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Ron Paul Asks Of The Fed: "When Will This Madness Stop?"

Tyler Durden's picture




 

Submitted by Ron Paul of The Ron Paul Institute,

Last week, Federal Reserve Chairman Janet Yellen testified before Congress for the first time since replacing Ben Bernanke at the beginning of the month. Her testimony confirmed what many of us suspected, that interventionist Keynesian policies at the Federal Reserve are well-entrenched and far from over. Mrs. Yellen practically bent over backwards to reassure Wall Street that the Fed would continue its accommodative monetary policy well into any new economic recovery. The same monetary policy that got us into this mess will remain in place until the next crisis hits.
 
Isn't it amazing that the same people who failed to see the real estate bubble developing, the same people who were so confident about economic recovery that they were talking about “green shoots” five years ago, the same people who have presided over the continued destruction of the dollar's purchasing power never suffer any repercussions for the failures they have caused? They treat the people of the United States as though we were pawns in a giant chess game, one in which they always win and we the people always lose. No matter how badly they fail, they always get a blank check to do more of the same.
 
It is about time that the power brokers in Washington paid attention to what the Austrian economists have been saying for decades. Our economic crises are caused by central bank infusions of easy money into the banking system. This easy money distorts the structure of production and results in malinvested resources, an allocation of resources into economic bubbles and away from sectors that actually serve consumers' needs. The only true solution to these burst bubbles is to allow the malinvested resources to be liquidated and put to use in other areas. Yet the Federal Reserve's solution has always been to pump more money and credit into the financial system in order to keep the boom period going, and Mrs. Yellen's proposals are no exception.
 
Every time the Fed engages in this loose monetary policy, it just sows the seeds for the next crisis, making the next crash even worse. Look at charts of the federal funds rate to see how the Fed has had to lower interest rates further and longer with each successive crisis. From six percent, to three percent, to one percent, and now the Fed is at zero. Some Keynesian economists have even urged central banks to drop interest rates below zero, which would mean charging people to keep money in bank accounts.
 
Chairman Yellen understands how ludicrous negative interest rates are, and she said as much in her question and answer period last week. But that zero lower rate means the Fed has had to resort to unusual and extraordinary measures: quantitative easing. As a result, the Fed now sits on a balance sheet equivalent to nearly 25 percent of US GDP, and is committing to continuing to purchase tens of billions more dollars of assets each month.
 
When will this madness stop? Sound economic growth is based on savings and investment, deferring consumption today in order to consume more in the future. Everything the Fed is doing is exactly the opposite, engaging in short-sighted policies in an attempt to spur consumption today, which will lead to a depletion of capital, a crippling of the economy, and the impoverishment of future generations. We owe it not only to ourselves, but to our children and our grandchildren, to rein in the Federal Reserve and end once and for all its misguided and destructive monetary policy.

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Tue, 02/18/2014 - 10:32 | 4447789 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

It will stop when the NWO wants it to.

Tue, 02/18/2014 - 10:42 | 4447822 BLOTTO
BLOTTO's picture

Ron Paul Asks Of The Fed: "When Will This Madness Stop?"

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Why didnt RP ask, err SCREAM out, those type of questions when he was on stage, with cameras rolling and nation watching during the REP election process?

Tue, 02/18/2014 - 11:00 | 4447870 Looney
Looney's picture

... and end once and for all its misguided and destructive monetary POLICY.

It is not the Fed's policy being distructive, it is the Fed's EXISTENCE destroying what's left of the Land of the Free. I think? ;-)

Looney

Tue, 02/18/2014 - 14:09 | 4448835 LMAOLORI
LMAOLORI's picture

 

 

The Fed's power lies in the hands of Congress who could abolish it. They won't because of the power it brings to them and this is especially true since we were taken off the gold standard since they have no constrictions on spending. This may be an unpopular opinion but I think the politicians are even more evil than the Fed for this reason. 

Tue, 02/18/2014 - 14:12 | 4448852 kralizec
kralizec's picture

It will only end when the blood letting has run its full course.

Tue, 02/18/2014 - 14:44 | 4449013 boogerbently
boogerbently's picture

We could elect RP tomorrow, and he would be surrounded by 500+ "public servants" trying to thwart his efforts.

Tue, 02/18/2014 - 16:10 | 4449382 LMAOLORI
LMAOLORI's picture

 

 

Boy isn't that the truth (though full disclosure I would have voted for him had I been given the chance)

Tue, 02/18/2014 - 11:16 | 4447971 lordylord
lordylord's picture

For anyone willing to listen, his voice sounded like a hollar.  For the ignorant, his voice was a muted gasp. 

Tue, 02/18/2014 - 11:26 | 4448009 BLOTTO
BLOTTO's picture

Anyone with .REP or .DEM is ruled by the same shit. The end.

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Or does the recent 200 years of horseshit not enough of a proof? He didnt even run for independent...

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RP is a fellow brethren of the craft - thats why he is allowed to speak on tv.

 

Tue, 02/18/2014 - 11:26 | 4448022 lordylord
lordylord's picture

Allowed to speak on TV?  He was IGNORED during the 2012 election.  They wouldn't even say his name at the GOP convention.  Are you ignorant, or just a statist scum?  Every time his name is mentioned on TV, it is in ridicule.  He ran as a republican because that is the only way to be in the conversation at all.  He is closer to a libertarian and he loves the Constitution.  Just look at his recored.  You are a piece of shit to mix his name in with the rest of the dems and RINOs.

Tue, 02/18/2014 - 11:33 | 4448049 jcaz
jcaz's picture

Ron Paul-  TRUE American hero.

Tue, 02/18/2014 - 11:40 | 4448083 BLOTTO
BLOTTO's picture

I am a piece of shit eh? thanks.

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Why - Because im suspicious? 

Because im skeptical?

I mean - look at the fuckin state of affairs? Ive been on this planet long enough to know that we are being fuckin lied to every fucking day with no change... NO FUCKIN CHANGE. He is a brethren of the craft - do you understand?

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I have the right to scrutinize and be suspicious all those mofo's. You guys can keep licking his nuts - at least we have the bases covered...ill be that 1.

Tue, 02/18/2014 - 13:01 | 4448514 wahrheit
wahrheit's picture

So what if he's a freemason?  The way you word it, it sounds like he's been boinking model beta kittens a la Eyes Wide Shut.  There are lots of low-level freemasons who have no idea what sort of silliness they are part of, and are more the pillar of the community types.  OHHH BRETHREN OF THE CRAFT DAMN HE IS SUMMONING CTHULHU

Tue, 02/18/2014 - 13:14 | 4448573 donsluck
donsluck's picture

Blotto, you are engaging in classic messenger blaiming. If a doctor makes a mistake, does that mean all doctors are idiots? Of course not. There ARE decent politicians. To think otherwise is to miss the nuances in life and resign to a black/white, rich/poor, Rep/Dem dichotomy of hopelessness.

Tue, 02/18/2014 - 13:22 | 4448610 BLOTTO
BLOTTO's picture

I understand and agree don...

However, on the global stage, they dont let decent politicians ever get close to being a threat to their agenda. Your either on their side helping with the agenda - or 'you're out'.

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'They' got to this point because they own and control both sides. How else do you control the outcome.

Or do we need another 200 years of voting to prove that nothing is changing and we are getting worse.

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I even see it on the Municipal level - the corruption of politicians and decent ones getting shunned...nevermind Provincial and then Federal (Canada).

 

Tue, 02/18/2014 - 16:17 | 4449428 NidStyles
NidStyles's picture

Fuck man, lay off the LSD-25.

Tue, 02/18/2014 - 11:40 | 4448090 sleigher
sleigher's picture
“The best way to control the opposition is to lead it ourselves.”

He does say many good things and his voting record stands, but I don't trust any of them.

Tue, 02/18/2014 - 11:57 | 4448170 BLOTTO
BLOTTO's picture

And lordylord - anyone thats been on here for less than 4 weeks - has no fucking clue what im about or any other longtime loyal ZeroHeds for that matter.

I only take insults from the regulars

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Your just a fish.

Tue, 02/18/2014 - 12:20 | 4448275 denverdolomte
denverdolomte's picture

http://www.youtube.com/watch?v=6NEoYCUkpqg - Speech in Congress about the Fed - Horrible video editing though.

 

Farewell speech to Congress :: http://www.campaignforliberty.org/national-blog/transcript-of-farewell-a...

 

"We're now in the midst of unlimited spending of the people's money, exorbitant taxation, deficits of trillions of dollars--spent on a failed welfare/warfare state; an epidemic of cronyism; unlimited supplies of paper money equated with wealth.

  A central bank that deliberately destroys the value of the currency in secrecy, without restraint, without nary a whimper. Yet, cheered on by the pseudo-capitalists of Wall Street, the military industrial complex, and Detroit." - May 19th, 2009 - Speech on House Floor

I personally feel that he did try and raise awareness to this BS but no one listened. 

Tue, 02/18/2014 - 16:18 | 4449431 NidStyles
NidStyles's picture

Who in the fuck are you? You have an old account, but I have never seen you before.

Tue, 02/18/2014 - 11:54 | 4448149 NoDebt
NoDebt's picture

Yeah, and the fact that's he's ridiculed by BOTH sides, roundly dismissed as a crackpot, should tell you something about those (currently) in power.  

They already know, deep down, he's right.  If they didn't, they wouldn't work so hard to discredit him.

They just want to ride the current money-printing gravy train until the wheels come off.  They care about THEMSELVES, not about those they serve (us).

Tue, 02/18/2014 - 13:51 | 4448594 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

If one is to assume that Paul is contrived opposition then your points only serve to further that assumption in terms of building his legend and street cred with those he is to pied piper away.   Hopium is hopium whether it be a Paul or Obama.  Personally it always felt that as bright as rp is he is always playing checkers when he should be playing chess

Tue, 02/18/2014 - 14:14 | 4448867 lordylord
lordylord's picture

Are you really comparing Obama's Hope and Change to Ron Paul's message?  Wow.  That is a bit of a stretch.

Tue, 02/18/2014 - 14:27 | 4448936 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

not at all... it is silliness like that which discredits your points...  i am comparing the delusion that you should put your hope into a mortal human to achieve for you what you are responsible for... i see no difference in this regard between paul supporters and obama supporters.... the messages are quite different but the means are the same

Tue, 02/18/2014 - 14:29 | 4448953 lordylord
lordylord's picture

No, the means are not the same. 

Obama's message:  Government will take care of you.

Ron Paul's message:  I will restore your liberties so that you can take care of yourself.

Hope and change was just a slogan.  Ron Paul's message was a call to action.  You don't see the difference at all.

Tue, 02/18/2014 - 14:41 | 4448969 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

what do you mean different means?

those are different ends 

 

the means are through a cult of personality... .

they are the same exact fucking means....

different people but the mechanisms are analogous 

 

you seem to confuse my dislike of the means with dislike of the intention...

 

Tue, 02/18/2014 - 14:57 | 4449039 lordylord
lordylord's picture

Are you daft?  The means to Obama's end is to sit on your ass and give government all the power.  The means to Ron Paul's end is to take responsibility for yourself and to reject any growth in government power.  Sure, Ron Paul had a following, but he was a horrible speaker and women were certainly not fawning over him.  He won them over with the content of his message and NOT his personality.  Obama's message of hope and change had no substance and was taken at face value.  Obama is completely superficial.  Try not to confuse the two.   

Tue, 02/18/2014 - 16:20 | 4449438 NidStyles
NidStyles's picture

Don't feed the trolls, it only makes them braver than they ought to be.

Tue, 02/18/2014 - 20:18 | 4450291 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

not trolling... what he is calling the means is an end... the ends are different but the means are the same.... man the newbies are dense. goals are not tactis... goals are ends tactics are means... 

Wed, 02/19/2014 - 00:52 | 4451482 NidStyles
NidStyles's picture

You are trolling and arguing semantics.

 

So yes, you are dense.

Tue, 02/18/2014 - 19:51 | 4450303 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

so why need a ron paul or an obama?  this is what you are missing... you think i am anti paul but only because i disagree with trusting him (like blotto)... i can like the ideals but don't believe paul can accomplish them purely though acts of office... even if he got into office, history argues for him to take a pragmatic approach at the point.  ppl like blotto and i refuse to be part of the cult of personality or take part in the delusional and wishfull thinking that is associate with belief that any human is your savior

Tue, 02/18/2014 - 11:48 | 4448125 Greenskeeper_Carl
Greenskeeper_Carl's picture

you can see hundreds of videos of him doing just that on youtube, dumbass. try looking before you say things like that. and as for him getting censored or being allowed on tv, here is a nice compellation of him just being ignored by the media. obviously it worked on you, since here you are spouting this kind of ignorance

 

http://www.youtube.com/watch?v=o_WBo4sfmi4

Tue, 02/18/2014 - 12:50 | 4448446 BLOTTO
BLOTTO's picture

Yea, love the vids...I just seen a great one of RAND Paul endorsing Mitt Romney...

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

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Good things its not - 'like father like son.'

Hey, all im saying is that nothing appears as it seems these days...lets debate and discuss - attacking the messenger is useless.

Tue, 02/18/2014 - 13:15 | 4448566 BLOTTO
BLOTTO's picture

Info for consideration...my fellow ZeroHeds.

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Whats Ron Paul's stance on 9/11?

=

Why are we taking precious military and intelligence resources away from tracking down those who did attack the United Statesand who may again attack the United Statesand using them to invade countries that have not attacked the United States? 22. (Ron Paul Speaks, fn. 22 Ron Paul, "Questions That Won’t Be Asked About Iraq," U.S. House of Representatives, Sept. 10, 2002.)

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Therefore, he does not think its an inside job...he thinks its Al-Qaeda or whatever.

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http://watch.pair.com/synarchy-6.html

Tue, 02/18/2014 - 14:30 | 4448858 lordylord
lordylord's picture

Hi Blotto.  Here is my rebuttal to all of your comments:

 

"I am a piece of shit eh? thanks. Why - Because im suspicious?"

You are a piece of shit becuase you are misrepresenting Paul and you are accusing him of being part of the Red-Blue team when his record speaks to the contrary.  You can be suspecicious, but I would suggest keeping opinions to yourself until you do more research and can back them up.

"However, on the global stage, they dont let decent politicians ever get close to being a threat to their agenda."

Ron Paul was never much of a threat.  His MESSAGE is a big threat even today. 

"And lordylord - anyone thats been on here for less than 4 weeks - has no fucking clue what im about or any other longtime loyal ZeroHeds for that matter."

Facts are facts and your bullshit is bullshit.  I don't care if am only a member for a day.  I called you out on your comment posted today.  I don't need your history.

"Yea, love the vids...I just seen a great one of RAND Paul endorsing Mitt Romney..."

Rand Paul and Ron Paul are two different people.  We were talking about Ron.  Confused?

"Whats Ron Paul's stance on 9/11?"

What happened on 9/11 and what can be proven are two different things.  Should Ron Paul be screaming "inside job" or should he bring attention to the US Foreign Policy?  I think the latter is more productive.  Let someone else prove 9/11 was an inside job.

Tue, 02/18/2014 - 15:22 | 4449157 BLOTTO
BLOTTO's picture

"Yea, love the vids...I just seen a great one of RAND Paul endorsing Mitt Romney..."

Rand Paul and Ron Paul are two different people.  We were talking about Ron.  Confused?

"Whats Ron Paul's stance on 9/11?"

What happened on 9/11 and what can be proven are two different things.  Should Ron Paul be screaming "inside job" or should he bring attention to the US Foreign Policy?  I think the latter is more productive.  Let someone else prove 9/11 was an inside job.

Let someone else prove 9/11 was an inside job.

Let someone else prove 9/11 was an inside job.

Let someone else prove 9/11 was an inside job.

.

.

.

 

What does that have to do with what Ron Paul said in HIS BOOK regarding 9/11? 'Let someone else prove...' has nothing to do with the most important point - HE THINKS IT WAS NOT AN INSIDE JOB.

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.

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Now, go back to bed...and follow your own advice regarding research so you wont get fooled again...

Tue, 02/18/2014 - 15:38 | 4449234 lordylord
lordylord's picture

Can you please show me the conclusive evidence that 9/11 was an inside job.   The book was about US foreign policy.  Not 9/11.  I'm sorry that facts and reality are getting in your way today.  I also noticed that nothing in your incoherant response rebutted anything I said.

Tue, 02/18/2014 - 15:33 | 4449236 Greenskeeper_Carl
Greenskeeper_Carl's picture

let me preface this by saying this is pure speculation on my part, but I think he probably keeps his mouth shut about that becuase that would be all that is needed to turn a huge segment of the population that would be willing to listen to his message against him, and make them think of him as a crackpot. That is already the main way mainstream media and politicians use to descredit him. Every single true statement and good point made would be answered with "ya but he thinks the govt was responsble for 9/11, so any talk of ending the fed is the talk of wing nut conspiracy theorists" 9/11 stuff would just move the topic off his main message- sound money, freedom, etc. and RON and RAND are two very different people. I personally wish ron would take his boy out behind the wood shed and beat some liberty into him, but oh well.

Tue, 02/18/2014 - 15:37 | 4449250 lordylord
lordylord's picture

Now this is a rational response.  Blotto, take note.

Tue, 02/18/2014 - 16:06 | 4449360 Golden Rule
Golden Rule's picture

If you want some very eye opening information on the Fed please read Eustace Mullins' "Secrets of the Fed".  Mullins was undoubtedly the authority on the shadowy organization and his 40+ year research and documentation shows it.  It dispels a ton of myths and gives a clear picture of who is who. In fact it is the only book ever burned in Germany since WWII. A protégé of Ezra Pound and a colleague of George Stimpson it's defiantly worth a look. http://www.barefootsworld.net/fedsecrets_00.html

Tue, 02/18/2014 - 10:34 | 4447794 Headbanger
Headbanger's picture

Fedtards don't stop until they hit the street below!

Tue, 02/18/2014 - 10:51 | 4447859 tradebot
tradebot's picture

FUBARB

Tue, 02/18/2014 - 10:37 | 4447803 LawsofPhysics
LawsofPhysics's picture

When?  That's easy, when it's their name on the title to every single physical asset and resource on the planet.  The robber barrons have always been here, we simply need to keep culling their numbers from time to time...

same as it ever was.

Tue, 02/18/2014 - 11:14 | 4447961 tarsubil
tarsubil's picture

That is their goal but they will never accomplish it. I feel that, sooner or later, their failure will be realized and they are going to find jumping off the roof to be the best option for themselves.

Live by the suicided, die by the suicide.

Tue, 02/18/2014 - 11:23 | 4448002 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Next they will be placing air mattresses around all JPM buildings?

Tue, 02/18/2014 - 11:27 | 4448023 Unknown User
Unknown User's picture

And then what?  They still have to expend debt exponentially.

Tue, 02/18/2014 - 12:11 | 4448230 LawsofPhysics
LawsofPhysics's picture

Bullshit, that which cannot be sustained, won't be, period.  And then what?  Well, for starters people will have to actually start working for a living again (not simply pushing bullshit pieces of paper around).

Tue, 02/18/2014 - 12:39 | 4448383 Shitonya Serfs
Shitonya Serfs's picture

Aggreed.

"No matter how badly they fail, they always get a blank check to do more of the same."
They are not failing, they are succeeding in their plans. They make/write the checks.

"Yet the Federal Reserve's solution has always been to pump more money and credit into the financial system in order to keep the boom period going, and Mrs. Yellen's proposals are no exception."
Of course they pump more "money" into the system. This "money" is debt we owe to them. RP knows this. If you had the privilege to print YOU-OWE-MEs, what would you do?

"Every time the Fed engages in this loose monetary policy, it just sows the seeds for the next crisis, making the next crash even worse."
The Fed owners/masters want it all. The crises are their goals.

"As a result, the Fed now sits on a balance sheet equivalent to nearly 25 percent of US GDP, and is committing to continuing to purchase tens of billions more dollars of assets each month."
It wants 100% of GDP (or more). Then they just own everything and all the people are serfs.

"Everything the Fed is doing is exactly the opposite, engaging in short-sighted policies in an attempt to spur consumption today, which will lead to a depletion of capital, a crippling of the economy, and the impoverishment of future generations."
Everything they are doing is the opposite of good for everyone but them. Their policies are only short-sighted to everyone but them. These short-sighted policies are baby steps to long-term goals. They need us to consume, so we need more money from them. The only this they care about is: the impoverishment of future generations.

This is a longwinded article to just say: the Fed wants it all and they will get it. RP should not event have used "money" is this, he should have just called it indentured servitude...but perpetual.

Tue, 02/18/2014 - 16:25 | 4449464 NidStyles
NidStyles's picture

Titles are merely pieces of paper. Posession is far more secure and makes more sense.

Tue, 02/18/2014 - 10:38 | 4447810 RSloane
RSloane's picture

RP knows better, the Fed is not going to stop because at this point it can't. Main Street has long since been sacrificed by the Fed and gov't for the sake of Wall Street. All of their eggs are in one basket.

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