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U.S. Rep. Ron Paul:
America Has Lost Control
for "We Are Creating Money Out of Thin Air"

15 September 2012
 

Despite the US Republicans have given up on Ron Paul's chance to run for president, Ron Paul, America's only remaining chance to be saved from a self-destructive neo-imperialism, has not given up on his beloved American nation.

The following are the main points in Ron Paul's TV interview with Bloomberg on Ben Bernanke's announcement of more Federal Reserve stimulus - an open-ended QE:

On potential unintended consequences:

“The biggest unintended consequence is what we need is a restoration of confidence. If the Fed is expressing a lack of confidence and they do not know what to do, it does not do anything to restore confidence. People might restrain from doing anything. ‘Interest rates are low. I do not have to buy my house this year. I will wait until next year. It might be a little easier. Prices might come down.’ So people are restrained and it is the opposite of when you expect that housing prices are going up, and you are afraid interest rates are going up. That is why the market rate of interest is so crucial. The rate of interest should give the businessman, the entrepreneurs, the investors and the savers information. But there is no market to interest rates. That is why there is such gross distortion and why we do not have a market economy. We have a rigged economy through central economic planning by central banking. The system is failing, it was doomed to fail and we have to wake up to that fact.”

On whether the Federal Reserve needs discipline:

“Short of getting rid of the Fed, which is not going to come and I wouldn’t do that overnight anyway, I would say that Congress has the authority to say, do not buy debt. Do not buy any debt. The Congress can yell and scream and pander to the people. They can say the deficits are terrible and terrible. But nobody wants to cut overseas spending or food stamps for the poor. They say, ‘we cannot do it without the Fed. The Fed has to buy this debt.’ That is a moral hazard for the politician. If the Fed couldn’t buy the debt, and interest rates would rise all of the sudden the burden would be on the Congress to get their house in order to restore confidence. Even that would panic a lot of people because live within your means? We do not like that. We like this idea that we can give people anything they want for free, so we can get reelected. Well, all of this is coming to an end.”

On whether Bernanke should be pulling back liquidity and raising interest rates right now instead:

“Liquidity should be determined by the market. I don’t think he should raise rates. He should just get out of rigging rates. The system is so biased. It helps the bankers who get free money and then they buy government debt. What about the people who are frightened, they do not like the stock market and they are frugal and want to take care of themselves? What do they get—1% on a CD? That is unfair. It’s bad economics. You want to let the market determine interest rates and let it sort it out. People get so nervous, because we have lived so long with a Keynesian economic model of fixing interest rates and intervening in the market.”

On whether Romney would do the right thing with the Federal Reserve if elected:

“So far, I have not heard that he would, but he has changed his mind before. If he gets to be president, we will keep our fingers crossed.”

 
 
RELATED:

What Chinese Say

About Premier Wen Jiabao's more national stimulus in response to the announcement of America's open-ended QE:

**大将军:

美国今天推出QE3了,刘军洛说的太准了,7月他在《中国叶利钦》说9月中国周边爆发区域军事冲突,美国随后推QE3,国内有人配合挖好池子,战后日本问题,本质上说就是雅尔塔体系问题。

*北*:

又一个一万亿出来了,王八蛋要坚持到底了,完全不辜负混球们—比如任大炮—对本届政府醉心表演一心为恶的信心。所以,出点事就出点事吧,大不了打翻重来,打翻有代价,不打翻可能要彻底死球鸟.

茉莉花儿开了又谢,
降温季节就在眼前。
仰望星空顶层不见,
遥盼王师年复一年。

新日校长:我虽然读书在东洋,支那国毕竟是故乡。这钓鱼鸟岛我毫无印象,也不曾见过这位新日学长。

新日文人:天津卫,枪声响,他悼叔北地学拆房。先毁基,后抽梁,巧言屋顶需重装。你沉思多年在梦乡,你怎会认识这位读者王!

新日校长:这个男人可真不简单呐。

新日文人:怎么?你怀疑他不是男人吗?

新日校长:呃,不不不,日人的救星美人的恩人嘛!

新日文人:你这个男人呐。

新日校长:其实,我也是太监。


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