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.
4 comments:
→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).
→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).
→ The following types of comments will be deleted if we happen to see them:
-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over
-- Comments that explicitly call for violence
→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.
Posts
Just remember if you liquidate the debt, as he advises, you liquidate the money supply, which is just a fraction of total debt (15 of 70 trillion). You have to stabilize the money supply as you liquidate the debt to maintain economic activity and the "free market" he desires. The AMI (www.monetary.org) has a way to do this. There are a number of objections I have to that plan, but it is valuable for imagining alternatives to the current system.
ReplyDeleteUntil reading Web of Debt I was undecided about dumping the FED. Now there is no doubt in my mind they have to go. Not only have they been the cause of most of our money troubles now they have decided not to tell us what they are doing with the money. It ain't our money it's theirs, let them eat the result of their own doings.
ReplyDeleteLets Start ending the Fed early by doing things without their private money. Christian Charity is a perfect example. When we show them that we can function without their interest bearing debt based money we will slowly become a free people.
ReplyDeleteI dunno, in a Post-Bush world it is hard to imagine an entity in America more powerful than the president. I'm fairly sure that the president could issue an executive order that would cease operation of the Federal Reserve. He could probably fly Bernanke out to Guantanamo and have confessions extracted if he wanted to.
ReplyDelete