Tuesday, September 15, 2009
Ron Paul: The Fed "Has More Power Than Congress. The Fed Chairman Probably is More Powerful Than Our President"
Whatever you think of Ron Paul, you have to admire his great quotes.
As he writes in his new book "End the Fed":
The entire federal government is one giant toxic asset at the moment.Sound like hyperbole?
Well, the Fed has certainly taken a lot of toxic assets onto its balance sheet.
And even the Bank for International Settlements pointed out in December that the bank rescue packages have transferred significant risks onto government balance sheets.
And one of the world's leading economic historians - Harvard professor Niall Ferguson - warns of huge government debts threatening the solvency of entire nations:
"The idea that countries don't go bust is a joke... The debt trap may be about to spring ... for countries that have created large stimulus packages in order to stimulate their economies."
Yesterday, Paul also told CNN:
[The Fed] is bigger than the Congress, [it] has more power than the Congress. The Fed Chairman probably is more powerful than our president, and yet we refuse to look at it. The time has come for us to look at the Fed.
Is he right?
I'm not sure. But the Fed has violated the Federal Reserve Act and other laws in a number of ways, and refuses to disclose to Congress (or anyone else) where the trillions of dollars it has handed out in bailouts, guarantees and swaps have gone.
The Fed is also refusing to disclose the details of the toxic assets it has taken from the banks and put on its own books.