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Watch The Highlight Of Today's Congressional Hearing: Ron Paul vs The Bernank

Tyler Durden's picture




 

The must watch 5 minutes from today's second day of Bernanke hearings before congress is the following interaction between the Chairman and his archnemesis: Ron Paul. The first brilliant rebuttal by Ron Paul has to do with the ongoing "Federal Reserve lecturing" on why Congress should not allow out of control deficits to escalate. As Paul so correctly put its, "the Congress and the Fed are symbiotic because the Congress spends and they know there is a moral hazard involved because they know that if interest rates go up, the Fed accommodates them. So the Fed really facilitates this spending, and until we realize this I think the Fed is involved with our deficit and encourages it as well as the Congress." This is an absolutely smack on point which goes to the whole heart of the real premise behind QE2: keeping rates low so there is no prohibitive lever against runaway deficits. That, and of course, ending up the primary holder of US debt so that the Treasury can convert "interest expense" into "revenue." And if the 10% of the public that benefits from a Dow 36,000 believes the false "wealth effect" myth in the process (nominal, not real) so much the better. It did, after all, work for a while in Weimar Germany. And while Paul touches on other key topics such as purported price stability (there recently was a scientific paper proving there has been no real change in price stability before and after 1913, which we will track down shortly), real plunging employment and the definition of the dollar (to which Bernanke's repartee that "Consumer don't want to buy gold" should probably be reevaluated in light of today's all time record high price). Yet one exchange that was missing, which was not between Paul and Bernanke had to do with Bernanke's reasoning why in his view it was not possible to get back to the gold standard: "there is not enough gold." That, unfortunately, is the most patently absurd claim ever and coming from a Fed Chairman we are pretty confused by its implications. Surely Ben realizes that all that matters is the price equivalent ratio of conversion. There will be more than enough gold if gold is converted instead at $2,000/oz at $20,000, or failing that, $200,000 and so forth. There will be more than enough gold if one ounce is equivalent to a million piece of linen or more, or more realistically, at $6,300 as Dylan Grice quantified previously. We guarantee it. And after all, that is the whole point of a gold standard: not to dilute the currency infinitely.

h/t @m33t3r

 

 

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Wed, 03/02/2011 - 17:03 | 1012741 slow_roast
slow_roast's picture

Ron Paul needs to be given his own 1 hour grilling session!  He makes those other congress-fuckers look like tools in the propaganda trade.

Wed, 03/02/2011 - 17:35 | 1012864 DoChenRollingBearing
DoChenRollingBearing's picture

The Bearing was watching the Hearing on CNBS right before they called on Ron Paul to question Bernanke.

Before the Chairman even got the name of the next questioner out of his mouth, Haynes cuts in and goes to a commercial.  The Bearing was curious to see who CNBS was omitting and changed over to Bloomberg.

Yes.

Ron Paul.

DIRTY ROTTEN SCUM AT CNBS!

Wed, 03/02/2011 - 17:59 | 1012950 I am a Man I am...
I am a Man I am Forty's picture

yep, i noticed the same, it was obvious

Wed, 03/02/2011 - 18:46 | 1013124 Village Idiot
Village Idiot's picture

"The Bearing was curious to see who CNBS was omitting and changed over to Bloomberg."

You have got to be kidding me!  I know you aren't. "It's" just all out in the open now, isn't it.  No pretence and no Vaseline. Amazing.

Wed, 03/02/2011 - 19:15 | 1013228 Max Hunter
Max Hunter's picture

It's even worse than that.. The people are actually begging for it..

Wed, 03/02/2011 - 19:26 | 1013268 flacon
flacon's picture

Why the frickin' hell can't we have more than a FIVE MINUTE - ONE QUESTION session. We need a three hour long GRILLING during prime time with ALL the networks covering this. Cancel the Simpsons, American Idol etc. THIS IS SO IMPORTANT and all we are fed is a frickin' FIVE STINKIN' MINUTE sound-bite!

 

All that to say: I hate the way these sessions are run!

Wed, 03/02/2011 - 21:59 | 1013651 asdasmos
asdasmos's picture

Yeah! Even Sprott gets 5 mins!

http://watch.bnn.ca/the-street/march-2011/the-street-march-1-2011/#clip4...

Eric Sprott

BNN talks to one of the world's leading investor's and investment strategists Eric Sprott, CEO of Sprott Asset Management and finds out just how precious the metals are.

Wed, 03/02/2011 - 20:35 | 1013485 JR
JR's picture

They do it almost every time, and now that Paul’s the chairman it’s even more censored speech by the controlled media to thwart representative government.  I think CNBS should register as a banker lobbyist along with Barney Frank. (I hear Dodd has become a Hollywood lobbyist for the Motion Picture Association of America.)

Wed, 03/02/2011 - 20:43 | 1013495 ebworthen
ebworthen's picture

 

The Producer in that time slot has no balls.

Larry Kudlow gave Ron Paul a good five minutes at ~ 7:35 P.M. Eastern - good stuff - Paul mentioned Shadowstats, 10% real inflation, intentional devaluation of the non-PM backed currency, etc.

 

Wed, 03/02/2011 - 20:51 | 1013505 Xkwisetly Paneful
Xkwisetly Paneful's picture

and has never once gotten any legislation passed actually limiting the size or influence of the federal government. Hard to tell who is more irrelevant him or Ralph Nader.

Wed, 03/02/2011 - 21:12 | 1013538 ebworthen
ebworthen's picture

 And?

Thu, 03/03/2011 - 00:47 | 1014082 faustian bargain
faustian bargain's picture

So where are these mythical creatures who actually do pass that type of legislation? Anyone? Bueller?

<crickets>

Your comment is absurdly pointless.

Thu, 03/03/2011 - 10:04 | 1014640 Xkwisetly Paneful
Xkwisetly Paneful's picture

Absurdly pointless is actually posting just that.

 

Called scoreboard watching, tough to be in congress for 30years or whatever propose 1000's of bills and pass none.

But it sure sells a shitload of books.  The latest should be how to be in congress one's entire life and pass nothing.

 

idolatry for a token. all hat no cattle.

Wed, 03/02/2011 - 23:12 | 1013848 DoChenRollingBearing
DoChenRollingBearing's picture

I am responding my reply above with the below announcement that I just cross-posted at the newer China thread this evening:

 


Press Release

==========

DoChenRollingBearing announces that he is likely to re-enter the physical gold market as a buyer very soon.

The Bearing wanted to allow some opportunity for alert and quick acting ZH-ers to front-run him.

This will also allow the Bearing to fight with more gusto against trolls and allow him to write things like:

Gold, bitchez!

Wed, 03/02/2011 - 17:52 | 1012929 Careless Whisper
Careless Whisper's picture

I think he needs the 1 hour to explain his question. He asked a very profound question, but it took me a while to figure it out. He asked Bernank what was his definition of a dollar? Why is a "federal reserve note" considered a "dollar"? The question goes to the heart of the whole central banking system. Implying why can't we have a "dollar" that is backed by silver, gold, or whatever, and Bernank gave a totally rediculous answer that makes no sense. Unfortunately Ron Paul didn't have any time left to follow up because the answer was just insulting.

Wed, 03/02/2011 - 18:04 | 1012962 RichardENixon
RichardENixon's picture

Dr. Paul spent most of his time pointing out to Bernanke the total failure of the Fed's "program" under Bernanke's and Greenspan's tenure. The expression on Bernanke's face as he listened to this was priceless, at least in terms of FRNs.

Wed, 03/02/2011 - 18:31 | 1013076 VegasBD
VegasBD's picture

+FRN

Wed, 03/02/2011 - 18:52 | 1013142 Irwin Fletcher
Irwin Fletcher's picture

Yes, but I wish he'd spent less time describing what ZH readers already know, and more time grilling the Bernank into saying things that will damage his credibility, at least to those who ignorantly accept his credibility now. In time, perhaps. His position is logically inconsistent, and it's only a matter of time before people who own pitchforks realize it.

Wed, 03/02/2011 - 19:20 | 1013246 Cognitive Dissonance
Cognitive Dissonance's picture

...and it's only a matter of time before people who own pitchforks realize it.

Or those who realize they can exchange their debased FRNs for pitchforks. Don't forget the new pitchfork customers. I understand the potential market is HUGE.

Wed, 03/02/2011 - 19:41 | 1013324 Irwin Fletcher
Irwin Fletcher's picture

Man, when I hear CNBC raving about GDP increasing due to pitchfork sales, I'll lead the march to Princeton.

Wed, 03/02/2011 - 19:55 | 1013352 Nate H
Nate H's picture

I know you're jesting, but this comment underpins a central problem (and danger) prevalent in the blogosphere and this site in particular. That people seem to be 'rooting' for the truth about our monetary/financial system without understanding the consequences of broad awareness of that truth. The world is completely interconnected via just in time supply chains.  To wit: the average farm in the US and Europe has about 60 off-the-farm inputs needed in its operation - over 50% of these come from overseas.  Any 'truth' while the market still is bigger than governments runs risk of overnight currency reset, which stops trade and stops supply chains within days. Think about it. And be careful what you wish for - beans, guns and silver coins arent going to help in a trade depleted (unprepared) world.

We need more time to prepare. Regionally connected supply chains. Import sub.models etc.

Ie. we should be very worried that few if any pitchforks are made in the USA anymore.  

Wed, 03/02/2011 - 19:59 | 1013378 Irwin Fletcher
Irwin Fletcher's picture

Well if there's any doubt that Americans want to destroy themselves, consider the first durable good that comes up with a google search of pitchfork and "made in usa"

http://www.5050bmx.com/s-m-pitchfork.html

We need not destroy everything, especially the truth, and THE TRUTH MUST COME OUT!!!

Wed, 03/02/2011 - 20:11 | 1013407 Nate H
Nate H's picture

I used to think so, but have concluded that our claims (people expectations of what they own or will own in the future) are 400-500% of what we can afford to pay back let alone service. I.e. 80%+ of digital wealth is phantom and is going away, either via govt nationalization or currency reform. Few are considering the consequences of that to supply chains was my only point. I.e. what the FED is doing is self-survival and 'wrong'  at end of a paradigm  -but it also keeping things afloat for a while. I know of some institutions and governments looking into this (but way too slowly).  The public, in this particular situation, can't handle the truth.

Wed, 03/02/2011 - 20:34 | 1013479 Irwin Fletcher
Irwin Fletcher's picture

It's a common theme on ZH that Americans consume more than their worldly share, and that the global supply chain will reflect that reality in the future. When Americans are confronted with that truth, most will prepare accordingly and reduce their consumption. I hope we evolve toward true wealth, in the form of efficient farming, clean air, electronic defense against alien meteors, and social justice. My hope is that my kids won't be killed by stray bullets in the process. I hope technology will propel the world's standard of living rather than armed conflict destroying it. We'll handle the truth now while we're ahead in the quality-of-life race, or regret our denial later.

Wed, 03/02/2011 - 20:56 | 1013510 Nate H
Nate H's picture

technology is in a battle with depletion, and is losing. Energy underpins every economic transaction in our society and although we have plenty of energy we do not have plenty of cheap energy, in the 3-5cKwH range - on which industrialization depends.  Efficiency gains and new technology may subtract 20-30% of a process cost - which pales in comparison to a doubling or trebling of energy prices - which will happen going forward each time economy recovers (even from 20% deficit spending from govt over 2 years)

 

And I wish for the same things that you do..

Thu, 03/03/2011 - 08:27 | 1014434 shortus cynicus
shortus cynicus's picture

Just drill enough deep in Yellowstone Park, and you find a lot of energy.

An hurry up, before this energy finds you on its own! Then it will be to late.

Thu, 03/03/2011 - 11:45 | 1014960 Nate H
Nate H's picture

Obviously to drill harness and deliver that geothermal energy (not to mention shale oil and other overhyped answers) takes more energy than the source throws off (or doesnt give the energy return that this society/infrastructure requires)

Wed, 03/02/2011 - 21:47 | 1013607 Sathington Willougby
Sathington Willougby's picture

Funny you put that out there.  I remember Matt Hoffman started building bikes and he quickly found out that manufacturing them overseas meant his ass.  Those kids put their lives on the line when they ride those bikes and they don't use cheap pig iron crap soldered with chopstick jigs.

 

See vid:

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

 

Thu, 03/03/2011 - 00:58 | 1014106 Antipodeus
Antipodeus's picture

It's not very pointed, is it?  And the handle's MUCH too short - not enough leverage!  8=))

 

Wed, 03/02/2011 - 20:49 | 1013500 ebworthen
ebworthen's picture

 

Nate H,

Nice thought but too late.

Only collapse and a lot of death will connect regional supply chains.

The house of cards has been built, and can only blow down - it cannnot be "dis-assembled".

 

Thu, 03/03/2011 - 11:00 | 1014797 FEDbuster
FEDbuster's picture

FRN's (or falsely referred to as Dollars) are convertable to gold, current ratio one oz of gold = 1430 FRNs.  As the Bernank said they can be converted into any commodity or service at most any time.  The conversion ratio changes every second of every day.  The big question is will FRNs buy more or less in the future?  History shows that FRNs have devalued by about 97% over the past 98 years, while gold has maintained (or even grown) in it's purchasing power over the same period. 

The "reserve" status of the FRN has enabled us to rip off the goods and commodities from the rest of the world for the time being.  When the FRN loses it's reserve status, we will see the true value of our current currency.  As Marc Faber said, "It took roughly a 100 years for the "dollar" to lose 97% of it's value under the FED, the next 97% loss of value won't take as long."

Wed, 03/02/2011 - 18:06 | 1012972 One_Eyed_Pony
One_Eyed_Pony's picture

When Congressman Brad Sherman spoke, he countered Ron Paul 's statements with the posted BLS CPI numbers are HIGHER than in reality.  Bernake confirmed Sherman's statement , that actual cost index is .1-.2% less than the propaganda numbers of the BLS.gov  Who are these propagandists fooling?

So rep. Brad Sherman (D-CA) is nominated as THE FED 'TOOL' of the Day.

 

 

 

 

Wed, 03/02/2011 - 19:44 | 1013335 covert
covert's picture

right on. except, there doesn't seem to be any connection between congress and the fed. strange cause congress started it. who owns the fed anyway? are the conspiracy theroies, or hypothesis right?

http://covert2.wordpress.com

 

Thu, 03/03/2011 - 02:01 | 1014194 Al Gorerhythm
Al Gorerhythm's picture

Ron Paul needs to be given his own 1 hour grilling session! 

True dat. That should give him enough time to get to his question. Bumbling performance. Fuck, how long has he been waiting to get at this asshole and he come unprepared? Like taking a sponge to a knife fight. Congressman, drop the intellectual philosophy that pads your approach (Keyenesian, fiat, symbiotic) and get to the meat of the matter.

For the odd JSP who might watch this by mistaking it for an American Idol judging panel, ask questions that they can understand and symathize with. Such as: If the Fed is a private bank, where did it get it's dollars for international and private corporation bailouts?; What is a dollar and What gives it value? Does a Fed dollar hold its value over time? If not, can it be money one can rely on for savings? ; Why doesn't the Fed want to bail out Main Street?; Why are you always failing at your mandates? Your history of price stability over time is woeful, can you explain why you have failed to maintain the purchasing power of your dollar and full employment?; Because your Fed dollar has lost between 96 to 98 cents in purchasing power, it now requires savers of dollars to withdraw more of them to purchase the same goods than yesteryear, these are facts so how can you claim success in the area of  price stability and how can a depreciating asset be called money? Isn't the purpose of excess to requirement savings supposed to hold value?; If your injections of countless trillions of dollars had no effect on the employment rate, then of what good are they. As they're your dollar, under your control,  please justify your position and try to validate the worth of your organization to the benefit of our country.

You have 5 minutes. Bombard him with questions that he has to answer in his time. Use another platform to deliver your philosophical leanings to the public. Enter yourself in American Idol, now there's a captive audience!

 

 

 

Wed, 03/02/2011 - 17:06 | 1012749 Hedgetard55
Hedgetard55's picture

Continuing...

 

"President Madoff"? The Professor looked quizical for a second.

"Yes, the Chinese have released him and set him up as top dog in the new colony, New Xian, they are calling it."

I clicked the safety on my MAC-10 to ON and pointed it down towards the ground. I wasn't really prepared to use it on the Professor - he was way too valuable a commodity. There were other dangers down here I was more concerned about - albino alligators and rats, rats of the human kind. The MAC-10 could put out a nice volume of lead if neccessary, but the close quarters and the hard walls made that dangerous for me as well. My eTAZER

could handle the Professor if neccessary, but I did not think it would be a problem once he heard about his new deal.

 

"He sent you this". I passed a small pouch to the filthy ex FED Chairman. He pulled a flask out, opened it and sniffed.

 

"Talisker, 10 year old. The only single malt from the Isle of Sky in Scotland. I can't believe Bernie remembered". He took a slug. Looking back in the pouch he took out a cigar and a book of matches. "Cohiba, no doubt. If that rat bastard thinks this makes up for the 500 large he stole from me..." He lit up.

 

I don't know much about Scotch or smoke, but apparently the Professor still did, even after a year of living like an animal in the sewers of the City.

 

I handed him a q-tip and said "Swab the inside of your mouth". He did and handed it back. "Just a precaution, Professor". I slipped the sample into the portable DNAnalyzer on my hip and waited for the confirmation to come through. It would take about a minute.

 

Just then I heard a sound from my right, and a poor disheveled and filthy creature, a man I supposed, appeared in the tunnel.

 

"Everything OK, Jimmy?" he said.

 

"Yea, Fred, no problem. Just an old friend come to visit" the Professor replied. A strange look came over Fred as he noticed the Cuban and the flask, not to mention a man in a LEVEL 2 bio-hazard suit, and he disappeared back into the shadows.

 

"Time to roll, Professor. I don't like what I saw in that man's eyes, like a light bulb going off. And there WAS a million dollar bounty on your head, even if a million barely bought a few crusts of bread at the end."

 

I clicked the safety on the MAC-10 to OFF.

 

To be continued...

Wed, 03/02/2011 - 17:23 | 1012813 TradingJoe
TradingJoe's picture

+100K :)))))

Wed, 03/02/2011 - 17:46 | 1012903 Hedgetard55
Hedgetard55's picture

Thanks, Joe!

Wed, 03/02/2011 - 17:07 | 1012760 AZSovreign
AZSovreign's picture

He did NOTHING!! no monkey hammer, no exposing all the fraud, NOTHING!!

 

Controlled Opposition.

Wed, 03/02/2011 - 17:14 | 1012782 iinthesky
iinthesky's picture

What can someone do in the span of 3 minutes. Thats all the time they get to ask a question then the other whores get their minute in the spotlight. I dont know why they hold these hearings.

Wed, 03/02/2011 - 17:26 | 1012829 Dr. Richard Head
Dr. Richard Head's picture

Bingo.  Plus, Barny Fwank likes to skim time off of Mr. Paul's time.  Barny is great at sneaking off a bit here and a bit there. 

After only 4 years of helping in this battle I have grown weary.  How Mr. Paul continues on is beyond me. 

Wed, 03/02/2011 - 17:56 | 1012937 CrockettAlmanac.com
CrockettAlmanac.com's picture

He did NOTHING!! no monkey hammer, no exposing all the fraud, NOTHING!! Controlled Opposition.

 

Your post has had no effect on the Fed. None whatsoever. Therefore you are a fraud and an example of "controlled opposition" when measured by your own criteria.

Wed, 03/02/2011 - 18:47 | 1013129 AZSovreign
AZSovreign's picture

Your post is pure ignorant drivel, how exactly can I be a fraud for stating the truth about Mr. Paul? Furthermore my post wasn't directed at the Fed, so go back to smelling your upper lip atleast you know what that is.

 

Give me 3 minutes with the bearded wonder and I will show you direct questioning.

Wed, 03/02/2011 - 20:05 | 1013405 CrockettAlmanac.com
CrockettAlmanac.com's picture

Give me 3 minutes with the bearded wonder and I will show you direct questioning.

I'm sure you're quite the legend in your own mind.

Wed, 03/02/2011 - 18:53 | 1013145 Saxxon
Saxxon's picture

I agree; he set up the straw man 'What is a Dollar?" Econ 101 question for Bernank to ramble about.  I continue to feel Sen. Paul is being used as a relief valve; and that there is no hope of change or even improvement within the current crony system.

Wed, 03/02/2011 - 21:23 | 1013562 Bringin It
Bringin It's picture

You're right Saxon.  Not within the current system.  So it has to fail and reset.

Wed, 03/02/2011 - 23:06 | 1013833 nedwardkelly
nedwardkelly's picture

 

I kind of wondered myself... It seems that Ron Paul is one of the 'hopes' for 'change' with regards to all the bullshit going on, but what did I just see? I thought he rambled some in his question, got a pro forma reply from the bernank, then it was on to the next questioner.

Nothing changes.

Thu, 03/03/2011 - 00:39 | 1014066 pods
pods's picture

I agree. I could not even watch the whole thing.  Not worth my time.  I like RPs ideas, but at a congressional hearing you do not get into a lecture about fractional reserve banking.  

Simple questions:

"Where in the FEDs bylaws does it allow the outright purchase of any security that does not have the full faith and credit of the USA?"

"They why did the FED purchase F&F securities when the GSEs bylaws explicity state that their securities are not backed by the full faith and credit of the USA?"

"So the rules the US CONgress set up for you to function under do not carry the force of law, or are you operating outside of the rule of law in the USA?"

"Then why are we even here?"

 

Done.  Revolution the next damn day.  Could have been done in '08.

pods

Wed, 03/02/2011 - 17:18 | 1012795 melachiro
melachiro's picture

Well then we will see the anti-semites out en masse on this post I suppose.

Wed, 03/02/2011 - 20:57 | 1013519 israhole
israhole's picture

Israel leeches off the US. My vote goes to whoever will DUMP ISRAEL! even though I like a few jews that I know. Most are Israel-first rats that think this country is just a step in their conquest of the planet.

Wed, 03/02/2011 - 23:20 | 1013872 Xkwisetly Paneful
Xkwisetly Paneful's picture

But the Arabs don't getting $2.40 a gallon for something that costs a buck to take out of the ground.

Wed, 03/02/2011 - 17:28 | 1012831 CrockettAlmanac.com
CrockettAlmanac.com's picture

a southern redneck.

 

Ron Paul was raised in Western Pennsylvania, just like me.

Wed, 03/02/2011 - 17:28 | 1012836 Orly
Orly's picture

He's from Texas...not some deep-wood backwater.  Get a clue.

Wed, 03/02/2011 - 18:39 | 1013101 ColonelCooper
ColonelCooper's picture

As a deep-wood backwater, I resent that. 

Wed, 03/02/2011 - 17:30 | 1012838 tmosley
tmosley's picture

You are fine, very good on this issue - the Fed.  Otherwise, you are borderline/probable bigot for judging people for what region they are from.

Wed, 03/02/2011 - 17:33 | 1012854 Bay of Pigs
Bay of Pigs's picture

Now we have Ron Paul trolls to deal with? Fuck me...

Wed, 03/02/2011 - 18:13 | 1013003 Lednbrass
Lednbrass's picture

And you are probably a noodle spined leftist urbanite.

Wed, 03/02/2011 - 19:03 | 1013185 kornholio
kornholio's picture

fuck you kato you are a stupid fuck

Wed, 03/02/2011 - 19:54 | 1013368 John Wilmot
John Wilmot's picture

Ron Paul a racist...How's that? Care to support your dubious claim?

Wed, 03/02/2011 - 21:26 | 1013567 downwiththebanks
downwiththebanks's picture

Ron Birch?  A racist?

NO WAY!

Wed, 03/02/2011 - 20:30 | 1013469 TeamAmerica
TeamAmerica's picture

He's also a 9-11 Truther, but only brings that out when he senses it is to his advantage.   I despise Truthers, but at least most of them are up-front and honest with their BS opinions on the matter.  Dr. Paul tries to straddle the fence.

Kudos for one of the highest junk counts I've seen on ZH!  Wear it as a badge of honor, kato.

 

Wed, 03/02/2011 - 21:29 | 1013572 downwiththebanks
downwiththebanks's picture

Untrue.  Ron 'Birch' Paul has explicitly DENIED that he harbors any questions about Uncle Sam's alCIAda fairy tale.

He's four-square behind John Ashcroft and the 911 Commission, on the front lines defending the cover-up.

Unlike Cynthia McKinney.

Wed, 03/02/2011 - 21:32 | 1013580 Bringin It
Bringin It's picture

I despise Truthers

Well I despise traitors to this once great nation, like you - ^TeamAmerica.  So put that in your pipe and smoke it.

Wed, 03/02/2011 - 22:34 | 1013747 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

http://www.youtube.com/watch?v=9ZiwSd1FpLs

I'm not really sure how to describe this video.

But GFY and watch it.

Wed, 03/02/2011 - 17:10 | 1012766 malikai
malikai's picture

Why didn't RP ask harder questions? POMO, QE, etc. should have been attacked.

Also, nice huff+puff from Benocide. 2% LOL

Wed, 03/02/2011 - 17:17 | 1012790 10kby2k
10kby2k's picture

Paul knew he had 5 minutes. You have to be short and to the point. Then cut off Ben when he uses fedspeak to dodge answering. Ask another quick question, rinse and repeat. Paul wasted his time.

Wed, 03/02/2011 - 17:23 | 1012814 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Four minutes of Ron Paul getting good points on the record, four minutes of The Bernank daydreaming of fucking Maria B., a couple seconds of an answer, and one minute of dial tone.

Wed, 03/02/2011 - 17:29 | 1012833 10kby2k
10kby2k's picture

Paul shoulda got right into grill with sharp one line questions. Fuck getting on the record and trying to explain the gold standard.  Disappointing.

Wed, 03/02/2011 - 17:32 | 1012846 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Maybe TPTB have an assassin ready for RP available on 24-hour call, and RP said as much as he could. Maybe it's for the people to listen to him this time.

No one can deny what the U.S. Federal Corporation is doing to people everywhere. Hundredth monkey incoming.

</speculate>

Wed, 03/02/2011 - 18:41 | 1013110 Bananamerican
Bananamerican's picture

"Fuck getting on the record and trying to explain the gold standard.  Disappointing."

agree. No smackdown, this. Paul seemed rambling and inchoate (& i LIKE him!) I imagined SNL taking him apart.

Dude needs a speech coach.


Wed, 03/02/2011 - 17:32 | 1012849 nevadan
nevadan's picture

Absolutely right 10k.  That is my biggest gripe with Paul.  His questions are so convoluted and all inclusive that Bernanke has any number of ways to wriggle out.  Paul never seems to learn that if all his time is used in asking there is no time left for answers.  Ask the question and STFU, then he could rebut.  As it is he looks scatterbrained and inefective.

Wed, 03/02/2011 - 17:38 | 1012873 Ident 7777 economy
Ident 7777 economy's picture

Got to agree, unfortunately ... Ron needs to be succinct; ask a question, get an answer, then possibly follow that up or ask another Q ...

Wed, 03/02/2011 - 18:55 | 1013159 Saxxon
Saxxon's picture

His questions are rambling, convoluted and designed to leave wriggle room because he and the Bernank and everyone else in the room understands this is a dog & pony show.

Circle your wagons, nothing is going to happen.

Wed, 03/02/2011 - 19:51 | 1013360 Wascally Wabbit
Wascally Wabbit's picture

No, sir. Peter Schiff once asked Ron Paul why he spent too much time asking the question and Paul said that he used to ask shorter questions but the Chairmen would use up all his time giving convoluted answers. So he started asking lengthier questions to get it on the record.

Anyway, Bernanke was shaking and gave a crappola answer: "consumers don't want to buy gold...they want to buy a basket of goods." That's not what gold is saying and if Bachus didn't cut him off, maybe he could've followed up w/ agri prices.

Wed, 03/02/2011 - 21:31 | 1013576 downwiththebanks
downwiththebanks's picture

He should watch Cynthia McKinney undress Donald Rumsfeld for a lesson in how to ask closed-ended questions while still "getting on the record".

The racist old coot is washed up.  Time to put the joker out to pasture.  

Thu, 03/03/2011 - 19:04 | 1016803 Wascally Wabbit
Wascally Wabbit's picture

McKinney has not been as successful in growing a base for her causes as Ron Paul has been with the Fed.  More than half the fucking country wants the Fed to be audited and that's due to Ron Paul's relentlessness.  They didn't even know what the Fed was when he ran in 2007-08.

Your calling him a racist can only mean you're a paid troll posing as anti-establishment.  (Jeez, when will they stop wasting tax payer money on psy-ops.)

 

Wed, 03/02/2011 - 20:01 | 1013392 John Wilmot
John Wilmot's picture

I agree about Paul's speaking style. He's not got the hang of speaking to shills so that his short speech can be shortened further into a 10 second soundbite on the idiot box. He's also quite an old man you'll recall. Speeches of his from the past have been more charismatic...Anyway, I'll take one Ron Paul over an infinite number of silver-tongued charlatan-shills any day. Remember we have another Paul around, who can speak better than his father and, if he's inherited 1/4 of his father's intellect and ideals, could do wonders for us.

Thu, 03/03/2011 - 01:14 | 1014138 Antipodeus
Antipodeus's picture

I've seen Rand Paul speak (over the box, that is) quite a few times, and it does appear he has inherited 1/4 of his father's intellect & ideals.

 

Wed, 03/02/2011 - 17:41 | 1012883 theopco
theopco's picture

Disagree.

He's not there to give Bernanke a spanking, he's trying to change the minds of people who  a) watch cspan and b) tacitly support our current monetary system. As such, asking Bernanke to define the dollar was the perfect question to ask. You will notice that there was no answer..

Wed, 03/02/2011 - 17:47 | 1012908 10kby2k
10kby2k's picture

He changed my mind. I'm no longer supporting him. If he's not smart enough to ask that question in 30 seconds, to allow it to get a response....he is not getting my vote.

Wed, 03/02/2011 - 17:55 | 1012934 Dr. Richard Head
Dr. Richard Head's picture

That is just as ridiculous as voting for someone because they have the best hair. 

Enjoy the coming austerity. Should be a blast.

Wed, 03/02/2011 - 17:57 | 1012940 theopco
theopco's picture

A fair point. Is there an alternative to RP?

Wed, 03/02/2011 - 22:10 | 1013677 10kby2k
10kby2k's picture

Tyler Durden and William Bonzai in 2012

Wed, 03/02/2011 - 17:59 | 1012949 CrockettAlmanac.com
CrockettAlmanac.com's picture

He changed my mind. I'm no longer supporting him. If he's not smart enough to ask that question in 30 seconds, to allow it to get a response....he is not getting my vote.

 

Yeah, you were a big Ron Paul supporter until 16:47 today. And that was the last straw.

Endeavor to persevere.

Wed, 03/02/2011 - 18:06 | 1012964 10kby2k
10kby2k's picture

RP might have the message.....but he just can't get it out. I cannot visualize a scenario where he would be a good leader.  Part of being a leader is effective communication to facilitate the policy. He doesn't cut it. This 5 minute clip was a disaster and I need to find someone I can get fully behind.

Wed, 03/02/2011 - 18:18 | 1013024 CrockettAlmanac.com
CrockettAlmanac.com's picture

What was so special about this clip in particular that made you -- a long time supporter -- decide that Ron Paul doesn't "cut it?" The clip is classic Paul. He says what he needs to say, he asks a question which cuts to the heart of the matter and Bernanke is revealed to be either a liar or a fool to anyone intelligent enough to know what's going on.

But let's get to the really interesting part. Why are you pretending to be a Ron Paul supporter who has decided that Ron Paul just isn't good enough anymore?

Wed, 03/02/2011 - 18:11 | 1012996 tmosley
tmosley's picture

So what, you're going to vote for Palin?

*LOL*

Wed, 03/02/2011 - 20:43 | 1013498 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

It will probably be a full-on Corporation that wins the Presidency in 2012.

Vote your conscience.

Vote ZH.

Wed, 03/02/2011 - 19:56 | 1013386 Wascally Wabbit
Wascally Wabbit's picture

Seriously, the Republicans have put in $60 billion budget cut against Obama's $1.654 trillion budget. That doesn't even cut 1/4 of the interest on the debt, which will be like $450 billion of interest @ 2.996%.  (On $15.855 trillion) These guys are clowns.  RP frustrates me but he has brass balls and wisdom and cuts when he says he's going to cut.  Marco Rubio doesn't even have the guts to put in a budget cut and Herman Cain thinks $100 billion is too much. Who does that leave.....Romneycare?  Good grief.  

Wed, 03/02/2011 - 18:24 | 1013050 malikai
malikai's picture

Good point.

However, he needs to be more cognizant of the Benocide's PR answer dodging system. Each question should be 30 secs max. Short and sweet, with a killer close, each one. There is no need to talk of the gold standard. Instead he should be leading people to conclude in their own minds the idea through innuendo. The good doctor needs to use Benocide's slimyness against him and draw him into an obvious lie to awaken the unconvinced to the faults in kleptokeynsianism.

Wed, 03/02/2011 - 19:18 | 1013243 calltoaccount
calltoaccount's picture

Watch how the GOP maligned and diselected Alan Grayson exposes Bernake in less than 2 minutes of questioning.  

http://www.youtube.com/watch?v=JK1BjMBbJdQ

Wed, 03/02/2011 - 21:50 | 1013620 MrSteve
MrSteve's picture

Good questions are better than smart answers:

Have you stopped beating your wife?

Has your theft been uncovered by authorities?

Is debasing the US dollar your highest calling?

 

Wed, 03/02/2011 - 22:47 | 1013780 unspoken
unspoken's picture

He needs to quit making the verbose intros.  Benny Boy knows its a good time to sleep.  Its aggravating when Paul knows its stacked against him; and he plows through 'when I was your age ....'  he should have short answer questions that can be used against the fed later; his long windup needs to leads some good old fast balls.  Strike 1, 2, 3 ...

Wed, 03/02/2011 - 17:09 | 1012767 10kby2k
10kby2k's picture

Bernanke (like Greenspan) is the cure for insomnia.

Wed, 03/02/2011 - 17:20 | 1012798 alien-IQ
alien-IQ's picture

he has the opposite effect on me. I can't watch him without being overwhelmed by homicidal fantasies.

Wed, 03/02/2011 - 17:24 | 1012816 10kby2k
10kby2k's picture

Wouldn't we like him to visit fight club.

Wed, 03/02/2011 - 17:24 | 1012821 MrBoompi
MrBoompi's picture

Any time you see Bernanke with his head on his hand you know he's thinking these Congress Critters are nothing but assclowns. He has little respect for Congress, and maybe that opinion is well deserved too.

Wed, 03/02/2011 - 17:32 | 1012847 10kby2k
10kby2k's picture

Yep. He got Paul to play his game. I fear that the only way we can change is to get violent.

Wed, 03/02/2011 - 17:42 | 1012884 pods
pods's picture

My fear is that we never change.

pods

Wed, 03/02/2011 - 17:59 | 1012948 Dr. Richard Head
Dr. Richard Head's picture

Don't worry it's coming.  Don't worry it's coming.

http://www.youtube.com/watch?v=88HJnar9e8w

Wed, 03/02/2011 - 22:19 | 1013715 Miss anthrope
Miss anthrope's picture

GO TROLL SOMEWHERE ELSE......... I can't stand the smell of you

Wed, 03/02/2011 - 17:30 | 1012841 CrockettAlmanac.com
CrockettAlmanac.com's picture

Bernanke (like Greenspan) is the cure for insomnia.

He's a laugh riot, I should say. When the camera cutaway from the learned Dr. Paul to the Bernanke sitting at his desk and propping up his head it was almost Pythonesque.

Wed, 03/02/2011 - 17:11 | 1012769 Cocomaan
Cocomaan's picture

I think I just came.

Wed, 03/02/2011 - 17:12 | 1012777 iinthesky
iinthesky's picture

I love when people say we can't shut down the Fed and all the things that go along with that idea.. Is it really about ending the Fed? or is it really about money of substance? about telling people the truth? about breaking the biggest monopoly every devised? about bringing real government back into place and not some corporate color of law substitute? about private property? Ron Paul asked a question of The Bernank which he avoided of course which was what is a dollar? Excellent question because the answer opens up pandoras box. I read someone said killing the Fed will destroy the country. I say we're already in the final phases of being destroyed incrementally with the Fed at the helm. I say I've never ever been paid for my time or labor in my lifetime. I say I cannot own property and if you think you own your car and your house you're sadly mistaken. I say that irredeemable notes drawn on a private bank (The Fed inc.) are all I've ever been given and that these notes create a lien/mortgage against everything they touch. There's more going on here than slaying a central bank. Much more!

Wed, 03/02/2011 - 17:29 | 1012837 Dr. Richard Head
Dr. Richard Head's picture

My favorite argument for keeping the Fed was a lender of last resort.  Imagine ff banks practiced sound banking and stepped away from the Fraud.  Nah, that is an ideologue speaking.

Wed, 03/02/2011 - 21:48 | 1013615 Miss anthrope
Miss anthrope's picture

iinthesky:  I see you are one of the old-timers here but I have never seen you before.  Thank YOU so much for bringing to my attention the fact that I ALSO have never been actually paid for any of my time or talent since for my entire life I have been paid in FRN NOT BACKED by anything.  That is a "golden" point, if you will. 

About 10 years ago I started on a quest to find property ANYWHERE in the world that a person could truly OWN with ALLODIAL title and still have not been satisfied that it exists in any country on the planet.....another brick in the wall of enslavement. 

But in the last 4 years I have been searching for fellows who are willing to stand together and "band together" and live without government ties.  The search has been interesting.  The closest thing I can come to this is going to New Hampshire with the "free state project".  We may not be able to conquer a new country any longer but I keep hope in my heart that we can carve out a small niche for people who want to live without the Federal reserve, without taxation on income and schools, without social security and corporate owned health care.... It is at the same time simple and extraordinarily difficult.

 

Best of luck to you

Wed, 03/02/2011 - 22:33 | 1013746 Miss anthrope
Miss anthrope's picture

Also iinthesky:

OT here., but  with each passing day I become more incredulous that the SOCIAL SECURITY ponzi scheme is NOT challenged.  I remember in no uncertain terms being taught in the 70's that the social security was a "LOCKED BOX' and that the money there was not able to be touched in any way.  I'm a little hazy on the history but at some point soon after that it, of course, was stolen and replaced with an I.O.U.   Right around that time I entered the work force in my young, naive, totally mainstream life with parents devoid of an education or knowledge in economics and finance.  It was a long time before I became aware of the truth.  But now that I have I just cannot believe that more people do not stand up and start a class-action suit.  oh yeah........... you can't sue the government.... is that the reason?  Is that true?>

 

Anyone?

Wed, 03/02/2011 - 23:12 | 1013849 StychoKiller
StychoKiller's picture

People sue the Govt (at all levels!) all the time -- a lawsuit can drag on longer than you can stay solvent, though!

Wed, 03/02/2011 - 23:24 | 1013882 Xkwisetly Paneful
Xkwisetly Paneful's picture

Soon to be made closer to whole by confiscating private IRAS mark it down.

Wed, 03/02/2011 - 17:13 | 1012778 Pladizow
Pladizow's picture

I know at least a few "Consumers" that want to buy gold.

Wed, 03/02/2011 - 17:15 | 1012779 piceridu
piceridu's picture

Can you imagine they cut off Ron Paul and let Maxine Waters follow? That had to be done on purpose. As Marc Faber says " We are all doomed".

Wed, 03/02/2011 - 18:09 | 1012893 Bay of Pigs
Bay of Pigs's picture

Yes, and douchebags like kato (above) bash Ron Paul while the poster child for bad gov't Maxine Waters gets a free pass?

 

Wed, 03/02/2011 - 18:14 | 1013011 msohn
msohn's picture

I totally agree. Ron Paul had Bernanke on the ropes! And then they pull him for time so that the congresswoman can ask her absolutely useless questions.

Thu, 03/03/2011 - 12:39 | 1015233 hardmedicine
hardmedicine's picture

why is that a junk?

Wed, 03/02/2011 - 17:18 | 1012791 AldoHux_IV
AldoHux_IV's picture

Congressman Bachus saved Hitler's ass by moving onto the next person with questions and no doubt someone more ignorant than Ron Paul.  While I don't agree with many of the things Paul stands for, I will say that I agree with him on the views that the federal reserve and congress are responsible for the outrageous fiscal situation we are in and their only solution to it is to add more debt i.e. enslave the world to more bullshit paper that only has meaning because we put something to it.

Money does not equal debt.  It is supposed to represent a moment in time of goods and services I provided for the goods and serivces you provided.  What the federal reserve has done to the concept of money is enough to put all past and present members including treauserers in jail for eternity.  Add the fact that the fed has now gone into more madening depths of human deplority in the way they have manipulated prices (not price stability by the way) and helped create bigger imbalances which only serve the top 2% while at the same time destroy the democratic process in our country-- well that's treason and you know what happens to those guilty of treason.

Wed, 03/02/2011 - 17:22 | 1012803 MrBoompi
MrBoompi's picture

If you have 5 minutes you shouldn't use 80% of it to give us a history lesson. Paul could have asked many more tough questions in that time period.

Wed, 03/02/2011 - 17:23 | 1012810 theXman
theXman's picture

I agree with Chairman Bernanke that we don't have rampant inflation in this country, yet. That's because the liquidity created by the Fed is spreading to the rest of the world courtesy oUSD's reserve currency status. So in the short run it is not a big problem. The world knows that we are diluting our currency and they don't like it, but they have to accept it for macro-economic reasons. Once that reason is gone, ie, the global does not need USD to function, all that USD liquidity will flow back to America and cause a deluge in inflation. That'll be the time of reckoning. That's why we need to accumulate gold now, when it is still cheap in USD terms.

Wed, 03/02/2011 - 17:22 | 1012812 Johnny Lawrence
Johnny Lawrence's picture

Off-topic kind of...but here is Obama lecturing Governors about the Recovery Act:

http://www.realclearpolitics.com/video/2011/02/28/obama_to_governors_rec...

Wed, 03/02/2011 - 17:28 | 1012819 DB Cooper
DB Cooper's picture

That's the best he could do with 5 minutes.  How about "Why is the Fed buying the most expensive Bonds?  What is the value of the mortgage derivatives on the Fed's balance sheet?"  I am beginning to have real doubts about RP.  Weak attempt.

Wed, 03/02/2011 - 17:37 | 1012845 hambone
hambone's picture

C'mon...what do you expect.  Even if RP comes up with the greatest questions, the greatest evidence that the Fed is destroying Merica...it's all for not.  BB won't answer and Merican's don't understand what he's yammering on bout anyway.

Change will not come via our elected officials our from within the system.  Change will only come when Merican's realize they are losing it all (by which point they will have nearly lost it all).  Then as Celente sez, they will lose it...just unfortunately Merican's are so stupid they'll be directed to go take it out on the unions of Merica and then those towel heads in the middle east (yeah, attack the victims...you fucking stupid sheeple).

Wed, 03/02/2011 - 20:19 | 1013450 eddiebe
eddiebe's picture

Sad but probably true

Wed, 03/02/2011 - 17:58 | 1012942 Dr. Porkchop
Dr. Porkchop's picture

Well, Ben did make a point that all of his various schemes have been 'very profitable'. He didn't say for who.

Wed, 03/02/2011 - 18:08 | 1012984 DB Cooper
DB Cooper's picture

And like the poker player he is (with our money) - he will tell you about his wins (TARP), but never talks about his losses (GSE's and derivatives).

Wed, 03/02/2011 - 19:27 | 1013271 Saxxon
Saxxon's picture

The hearing was a farce.  I am glad I listened to it because I can save myself the trouble in the future.

Anyone remotely trained in cross-examination knows when someone is pulling punches.

Wed, 03/02/2011 - 19:52 | 1013362 Unlawful Justice
Unlawful Justice's picture

If someone needs a history lesson the can check in at The Hedge Hotel.  This is an ominous sign from RP.   Fall on your sword and die a hero I guess. 

Wed, 03/02/2011 - 17:27 | 1012825 TradingJoe
TradingJoe's picture

Who ever owns physical will have to wait and see how that "conversion ratio"

looks like! I don't trust the FEDs so GOLD is really more then enough for a Standard

but I doubt they will make us all rich when/if converting!!! I'd cut my stash in half

once I find out they are even thinking of any type of standard!

Wed, 03/02/2011 - 17:26 | 1012827 the not so migh...
the not so mighty maximiza's picture

no more pussy questions ask like you mean it.  "WHO DO YOU WORK FOR BERNAKE???"

Wed, 03/02/2011 - 18:03 | 1012966 Fred C Dobbs
Fred C Dobbs's picture

He should also drive home the point that the Federal Reserve Bank is a private bank and has nothing to do with the US government.  

1) Who owns the Federal Reserve Bank?

2) Who do you answer to?

3) Who is your boss?

 

 

Wed, 03/02/2011 - 17:28 | 1012830 monopoly
monopoly's picture

Most of them know nothing about monetary policy and the dollar. They just want to know enough to get re-elected.

Wed, 03/02/2011 - 17:28 | 1012832 nastybrutishandshort
nastybrutishandshort's picture

If that was the highlight it's sad. Paul should have worked more on his rhetorical preparation. He must have known that the parliamentary asshat running the hearing would give him no extra time.

Wed, 03/02/2011 - 17:49 | 1012919 CrockettAlmanac.com
CrockettAlmanac.com's picture

While the Bernanke claims he can stop inflation in fifteen minutes flat it seems unrealistic for you to expect Dr. Paul to single-handedly end the Fed in five minutes or less. In any case, it's not Ron Paul who is slow but the 300 million Americans who still don't understand what the man has been saying in clear, simple English.

Wed, 03/02/2011 - 17:31 | 1012844 scratch_and_sniff
scratch_and_sniff's picture

"There will be more than enough gold if one ounce is equivalent to a million piece of linen or more, or more realistically, at $6,300 as Dylan Grice quantified previously. We guarantee it. And after all, that is the whole point of a gold standard: not to dilute the currency infinitely."

 

oxymoron, like they couldnt just adjust the price conversion ratio when ever they feel like it?

Wed, 03/02/2011 - 17:32 | 1012852 irishgurl4
irishgurl4's picture

gold = medium of exchange = money

FRN's held up by magic unicorns is not money.

Wed, 03/02/2011 - 17:58 | 1012947 Dr. Porkchop
Dr. Porkchop's picture

FRNs are derivatives of money. Actually, the dollar used to be, now what they are is a derivative, backed by more derivatives.

Wed, 03/02/2011 - 17:35 | 1012859 Roy Bush
Roy Bush's picture

My favorite part is @ 4:18 when Bernanke says "Consumers don't want to buy gold. They want to buy food and gasoline and other things in the consumer basket"....Well, they aren't in the inflation index so this should have zero to do with the value of the dollar according to the Fed.

Wed, 03/02/2011 - 17:41 | 1012887 Johnny Lawrence
Johnny Lawrence's picture

If consumers don't want to buy gold, then gold isn't in a bubble.

Wed, 03/02/2011 - 17:47 | 1012906 Dr. Gonzo
Dr. Gonzo's picture

I want to buy gold and I'm a consumer. I bought a maple leaf at the coin shop last weekend and was none too happy about how much I had to pay for it. What he meant to say was: "Consumers are stupid. They spend their money on cheap plastic crap at Wallmart. Not valuable gold."

Wed, 03/02/2011 - 18:02 | 1012952 THE DORK OF CORK
THE DORK OF CORK's picture

You are not consuming when you buy Gold , you are saving - The Bernank does not like this as it transfers wealth from his clients to you and in a net energy static or negative world that displeases him very much.

Wed, 03/02/2011 - 18:44 | 1013121 ColonelCooper
ColonelCooper's picture

It is one of the only things you can do to remove your money from the system and keep it from being fractionally lent again and again and again and again.....

Wed, 03/02/2011 - 19:26 | 1013267 THE DORK OF CORK
THE DORK OF CORK's picture

Yes - but I am not sure it is being fractionally lent out on the scale of past experience - hence the excess reserves in the system.

There is no real capital formation now and hence no wealth creation as the capital creation has been bogus over the past 40 years or so and that waste needs a place to decompose - the dollar is dying as it cannot hope to pay for past malinvestment via future wealth creation.

The mountain ridge just looks impassable from down in this debt hole.

Wed, 03/02/2011 - 19:47 | 1013353 Roy Bush
Roy Bush's picture

As I'm sure you'll agree, all currencies are dying....not just the dollar.

Wed, 03/02/2011 - 20:06 | 1013412 THE DORK OF CORK
THE DORK OF CORK's picture

Yes , maybe the dollar system was a more appropriate use of the term - they will all have to sink together - even the Swiss Frank as they are all bank debt fiat now.

Wed, 03/02/2011 - 17:52 | 1012925 CrockettAlmanac.com
CrockettAlmanac.com's picture

My favorite part is @ 4:18 when Bernanke says "Consumers don't want to buy gold. They want to buy food and gasoline and other things in the consumer basket"....Well, they aren't in the inflation index so this should have zero to do with the value of the dollar according to the Fed.

 

An excellent point.

 


 

Wed, 03/02/2011 - 18:13 | 1012997 hambone
hambone's picture

C'mon,

so long as that nearly half of CPI is made up by housing, CPI is gonna be very weak for a long time (hard for the little %'s to move the overall %).

CPI Component        Weight (U.S.)

Food and Beverages 14.992%

Housing (includes utilities) 42.691%

Apparel                  3.7260%

Transportation        17.249%

Medical Care           6.281%

Recreation              5.552%

Education and Communication 6.034%

Other Goods and Services 3.476%

Plus for anything that does go up they just substitute for something cheaper.  Rigged, gamed.  Forget about it and move on to the pitchforks.

Wed, 03/02/2011 - 18:27 | 1013058 doggings
doggings's picture

"My favorite part is @ 4:18 when Bernanke says "Consumers don't want to buy gold. They want to buy food and gasoline and other things in the consumer basket"....Well, they aren't in the inflation index.."

 

I thought that, ..did RP not just extract a televised, on-the-record accidental admission that their fantasy core inflation figures are pointless?

Wed, 03/02/2011 - 17:36 | 1012868 bob_dabolina
bob_dabolina's picture

We are all doomed

-Marc Faber

Wed, 03/02/2011 - 17:39 | 1012875 THE DORK OF CORK
THE DORK OF CORK's picture

Price stability ? what is the dollar ?- Lets forget about CPI vs monetory inflation for a moment.

The CBs in general use the false metric of a dollar/sterling / euro note against a basket of goods and services.

The CBs always ,I repeat always want wage deflation and indeed that is a official policey - Why ?

To do otherwise would impact on profit margins for their clients.

Wage deflation is a form of inverse inflation and I really cannot see a difference - inflation as defined by the CBs has only relevance to preserving historical dollar earnings over future potential dollar earnings for wage slaves.

What was the primary reason for equity rises in the 80s and 90s ? - it was the reversal of income from wage earners to capital owners - however there was little or no future capital created as a recapitalisation would further impact on profits.

The entire matrix is very very sick as there is now very little physical capital to run down now - the CBs want to avoid recapitalisation via a revaluation of the gold reserves for the above reasons but may have no choice unless they want to spend a vast amount of capital on  other projects such as Savannah scale gated communities.

Wed, 03/02/2011 - 17:40 | 1012881 triplenegative
triplenegative's picture

Thinking Ron Paul is some racist Southern redneck means you drank the KoolAid. Have some more.

Wed, 03/02/2011 - 17:45 | 1012902 FatFingered
FatFingered's picture

$1=1/50 big brown bag groceries....duh...Consumers don't want gold?!?!...I find your questioning really bizarre, Congressman.

Wed, 03/02/2011 - 17:54 | 1012933 bmwm395
bmwm395's picture

Look at Bernanke at 1:49 and 3:52. I think it shows total disdain and indifference. As if he is saying. "shut the fuck up dumb ass.. next question"

Wed, 03/02/2011 - 18:09 | 1012991 Fred C Dobbs
Fred C Dobbs's picture

It was the definition of arrogance.  If you look up arrogance in the dictionary who should see this photo.  

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