This page has been archived and commenting is disabled.

Ron Paul Grills Bernanke On The Massive Expansion To The IMF's New Arrangement To Borrow

Tyler Durden's picture





 

As we reported a few days ago, the IMF massively expanded its last resort bailout facility (NAB) by half a trillion dollars, in which the US was given the lead role in bailing out every country that has recourse to IMF funding. Yesterday, Ron Paul grilled Bernanke precisely on the nature of the expansion of the US role to the NAB: "The IMF has announced that they are going to open up the NAB which coincides with the crisis in Greece and Europe and how they are going to bailed out. The irony of this promise is that in the new arrangement Greece is going to put in $2.5 billion in. I think only a fiat monetary system worldwide can come up and have Greece help bail out Greece and be prepared to bail out even other countries. But we are going from $10 to $105 billion... We are committing $105 billion to bailing out the various countries of the world, this does two thing I want to get your comments on one why does it coincide with Greece, what are they anticipating, why do they need $560 billion, do we have a lot more trouble, and when it comes to that time when we have to make this commitment, who pays for this, where does it come from? Will this all come out of the printing press once again, as we are expected to bail out the world? Are you in favor of this increase in the IMF funding and our additional commitment to $105 billion?" Bernanke, of course, washes his hands of any imminent dollar devaluation - it is all someone else's responsibility to bail out life, the universe and everything else. Bernanke pushes on "I think in general having the IMF available to try to avoid crises is a good idea." Yet Paul pushes on "Where will this money come from? We are bankrupt too." Indeed we are, but nobody cares - that is simply some other poor shumck's problem. 

 

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 04/15/2010 - 11:28 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"I think only a fiat monetary system worldwide can come up and have Greece help bail out Greece and be prepared to bail out even other countries."

The signature line. The insanity is that the average economists would not only disagree with this statement but insist that because they can do this, the system is "working". This is the type of logic one uses to remain in denial about the increasing level of burning oil that surrounds you as you climb higher and higher up the flag pole.

Yup, it's working all right. See, the proof is in the fact that I'm climbing higher and higher.

Thu, 04/15/2010 - 11:33 | Link to Comment Slewburger
Slewburger's picture

"Yup, it's working all right. See, the proof is in the fact that I'm climbing higher and higher."

Reminds me of the rising tide lifts all boats argument.

Thu, 04/15/2010 - 12:12 | Link to Comment sporb
sporb's picture

This is undoubtedly what they are thinking: if the lake is too shallow, put more water in.

I think they realize: in order to play nice with China's "managed economy" they would make themselves a managed economy too. I don't see any recognition of this fact in all the griping about "where is my perfect market? You promised me a perfect market!" Get over it - you're all commies now. Change your strategies accordingly.

I also think that, in a "gold standard economy" many of you would be digging ditches, 'cause there wouldn't be enough money around to be playing the margins all day long.

Thu, 04/15/2010 - 12:30 | Link to Comment tmosley
tmosley's picture

Not enough atoms, eh?

Thu, 04/15/2010 - 17:33 | Link to Comment GetZeeGold
GetZeeGold's picture

Not enough atoms, eh?

 

Heh heh.....well gold is only worth about $39 an ounce so the problem comes in exchanging atoms for currency......I mean like a penny is way too much for an atom of gold and what if someone just wants the one atom.....glad I could clear that up for you.

Thu, 04/15/2010 - 11:47 | Link to Comment sheeple
sheeple's picture

The insanity is that the average economists would not only disagree with this statement but insist that because they can do this, the system is "working".

 

All Hail The Print Press; seems like they want to take down nations to their knees sooner rather later. Perhaps the 2 billion funded by Greek is for building an IMF office on a Palm-island-clone in the middle of the Mediterranean

Thu, 04/15/2010 - 13:42 | Link to Comment Terminal Frost
Terminal Frost's picture

PonziWorld.  Get your tickets at your local ATM.

Thu, 04/15/2010 - 11:39 | Link to Comment Bananamerican
Bananamerican's picture

is that a dollar chart on Bernanke's face??

RP threw darts but i have to say BB seemed unflappable...prolly cuz RP has that "voice in the wilderness" vibe....At some point the wilderness, in toto, will emerge.

Thu, 04/15/2010 - 12:31 | Link to Comment Hansel
Hansel's picture

Unflappable???  Bernanke's most used word in his answers was a competition between "umm" and "uhh".

Thu, 04/15/2010 - 11:28 | Link to Comment Selah
Selah's picture

It was hardly a "grilling".

Mr. Paul was WAY too easy on that doucheclown.

Thu, 04/15/2010 - 11:28 | Link to Comment buzzsaw99
buzzsaw99's picture

ZimBen is a boy who got a shiny new printing press for his birthday.

Thu, 04/15/2010 - 11:29 | Link to Comment hamurobby
hamurobby's picture

The voice of reason in chaos,  President, anyone?

Thu, 04/15/2010 - 11:31 | Link to Comment nhsadika
nhsadika's picture

I wish he would ask a single question and make Bernanke answer it.  Over and over. Paul has to stop rambling and put the pressure on.

Thu, 04/15/2010 - 11:54 | Link to Comment JohnKing
JohnKing's picture

For peeps accustomed to sound bites, Paul does indeed "ramble". You really have to think a little bit when listening to him. His is a revolution of ideas and I think he "rambles" on purpose so as to spur thought.

Thu, 04/15/2010 - 12:07 | Link to Comment sheeple
sheeple's picture

He sounds like he rambles cuz he's so familiar with the issues that he doesn't need to pause and "think" inorder to elaborate his points.

He's passionate about it as well

Thu, 04/15/2010 - 12:13 | Link to Comment JohnKing
JohnKing's picture

True that, he's been hammering the same nail for decades.

Thu, 04/15/2010 - 12:38 | Link to Comment sheeple
sheeple's picture

Correct, America has 300 million + pop. and only a hand full such as Paul and Schiff have enf balls to stand out and say it out

Thu, 04/15/2010 - 13:53 | Link to Comment Entremanure
Entremanure's picture

Don't even lump Schiff in the same league as Ron Paul.  Peter Schiff is a clown.

Thu, 04/15/2010 - 15:09 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

So says a 9 day veteran of ZH. Did you take the entire 9 days to come up with this gem?

Thu, 04/15/2010 - 15:24 | Link to Comment WaterWings
WaterWings's picture

+1

Cass Sunstein's recruits must be suffering from writer's block.

They should stick to their schtick:

"This blog used to have intelligent reporting. This only diminishes the credibility of the blog."

Thu, 04/15/2010 - 18:07 | Link to Comment Slewburger
Slewburger's picture

Agreed +1.

Some of the newer members seem to be doing some provocateuring. They are among us.

Thu, 04/15/2010 - 19:09 | Link to Comment Marla And Me
Marla And Me's picture

I love how CD is always on the prowl for new trolls.  He has an uncanny ability to spot them.  Thank you for your efforts, kind fellow.  We in this community are most thankful.  Stick to the issues people.  Try it.  I know it's hard because almost 100 years of psy-ops have shortened your attention span to one that rivals the fruit fly's, but you might actually get to learn something.  It's the very reason this site is proud of its anonymity.  It makes it harder to engage in ad hominems.

Thu, 04/15/2010 - 12:40 | Link to Comment Miss Expectations
Miss Expectations's picture

I think of Ron Paul as a statesman (as opposed to a politician)...hence his unique style.  I also imagine he was a magnificent doctor.

Thu, 04/15/2010 - 12:41 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Paul (along with others) has a time limit and must work within that limit. He knows the answers he gets will be bullshit and he won't be allowed to really "grill" Bernanke to force Barnanke to actually "answer" the question.

So Paul is reduced to publicizing his positions with his remarks and then a question or two that he knows won't be answered but makes his point. He's an island surrounded by an empty ocean of fellow Reps with no balls to fight the system.

Think about that, consider that he's been surrounded for decades and then consider how you would fight the battle within the realty of the battle field. Plus his re-election every 2 years is under constant assault.

Thu, 04/15/2010 - 12:59 | Link to Comment Village Idiot
Village Idiot's picture

+1

Thu, 04/15/2010 - 12:43 | Link to Comment nevadan
nevadan's picture

That is my biggest complaint about Paul and his attempts to get Bernanke to come clean.  The only way to get an answer out of Bernanke is to ask pointed questions, one at a time.  Preferably ones that would have a yes or no answer.  Bernanke is much too slippery to get a straight answer if he doesn't want to.

Thu, 04/15/2010 - 12:49 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I've seen Paul fire point blank question after point blank question and Bernanke (and Greenspan) just slithers away. What about his colleagues? Why won't they follow with the same questions? Paul only has 5 minutes.

There are no "yes or no" questions or answers in finance. They build in reasonable doubt and obscurity precisely because they wish to avoid a situation where they could be held accountable.

Paul is one Representative out of hundreds. He is powerless without the help of his colleagues, which is exactly why the system can't be reformed from within. We must stop looking to Paul and a few others as our saviours. They can not save us from ourselves.

Without pointing directly at you nevadan, why aren't WE doing something about this?

Thu, 04/15/2010 - 13:41 | Link to Comment RockyRacoon
RockyRacoon's picture

Well, I will be voting against any and all incumbents.  Period.

Fri, 04/16/2010 - 10:56 | Link to Comment WaterWings
WaterWings's picture

NoooOOooo! Please don't vote. It's the consent to be governed.

Thu, 04/15/2010 - 14:12 | Link to Comment verum quod lies
verum quod lies's picture

Nevadan:

Paul has tried that approach. If you watch his earlier encounters with even Greenspan, you can sense that both he and the Fed Chairman (Bernanke now, or Greenspan before) know there is a five minute limit. Therefore, either he drones or the Fed guy does. Given a choice, i'll take his dronings over the Fed guy's, my guess is that you would too.

 

Thu, 04/15/2010 - 11:31 | Link to Comment TwoJacks
TwoJacks's picture

"remember, George, it's not really a lie if you believe it."

 

I think Bernanke really believes that he is NOT creating money out of thin air when he gives any entity a loan.

Thu, 04/15/2010 - 11:55 | Link to Comment The Merchant of...
The Merchant of Venice's picture

He cannot admit that.  He has to say it is a loan.

The hearings are showcase showdowns.  All the little critters have to use the right talking points or their admissions will circulate in the media echo chamber for weeks.

Thu, 04/15/2010 - 13:42 | Link to Comment RockyRacoon
RockyRacoon's picture

Right!  My giving you a handful of pocket lint does not constitute a loan.

Thu, 04/15/2010 - 11:56 | Link to Comment JohnKing
JohnKing's picture

Bernanke knows full well that he is debasing the currency and using OPM. He is destroying  capital/wealth/savings at every turn and he is held in such esteem, why is he not in prison?

Thu, 04/15/2010 - 12:20 | Link to Comment aaronvelasquez
aaronvelasquez's picture

It really isn't created out of thin air.  It is created by skimming from all holders of dollars.

Thu, 04/15/2010 - 12:21 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

post is deleted.

Thu, 04/15/2010 - 11:38 | Link to Comment sheeple
sheeple's picture

and have Greece help bail out Greece and be prepared to bail out even other countries

Gotta love Paul's in-your-face straight-to-the-point style

 

 

Thu, 04/15/2010 - 11:39 | Link to Comment schoolsout
schoolsout's picture

sounds like a Repo $105B....except we aren't swapping, we are just giving the $105B away

Thu, 04/15/2010 - 11:45 | Link to Comment nedwardkelly
nedwardkelly's picture

Paul: "Where will this money come from?"

Bernanke: "Well it's a loan"

Paul: "So you'd create it out of thin air?"

Bernanke: "Well if it's not paid back we'd have to take some of the loss"

 

Not sure there was an answer there...

 

Thu, 04/15/2010 - 12:21 | Link to Comment aaronvelasquez
aaronvelasquez's picture

If its not paid back, but it never existed in the first place, is it really a loss?

Thu, 04/15/2010 - 13:02 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

The next question should have been who is going to pay for that "loan" plus the interest on that loan?  The American Taxpayers of course.

Thu, 04/15/2010 - 13:45 | Link to Comment RockyRacoon
RockyRacoon's picture

The "loan" is created the same way a bank makes you a loan:  The digital loan appears on the books of the bank, not as an offset to the poor depositors' savings accounts.  This sort of "loan" is how the credit crisis mounted up to a disaster.  If banks can do it, the FED can do it.  Setting a good example, huh?

Thu, 04/15/2010 - 11:45 | Link to Comment williambanzai7
williambanzai7's picture

Lets face it, the man is not paid to tell the truth.

Thu, 04/15/2010 - 12:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

We seem to be caught in this vicious cycle of wishing and hoping that these bastards will suddenly break down in tears and confess to the world all their evil deeds. Not going to happen. We either force the issue or we bend over.

What's it going to be folks? It looks like it's shit or get off the pot time.

Thu, 04/15/2010 - 11:47 | Link to Comment Eally Ucked
Eally Ucked's picture

Ron Paul talks to much, he has to wait for answers! And then grill the ....!

I guess the system got so screwed up that everybody has to show their oral skills and forget about the matter.

 

Thu, 04/15/2010 - 11:51 | Link to Comment EllisWyattOTC
EllisWyattOTC's picture

Ron Paul is an American Hero!

Thu, 04/15/2010 - 15:31 | Link to Comment geminiRX
geminiRX's picture

Not sure why the above message this is flagged as junk? Watching this from north of your border - he seems like the only voice of reason in your entire elected body. 

Thu, 04/15/2010 - 11:51 | Link to Comment tradertim
tradertim's picture

if someone asks me if they can borrow 10 bucks from me, i have to have that 10 bucks to give it to them to borrow. if i don't have the 10 bucks, i can't just go draw a picture of it on a piece of paper and hand it to my friend and say "here's your 10 dollars".

when ron paul asked..."where will the money come from?" and benny said.."well..it's a loan!!"...ron paul should have pressed him and said.."i understand it's a loan but WHERE WILL THE F*&%ING MONEY COME FROM TO LOAN IT???"

as ron paul said, the usa is bankrupt too.

Thu, 04/15/2010 - 11:58 | Link to Comment Racer
Racer's picture

"Where will this money come from? We are bankrupt too."

 

How can a bankrupt loan money they haven't got?

Tally Sticks anyone?

Thu, 04/15/2010 - 12:02 | Link to Comment Amish Hacker
Amish Hacker's picture

"How can a bankrupt loan money they haven't got?"

Easy. First, redefine "bankrupt." Second, redefine "money."

Problem solved.

Thu, 04/15/2010 - 12:30 | Link to Comment Carl Spackler
Carl Spackler's picture

Greece is doing it.

They are putting $2.5 billion in to the IMF.  $2.5 billion they do not have.

 

The Bernanke solution here can be stated simply...Don't admit the lie, fabricate a bigger and more complex lie to bail you out of the first one.

Fundamentally, it's the Ponzi method.

Thu, 04/15/2010 - 11:58 | Link to Comment Selah
Selah's picture

 

If this little dialogue doesn't convince you to buy Gold and Silver, I don't know what will...

 

 

Thu, 04/15/2010 - 12:04 | Link to Comment sheeple
Thu, 04/15/2010 - 12:35 | Link to Comment Hansel
Hansel's picture

Note to ZH:

Please follow up with Jim Rickards when he gets the IBMA contract from the LBMA.  We would all love to see what it says.

Thu, 04/15/2010 - 12:06 | Link to Comment macfly
macfly's picture

Ron Paul makes so many great points, but strings them all together without pushing ZimbaBen on each point. Honestly RP could have really made more of his points, all of which were on the bull's eye. Already Zimbaboy is stuttering, erring and uming, but RP didn't get the blood he could.

 

Thu, 04/15/2010 - 12:09 | Link to Comment Divided States ...
Divided States of America's picture

The other useless douchebag congressmen should all give their 5 minutes time to RP so he can grill Bernie a one full hour.

Thu, 04/15/2010 - 14:18 | Link to Comment RockyRacoon
RockyRacoon's picture

Ha!  Wishful thinking that I have entertained as well.

If any of these blow-hards were able to give up a second of media coverage they would not be the "congress critters" that they are.  It's what makes them politicians.  You act like we actually vote for normal people.

Thu, 04/15/2010 - 12:18 | Link to Comment dcb
dcb's picture

you have an entire system based on massive systenic fraud. a ponzi scheme. do you actually think the government, and bernanke are going to expose it. therefore they have to run to the rescue, because othrwise they give up control and risk exposure.

 

do you think thy would ever appoint someone tp the head of the fed who didn't support the ponzi scheme.

obama got elected, but hasn't investaged the bush abuses. if the was the type to investigate the bush abuses he would not have gotten elected

Thu, 04/15/2010 - 12:21 | Link to Comment economists_do_i...
economists_do_it_with_models's picture

If I were RP, I would avoid elevator shafts, being the only car on the road on a sunny day, or getting on an airplane.  He seems like the kind of person destined to have an 'accident.'

With all the quadrillions working against him, he's fighting headwinds no one person could ever overcome.

I admire him, but I worry about his safety/future.

 

Thu, 04/15/2010 - 12:27 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Dead on! He's an outsider trying to get in The Big Game. He's done a fair job trying to prove to us that his intentions are pure. So far. He's also trying to advance his own agenda by bargaining with the administration for future political favors if he turns down the heat or shifts the focus. Unfortunately a bull in a China shop rarely gets his way. He remains an untrustworthy entity to the powers that be.

Thu, 04/15/2010 - 13:05 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

The Fed probably sends him a in Tin Foil Hat to celebrate the New Year.

Thu, 04/15/2010 - 15:32 | Link to Comment WaterWings
WaterWings's picture

A "fair" job?

Impeccable record of straight talk and truth.

"his own agenda"?

The People's agenda.

"bull in a china shop"?

More like a powerful ray through the parted clouds.

He remains an untrustworthy entity to the powers that be.

Ah, yes. Which is why We like him so much.

 

Thu, 04/15/2010 - 12:32 | Link to Comment Carl Spackler
Carl Spackler's picture

I find your 'accident' comment to be solid wit.

Thu, 04/15/2010 - 12:23 | Link to Comment Mako
Mako's picture

"but nobody cares"

The system was insolvent or bankrupt as soon as it was started.   Tyler is turning into a nutbag, I thought he understood how the credit system works.

The books have never balanced, the books will never balance.

 

Thu, 04/15/2010 - 12:32 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

you're dumb. the books can balance. you just need to set-up the game correctly at the start.

Thu, 04/15/2010 - 12:34 | Link to Comment Mako
Mako's picture

The books never balance... as long as you have a credit system based on compunding interest they will never balance... interest is always owed.

Thu, 04/15/2010 - 12:39 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

i'm giving you something think about.

Thu, 04/15/2010 - 12:48 | Link to Comment Mako
Mako's picture

Oh I agree, the appearance of balance books... but the true books never balance.  

The system is insolvent on day #1 but the appearance of solvency can go on for about 60-80 years.

Thu, 04/15/2010 - 12:58 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

i think it could go on longer than that.

definitely you don't let investment bankers run the country.

Thu, 04/15/2010 - 15:33 | Link to Comment WaterWings
WaterWings's picture

You took the bait. You're still the man.

Thu, 04/15/2010 - 12:23 | Link to Comment Thorny Xi
Thorny Xi's picture

Diesel and gasoline at $3.00 again (western CO). "Jet A" kerosene is higher. $50MM in foreclosures per week in Vail/Beaver Creek and Eagle County. Unemployment 20% per Gallop. 53% of each tax dollar spent on war (per the Orlando Sentinel, yesterday). Retail sales "recovering" while sales tax revenues are falling. Most people I know in the 3D world seem to think nothing's really wrong ... they know their store sales are way down but say the economy's getting better.

It's mass schizophrenia.

Thu, 04/15/2010 - 12:32 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Yup. Double Whammy. While cost of living and doing business is up, assets and incomes deflate. 

Thu, 04/15/2010 - 13:11 | Link to Comment Carl Spackler
Carl Spackler's picture

Hear that big vacuum sound?

That is leviathan (government) transferring wealth and standard of living from the private sector.  Cost of doing business goes up because HR benefits have and will further continue to grow and income will continue to drop at the specific firm level.

Feed the beast, man, ala wealth transfer.

Thu, 04/15/2010 - 12:48 | Link to Comment Racer
Racer's picture

UK petrol prices at all time high around 122p/Litre

Thu, 04/15/2010 - 12:25 | Link to Comment anony
anony's picture

Ron Paul gets a lot of positive feedback but when he starts to talk or I read his transcripts, he seems like he is not organized in his thinking, rattles stuff off, and is inarticulate.

For someone with the important message he carries, the level of sophistication of the people he questions to not have a speech coach, is hurting him.

He needs to get his poop together and be far more coherent.

Thu, 04/15/2010 - 12:30 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Bull in a china shop. It's the tactic he has to resort to because he's not in the loop, an outsider to the process. He's trying to use threats to get some leverage and at least so far, he's not getting too far. Is his aim pure or is he advancing his own agenda? In Washington that's always the mirage.

Thu, 04/15/2010 - 12:27 | Link to Comment Mongo
Mongo's picture

YEAH...

 

"bailout... Greece... and who knows WHAT!"

Thu, 04/15/2010 - 12:36 | Link to Comment TooBearish
TooBearish's picture

If it weren't so sad and true it would be funny but the look on Ben's face is the tell...

Thu, 04/15/2010 - 12:37 | Link to Comment Mitchman
Mitchman's picture

I wish Paul would not fall into the Joe Biden trap of making a specch rather than asking a question.  Why couldn't he just get to the point?  By going on and on he gives Helicopter Ben way too much wiggle room.

Thu, 04/15/2010 - 14:58 | Link to Comment Millivanilli
Millivanilli's picture

Agreed.  I love the guy, but he is waisting precious time in his monologue.   He needs to watch a few episodes of Perry Mason.

Thu, 04/15/2010 - 15:36 | Link to Comment WaterWings
WaterWings's picture

Blunt-talk is easier to ridicule. He is attempting to elucidate those with ears to hear. His intentions are perfectly clear to those already involved.

What if Jesus had just said "Go to Hell" to his critics?

Thu, 04/15/2010 - 12:41 | Link to Comment InstantWinner
InstantWinner's picture

I think the point of the story may be that the IMF has sold all the gold and still needs much more cash.  Don't forget, we are destroying private debt at a massive level, perhaps even more private debt is being destroyed than new public debt created.  Teetering on collapse, but they think they can control the collapse because they are hoarding all the debts.

Thu, 04/15/2010 - 12:51 | Link to Comment Winston Smith
Winston Smith's picture

Hey guys I'm sure you've seen this Murray Rothbard quote many time before,

but it seems even more appropriate now (and he is so eloquent):

 

 

"Unfortunately, the classical gold standard lies forgotten,

and the ultimate goal of most American and world leaders

is the old Keynesian vision of a one-world fiat paper standard,

a new currency unit issued by a World Reserve Bank

(WRB). Whether the new currency be termed “the bancor”

(offered by Keynes), the “unita” (proposed by World War II

United States Treasury official Harry Dexter White), or the

“phoenix” (suggested by The Economist) is unimportant.

 

"The vital point is that such an international paper currency,

while indeed free of balance of payments crises since the

WRB [IMF] could issue as much bancors [SDRs] as it wished and supply

them to its country of choice [Greece ++], would provide for an open

channel for unlimited world-wide inflation, unchecked by

either balance-of-payments crises or by declines in

exchange rates. The WRB would then be the all-powerful

determinant of the world’s money supply and its national

distribution. The WRB could and would subject the world

to what it believes will be a wisely-controlled inflation.

 

"Unfortunately, there would then be nothing standing in the

way of the unimaginably catastrophic economic holocaust

of world-wide runaway inflation, nothing, that is, except

the dubious capacity of the WRB to fine-tune the world

economy."

 

 

 

Thu, 04/15/2010 - 12:59 | Link to Comment caconhma
caconhma's picture

Ron Paul is just another loyal member of his party in the Congress.

Do not expect much from him.

Thu, 04/15/2010 - 14:33 | Link to Comment G. Marx
G. Marx's picture

 

You're a fucking clueless idiot.

Thu, 04/15/2010 - 15:37 | Link to Comment WaterWings
WaterWings's picture

They're out in force. Wish I could be paid to stir up the comment section.

Thu, 04/15/2010 - 13:07 | Link to Comment Yardfarmer
Yardfarmer's picture

Bernanke suggests that the Fed doesn't fund the IMF and that only some "American executives" sit on IMF boards. Such disingenuous doggerel is symptomatic of the shoddy and slipshod semantics that pass for a serious testimony on the important issues which Congressman Paul seems to make only the most half-hearted and superficial attempts to air.

Actually the U.S. government supplies billions to the IMF'ers, a fact which is conspicuously absent in the federal budget and a hidden element in the the burgeoning budget deficit. This figure was $27 billion way back in 2003 at an annual cost to the U.S. taxpayers of $1.9 billion. Long term funding to the IMF is issued via the Treasury bills (which have so otherwise engrossed Paul's attention) at the long term rate of 3.9% and then remunerated back to the U.S. government in true IMF style at 0.9%, a gap resulting in liabilities of hundreds of millions of dollars.

Under the SDR regime of the IMF, richer countries are required to lend "on demand" to poorer countries with the result that the U.S. has floated unconditional open ended loans of several billions each year and is directly responsible of at least 50% of loan programs for undeveloped countries a figure that has recently reached $12 billion per year. The proposed loans to Greece therefore are really nothing out of the ordinary business as usual with the IMF and simply mark a continuance of US/IMF relations over the past several decades.

I suppose that Mr. Paul has a well paid staff that might be able to research such critical economic arrangements, but that might require more substantive inquiries which are far beyond the scope of politically minded individuals who rely on repeated sound bites and simplistic and hackneyed formulas intended only for mass consumption. 

Thu, 04/15/2010 - 14:27 | Link to Comment RockyRacoon
RockyRacoon's picture

You point up what explains the seemingly inarticulate and stammering manner of Ron Paul.  The game is rigged, just as you explain.  Now how do you ask a question or make a statement including all the facts you outlined in a 5 minute question period (some of which is consumed by the "answer")?  Dr. Paul knows all the information you have laid out.  It is impossible to get a pointed question out which would include the complex data points.  I think he does an admirable job under the circumstances.  Think of it as a game of 20 Questions in which you get to ask one question every 3 months!

Thu, 04/15/2010 - 13:18 | Link to Comment SDRII
SDRII's picture

When asked about inflation as a solution to the debt issues he explicitly said that it was simply not an alternative. Monitization, he said, would do little to deal with the debt as most is short term and likewise entitlements are indexed. Paul follows it up with a what about the mortgages and bernanke just shook his head.

Thu, 04/15/2010 - 13:42 | Link to Comment Captain Obviousness
Captain Obviousness's picture

I think it's funny everyone said he rambled too much in this one.  I thought he was much more on point than usual.  Normally I get infuriated at him how he doesn't press the issue.  At least this time he asked "where will the money come from" repeatedly.  Granted Bernanke wouldn't answer, but it's clear both of them knew the answer was "out of thin air."

He should beat the drum more on the point "you can't have free market capitalism with capital that comes out of thin air."  Unfortunately I bet less than 5% of the country could give any definition of "capital" other than "upper case letter."

Thu, 04/15/2010 - 13:49 | Link to Comment DavosSherman
DavosSherman's picture

Bernanke you stupid phucking moron, what part of the English language can't you wrap your pinhead sized brain around? The question is and was: Where will the money come from, not what will happen if it doesn't get paid back.

You give retards a bad name.

Thu, 04/15/2010 - 15:54 | Link to Comment dark pools of soros
dark pools of soros's picture

Ben:  ...  define 'money'

Thu, 04/15/2010 - 13:53 | Link to Comment SilverIsKing
SilverIsKing's picture

Where is all the money coming from?  It's not coming from anywhere.

These are all I.O.U.s

Until someone isn't willing to accept them....

Thu, 04/15/2010 - 14:17 | Link to Comment SteveNYC
SteveNYC's picture

3:45 - Bernanke, you lie.

5:45 - "It's a loan. If it's not paid back we would take our share of the loan". WHAT? Ben, what collateral can a sovereign offer you? Are you going to take Santorini for a "payment in kind" type deal?

Paul just nails this clown.

Thu, 04/15/2010 - 14:19 | Link to Comment verum quod lies
verum quod lies's picture

I like Ron Paul. I truly believe that he is really just trying to get to the truth because he thinks it is important, and by doing so it will help. I also believe that we wouldn't be in our current predicament if there were more Ron Paul like representatives and senators. I hope we add a few in November.

 

Thu, 04/15/2010 - 15:53 | Link to Comment dark pools of soros
dark pools of soros's picture

just waiting for the Ron Paul / Liz Warren sex tape scandal to hit to 'discredit' them 

Thu, 04/15/2010 - 14:38 | Link to Comment MyKillK
MyKillK's picture

God Bernanke is such scum. He immediately distances himself from the question by talking about the G-20 leaders as if he had no part in this decision...

Thu, 04/15/2010 - 15:52 | Link to Comment dark pools of soros
dark pools of soros's picture

the girls behind Paul need to sing some background vocals to snazz up Ron's position..  that might get more people behind his cause...

Thu, 04/15/2010 - 16:14 | Link to Comment Profit Prophet
Profit Prophet's picture

Damn you Johannes Gutenberg!!!

Damn you!!!!

Thu, 04/15/2010 - 22:39 | Link to Comment zombiebank
zombiebank's picture

I think the man behind the curtain was just about to admit that its all a big fraud!

Fri, 04/16/2010 - 01:48 | Link to Comment glenlloyd
glenlloyd's picture

Although his delivery is a rambling string of thoughts it's very easy to piece them all together and clearly understand the message. I will admit he's had better deliveries before, but just imagine how disappointing it is to harp on all these issues for so many years and get no recognition for trying to be the watchdog.

Fri, 04/16/2010 - 02:35 | Link to Comment AnAnonymous
AnAnonymous's picture

That's simply the monetization of underground and not unearthed wealth by the US, IMF and others. It works.

It will work as long as:
-the US has the physical ability to emit credits. Should last long as only a computer is required to emit digital credits.
-The countries whose wealth is monetized keep accepting the deal. The US military empire makes rejection unlikely.
-Those countries run out of wealth to be monetized. This last option looks to me like the most likely to be the one ending the US and others Ponzi scheme.

Fri, 04/16/2010 - 07:15 | Link to Comment islander
islander's picture

This current economic fiat monetary system is just running on fumes. TPTB are making the rules up of the game as they go along. Its all an elbaorate illusion.  The last move will be to kick the game board in frustration. WAR.

Fri, 04/16/2010 - 12:20 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

BS stoned off peyote shrugs off legit question about his magik printing press.  Dude is pathological, but should we have guessed otherwise?  One has to be to play these games.  Ted BUNDY was going to be in charge of something governmental because of two things; he is a psycho killer, and his name was BUNDY.  You must be a maniac to run the US.

Sat, 04/17/2010 - 02:45 | Link to Comment Poofter Priest
Poofter Priest's picture

As much as I get frustrated with RP and not sticking to one question until its answered.

I have to wonder if this is more of a process of 'loading his gun' and prying such remarks out of BB such as 'well we'll have to loan it. And if it doesn't get repaid we will have to share in the loss.'

Over a matter of time, such statements can then be pasted together into something that even the porridge fed masses will come to fathom as a bad idea overall.

Fri, 02/25/2011 - 07:49 | Link to Comment george22
george22's picture

"I think only a fiat monetary system worldwide can come up and have Greece help bail out Greece and be prepared to bail out even other countries."

The signature line. The insanity is that the average economists would not only disagree with this statement but insist that because they can do this, the system is "working". This is the type of logic one uses to remain in denial about the increasing level of burning oil that surrounds you as you climb higher and higher up the flag pole.

Yup, it's working all right. See, the proof is in the fact that I'm climbing higher and higher.
discount dakota watches|642-654|1z0-526|links of london jewelry

Sun, 06/05/2011 - 08:19 | Link to Comment sun1
sun1's picture

I have to admit that I have never heard about this information I have noticed many new facts for me. Thanks a lot for sharing this useful and attractive information and I will be waiting for other interesting posts from you in the nearest future.keep it up. click here to get a quote

Do NOT follow this link or you will be banned from the site!