Friday, September 21, 2007

Ron Pauls vs Bernanke

This quote from Scott Reamer/Minyanville sums it up!

Diese Aussage von Scott Reamer/Minyanville trifft den Nagel auf den Kopf!

Bravo to Ron Paul for giving voice to the hundreds of millions or pensioners, savers, working stiffs, poor, fixed income beneficiaries, laborers, gasoline-, bread-, milk-, and egg-buyers who weren’t able to ask Mr. Bernanke why he – like every Fed chairman before him since 1913 – screwed them for the benefit of the top 5% of the population of this country.

Click here to start the audio file

Klickt bitte hier um Ron Paul zu hören.

Here comes the take from Minyanville

“I want to follow up on the discussion about moral hazard. I think we have a very narrow understanding about what moral hazard really is. Because I think moral hazard begins at the very moment that we create artificially low interest rates which we constantly do. And this is the reason people make mistakes. It isn’t because human nature causes us to make all these mistakes, but there is a normal reaction when interest rates are low that there will be overinvestment and malinvestment, excessive debt, and then there are consequences from this. My question is going to be around the subject of how can it ever be morally justifiable to deliberately depreciate the value of our currency?”

His statements continued (about how much oil, gold, wheat, corn, etc. has gone up since the rate decrease) but the heart of his question was the following moral question: ...consciously depreciating the value of the USD has winners and losers (Wall Street/banks/the rich and everyone else), Mr. Bernanke. How do you constantly choose Wall Street over the rest of America?

You will not be surprised to know that B-52 Ben didn’t answer the question. He couldn’t answer the question (at least truthfully). .....

But his non-answer is not germane. The element that Ron Paul introduced is: the morality of the Federal Reserve’s constant injection of credit into the system at the slightest hint of macroeconomic distress. And I mean slightest: we haven’t even seen a GDP print below 0. We were only down 4.2% from the ALL TIME high in the Dow (the Fed’s own research suggests that the stock market is the best leading indicator of the economy).

On top of this Jeff Matthews & Mish has some must read post Fed Chairman Flunks Final Jeopardy! & Price Stability & Top Secret Missions

Zudem hat Jeff Matthews und Mish entwaffnende Posts Fed Chairman Flunks Final Jeopardy! & Price Stability & Top Secret Missions veröffentlicht das ich jedem ans Herz legen möchte.

I hope nobody is asking any longer why gold is soaring......

Damit dürfte wohl auch geklärt sein warum Gold sich zu neuen Höhen aufschwingt.....
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Anonymous Anonymous said...

It's all good. We should give the bankers and the military industrial complex all the money they want. They are going to steal it anyway. If we hand it over gladly maybe they won't kill so many people. Naw, who am I kidding? They're going to kill us in any event.

6:13 AM  
Blogger jmf said...

Moin Edgar,

it is indeed to sad that this

"Why We Fight" BBC documentary

will probably never made it to a broader US audience......

6:42 AM  
Anonymous NC Jim said...

When Greenspan would say that it wasn't the Feds job to pop a bubble but to clean up afterwards, I wanted to ask him:

"Sir Alan, you know that small investors always flock in at the top of a bubble so you are knowingly allowing them to be damaged and allowing the big players to distribute shares at the top. Please explain to me how this is not a form of class warfare."

Perhaps this is tin foil hat thinking (and no one ever did ask the question) - but the idea of standing by while Mom and Pop get screwed bothers me.

9:35 AM  
Blogger Lou Minatti said...

Half of Ron Paul's ideas are good. Toss out the other kook half (eliminating the FDA, etc.), put these ideas in a sane candidate, then dump his geek conspiracy Troofer fan base. You'd have a good president.

9:35 AM  

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