Ron Paul To Ask Fed Why After Trillions In Free Money, Unemployment Is Still Sky High

Tyler Durden's picture

While everyone is relishing the Fed's third and only mandate these
days, namely to send the Russell 2000 to 36,000 and cotton limit up to
infinity and beyond, while everyone else is terrified to short stock in
advance of what increasingly appears like near certain additional
quantitative easing, congressman Ron Paul has announced that the first
Monetary Policy subcommittee meeting will focus on one of those two now
forgotten Fed mandates, that of creating jobs. “I’m very pleased to
hold our first subcommittee hearing in the new
Congress on a topic that could not be more critical, namely
unemployment.  Despite enormous amounts of monetary and credit expansion
by the Federal Reserve in recent years, the nation’s unemployment
picture remains bleak.  While many focus on the impact of fiscal
policies on employment,  the effect of monetary policy often goes
unexamined.  In my view we are now experiencing the bust that inevitably
results from the misallocation of capital and human resources in a
period of artificially cheap credit.  It is important to understand the
Federal Reserve’s role in creating today’s unemployment crisis, while
also highlighting that high unemployment and low economic growth can
persist even in the face of tremendous monetary inflation.
” Of
course, the answer to all of these problems is simple: no debt ceiling
raise. If the Fed can't monetize any more debt and make the Primary
Dealers ever richer (now that the PD ranks have just been expanded from
18 to 20 to include SocGen and derivative (!) trader MF Global, and its
CEO Jon Corzine) from commissions on indirect debt monetization, its
power is gone. But that will mean doing something for less theatrical
than a few hearings, and far more responsible: such as preventing
rampaging inflation across America (see cotton chart posted previously).

Paul Announces Subcommittee Hearing On The Federal Reserve’s Impact on Unemployment (link)

Domestic
Monetary Policy and Technology Subcommittee Chairman Ron Paul announced
today the Subcommittee will meet for a hearing to examine the impact of
Federal Reserve policies on job creation and the unemployment rate. The
hearing will be held on Wednesday, February 9th at 10 am in room 2128
Rayburn.
 
Subcommittee Chairman Paul said, “I’m very pleased to
hold our first subcommittee hearing in the new Congress on a topic that
could not be more critical, namely unemployment.  Despite enormous
amounts of monetary and credit expansion by the Federal Reserve in
recent years, the nation’s unemployment picture remains bleak.  While
many focus on the impact of fiscal policies on employment,  the effect
of monetary policy often goes unexamined.  In my view we are now
experiencing the bust that inevitably results from the misallocation of
capital and human resources in a period of artificially cheap credit. 
It is important to understand the Federal Reserve’s role in creating
today’s unemployment crisis, while also highlighting that high
unemployment and low economic growth can persist even in the face of
tremendous monetary inflation.”
 
The Federal Reserve has taken
unprecedented action to provide liquidity to financial markets and some
U.S. corporations; however, unemployment remains above 9 percent.  The
hearing, entitled Can Monetary Policy Really Create Jobs?, will focus on
the Fed’s recent actions, the likelihood those actions will reduce
unemployment, and the critical role of the private sector in job
creation.

While the Obama administration and Democrats in
Congress believe increased government spending will improve the nation’s
economy, Republicans on the Financial Services Committee know economic
growth depends on providing the private sector, especially small
businesses, with the certainty they need to create jobs.  The Fed’s
policies, as well as the Obama administration’s unsustainable debt and
spending, continue to prevent small business owners from growing and
hiring because of continued uncertainty over new taxes, higher interest
rates, and the expanding role of government in the economy. 
 
On
November 3, 2010, the Federal Reserve announced that it planned to
purchase $600 billion in long-term Treasuries (dubbed “QE2”).  This is
the second time since the 2008 financial crisis that the Federal Reserve
has engaged in quantitative easing. The latest round of quantitative
easing, along with the Fed’s action to bailout financial companies, has
added trillions of dollars to the government balance sheet. 

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Magic Mamaliga's picture

My abs are rock hard thanks to your gut busting antics Hamy!

Thanks to you, I just got off the phone with AAPL and Lululemon and will be working part time at both companies!

These worry warts don't know jack!

With love and admiration,

Magic Mamaliga

Careless Whisper's picture

what is this thing, an a, with a ring around it? and what is the internet?

the today show - 1994:

http://www.collegehumor.com/video:1946111

 

 

 

Zero Govt's picture

Harry, how is it in LaLa Land? Your day job at Obamas press office not keeping you bizzy enuf you gotta come over here and spread your delusional recovery rubbish. They're bamboo shoots mate, not green shoots, few too many take-outs son! 

...getting junked 23 times is fuking impressive (no i didn't, i like you around for a good laugh:)

EscapeKey's picture

The joke's on you; it's Hamy, not Harry.

Malcolm Tucker's picture


You're not going to believe this...and I mean that !

http://fedupmontrealer.blogspot.com/2011/02/itanimulli.html

Implies that Illuminati = NSA ...at least backwards!

Dapper Dan's picture

But all you need to know about it is here:

http://arthurgoldwag.wordpress.com/2010/…

Arthur Goldwag is a blogger who does a whole 'column' about it. He points out: "WordPress has a feature on its stats page that shows me the search terms that people use to find me and “itanimulli” is one of the biggest ... Other people took the next step and investigated. They swiftly discovered that a computer geek named John Fenley, who lives in Provo, Utah, purchased the domain name “Itanimulli” and is redirecting visitors to the NSA."

John Fenley, who owns the website you asked about, revealed at one point the reason you get the NSA if you type in "itanimulli": He "decided to forward the domain Itanimulli.com domain to the NSA as a joke."

Some people believe the U.S. Government has these supernatural powers. This is a hoax. Now you too have been illuinated.

More Critical Thinking Wanted's picture

 

While the Obama administration and Democrats in Congress believe increased government spending will improve the nation’s economy, Republicans on the Financial Services Committee know economic growth depends on providing the private sector, especially small businesses, with the certainty they need to create jobs.

Small businesses laughed out loud and proclaimed: "Ron Paul, you sure must be joking! We will be hiring the moment we see demand, dude. Our problem #1 is not lack of jobs (we have over-capacity) but lack of sales - and as long as you do not understand this you aint no part of the solution, you are part of the problem."

 

honestann's picture

Do you like your glass half full or empty?  Either way, notice the whole glass.

Small business people with ongoing business will indeed respond to demand.

Small business people and potential startups [who are not self-destructive] considering a new business will not take the risk to start that new endeavor in the kind of "elitist predators gone wild" environment we have today... unless, that is, the move to another country first.

Hedgetard55's picture

Zero,

 

     You got "Hamyed". Pwned by the master.

LowProfile's picture

Lol, just read the name.  Wish I could un-junk.

i.knoknot's picture

you can... the junk button is a toggle.

Alcoholic Native American's picture

word, you selling bullshit? I'll take 2.

EscapeKey's picture

Hey, Hamy, they're looking for a writer over on BusinessInsider. Given that their other lead writers are professional trolls more interested in generating hits than reporting the truth, perhaps you should apply?

countryboy42's picture

Our consumer discretionary stores in the Twin Cities just hired 10 sellers, and we had our biggest turnover in 14 years.

 

I did not realize the demand for the phonograph walkman was that high.

gloomboomdoom's picture

QE 2 was not a failure. The market is free to quit anytime it wants!

Reading sites like the Market Ticker, Mish and Max Keiser make me want to commit suicide! Why do they want collapse? Most people just want the economy to recover (and it has been).

When I talk with my friends about food prices, this is the answer I get 100% of the time...
"GOOD! America is too fat! People need to eat less! I hope they keep printing money!"

 

Bay of Pigs's picture

So your friends are economic retards like you?

gloomboomdoom's picture

Here is a junk for you, how does that feel?

I just want to keep up with Wallstreet. SO I buy the DIP and use the money in my community.

2001 was the "END". Our Brothers tried to warn us!

http://www.youtube.com/watch?v=jqK_0BbZGJY

palmereldritch's picture

Jack's one of the best for delivering the barb.

Here's a compilation.  Too bad they weren't available as individual clips.  My favourite @ 1:31  from The Big Lebowski....

Nicholson appears throughout lol

http://www.youtube.com/watch?v=PSEYXWmEse8

gloomboomdoom's picture

If they ever audited ZeroHedge there would be a lot of people going to jail! (We know too much!)

palmereldritch's picture

Knowledge wants to be free.  You are dancing around the suggestion that thought crimes are a fait accompli.

"All tyranny needs to gain a foothold is for people of good conscience to remain silent." ~Thomas Jefferson

UncleFester's picture

If Jefferson was a god, Aaron Burr was his saint.

the bohemian's picture

When I talk with my friends about food prices, this is the answer I get 100% of the time...
"GOOD! America is too fat! People need to eat less! I hope they keep printing money!"

what an ignorant comment since the cheapest foods to buy (and bought by the poor)- are typically the most processed, high calorie and least nutritious-

you're pretty stupid aren't you?

 

UncleFester's picture

We will find nutrition costs more than we think.  When was the last time we ate real food, drank real wine, fu*ked real women?

sabra1's picture

people are eating less, all they can afford are chips, YUM!

Robot Traders Mom's picture

I wish you would quit Wanger. You are corrupting my brain dead son.

MiddleMeThis's picture

I haven't been on ZH very long, so I was just wondering, does Hamy work for Fox News?

homersimpson's picture

No it's pretty evident he works for the obama administration. Wanger is all about promoting how great the economy is.

DaveyJones's picture

it is amazing how these gloomers pay everyone off to make it look like the economy sucks.

homersimpson's picture

It's amazing how stupid people can be to believe the economy is A-OK.

sabra1's picture

i love AApl and LULULEMON turnovers, especially the biggest turnovers!

the bohemian's picture

"Our consumer discretionary stores in the Twin Cities just hired 10 sellers"

 

wow-  we're fucking saved-

Wanger-  you're such a flametard-  every site I have ever seen you on-

why don't you go jerk yourself off to some Fortune and Forbes magazines

huggy_in_london's picture

I guess you have learning difficulties .....

 

FatFingered's picture

Hey Hamy!

Bllllllleeeeeerrrrrrrrhhhhhh.......

<beans for dinner, slobberry lippssss......ppprrrrr...>

Ron Paul rocks!

Richard Head's picture

Are all you people deaf?  Can't you see it's Hamy, not Harry!

cbxer55's picture

Six of one, half dozen of the other?

total nonsense's picture

Hey listen there Wanger,at least its all good for you but i am not so sure the 45mm people on food stamps and climbing are feeling so great.I have a great business also but i am one of the lucky few. If you really believe this country and this world is in such great shape then all the best to ya. But why dont you step outside your bubble for a moment and really crunch some numbers so you can see what is really going on. Yes the the stock market has been riding high but as i am sure you can see the $ has not,it is setting up soon for a disastrous fall and the next market correction that comes will be the most severe one yet something the likes that no one has ever seen. The fed will not be there to print the money anymore when the time comes and it will make 2008 look like a cake walk. But hey i am sure you will be out of all your positions by then and will have already shorted everything. Happy trading Wang

Djirk's picture

I guess Mr Paul didn't get his PHD in econ.

simple: QE2=commodity inflation=lower corporate profits=less purchasing power for consumers....all of these lead to job creation....oh wait 

Batty Koda's picture

Does Ron Paul want to raise the debt ceiling? I get the impression he doesn't, in which case he wants to default on the mational debt which would be a bad idea.

aerojet's picture

Ron Paul must know that the Fed cannot stop without a catastrophic plunge taking place. 

 

The part I truly resent is that the money changers made out like bandits while being the architects of the entire crisis.