Ron Paul vs. Ben Bernanke Today
Here’s some of the footage from earlier today. First up, Dr. Paul’s opening statement:
And here is Dr. Paul’s first question from Bernanke:
Campaign for President of the United States
Here’s some of the footage from earlier today. First up, Dr. Paul’s opening statement:
And here is Dr. Paul’s first question from Bernanke:
February 27th, 2008 at 12:49 pm
Thanks for the quick posting of the clips! I’m referring my “Ron Paul curious” colleagues here.
February 27th, 2008 at 12:59 pm
I think that Bernanke wanted to respond, “I like sunshine”… He just cannot measure up to the brilliance of Ron Paul!
GO RON PAUL!
February 27th, 2008 at 1:12 pm
Great job, Dr. Paul.
The following is a video on electronic voting machines and voter fraud.
http://www.youtube.com:80/watch?v=X9nKSMCSKEw
February 27th, 2008 at 1:13 pm
Holy cow! Dr. Paul was all over the Fed Chairman. Can the MSM continue to ignore Paul during this presidential campaign?
BTW, I’ve now seen what Dr. Paul has done today for his country: exposing the Fed to “sunshine”!
…wondering what McCain, Huckabee, Hillary, Obama, Romney, et al., have accomplished today…
…thinking how impressive it is that U.S. Rep. Paul is STILL working at his day job, wondering what U.S. Senators do for their constituents daily…
February 27th, 2008 at 1:20 pm
He’s incredible!!!!!!!!
Go Congressman Paul!
February 27th, 2008 at 1:22 pm
Here’s a chart of M3:
http://www.nowandfutures.com/key_stats.html
February 27th, 2008 at 1:29 pm
“…purposely debasing the currency…”
“…deliberately destroying the value of money…”
“How do you defend the policy of deliberate depreciation of our money?”
“History is against you.”
“History is on the side of hard money.”
February 27th, 2008 at 1:30 pm
Since the Fed has the attention of the Congress and since Bernanke stated that it is the Congress that decides whether the currency is to be fiat or whether the currency is to be tied to the gold standard, will he now do the right thing and suggest to Congress that they reinstate the gold standard?
This is his moment! He can be someone who will go down in history as a ‘doer of good’ or he can fail at this momentous occasion and be reviled and scorned by anyone who looks back to this time in history.
February 27th, 2008 at 1:37 pm
Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for all of their ‘humanitarian’ ****. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars. Transfered FROM US TO THEM. Over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They will never settle for a reasonable share of ANYTHING. They will do whatever it takes to get even richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductable crumbs and call themselves ‘humanitarians’. IT CAN’T WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. Crime, poverty, and suicide will skyrocket. So don’t fall for all of this PR **** from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductable contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah, Ellen, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. WAKE UP PEOPLE. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Vioxx. Their idea. Sub-prime. Their idea. NAFTA. Their idea. Outsourcing. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. The MASSIVE campaign to turn every American into a brainwashed credit card, pharmaceutical, love-sick, celebrity junkie. Their idea. All of which concentrate the world’s wealth and resources and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, and executives. IT MAKES THEM RICHER. So don’t fall for their ‘ good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTABLE PR ****. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. EXTREME WEALTH HAS MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.
February 27th, 2008 at 1:37 pm
Ron Paul makes Ben Bernanke look like a fool. Oil is denominated in dollars - the price goes up when the Fed lowers interest rates (while the value of the dollar goes down); print more dollars and they’re worth less. It’s not just oil, it’s all commodities. We would have a more stable currency if we bartered with OIL or SOYBEANS than this valueless, easily counterfeited, paper money. What a charade, what lunacy.
February 27th, 2008 at 1:38 pm
Bruce,
Of course he won’t, cause then he would be out of a job and his bosses would be rather upset with him. Would be nice if he would get a conscience and stand for what is right. Can you imagine the “blowback” from that? All the Americans that would be woken up by the flurry of media coverage to such an event.
February 27th, 2008 at 1:42 pm
how do you do a write-in vote?
I guess you vote absentee? I never have done that.
February 27th, 2008 at 1:43 pm
I can’t get enough of Ron Paul and his 1000%+++ common sense. Though I don’t believe in human cloning I will make an exception in Ron Paul’s case!! Let’s clone a Ron Paul for each government official from the president on down, including the Federal Reserve, the IRS etc.
February 27th, 2008 at 1:45 pm
God bless Ron Paul! May his legacy of whooping the fed and bloated government live on throughout the generations!
February 27th, 2008 at 1:48 pm
Always uplifting to see him in action!
February 27th, 2008 at 1:53 pm
This is just the beginning Ben.Enough is enough! Millions of us want you to be out of job so we can be free from the control your greed.
February 27th, 2008 at 1:54 pm
To: Will Work For Peace
I’m not sure you realize how prophetic your statement ‘We would have a more stable currency if we bartered with OIL or SOYBEANS than this valueless, easily counterfeited, paper money’ truly is. Direct bartering of all goods and materials will become more prevalent in the near future. Our paper money grows more worthless by the day.
BTW, did you see that smirk on Bernanke’s face? I’d love to punch some of those DC folks right in the nose just to wake them up. But then I’d probably get prosecuted and persecuted for being a ‘terrorist’.
February 27th, 2008 at 1:57 pm
Bernanke says at the end that prices will stabilize if the price of oil stops going up, after Paul said that, when compared to the value of gold, the price of oil has been very stable over the past several years. It is the DOLLAR that is losing value.
February 27th, 2008 at 1:57 pm
Go Ron Go !!!
February 27th, 2008 at 1:59 pm
He looked like a complete dolt,while Ron slapped him. It was quite inspiring!
February 27th, 2008 at 2:18 pm
Bruce stated that Bernanke had the attention of Congress, but look at all the empty seats in that Congress!! The lawmakers that are supposed to be representing the American people can’t be bothered to show up, yet Ron Paul, even in the midst of both a Presidential and Congressional campaign, gets himself to Washington and speaks out against Fed policy again.
Ron Paul already has introduced the Honest Money Act and the Free Competition in Currency Act in Congress. As I understand, I believe they both await co-sponsors?
February 27th, 2008 at 2:21 pm
Thank you Doctor Paul for giving a voice to those of us that see things the way that you do. Its truly a shame and a national embarrasment that most Americans are too busy playing video games and reading about the latest Britney saga online to make any effort to understand FED policy.
You made us proud today, as usual.
Best of luck in Texas and Ohio.
February 27th, 2008 at 2:39 pm
http://www.truemajorityaction.org/oreos/index_oca.php
February 27th, 2008 at 2:39 pm
Robert in NJ - thanks for the info. on the 2 bills. I just contacted my congressmen asking them to cosponsor the bills.
At the bottom of the website below you can contact your congressmen about this:
http://action.downsizedc.org/wyc.php?cid=85
February 27th, 2008 at 2:43 pm
Good stuff. That convinced me to donate again tomorrow!
February 27th, 2008 at 2:45 pm
I really don’t understand it.
I think my children understand more than Bernanke does.
They know that a toy that cost a dollar today, should not cost a $1.50 tomorrow.
They realize it’s the same toy that was there yesterday. They want to know why they have to work harder for more allowance to buy it tomorrow than today.
They get it.. Why doesn’t the fed?
Don’t blame oil, blame financial mismanagement on behalf of the FED.
Perhaps we should all start using the barter system again. I’ll be happy to give you a fair amount of work for a fair amount of bread.
My 1040 will read UNEMPLOYED, TAX THAT!!
F (financial) ,E (education), D (deficient)
Dr Dave
February 27th, 2008 at 2:56 pm
http://www.thecrimson.com/article.aspx?ref=522149
The Ron Paulization of Obama
this article needs some comments! …go to the link
February 27th, 2008 at 2:59 pm
Dr. Paul, thank you for helping me to better understand what is REALLY going on with the U.S. of A. DOLLAR!!!
I JUST MADE ANOTHER CONTRIBUTION.
February 27th, 2008 at 3:03 pm
Dr. Dave - I couldn’t agree more. Part of the problem is we derive happiness from consumerism. If we only purchased what we NEED or bartered for those things could you imagine how the system would suffer. Fix that chair instead of buying a new one, reuse that paper bag and resist the temptation to buy the latest mobile phone. You don’t really need it.
What we do need is a sound economy. We can start by putting down the remote and planting a garden to grow your own food. You might enjoy the outdoors, lose some weight and teach your children a valuable skill. This nation is filled with people that measure their value from what they own, how they dress and what car they drive. A paradigm shift is needed to unveil what is really important.
“Our enormously productive economy . . . demands that we make consumption our way of
life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our
ego satisfaction, in consumption . . . we need things consumed, burned up, replaced and discarded at
an ever-accelerating rate.” -Victor Lebow
February 27th, 2008 at 3:06 pm
I know it is hard for many people to realize, but the FED is a tool used by those elites of the world to legally take from the regular joe. That is why the FED needs to be abolished. Go Ron Paul!
February 27th, 2008 at 3:10 pm
Ron Paul just ate Ben Bernanke’s lunch and took his lunchbox. Bernanke knows exactly what he’s doing, that’s the problem.
February 27th, 2008 at 3:16 pm
Bruce Koerber,
Ron Paul introduced the bill back in December..you’ll find the info on the home page of this site, down near the bottom..
February 27th, 2008 at 3:35 pm
Bernanke said something very interesting in that second video.. something I didn’t ever think of much, even with all that I have read over the years about the FR..
What he said…
“the Federal Reserves act tells me that I have to look at price stability, price stability”.
This is something they have never been able to do and it leaves them open to do what ever they want with the money supply and deal with the results later.
http://www.federalreserve.gov/generalinfo/fract/
February 27th, 2008 at 3:35 pm
Marilyn Says 1000%+++ common sense!
Ron Paul 1000% Common Sense!
February 27th, 2008 at 3:42 pm
I feel we need to change our whole outlook on the way this economy works. Maybe I am stupid but I do not believe our country let along our world can sustain continual growth. My feeling is its like a balloon someday it has to pop. Don’t know just my gut feeling. Proud of Ron Paul though.
February 27th, 2008 at 3:44 pm
I just about fell off my chair when Dr. Ben Bernanke agreed that there was a relationship between the money supply and inflation but added “it is not a perfect relationship”. He obviously wasn’t listening when Dr. Mervyn King, the Governor of the Bank of England said, “Few empirical regularities in economics are so well documented as the co-movement of money [supply] and inflation.” In fact, Mr. King himself quoted the statistics that, “Over the 30 year horizon 1968-98, the correlation coefficient between the growth rates of both narrow and broad money, on the one hand, and inflation, on the other, was 0.99.” As anyone who has a nodding acquaintance with statistics knows, 0.99 is as near perfect as you’ll find in any pair of data. An absolute 1.00 only ever exists for the very same thing measured against itself; e.g. the cost of living mapped onto the cost of living, or gold prices correlated with gold prices.
The poor fellow was trying to steer the conversation back round to get us all to look at the CPI, like the Wizard saying “Don’t pay any attention to that man behind the curtain”. He was also looking lost and hunted. He knows the game is up and his goose is cooked but he wants to stick around long enough to get some material for his memoirs. His Ph.D. thesis is being severely tested.
Perhaps the saddest part was that all the people sitting around weren’t paying any attention. They were being given a master class, in simple English, on the root of their economic problems and they were looking elsewhere.
February 27th, 2008 at 3:47 pm
Hello
I’ve recorded Ben Bernanke testimony in Congress (2008.02.27) and part of CNBC
commentators about this testiomony and about Ron Pauls comments and
I’ve put it on youtube.
On 5:40 of this video Rick Santelli is talking that during Ron Pauls
questions traders on Chicago market were cheering (again!).
link:
http://youtube.com/watch?v=mkUc0k2ePhk
February 27th, 2008 at 3:58 pm
The effect of inflation on the workers in society: “The hurrier I go the behinder I get.”
February 27th, 2008 at 4:10 pm
Dan McCarthy,
Here is an article from the Washington Post about how McCain would rather have a clean government than respect first amendment rights.
McCain states “I work in Washington and I know that money corrupts. And I and a lot of other people were trying to stop that corruption. Obviously, from what we’ve been seeing lately, we didn’t complete the job. But I would rather have a clean government than one where quote First Amendment rights are being respected that has become corrupt. If I had my choice, I’d rather have the clean government.”
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/10/AR2006051001787.html
February 27th, 2008 at 4:10 pm
Fox news (I think that’s the channel that was showing–I was at the gymn and only saw subtitles and from a distance) aired the part of Ron Paul talking about Bernanke not talking about the dollar.
I couldn’t tell for sure (subtitles are hard to read/interpret), but it seemed like they might have been making fun of him and in general the treatment they were giving Bernanke. I’m not sure though…
February 27th, 2008 at 4:13 pm
Sad But True,
I have never been hired by a poor man to do a job. Your theories about the 1% simply do not hold water. You represent the underlying problem with this country through your quickness to blame someone else for your troubles. There is no sense of personal responsibility in this country anymore and it is evidence can be found everywhere.
The fundamentals of economics require that a currency have a stable value in order for it to be considered valuable. If money can be printed out of thin air, then it does not have a stable value, therefore making it worthless. How can you ignore common sense and go straight to playing the blame game and then pretend that your comments could be mistaken as intelligent?
I remain baffled!
February 27th, 2008 at 4:30 pm
“The poor fellow was trying to steer the conversation back round to get us all to look at the CPI”
And if the article I read about how they compute the CPI is correct, it’s grossly understated to say the least.
“But a return to very strong inflation like we saw in the 70s is not in the cards.” he said.
- Taken verbatim from the ECRI (Economic Cycle Research Institute) US Inflation Gauge report of 2/4/05
That statement probably by the same guys (or same philosophy) who in the 70’s said that as soon as we went off the gold standard, gold would go down to $8/ounce (from the fixed $35 or so/ounce). It never went down–it just shot up.
February 27th, 2008 at 4:34 pm
The economic ignorance of our FED Chairman is atrocious. Cause and effect. He mentioned that the CPI would be most affected by the price of oil. The cause of the increase in the price of oil in $s is caused by the increase in fiat currency and credit.. oil and gold relatively speaking has remained stable. That is ECON 100.
February 27th, 2008 at 4:52 pm
Sad but True: It should be sad but almost true, or sad but not quite true. The fact is there is a very specific plan at work and the people you mention, the TV celebrities, the sports heroes, the banking and pharmaceutical executives, are all fairly small fish in the big scheme of things. For the most part they are willing collaborators in the plan but I would wager that most of them are too busy filling their boots to have the faintest idea of what they are being used for. The same is true of Dr. Bernanke. I am sure he genuinely believes that his economic theories and computer models are telling him what really make the world go round and that he deserves to be the Chairman of the Federal Reserve. He is a court economist and is probably just as much in the dark as the people you mentioned.
Let’s not forget the merely avaricious real estate broker or the seriously overweight welfare recipient. This is one of those games where no-one is without guilt. Some are just less successful at playing the game than others. The real money masters created the game, and are therefore most accountable, but virtually everyone plays it with the same singlemindedness to become rich and famous. Ask any kid what they want to be when they grow up and most will say a rock star or a movie star. So getting rid of all the filthy rich or obscenely self satisfied famous is not going to solve the problem. That will just allow another layer of rubbish to float to the top. The answer is to somehow CHANGE yourself first. That is a tall order and will keep you busy for most of your life trying to fiind the answer. While you are doing it you can work on the political system so that it will allow you to work on yourself, to pursue your own virtue or happiness, without depending on the system to do it all for you. That is what this campaign is all about. Restoring the original ideas of the nation so that each one of us will be free and responsible to find our own meaning in life without being constantly manipulated and controlled to be something that someone else thinks we should be. By the way, another word for CHANGE is REPENT or REPENTANCE. So when someone calls for CHANGE they are really saying REPENT. To which I can only say Amen.
February 27th, 2008 at 5:17 pm
Thank you MSM! All I heard today is Congress wants the Justice Dept. to investigate whether or not Roger Clemens lied under oath. They lie to us on a daily basis! Meanwhile, Dr. Paul is trying to solve a REAL issue. Rule #1 of politics- If you do something about nothing, you’re still doing SOMETHING. Down the street, Cheney’s subpoenaed emails are gone…. The saga continues.
February 27th, 2008 at 6:23 pm
Most of Americans probably still think Romney was the strongest candidate on the economy. How laughable. Ron Paul owns them all!
February 27th, 2008 at 6:38 pm
The real pity is that we — the voters — elect who we deserve. Poor, ignorant, self-indulgent piggies!
February 27th, 2008 at 6:55 pm
After watching these two videos I came up with this slogan:
Even if they “get it”
They still won’t admit it.
February 27th, 2008 at 6:56 pm
I am often amazed at how Dr. Paul can maintain his composure when someone looks right at him and lies through his teeth. Bernanke knows full well that rising prices (the CPI) is not a measure of inflation, it’s a measure of the effects of inflation. The fed and the banks are the only source of inflation in this country, and talking about prices of individual commodities like oil is nothing but a smokescreen.
Congress created the Fed, and congress can regulate the fed. For a start, require the fed to submit to annual audits by the Congressional Accounting Office, and require that all members of the board of governors swear under oath to their financial statements, with some serious felony consequences for fraud.
-jcr
February 27th, 2008 at 7:17 pm
To Sad but True:
your post I am sure is interesting…….but I find it so difficult to read. Could you please repost it with some paragraphs.
One set of old eyes here …. Thanks so very very much!
February 27th, 2008 at 7:20 pm
If possible Bernanke needs to be impeached.removed.something!!!!!
February 27th, 2008 at 8:17 pm
GO RON PAUL! SAVE OUR DOLLAR!
February 27th, 2008 at 8:34 pm
Every time I hear Dr. Paul, I become more convinced that the man is simply too smart for 92% of our population. How the networks are ignoring the only candidate that gets it is insane. How anybody who listens to Dr. Paul and is not convinced that he is the only candidate qualified to be our president saddens me tremendously. I am sending this video on to everyone I know with the heading “smartest man in the room”. I am getting so disillusioned with our country.
February 27th, 2008 at 8:38 pm
This is the one man who deserves to be The President of the United States…
February 27th, 2008 at 8:55 pm
Hi infosectech,
I find myself (oddly) agreeing with Sad but True’s sentiment while also agreeing with most of what you said. Here’s why… SBT is mad at the 1% - and thinks he’s mad at them for their superior skills in capitalism. While they may be somewhat capitalistic, that is almost certainly NOT what put them in that 1%. What put them in the 1% is they were able to buy lobbyist to enact legislation that crippled their competitors. That sort of behavior contradicts everything Dr. Paul stands for (folks, correct me if I’m wrong). This also relates directly to what Dr. Paul says about free trade vs. managed trade. Managed Trade is just another word for loopholes for rich folks so they can get things cheaper than the little guy. once they can do that, the little guy (small business) can no longer compete with them. It’s not about economy of scale per se, because that only goes so far. No matter how many you buy, you still have to pay the producer SOMETHING or he won’t sell to you. How then can you undercut your competition? Simple - force them to pay a tax or a fee or a penalty you don’t have to pay. Alternatively, set up financial barriers to entry in an industry that are either based on capital expenditures you’ve already made over a period of years, or get yourself ‘grandfathered’ out of needing to comply. Voila! Instant economy of scale!
It’s these sorts of legislation, often masquerading as the most innocuous legislation in the public interest that create oligopolies that can collude to drive prices into orbit while simultaneously preventing entry by new competitors.
February 27th, 2008 at 9:08 pm
I think we need to come to grips that the standard mainstream media (FOX, NBC, CNN, ABC and others) will never give Paul his fair shake. In fact, they are only waiting to condemn and smear him. Some minor media outlets are a bit more favorable but nothing even close to what the others are getting, particularly in the NYT or Washington Post. In fact, even CSPAN is biased against Paul. Ron is the purest anti-establishment candidate and now that we live in a Fascist state, the corporate control media doesn’t really have to give in and show Paul. Even when they do, they frame him as a loser. To me, it has been the most eye opening and blatant sign of things to come. Quite frankly we may be taking to the street over the next 10 years. Look at Congress and the Iraq war, they did really nothing.
February 27th, 2008 at 9:37 pm
Bernanke is kidding himself if he thinks that the relationship between inflation — defined as a sustained increase in prices — is not directly linked to the money supply. If you increase the supply of money in an economy by printing too many dollars (through setting low interest rates), you get a situation where there is too much money chasing too few goods. That equals inflation.
Milton Friedman won a Nobel Prize in Economics for pointing out the link between the money supply and inflation and yet the Fed Chairman continues to deny the reality. This guy is clearly not of the calibre of Alan Greenspan. At least Greenspan acknowledged the key role of the monetary base.
February 27th, 2008 at 9:37 pm
What is Ron Paul and his campaign going to do about this?
http://lonestartimes.com/2008/02/26/rpcq1/
Is he going to stop airing these ads, stop making these claims, and give a retraction/apology or is he going to simply ignore it?
February 27th, 2008 at 10:07 pm
Great performance Dr. Paul! It’s obvious this so called “price stability” is the smoke and mirrors to keep us in the dark and fuel their control.
February 27th, 2008 at 10:59 pm
Danny, in regard to the lonestar article I think PhilM (comment 45) sums up what would be a good “Ron Paul” stance. If Peden is going to call Paul out for advertising false information he should do a lot more house cleaning of his own.
Comments here
Peden has misrepresented all of Paul’s stances. Particularly abusive is to call someone supported by so many staunch anti-abortion groups (Jane Roe for crying out loud) as pro-abortion. That seems far more desperate than calling an article that highlights 50 effective members of congress (regardless of what the article calls itself, that’s what the folks at CG did) something other than that.
February 27th, 2008 at 11:03 pm
I would recommend this article by Lawrence Reed on Great Myths of the Great Depression.
The article demonstrates how FED created this major happening by first bloated the money supply and later choked off the money supply: http://www.mackinac.org/article.aspx?ID=4013
————
One prominent interpretation of the Federal Reserve System’s actions prior to 1929 can be found in America’s Great Depression by economist Murray Rothbard.
Using a broad measure that includes currency, demand and time deposits, and other ingredients, he estimated that the Fed bloated the money supply by more than 60 percent from mid-1921 to mid- 1929. Rothbard argued that this expansion of money and credit drove interest rates down, pushed the stock market to dizzy heights, and gave birth to the “Roaring Twenties.”
……….
By 1928, the Federal Reserve was raising interest rates and choking off the money supply. For example, its discount rate (the rate the Fed charges member banks for loans) was increased four times, from 3.5 percent to 6 percent, between January 1928 and August 1929. The central bank took further deflationary action by aggressively selling government securities for months after the stock market crashed. For the next three years, the money supply shrank by 30 percent. As prices then tumbled throughout the economy, the Fed’s higher interest rate policy boosted real (inflation-
———
February 27th, 2008 at 11:18 pm
Man, Ron Paul is awesome.
After watching this video, I thought to myself, “why are we paying all of these idiots that can’t get anything done.”
Everyone is starting to RESPECT Ron Paul.
February 27th, 2008 at 11:32 pm
Ben Bernanke almost seems to want to agree with Ron Paul, but he can’t quite get himself to do it. I’m sure he knows that everything Ron Paul is saying is absolutely true. He is doing the work of the Illuminati though. To do anything but defend his position would mean big trouble for him. Ron Paul is trying to point out the fact that power and control don’t work. Freedom and free enterprise do. It’s basically comparing God’s plan(free agency) against Satan’s plan(forced compliance with the law). Satan always loses. His plan doesn’t work. God’s plan, on the otherhand, allows for creativity, and also for people to suffer and learn from the mistakes they make. Freedom of choice always wins out.
February 27th, 2008 at 11:35 pm
Despite what many are saying on here, I think Bernanke understands the link between the interest rates and inflation. The guy is not a total imbecile. His answer did not indicate a lack of understanding, but rather a lack of responsibility. If he says he fully understands the link then he will be expected to take responsibility for the problem in some way, which doesn’t seem to be something he is interested in doing at all.
February 28th, 2008 at 2:18 am
Sad but true:
I am mad and can see through a lot like you can. It is so funny that you bring up Oprah. I have said for so long that people listen and look to her for guidance. Her show is “The Bible According to Oprah”.
February 28th, 2008 at 8:06 am
Ron Paul on the American Power Structure 1988
http://video.google.com/videoplay?docid=-4245169480003136735&hl=en
February 28th, 2008 at 9:31 am
NO ONE like him!!
February 28th, 2008 at 9:33 am
Federal Reserve Chairman Bernanke is certainly no fool. He knows exactly what is going on and what he is part of. His carefully contrived answers reveal this. Congress does have the power to change our monetary policy which is precisely why we need many more fiscally conservative Ron Paul Republicans in the House and Senate.
On the other hand, Bernanke is not the grand architect of the whole mess. This is a scheme that has transcended generations in the making. He is merely the current administrator and public face of the fiat money system. He’ll keep his job and his share of power as long as he is willing to take an occasional beating like this and put a good spin on it. Frankly, he seems to shrug it all off. The MSM buries the inconvenient truths raised by Dr. Paul and the people remain oblivious to the seriousness of the situation.
Ron Paul is absolutely courageous to make this stand. Let’s continue to support his Presidential and Congressional campaigns in whatever way each of us is able.
February 28th, 2008 at 9:50 am
I wish to thank all of you that have contributed very good information such as the “new” M3 money chart.
NOW, are you being the self sufficient individual that you want your country to be by buying your counter wealth destruction insurance and taking care of yourself? Make a plan to buy an .oz of silver (there are U.S. minted 1 oz coins) a week or a month or 10 .ozs a month but make a plan and just do it. Plan to have a store of wealth to counter what is being done. If “they” are going to take the country to hell in a handbasket, it doesn’t mean we have to go with them. You have auto, fire insurance. You don’t need to go crazy just go smart. The more that do, the better it will be for all of us. Remember the Founding Fathers of protecting everyone or themselves would not be protected.
I know it can be difficult to understand but it is the paper dollars that are going down. Anyone of age can
remember the Argentina, Brazil types of inflation. We could even come to the point the U.S. Dollar is
only a domestic currency. A currency that is really only excepted in the United States.
If you are not making intelligent decisions on protecting yourself regardless of what the current government is doing then YOU DON’T GET IT.
I want to thank all you younger people for doing so much and taking such an interest in this country and your own lives through all of this. We didn’t get here overnight and this is not about Ron Paul. Take note of him while he is with us but it is about each individual doing and doing the right thing for themselves and this country.
Thank you all.
February 28th, 2008 at 9:51 am
David W. A. Robertson, (Scotland)
I agree with you that sports heroes, 99% of company executives, etc are small fry compared to the ‘real-powers-that-be’… however, it is hard to believe that Bernanke is unaware of what the men behind the curtain are actually doing. He was hand picked by them.
Sad-But-True did not cover our own personal repsonsibility, but he did get the crux of the matter, GREED. When fed, it is a devouring beast that is never satiated. Control of others is the illusion the beast pursues in a vane attempt to create its own light, destroying any perceived threat along the way who may hinder their vain plan.
The heart is deceitful… who may know it?
February 28th, 2008 at 9:56 am
LOL!!! He says “I agree” at the end! Ben Bernake, you sir, have been PWNT with Ron Paul PWNAGE!!!
February 28th, 2008 at 11:11 am
dr. paul unfortunately makes many common errors in understanding economic theory. a couple examples are his inability to distinguish between physical capital (trucks, factories, computers, etc.) and financial capital ($), and his inability to distinguish between the value of the dollar with respect to foreign currencies (exchange rate) and the domestic purchasing power of the dollar (essentially the other side of the coin to inflation).
with respect to capital. yes, savings = physical capital in the long term. and i completely agree that our tax system ought to be restructured to encourage savings. however increasing the money supply (increasing financial capital) is not some how a replacement for physical capital as dr. paul suggests. in fact by increasing the money supply in a recession, for example, the fed is trying to make it easier for companies to borrow money to purchase capital (it should be noted that the vast vast majority of investment in capital by companies is done via borrowed money; most companies don’t just have millions sitting around, even if they do have good cash-flow). in other words, increasing financial capital does not replace physical capital — it encourages it!
now for the second point; the value of the dollar and inflation. it is very easy to make the mistake of thinking, “if the value of the dollar goes down, prices must go up by just as much.” this is simply not true. the value of the dollar has to do with lots of complicated international stuff that i won’t get into. it is not at all the same thing as the domestic purchasing power of the dollar; the determinate of the price level. if they were the same thing, then dr. paul would be absolutely right; it would be ridiculous to say that the fed was not concerned with the value of the dollar. however, how many dollars it takes to buy a euro and how many dollars it takes to buy a loaf of bread are determined by completely different forces.
that is not to say that there is no inflation concern associated with a declining dollar; certainly imports become more expensive (while us-made exports get a boost abroad — go usa!), which can lead to an overall price increase. however, the relationship is nothing like 1-for-1, as dr. paul seems to believe.
listen to dr. paul, but please beware of his economics.
February 28th, 2008 at 12:16 pm
The gov wants to tank the dollar and crash the economy so it can point to the strength of the euro and credit the EU for it and offer us the NAU and Amero to rescue us. The collapse of the dollar and the strength of the euro is by design to get Americans to beg for the NAU.
February 28th, 2008 at 2:37 pm
Hmm… you don’t sound like much of an economist to me. Seems like a REAL economist would understand that you can buy bread with either dollars or euros and ship it anywhere in the world. How then are they determined by completely different forces? Let’s say the dollar fell 50% - that’s good right? Now all our goods are cheap so other countries will buy here, right? Okay, maybe that’s kind of nice as far as that goes. HOWEVER, for all the things we IMPORT, inflation has increased 100%. You say that’s okay, just buy them here? THEY DON’T MAKE THEM HERE ANYMORE. Guess what it takes to build the factory to make them? That’s right, stuff made in foreign countries that now costs a fortune. By the time you ge the factory made you better PRAY the dollar keeps dropping so you can seel your product. Only if the dollar KEEPS dropping, OTHER stuff will be so expensive people can afford a lot LESS of your product. If you have to ship your product around the nation, fuel will cost 100% more - your shipping costs will have doubled. The recession (or depression) the tanking dollar will have caused will cost you millions of more customers. Oddly, cheaper fuel wise to ship from China to SF than to send by truck from MO to VA. You have to REALLY think about every step in the process to accurately estimate the effects.
February 28th, 2008 at 3:52 pm
“If ignorance is bliss,
then knock the smile off my face.”
-RATM
“You never did nothin’.”
-Mallory Knox
February 28th, 2008 at 4:31 pm
GREAT job by Ron Paul! He kicked butt for sure. Too bad that everyone up there in the FED are all paid off, but with what money, freshly printed I guess!
Go Ron Paul!!
February 28th, 2008 at 4:41 pm
To An economist:
You sound like a typical NeoKeynesian? Ron Paul is an Austrian Economist. The two apporaches to economics are worlds apart.
February 28th, 2008 at 4:45 pm
PREACH IT RON! PREACH IT!!! You tell it to Bernake! School him in economics!!!
February 28th, 2008 at 5:43 pm
Great stuff although I honestly feel its too late. Ron as usual has it right. I really wonder what’s next? Where will this all end up?
February 28th, 2008 at 6:18 pm
Would Mr. Bernanke agree to check Schecter Poultry v US 295 US 495 1935, when our supreme court ruled it
to unconstitutional for Congress to abdicate it’s duty and delegate it to another group. Congress has the duty to coin money and regulate the value thereof. Congress has not the power to delegate that duty to the Federal Reserve or any other group. He is illegal, unconstitutional, every step he takes. How much is our national dept today? How much interest do we pay? Talk about terrorists. We have been invaded by terrorists disguised as community do gooders but nothing but terrorists. See what Andrew went through with the same group. He was wise to them and warned us of their intentions. We are slaves. Pure simple slaves. Economic
Slaves. Dr. Paul can heal our nation. Only Ron Paul understands the required medicine.
February 28th, 2008 at 7:24 pm
Good to see the Constitution mentioned here. For the latest endeavor by a citizen who is petitioning the govt for a redress of grievances go to www.givemeliberty.org
This gentleman spoke at length in Concord MA last Sunday to enlighten a room full of Ron Paul supporters and his own petition signers about the fact that the First AMendment of the BIll of RIghts includes a right to petition for redress of grievances in the last ten words.
It is troubling to see how the govt is responding to his petitioning. Silence, injunction to stop the spread of the petitions, Supreme Court refusing to hear the case and rule on its interpretation of the First AMendment.
Isn’t it the primary responsibility of the Supreme Court to rule on the interpretation of the Constitution?
It is enlightening to explore the petitions on www.givemeliberty.org
Perhaps Ron Paul might get involved in an impeachment proceeding against the Supreme Court for treason for failing to do their job!
Maybe!
Wm