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FED-SPEAK
"Should high rates of overall inflation persist, the possibility also exists that inflation expectations could become less well anchored." - Fed Chairman Ben Bernanke, testifying today before the Financial Services Committee
2 comments:
It's peculiar how the "Ranking Member of the Domestic and International Monetary Policy, Trade and Technology subcommittee in the House Committee on Financial Services " can say the following things to the Fed Chairman during his testimony... and not one story about it appear anywhere in the mainstream media.
"Inflation comes from the unwise increase in the supply of money credit....to argue that we can continue to debase the currency, which is really the policy of that you're following, purposely debasing value of currency - which to me seems so destructive....it just puts more pressure on the federal reserve to create capital out of thin air in order to stimulate the economy and usually that just goes into mal-investment,"
"History is against you," Paul told Bernanke, "History is on the side of hard money - if you look at stable prices you have to look at the only historic sound money that's lasted more than a few years - fiat money always ends, gold is the only thing where you get stable prices," he added, pointing out that despite the price of oil's rapid ascent, it had remained flat when compared to the price of gold.
"I cannot see how we can continue to accept the policy of deliberately destroying the value of money as an economic value," said Paul, adding that the policy was "immoral," and would lead to a reduction in American's living standards and "the middle class being wiped out."
Here's Ben Bernanke's detailed (insert sarcastic smiley) blog response to Ron Paul's berating of him in November... notice the ", necessarily".
http://www.newsgroper.com/ben-bernanke/2007/11/21/ron-paul-grinch-stole-thanksgiving/
His blog is a real insight into the man who essentially controls the economy - every American should read it. The Gold Standard aside, virtually every international economist agrees that the U S economy is in the tank and the international markets actually fall on the news of new interest rate cuts - why - because they know that the rate cuts continue to devalue the dollar and delay the healing of the economy. Bernake needed to be chewed out and nobody better to do it than Ron Paul.
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