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  • cgreens72 cgreens72 Nov 12, 2010 6:26 PM Flag

    Can Ron Paul Reign them in?

    U.S. Rep. Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if, as expected, he takes control of the congressional subcommittee that oversees the central bank in January.
    "I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control." Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy and is likely to head the panel when Republicans take control of the chamber in January.
    That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.

    Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.
    "It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.

    Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.
    Global organizations like the International Monetary Fund also will come under scrutiny, he said.

    "Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.

    Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.

    "With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.

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    • I just wonder how independent the Federal Reserve really is.

    • As Robert Kennedy said
      "Some people look at way things and say why, I look at things as they could be and say why not"

      My response would be: look what happened to Kennedy

      History teaches us that when large civilizations are in the process of collaps that there will be warnings issued by some, yet the collaps will continue. Why? because many of the people and most of the power elite of that civilization are benefiting (in the short term) from the fundamental causes of the collaps. They will oppose and even destroy anyone who gets in the way of the party continuing. And when it does they will desperately identifiy scapegoats and lay all blame on them, while absolving themselves of all responsibility. Thus, under any likely set of outcomes we will not be able to return to a form of governance and policy fundamentals that the founding fathers started us with.

      Sad, tragic even, but inevitable. The greatest experiment in democracy is going to come to a dark end, and basically there is almost no chance it can be stopped.

      What do you want me to do, vote for Ron Paul for president? no problem, I'll do it. So what? Ask Ross Perot what happens when you run on a platform of financial and political overhaul when the people recoil in horror at the thought of the sacrifices that they would have to endure as a result. The fundamental problem isn't simply that the small power elite dont want reform (though thats true), but that the vast majority of americans dont want it either.

      Winston Churchill once said: "Democracy is the worst form of government ever invented, except for all the others". Oh how right he was....

      We have met the enemy, and it is us.......

    • I know that we basically agree on the issues.

      What I cannot accept is when you said this:

      "Don't get me wrong, I'm a fan of Ron Paul and agree with most of the things he talks about. However, returning this country to the form of governance and policy fundamentals that the founding fathers started us with is not going to happen under any likely set of outcomes."

      And why not?

      You may very well be correct, but if you are our country is doomed in the long term, something I cannot accept. Ron Paul needs more supporters for his small government constitutional stance, that folks say do not pertain to the 21st century. He needs more support for his non interventionist foreign policy positions that are mislabeled as being isolationist. In the past Ron has not gotten a fair shake from the media or even from so called fellow conservatives. He is labeled a kook and out of touch as you have pointed out. Those perceptions need to change. People have to change their perception that the federal government can solve all of our social ills. Many believe today that America is great because of government and bad because of capitalism, corporations, the top 1% wage earners and folks that want to go back to the constitution.

      We must fight to get back to the basic premise of what our government is suppose to do. We cannot give up. We will be the first generation that will hand this country to the next generation in worse shape than when we inherited it. That is a sad reflection on us.

      As Robert Kennedy said
      "Some people look at way things and say why, I look at things as they could be and say why not"

    • The main point is what they are doing cannot continue and they will not be able to continue on this path. It is all a matter of time. I don't know how much government a country can take, but look at Greece, they are not "digging it" very much at all. You think they want a revolution over here? "Sound money" MUST take place here, one way or another or there will be a revolution. Our country will not like it at first, but the poor won't care much, the rich will figure it out if they haven't already and will preserve their wealth, and the middle class will either be rich to a certain standard, or poor to a certain standard. It is all a question of time and what exactly's.

    • I'm pretty sure your not reading my posts completely, otherwise you wouldn't be arguing with me. I agree with Ron Paul, I agree with you. I'm just saying that history shows time and again that the vast majority of people will NOT choose to take the pain and lose the benefits they get under the current absurd system, but will instead close their eyes and pretend it will all work out no matter how unlikely that is.

      When disaster strikes years from now most people are going to claim they didn't realize there was a serious problem and its not their fault. Kinda like the dotcom bubble crash, the real estate bubble crash, etc.....

    • "You miss my point. "

      No I didn't. You say Ron Paul wants to take us back in time in terms of what the government does. I believe that is a good thing, but then I believe our generation should fund our government and not on the backs of future generations. Ron Paul believes our government is going way beyond their constitutional duty by being involved in all these entitlement programs and large government foreign policy where we have troops all over the world. Policies we cannot afford. We need to cut 40% of our federal budget to get in the black.

      If we continue to have trillion dollar deficits for as long as the eye can see, this country is doomed.

      Ron Paul is right once again.

    • Ron Paul has zero qualifications in money theory or central bank operations. If he knew anything about the 1930s he would realize what he sounds like.

    • It is NOT solely the Fed's "monetary" policy (interest rates/ bank reserves) that needs to be addressed.

      Of equal impotance is the Fed's "FISCAL" policy (under which QE falls) that needs oversight. Of course, re the fiscal policy, many (Austrians as well as Keynesians) feel we are in so deep our only alternative re our debt is devaluation. (Other alternative is overt default, but less 'dustasteful' is covert default by devaluation.)

    • Raise your hand if you think Obama will sign a bill forcing the Fed to be truly audited and thus have all of its secret back door deals with its member banks and "friends" be revealed.....

      Raise your hand if you think the Senate will pass a bill greatly reducing or removing the Fed's monetary policy powers (THE fundamental power that is the basis of the Fed's existance) at a time when the Fed is soon to be the primary if not only buyer of Treasury debt.......

      Raise your hand if think the powers that be on Wall Street will allow their ultimate backstop and prime source of cheap funding to be effectively shut down or boxed in.......

      Raise your hand if you think Ron Paul needs to buy more life insurance.......

    • Thanks CG, excellent post as always.

      I certainly like the idea of a top policy maker taking advice from Peter Schiff.

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