www.RonPaul.com – 03 Ron Paul teaches Ben Bernanke a lesson on Austrian free-market economics, but the Chairman is not listening. Instead, he tries to defend his actions by asserting that “central banking is an art” that requires guesswork.Ron Paul is America’s leading voice for limited constitutional government, low taxes, free markets, and a return to sound monetary policies. For more information visit the following sites: www.RonPaul.com http www.house.gov www.YALiberty.org http www.RonPaulForums.com
The Bizarre Art of Central Banking
Posted by admin on June 6th, 2010
Posted in Banking 
Tags: art of central banking, ben bernanke, central banking, congress, end the fed, fed, federal reserve, free market, interest rates, megalomania, price fixer, price fixing, ron paul
@Jabo007Celt (cont2) and do you know how the Government would give out bailouts?? With your tax money. Yes, your hard earned cash that you were trying to use to pay for house would result in the corrupt/ignorant bankers getting off the hook.
Instead of telling the most knowledgable and honest congress men to shut up, you should consider putting his name on your 2012 ballot.
@Jabo007Celt (cont) without the “illusion” of the low interest rates.
Ron Paul would abolish the FED. thus resulting in this financial crisis not happening. Hes been trying to audit them for sometime now, but little support from congress. You’re lucky good men like Ron Paul exist.
@Jabo007Celt Now, the Government has to borrow money from the Federal Reserve which gladly gives out loans with “x” amounts of interests, putting us further into debt.
Ron Paul has been trying to fight the Fed. Res. for more than 30 years. You clearly didnt understand what he was saying. If Ron Paul was president, you would probably have significant lower taxes and an honest money system.
@Jabo007Celt (cont) so now the banks are out money which they gave to the real estate agents (as loans) and now have to sell a house with massive interest rates, which nobody will take. Now imagine this on a massive scale, with millions of people doing this.
Now, banks cant afford to keep up, so they ask for BAILOUTS from the Government, which the Government cannot simply afford (60 trillion in debt)
@Jabo007Celt Ron Pauls not saying we need low interest rates. Hes saying that for the Federal Reserve to hold the interest rates too low for too long is creating an illusion.
What happens is, a poor bugger like me would buy a house with REALLY low interest rates, (when the interest rates are actually HIGHER) all of a sudden the interest rates go back to normal, and *GASP* I cant keep paying! All of a sudden, I declare bankruptcy and move out.
hahahahahahahaha “im for the constitution”…. Ron Paul is the Man!
I wrote in Ron Paul on my ballet in the 2008 election. I’m going to do it again in 2012.
Ron Paul needs to shut up. We need low interest rates for those of us still hanging onto our mortgages! If they raise rates it’s just gonna knock more people out of their homes!
bernake sounds like a little boy being grilled !!!!!!!!!!!!!!!!!!
@kungfujellybean The world would own if people who are not economists took a step back in debates concerning economic issues. Ron Paul questions the sense in regulating the price of money, whereas Bernanke says: well, you have to regulate the money supply somehow, this is the best we – as a species – have come up with. And that is true, unless you want the gold standard, and honestly, no one wants the gold standard.
Bernanke’s lies leak through his face. He looks evil because he is evil.
would you have liked it to have collapsed in the last 40 years so you could say he was right? if he’s right in the longrun, then whatever leads up to that eventuality is gathering pace now. he will be proven to have been always right. be patient.
Bernanke is a liar, or a great idiot, but I think the former…how did these financial jihadis that run america find each other? their policies are psychopathic; they will literally kill the economy and americans, and they know this.
Back to Central Banking: let’s say that we grant that it could serve as a braking mechanism to prevent bubbles and moderate exuberance. The current thinking – save Ron Paul et al – is to do the opposite – to exacerbate ills! Gasoline on the fire!
And frankly, Larry Summers rides right along with Greenspan, Rubin, and company – as devastating a menace as you could cite for the deep pit we’re in. It’s mind-staggering that B.O. is so brazen (translated:inept) as to keep that bozo around. Stunning.
Who exactly has monetarism benefited? The United States of Goldman Sachs? Sure there is a degree of wide prosperity- once we all amazingly had a VCR and now everyone has a DVD unit. And a cell phone. But what if all that was achieved as a consequence of simple productive gains, *despite* faulty economic policies?
I’m straying but simply offering that monetarism doesn’t get a free pass. I believe that we’ve survived in SPITE of destructive policies. Where would we be now under true free market?!
@decapitatespammers
Finally, let me share what is probably the most important quote of our time, and it is the EXACT opposite of the one you’re all probably thinking of.
“any honest Democrat will admit that we are now all Friedmanites.”
–Lawrence Summers, Former Chief Economist World Bank, Treasury Secretary Bill Clinton, Current White House Director National Economic Council
That quote is doubly true for the Fed. People don’t take Austrians seriously because they refute the wrong theories.
@decapitatespammers
And to everyone else hear, I’d like to share some views with you all. I’m an economist, trained in modern economic theory at what is considered to be a top US university. I’m one of the rare few who actually do agree with much of the Austrian School, but you must understand 2 things. That school of economics is not complete and more importantly, takes Keynes theories too seriously. Not Bernanke and not even Krugman think Keynes original ideas have much influence.
@decapitatespammers
No offense to Dr. Paul, I did vote for him, or to you for that matter, but Dr. Paul has a major blind spot and that blind spot is Monetary policy. He just doesn’t understand it nor why it works. Why do you think he’s been wrong about the Currency collapsing for 40 years now? He’s absolutely right in the long run, like the Austrians, but you can understand how done surprisingly well for so long if you understand Monetary policy and how it works like nothing else before it.
B.B. “all the other countries have a central banking system”
All the countries that have it are getting screwed too and going bankrupt.
Thank you for the clarification that you’re party to fraud. And it’s become clear to more and more people.
Bernanke: “Central banking is an art…..”
Well I guess if you call theft an art he’s right. His toolness is staggering.
lol yeah that was pretty good, bitch ass b.
Ben Bernanke is just as much a monetary fraud as the rest of the bankers have been for the past 20 years. As intelligent as he may be, he’s using that pseudo-intelligence to destroy our economy about as fast as Obama and his Marxist Czars. I’d say, throw that man to the dogs!
I love how Bernanke is trying to act as if he did not know Ron Paul was an Austrian.
i wanna observe and see the REAL art of central banking.
I don’t understand why policymakers tune Dr. Paul out. I supported his presidential bid in 2008 and would gladly do so again in 2012.