Greenspan Confesses to Ron Paul

[RS Davis]

In a hearing before the House Financial Services committee yesterday, Congressman Ron Paul took the opportunity to ask Federal Reserve Chairman Alan Greenspan several pointed questions. Greenspan’s normal evasiveness was tested when Paul asked him directly whether Fed actions represent a threat to freedom and prosperity. Mr. Greenspan’s startling response: The Fed does indeed have “inordinate power” over the American economy.

“I certainly appreciate Mr. Greenspan’s candor,” Paul stated after the hearing. “The Fed does have a tremendous impact on the economy and our lives, but its board members generally escape any political scrutiny for their actions. I want to make the public and Congress more aware of just how powerful – and destructive – the Fed really is. The unbridled expansion of the money supply will hurt all of us in the long run, in the form of price inflation, destruction of personal savings, and higher interest rates.”

- Rick

[dr snootch]

I always wondered what qualified Alan Greenspan to set the interest rates for our country. I think the formula goes something like this, if Alan wakes up in the morning and sees his shadow, we get six more weeks of low interest rates or something like that.

By the way, isn't Central Banking pretty much the exact reason that the Russian ruble became absolutely worthless in the 80's?

I just fail to see how money can be valuable when the government can just print as much as it wants. I'm fully behind the commodity-based monetary system. That's the only way to determine real value. How much can a printed piece of paper with nothing behind it be worth? Well, logically, I guess it's as valuable as the paper and ink used to print it, but not much more.

[RS Davis]

dr said:

I always wondered what qualified Alan Greenspan to set the interest rates for our country. I think the formula goes something like this, if Alan wakes up in the morning and sees his shadow, we get six more weeks of low interest rates or something like that.

By the way, isn't Central Banking pretty much the exact reason that the Russian ruble became absolutely worthless in the 80's?

I just fail to see how money can be valuable when the government can just print as much as it wants. I'm fully behind the commodity-based monetary system. That's the only way to determine real value. How much can a printed piece of paper with nothing behind it be worth? Well, logically, I guess it's as valuable as the paper and ink used to print it, but not much more.

It's absurd. The Fed creates this boom/bust cycle and then pats itself on the back for helping us out of it. Sheesh.

- Rick