Topic: Ron Paul
Ron Paul Educates Ben Bernanke
Once again the champion of the Constitution, Ron Paul, takes on the Federal Reserve Chairman Ben Bernanke as the Feds prepare to drop rates once again.
by JJJ
(libertarian)
Sunday, March 2, 2008

You could set off a fire with a match in the room.  On one side of the room the Federal Reserve's Chairman and on the other, the defender of the Constitution and the people.  Tensions were high as Ben Bernanke braced himself for the expected dose of common sense once again coming from Congressman and Dr. Ron Paul.   

Ben Bernanke was stuck between a rock and a hard place when asked about the value of the dollar, and he responded that it was the Treasury's responsibility.  But Paul wasn't about to let him slide on just passing off the blame for our dollar's crisis.  Paul responded, "And here I find the chairman of the Federal Reserve in charge of the dollar, in charge of the money, in charge of what the money supply is going to be, but (you) don't deal with the value of the dollar."

Then as Bernanke smugly nodded, Paul proceeded to call Bernanke's bluff, "But you do admit you have a responsibility for the prices.  But how can you separate the two?  Prices are a mere reflection of the value of the dollar.  If you want to control prices, then you have to know the value of the dollar.  But if you're going to avoid talking about (the value of ) the dollar then all you can do is deal with central economic planning."

Then Paul went on to educate Bernanke on the reasons why central economic planning, even and especially when dealing with the money supply, never works.  

"Everybody refers to inflation as rising prices, instead of saying inflation comes from the unwise increase in the supply of credit."  

Then Paul put the icing on the cake with, "Their standard of living is going down,... the middle class is being wiped out, and nobody's understanding that it has to do with the value of money: prices are going up.  So how are you able to defend this policy of deliberate depreciation of our money?"

Bernanke attempted to compose himself and with quivering voice said, "The Federal Reserve Act tells me that I have to look to price stability, price stability,... and that's what we aim to do.  You're correct that there are relationships, obviously, with the dollar and domestic inflation and relationships between the money supply and domestic inflation, but those are not perfect relationships, they're not exact relationships, and, given a choice, we have to look at the domestic inflation rate."  Then he went on to say that Congress has the responsibility of abolishing the Federal Reserve and returning back to a gold standard.  

Paul, responding to his first statement, saying, "But your (lack of) achievement; we now have PPI going up at 12%... that doesn't get a very good grade for price stability.  Wouldn't you agree?"

Then Bernanke grudgingly concurred, "I agree."  

However, Federal Reserve Chairman, Ben Bernanke, apparently wasn't paying attention.  He then deferred that if oil prices continued to rise, then inflation would continue to rise as well.  However, Ron Paul made it very clear that the price of oil wasn't rising relative to other commodities, but that it was the value of the dollar that is falling, which he also made clear that the value of the dollar was in control of the Federal Reserve‘s decisions.   

Apparently Paul's pleas for the people did not penetrate Bernanke as he continued to announce that rates would be lowered once again.  This means that more money will be created out of thin air, which will translate into more inflation of oil as well as other commodities. 

©2008 JJJ, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Sunday, March 2, 2008
Last modified: Sunday, March 2, 2008

The views expressed in this article are those of JJJ only and do not represent the views of Nolan Chart, LLC or its affiliates. JJJ is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.

Report violation by JJJ of Nolan Chart LLC's terms of use policy.

More Articles By JJJ

Reader Comments:

Posted By: Jim Hines
Date: 2008-03-02 08:29:22

I'm always surprised at how many people think a stock split is a good thing. They way they see it they have twice as much stock. But the reality is the value of their total investment doesn't change. However, the "float" (the amount of shares in circulation) is now twice as big. This artificially distorts the supply and demand equation. The basis of value. More people chasing cheaper shares causes volatility to the upside. But less people chasing more shares causes the price to stagnate and even fall. That is the scenario we are approaching. Up until now more people chasing more of our dollars has been tolerable. But now people in the know (Allen Greenspan - http://tinyurl.com/25dt5h) are telling others to stop chasing the dollar.  When those shares (dollars) are dumped on the market with no buyers that will be the day of reckoning. Here is the most un American thing I can write. Short the dollar.

Report violation

Posted By: Dan
Date: 2008-03-02 10:36:57

It is painfully obvious that the FED is deliberately de-valuing our currency. It is a long term planned event so that another currency, such as the euro, or the amero, can replace the failed dollar. I never thought I would say those words...failed dollar, but isn't that what they are shooting for? It is plain as day.

One world government, one world currency, it is all in the plans and being executed whether we like it or not, in plain site.

Report violation

Posted By: GatorVol
Date: 2008-03-02 14:13:39

Great article!  Ron Paul is amazing, it feels good to know there is at least one guy in there who understands what's going on, and is fighting against all odds in our interest.  No matter what happens in this election, I do believe that the Ron Paul rEVOLution will keep growing if we do all we can to keep his message alive.  This article sure is a good example!

Maybe, just maybe, some of these other politicians and policymakers will finally GET the common sense of Ron Paul's ideas.

Report violation

Posted By: Pier Johnson
Date: 2008-03-02 15:24:27

Dan writes "One world government, one world currency...".

Yet, his beliefs are close, but not quite right.

Rightly, it's "One Government OVER the World" and "One Government Currency."

The difference might seem nitpicking to some. Yet there exists a profound difference between the two.

The rhetoric "One World" whatever bodes well for the Power Wealthy who seek to impose One Government over us.

Since millions of Everyday Men have become indoctrinated with feel good socialism, the phrase "One World" comes across as happy, in essence saying "We're in this together. There's no difference among us. Let's join hands."

Folks fighting for the Realm of Freedom over the Realm of Officialdom must stop using the wrong phrase "One World Government", only which helps the evil of Officialdom and begin to use the right phrase, "One Government Over the World."

 

 

Report violation

Posted By: shri
Date: 2008-03-03 03:00:15

I agree with Dan,

if we have a single currency then there is no falling or raising. Import and export business will lasts longer.

As per  Pier Johnson  we cannot manage one currency as we are all devided in countires politicaly. 

But if we fix the rate of every currency of the world  with gold. And gold is left to float free in the  world market. Now gold is the only floating thing and not  all currencies. We know all precious metals and metals like copper or iron are also moves with gold.  Say like 1 ouce of gold is $1000 and 1 ounce gold is pounds 500. If gold goes up the ratio of every currency with gold fluctuate.  Where as  inter relation of individual currencies remains same.  Next problem is we dont have enough gold to match huge currency. 

Now a country can use any goods equavalent to the amount of gold may be any metal or food grain in its safe custody and print the money. 

If US wants more money it can buy gold or any commodity  from public at market rate, keep at fort knox or any convinient place and print equalant money.  If gold price goes up in the market, Chairman of federal reserve has a right to print additional money of short fall. If gold becomes cheap additional money has to kept in custody until gold price raises.  Now all countries can use their own money for all import purposes.

 Its better to call it as  commodity standard. In this scenario even whole world is devided in number of political borders we can enjoy a single currency. Everyone will respect and trust every currency.       

      

 

Report violation

Posted By: Jeremiah Johnson
Date: 2008-03-03 07:52:26

I like the way the Constitution said it.  Only gold or silver could be used by the government as payment of debt.  This did not impose any restriction on what Citizens in the free market could use.  In fact, it was the Citizens that placed the Constitution as a binding document on our government.  It was from "We The People" to our government to bind our government to serve us. 

 

However, for the last century our government stopped following the Constitution and has made the people serve it.   

 

Report violation

Posted By: Cynthia
Date: 2008-03-05 16:05:13

I think there are many more that Ron Paul that understand the Fed banking system and its systematic destruction of our currency and the middle class. Paul is the only one honorable and brave enough to openly challenge them in his attempt to alert the American public.

Report violation