Texas Congressman Ron Paul yesterday slammed Ben
Bernanke, the chairman of the Federal Reserve, directly blaming
the Fed for creating the financial crisis and systematically
compounding the problems with its ongoing policies.
Paul's opening statement to Bernanke at the House
Financial Services Committee hearing contained a fierce flurry
of facts, figures and statements that hit the Fed head with
a ferocity of boxing champion's knock out blow.
The Congressman did not mince his words, opening
with the following immutable statement:
"The Federal Reserve in collaboration with
the giant banks has created the greatest financial crisis the
world has ever seen."
Paul then delivered a two and a half minute barrage
of truth, succinctly encapsulating the Fed's complicity in the
financial collapse of America.
"The foolish notion that unlimited amounts
of money and credit created out of thin air can provide sustainable
economic growth has delivered this crisis to us." The Congressman
"Instead of economic growth and stable prices,
(The Fed) has given us a system of government and finance that
now threatens the world financial and political institutions."
"Pursuing the same policy of excessive spending,
debt expansion and monetary inflation can only compound the
problems that prevent the required corrections." Paul continued
"Doubling the money supply didn't work, quadrupling
it won't work either." he said bluntly, glaring at Bernanke
and shaking his head.
The Congressman implored that the only way out
of a debt crisis is to pay off or liquidate the debt, "we
are doing neither" he concluded.
"Buying up the bad debt of privileged institutions
and dumping worthless assets on the American people is morally
wrong and economically futile." Paul counseled.
Watch the Congressman's opening statement in full
(Article continues below)
During his five minute questioning window, Paul challenged
Bernanke on quotes attributed to him that suggested The Fed
chairman had said that HR1207, Ron Paul's bill to audit the
Federal Reserve, would interfere with the Fed's interest rates
The Congressman maintained it would do nothing of the sort,
while Bernanke attempted to suggest that giving the Government
Accountability Office the power of audit over the Fed would
inhibit and restrict the Fed's ability to make decisions on
monetary policy by politicizing it.
Paul fired back stating that it is preposterous to suggest
that the Fed isn't already overtly politicized:
"Just the fact that they can issue a lot of loans and
special privileges to banks and corporations, that's political.
This idea that it would be political because we know what happened
afterwards just doesn't seem to add up." Paul beseeched.
Paul then challenged Bernanke on the definition of inflation
after he implied that buying debt and printing more money was
Watch the Congressman questioning Bernanke below:
After Congressman Paul's time was up, Rep Bill Posey (Florida)
continued the line of questioning on inflation stating "purely
printing new money doesn't cause inflation, that's really news
Posey also questioned Bernanke on the effort to audit the Fed,
stating that in his opinion an after the fact audit in no way
interferes with the everyday decision making of the Fed.
"I just don't see why there shouldn't be one hundred percent
crystal clear transparency of every single function of the Fed
after the fact." Posey implored.
"Because we have to be extraordinarily careful that the
markets and the public don't think that Congress is trying to
influence monetary policy decisions." Bernanke responded.
Yes, God forbid that elected officials should have any say
in how the country is financially run. God forbid that Congress
should be allowed to enforce any kind of accountability upon
a privately owned bank that has seized control of the US monetary
system and driven the world toward the brink of ruin! And God
forbid that the US taxpayer should know anything about the decisions
made on it's behalf by a private corporate entity.
Watch the exchange in full below:
Ron Paul's audit the Fed Bill, HR 1207, now has 275
co-sponsors in the House and it's companion Bill
S 604 now has 17
supporters in the Senate.
The Congressman has also made several TV appearances in the
last 24 hours to publicise the effort to audit the Fed, a selection