a worse outcome.

[mercos]

the fed's playing with short term and long term interest rates caused the rates of ARMs to be record low and encouragedd ppl to take these risky loans in order to obtain property. That combined with the tax and other policies brought in ppl that normally would not be able to buy houses. Then in 2005-2007 as the Fed increased the rates, ppl started defaulting and thus the bubble burst.

I'll refute this. Low interest rates are not what encouraged people to take out risky loans. Lax lending standards that the banks themselves set is what allowed this to happen. Interest rates would have been irrelevant if banks made home buyers pay the traditional down payment figures. The banks waived this because they WANTED to give out as many loans as possible. There was a high demand for mortgage backed securities and CDOs that could only be filled by giving out more loans.

Now, you can argue that the Fed worsened this problem after the fact by bailing out all of these failing institutions that should have been left to die. If the market were totally free, these large banks would have gone extinct. The same could be said about the federal government's bailout of the banks. However, to claim that the Federal Reserve caused the housing crisis is false.

[boutons_deux]

"encouragedd ppl to take these risky loans in order to obtain property"

bullshit. people can't "take risky loans" if lenders don't allow risky loans. Your hated Fed was NOT in the borrower/lender transaction.

mortgage interest rates are even lower now and people aren't taking risky loans because lenders are lending to only non-risky, aka fully qualified, borrowers.

even after the Fed raised the rates, the vast majority of solid borrowers didn't default. And many of the weak borrowers who never should have had a mortgage would have defaulted even if the Fed left the rates low.

[cheguevara]

I'll refute this. Low interest rates are not what encouraged people to take out risky loans.

disagree. It was ONE of the main reasons for ppl to take out risky loans

the FED propped up the housing market beyond sustainable levels. It was definitely a big reason for the entire bubble.

also it does not help that Greenspan at the time denied the existence of any bubble in housing. The HEAD OF THE FED was preaching that there was no issues as ppl were getting risky loans:

This week marks the fifth anniversary of then-Federal Reserve Chairman Alan Greenspan's observation that there was no housing bubble to worry about:

"Although a 'bubble' in home prices for the nation as a whole does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels.... Although we certainly cannot rule out home price declines, especially in some local markets, these declines, were they to occur, likely would not have substantial macroeconomic implications."
http://realestate.aol.com/blog/2010/06/11/greenspans-no-housing-bubble-prediction-five-years-later/

F:lold:lolr:loll R:lols:lolrv:lol


truth is the FED got it so wrong, that any other agency would have been disbanded.

[cheguevara]

We can spend all day beating up Greenspan for a huge mistake five years ago, but a more constructive approach would be for us to learn from this experience and apply those lessons to Greenspan's replacement, Ben Bernanke.

We should ask him regularly the question nobody every asked Maestro Greenspan: "Why should we believe you?"