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Ron Paul: "Country Should Panic Over Fed's Decision"
What took Ben Bernanke sixty minutes of mumbling about tools, word-twisting, and data-manipulating to kinda-sorta admit - that in fact he is lost; Ron Paul eloquently expresses in 25 seconds in this Bloomberg TV clip. Noting that "we are creating money out of thin air," Paul sums up Bernanke's position perfectly "We've Lost Control!"
25-second quick clip
Full 5 minute clip - must watch! from Mal-investment to Bernanke's frustration...
Paul’s reaction to more Federal Reserve stimulus:
“It should not surprise anybody, but it is still astounding. To me, it is so astounding that it does not collapse the markets. [Bernanke] said, ‘We are in very big trouble. We are going to do something unprecedented and we believe it will not hurt the dollar.’ And yet the stocks, they say ‘we love this stuff.’ But the dollar didn’t do so well today and the real value of the dollar is measured against gold, and gold skyrocketed from its very low to its highest. It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.”
On potential unintended consequences:
“The biggest unintended consequence is what we need is a restoration of confidence. If the Fed is expressing a lack of confidence and they do not know what to do, it does not do anything to restore confidence. People might restrain from doing anything. ‘Interest rates are low. I do not have to buy my house this year. I will wait until next year. It might be a little easier. Prices might come down.’ So people are restrained and it is the opposite of when you expect that housing prices are going up, and you are afraid interest rates are going up. That is why the market rate of interest is so crucial. The rate of interest should give the businessman, the entrepreneurs, the investors and the savers information. But there is no market to interest rates. That is why there is such gross distortion and why we do not have a market economy. We have a rigged economy through central economic planning by central banking. The system is failing, it was doomed to fail and we have to wake up to that fact.”
On whether the Federal Reserve needs discipline:
“Short of getting rid of the Fed, which is not going to come and I wouldn’t do that overnight anyway, I would say that Congress has the authority to say, do not buy debt. Do not buy any debt. The Congress can yell and scream and pander to the people. They can say the deficits are terrible and terrible. But nobody wants to cut overseas spending or food stamps for the poor. They say, ‘we cannot do it without the Fed. The Fed has to buy this debt.’ That is a moral hazard for the politician. If the Fed couldn’t buy the debt, and interest rates would rise all of the sudden the burden would be on the Congress to get their house in order to restore confidence. Even that would panic a lot of people because live within your means? We do not like that. We like this idea that we can give people anything they want for free, so we can get reelected. Well, all of this is coming to an end.”
On whether Bernanke should be pulling back liquidity and raising interest rates right now instead:
“Liquidity should be determined by the market. I don’t think he should raise rates. He should just get out of rigging rates. The system is so biased. It helps the bankers who get free money and then they buy government debt. What about the people who are frightened, they do not like the stock market and they are frugal and want to take care of themselves? What do they get—1% on a CD? That is unfair. It’s bad economics. You want to let the market determine interest rates and let it sort it out. People get so nervous, because we have lived so long with a Keynesian economic model of fixing interest rates and intervening in the market.”
On whether Romney would do the right thing with the Federal Reserve if elected:
“So far, I have not heard that he would, but he has changed his mind before. If he gets to be president, we will keep our fingers crossed.”
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We are not making money out of thin air, the algorithms do it! Those algorithms created by the quants that nobody seems to understand themselves as we heard from Jamie Dimon a few weeks ago, so what the heck is he making all that money for:)
Yes this more more of a "nothing' type comment and with today's world it shows concern but not enough knowledge to do more than bring attention to it. Earlier I gave a link to a video that has kind gone a little viral here and well worth watching for sure. It is very much of interest in view of the recent tech failures on the Street and interesting to listen to this former programmer paying 60K to go to Quant school as he worked for one of the banks that no longer exists. Then you get to hear from the teacher at Quant School...very well done. He comes right out and talks about the nonsense created and their world and the "real" world. It is called Quants the alchemists of Wall Street that someone did almost a couple years ago but kind of rare getting to hear these folks talk as they never do.
http://ducknetweb.blogspot.gr/2012/09/quants-alchemists-of-wall-street-v...
I can relate to the poor programmer wanting to see the light of day again and not wanting to sit gain and crank out code, but be a quant? Again a very good documentary and eye opener and thanks for everyone that watched it on the earlier link too. If I didn't think it had realtivity I would talk about it again but it does. Those who write the code rule the world and the money.
you r the resistance.
Did anyone read Matthew Bracken's latest essay?
Yes. Excellent.
Scary how much of the tyranny predicted in his novels has come and is coming to pass.
Get your Phil Carson and Dan Kilmer on bitchez!
Let's get down to the real point.
Own gold, silver and land if you wish to defend you and your family against the New Feudalists.
Politicians waging endless war and gifting themselves record pay, perks and pensions, and making record debts to buy votes are bankrupting the Western world, all for their vanity.
See the killed U.S. ambassador for an example of political hubris. There is nothing in the Constitution that obliges the U.S. to interfere in foreign lands. There is everything in the Constitution to oblige Washington to do the bidding of States, and the will of the people HERE in the U.S.
"let the market determine interest rates" Ron Paul must be mad! The Fed must determine interest rates for the good of all Americans.
The Fed is a criminal enterprise!
Criminals are capitalists -Isn't it a good thing that criminals control Wall Street, the media , Congress and the markets? Most Americans think so-who am I to say otherwise. Al Capone was worth $324 million -almost as much as Andrew carnegie -shouldn't we give him his due credit? Same goes for Lloyd Blankfein -a very successful criminal - he deserves credit too. Right?
Your comment disregards that to be a capitalist you have to own YOUR own property (it is not stolen nor taken from theft). Otherwise if the system depends on stealing it's SOCIALISM (not all variations) if taken TO THE GOVERNMENT or a CENTRAL non-corporate controller, or it's FASCISM if taken TO the corporations (it is).
The worst part of this whole nightmare is the full 180 the media has turned since Romney locked up the nomination. Overnight Ron Paul went from being portrayed as a lunatic to be laughed at to an intelligent thoughtful congressman with a firm grip on economics. What the fuck, why is this man not the goddamn President?
Give Us Barabbas
because he ran for the Republican Party, and that was never going to happen.
let it sink in that the system is phoney, and corrupted - no prezzydentshull figurehead can "fix" it.
then act accordingly.
One GIANT PACHINKO PARLOR defacto RUN BY GOLDMAN SACHS
SO much for societal progress
Run by politicians in collusion with central banks, and sending children to the gulag of re-education camps, ie expensive 'colleges', wed to state offered loan sharks.
From a occupy wallstreet protester - "Shit is fucked up and shit"
Lord, what fools these mortals be.
as if the Lord didn't know; he made us in his image!
It's true what they say.... A nation gets the leader that they deserve. Our nation stopped being about substance long ago, now we have two empty suits to choose from. Thank you Dr. Paul for your service and most importantly for your integrity.
If there is any justice, those "leaders" will someday get what they deserve - and those ignoramuses who put them there.
I heard banksters and ignorant voters taste like pork...
I know I am!!!!!!!!!!!1
http://confoundedinterest.wordpress.com/2012/09/13/fed-pulls-the-trigger-with-new-bond-buying-program-40-billion-in-mortgage-backed-securities-per-month/
for the FED to be creating an asset bubble or bubbles, and excacerbate already wide global financial imbalances seems to go against everything the FED was supposed to have been designed to prevent. this is just incredible. how can this possibly be undone without some major turmoil in the amrkets? can such a thing be possible?
Damn double post. I'm retarded and I'll vote myself down.
Fiscal cliff bitchez!
"Bitchez" is so 2011. Try "Fuck you Fiscal cliff!!!!"
Were fucked and Congress hasn't lifted a finger to do their job. There within lies the problem, their going 1,300 day's or so without a budget themselves.
I feel like Bernanke knows that he is losing the battle and is now willing to annihilate his army because he believes he can will victory. Or not. Whateves, back to porn.
I now realize ZH is a government plant. The goal is to make anyone with a hope for a more sensible future so discouraged they put an entry and an exit wound throught their skull.This gives the Orkin Man less work to do. If you buy gold it will be confiscated = you are fucked. If you hold on to the currency of the realm to buy food you = also fucked. Ben wil print your currency into worthlessness while making it illegal (violence against you and your family)l to hold gold. so long, thanks for all the fish!
double post
The G-men in the audience have confirmed their presence with my down votes. go Frack yourselves G-men!
You got that $40?
was stuck in some traffic today, behind a license plate that said "*** - FUU"
I'll admit, I LOL'd.
*waves*
<bow>
I have no problem with the Fed buying the MBS's. I think that is a logical course of action to save housing. I do think that they need to buy them all and turn around and refinance them while reducing principal. That would put money in the economy. Why is smart thinking just wishful thinking in this day and age?
Please tell me that this is just sarcasm and that you're not really the ultimate dumbass with batshit crazy ideas that your post makes you out to be.
You can't save housing from over-supply except by destroying the supply. Incomes will not rise enough to purchase that housing except at 10 cents on the dollar with a 10% increase in wages to match. No amount of credit can extend it.
Properties purchased by the Fed via MBS securities & other means, other than home ownership, will leave those properties in deterioration. Paper-deed holders that don't live in a property or use it for business have NO intention of maintaining the property which causes the value to drop further. It's not an income-maker therefore the loss of value from entropy will destroy it.
Ron Paul hit it out of the park.
Why is Ron Paul the only one saying that Bernanke is turning the U.S. into a centrally planned economy??
QE_inf .... QE-infinity.
What us, panicking?
I don't believe in God. But if I did, I'd pray that He would make this country suffer for being too fucking stupid to support Ron Paul.
Love Ron Paul (I have the shirt) and will vote for him...as I see it: Romney/Ryan can stick a fork in it...they're done, dead men walking. Biden departs by midterm and/or Killary is annointed Obummer's replacement (payback for slick Willie's help)...and frankly my dear, I DON"T GIVE A DAMN!
Fed's strategy is the same one George Custer tried at the Bighorn.
We'll just keep fighting until we're all dead.
That's what you're supposed to believe. The central bank is an ENABLER, not a fighter. The Fed is the drug pusher who promises addicts that the latest designer drug will help them get clean. Stupid, obsequious journalists sop it up like manna from Heaven, never thinking, never questioning.
Suicide U.S.A. http://www.youtube.com/watch?v=Up54juyRfHg&feature=BFa&list=AL94UKMTqg-9DgxCJHk2PyZa761U5cEnM9 ...on a heroin run straight to Hell.
Welp, I found nothing disagreeable in RP's talk. Which is why he was doomed. I can pick 'em; whatever I buy, everybody should run the other way.
We ought to have units of money that are not labelled dollars or anything abstract. Should just be 1oz, .5oz, .25oz...0.01oz... gold back. Maybe on the next planet.
Never saw so many humpbacks in the currency graphs today. Everyone seems to be selling dollars. Some are throwing them out of windows. No one seems to like the Bernank. I wonder if we had a mass prayer all at the same time over the Internet if we could make him shit his pants.
Do you still have the ability to think rationally? What happens when men are no longer able to make rational decisions, even when those decisions affect them on an individual basis? What happens to all of us when those making the decisions for us are behaving irrationally? THE END IS NEAR It is like watching a slow motion train wreck.
I'm probably just ignorant, but how does the Fed determine the price it will pay for each security?
I'm probably just ignorant, but how does the Fed determine the price it will pay for each security?
I'm probably just ignorant, but how does the Fed determine the price it will pay for each security?
if it's in someone's 401k BUY
Ron Paul speaks as if Bernanke is incompetent He is not. He is very competent. Bernanke is doing exactly what he is paid to do. The destruction of the currency and America is the point. This is all happening not in spite of the Fed but because of the Fed. This is the plan! They will destroy the old system, but not before stealing all the tangible assets they could. Once it's all over they will present a new currency backed by GOLD!! Hurry!!!!!!.
The same people running the fiat system will be running the gold system and the stupid serfs think this is the answer to the world's problems. They don't know or care that the banks,governments and institutions own all the gold and will be the beneficiaries of a gold standard. All they know is Ron Paul's Gold standard will rein in money printing as if the printing presses are the problem and not the people operating them.
It's the same argument nutty liberals make over guns. Guns magically kill people by themselves! Printing presses turn themselves on and print endless dollars!
this is a sad day..................
survivingsurvivalism.com
My comments:
I wonder whether Federal Reserve and Bernanke also thought that there was a small chance/risk that Romney would end the Fed? “QE 3” probably improves Obama´s chances to get re-elected.
I wonder whether Carter could have been re-elected back in 1980 if Paul Volcker had not decided to raise interest rates sharply?
In any case people who control money supply and interest rates have great political power.
Fed: "We have good news and bad news..."
Reporter: "What's the good news?..."
Fed: "No, ask for the bad news..."
Reporter: "What's the Bad News?..."
Fed: "We're lost...".
Reporter: "What's the Good News?..."
Fed: "We're ahead of schedule..."
Romney says he'll replace Bernanke when he gets in office. I guess we'll have to wait and see what he comes up with..gotta be better than current administration has.