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Ron Paul To Ask Fed Why After Trillions In Free Money, Unemployment Is Still Sky High
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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....sorry, can't gas him....too much hot air in there!
Ron Paul FTW!
http://www.youtube.com/watch?v=S0LRQhxy0Mc
"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.”
I am stunned, did he actually say this??????
Someone, maybe, can do something and stop the killing fields?
oh he really said this... and the words were round the wrong way on his cheat sheet..
In my view we are now experiencing the bust that inevitably results from today’s unemployment crisis in a period of artificially cheap credit and
the misallocation of human resources
It is important to understand the Federal Reserve’s role in creating tremendous capital economic growth while also highlighting that unemployment can persist even in the face of high monetary inflation.
....why yes, he did say that; but he wasn't talking to you, or me for that matter! He was talking to his bank/casino farts....cheering them on for the "god's work" they were doing.
I was going to call him a scumbag, but I'm too afraid to insult a better class of people....
Paul has proven to be a bag of hot air. TPTB. paper tigers. Blah blah
We need a riot of outrage here
It's ironic that the Fed itself has created the structural unemployment problem. You see the baby boomers first wave hits this year as they turn 65 in 2011. Rather than provide a stable price environment where the boomers would have savings and confidence in prices to retire and get out the workforce (thereby making room for others to move in ultimately), the Fed has created an environment where the boomers are scared to death or essentially have so little in savings (after their biggest savings - wrongly - their house went boom) that (early/if ever) retiring is out of the question.
If Ron Paul wanted to quiz Bernanke on anything, he should consider this unintended consequence as his first line of questioning.
...excellent points all. But it still won't stabilize housing....the gorilla in the basement.
This is "not" an "unintended consequence". It is an "intended" consequence. How else can the government pay off social security and other trillions in obligations then by paying them off with worthless dollars?
Nothing goes better with an Article on the Fed and Dr. Paul than this by another of the Good Guys.
Straight Talk with Catherine Austin Fitts: We Are Victims of A Financial Coup D'Etat<quick example snippet>>
Chris Martenson: Despite (or perhaps because of) your time as Assistant Secretary of Housing under Bush Sr., you are extremely critical of the government’s financial stewardship. What, if anything, changes with administrations and how much is institutionally baked into the cake?
Cathrine Austin Fitts: The federal financial model is institutional, and its ultimate governance is outside of the government. The choice of candidates impacts the quality of the political appointees, which factions get the large portion of the benefits of controlling the flow of contracts and pork, numerous incremental policies, as well as the tone of the Administration. However, the federal government lacks sovereignty. It lacks financial sovereignty - it is financially dependent on the banks that control its depository and slush funds, create the currency through the Federal Reserve and manage the accumulated capital of the same syndicates outside the government. It lacks information sovereignty as its data, information, and payments systems are controlled and operated by private corporations, primarily defense contractors. If we could dig out the true ownership of both banks and defense contractors, my guess is that it would look identical. Finally, the members of the Administration have no way of guaranteeing their safety and the safety of their families if they defy orders of those who have the weaponry and power to enforce their will by any means necessary.<SNIP>
http://www.chrismartenson.com/blog/straight-talk-catherine-austin-fitts-we-are-victims-financial-coup-detat/51951
Cathrine's site
http://www.solari.com/blogMisallocation of capital? Wow, it is a rare politician who actually understands that concept.
Some of you haters may bash him, but Ron Paul is by far the most intelligent member of Congress when it comes to economics.
indeed. but I just wonder what can he do about it unless he become our President?
I actually don't believe that the elites (Ben, Tim, and Obama) don't understand the issue. instead, they knew it too well and can manipulate it so that it looks like they are solving the problem but instead they are passing money to their rich bankster friends.. for some reasons that everyone knows.
Ben, Tim and Obama are "not" the elites. They are puppets on a string. The elites are the fortune 100 and the international banking cartel which have hijacked our government. All this is being done by design.
I totally agree w/you about Ben and Tim....but Obama? not so sure. I regard ben, tim and mr. big, jamie D. as the trio of deceit and corruption....I figure BO as a passenger on the bus, nothing more; but u could be right; time will tell.
The Fortune 500/banking types are not elite, they are just shitholes who went into the business of fucking people...hell, I could have done that if I was money horney enough....and I am just a dumb hillbilly.
I'd like to see Paul start by forcing the Bernank to admit he is monetizing the debt, or explain why these new issues are being flipped so quickly to the Fed, and at what benefit for the PD's. Expose Benron as the liar he is and maybe help build a groundswell for his removal. Jobs? that's just political.
Unfortunately, I think Ben will just come down there and obfuscate with the full knowledge that nobody is going to do sweet F.A. about it.
Did you know the FOMC has a PR link?
http://stlouisfed.org/fomcspeak/index.cfm
All are systematically dumbing down the Universities. As an example, allow me to single out Sandra Pianalto.
The Recovery and Monetary Policy
" In conclusion, I’ve studied the financial and economic situation carefully to determine the right policy actions to fulfill our dual mandate of price stability and maximum employment. I will continue to do so, constantly evaluating the costs, benefits, and results along the way. The FOMC will regularly review incoming economic and financial data, update our outlook, and make adjustments as needed. We know that our economy faces a multitude of challenges, and a full recovery will take some time. We also know that the Federal Reserve cannot solve all of the economy’s problems on its own. A sustainable recovery will also depend on prudent, sensible approaches to fiscal policy, tax policy, trade policy, and many other considerations far beyond the Federal Reserve’s scope. But responding to inflationary and disinflationary pressures gets to the heart of what a central bank can and must do. The main variable the Federal Reserve can control over time is the price level. Ensuring price stability is our job. My belief is that by promoting price stability, the Federal Reserve is following the best course for supporting the economic recovery."
Appling generous doses of molybdenum to her anal beads & butt plug, Sandra was quite successful in delivering a convincing story to her students.
The "Stability" justification. The last resort of a scoundrel. Carlo Gambino provided "stability".
Who needs to create jobs ? crazy ole uncle ben gives us moe free monies everyday. Life is good, just belive in Obama and everything will work out. Ron Paul might as well sit down and shut up, so our stawks go higher.
The Bernank will remind Ron Paul that he and the FED operate under Congressional mandate... Like he aways does.
The Congress will fuck their constituents in the butt... Like they always do.
Of course, that is the way the American system is set up.
))))(((((
Methinks if Ron Paul keeps pushing the banking cartel so hard, he may get assassinated. Remember the whistle-blower on silver manipulation last spring?
Ron Paul knows what he is up against, all he can do is "needle" away and ask the right questions. He recently said himself that he is not a powerfull man, only his ideas are powerfull. Unfortunatley very few are paying attention to his ideas, if they were Ron Paul would be in the Obama's Offfice right now... There is your chance for real change, we missed it last time around.
It's a game of chicken. The USA can keep printing for longer than any other country can keep printing. Whoever implodes last, wins! Wooooooooo!!!
Every man, it is said, has a purpose in life - this is Ron Paul's. I've got a lot of disagreements with him on a lot of issues, but the man and the hour have met: there is no one I trust more than Ron Paul to look in to the activities of the Federal Reserve and start the ball rolling towards dissolution, and the re-implementation of sound money in America.
This is the Revolution - but do keep in mind that it is just the opening shot, and the people vested in fiat-money and usury won't go down without a fight.
Paul is only a fraction of the way there.
Until CONgress grows the gounads to DO something effective about theFED, everything he does is purely heated conversation, which is about as effective as Monday morning quarterbacking.
That people like yourself respect him and admire him for just asking questions and spouting off, is testament to the propaganda machine doing its best to distract everyone from that which needs to be done. NOW!
Hint: it has nothing to do with CONgressional bullshit.
Easy...money was given to bankers and investment types, who do not create jobs, they just shove it in their pockets.
If he has to ASK why the trillions given to banksters hasn't resulted in lower U/E, he ought to give his chairmanship of the committee to Jughead.
If he doesn't already know why, what gives him any credibility?
If he expects that the answers he will get from theBernank are going to be fruitful and actionable why doesn't he just talk to a sphinx?
We do not need more and endless questions that do nothing but reiterate what any sentient being who cares about their money already knows.
WE NEED FUCKING ACTION!