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Old July 18th, 2012, 12:10 PM   #1
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If you've got something to hide, you'll fight tooth-and-nail for secrecy.



Mr. Bernacke is spreading lies and fear as he fights tooth-and-nail for secrecy.



Quote:
Ron Paul Warns Bernanke: The Financial Crisis Is Far From Over
Quote:



[font=Georgia, 'Times New Roman', serif]In what Congressman Bacchus called ďa double dose,Ē Texas Representative Ron Paul grilled Fed Chairman Ben Bernanke on two occasions on Tuesday at the House Financial Services Committee. Congressman Paul scolded the Fed Chairman for being ďsecretiveĒ while claiming that the financial crisis is ďfar from over.Ē[/font]



[font=Georgia, 'Times New Roman', serif]Bernankeís visits to Capitol Hill have recently been marked by his exchanges with Ron Paul, a staunch Fed basher who believes in the merits of the gold standard. After facing a relatively tamer Senate Banking Committee, the Fed Chairmanís feet were held to the fire by Ron Paul & Co.[/font]



[font=Georgia, 'Times New Roman', serif]While the exchange was rather one-sided, Ron Paul made his points heard. He first criticized the Fed for equivocating independence with secrecy, [/font][font=Georgia, 'Times New Roman', serif]noting that about $15 trillion had been used for overseas bailouts during the crisis, via currency swaps, which the Congress could not monitor.[/font]



[font=Georgia, 'Times New Roman', serif]Ron Paul then noted that when Bernanke claims the Fed stands ready to support Europe and other geographies during times of financial and economic crisis, itís actually the American tax payer that is shouldering the burden. The Fed Chairman responded by noting that it is Congress which delegated the responsibility to manage monetary policy to the Federal Reserve.[/font]



[font=Georgia, 'Times New Roman', serif]While the Fed Chairman tried to avoid engaging Ron Paul, he did show his ideological bent when he told Ron Paul that while Congress could eliminate the statue that makes the Fed an independent body, it would result in a more inefficient central bank and ultimately a worse outcome.
[/font]



More.



[font=Georgia, 'Times New Roman', serif]And, the return fire from Mr. Bernacke:[/font]



Quote:
Bernanke warns Ron Paul's Fed audit bill could cause 'nightmare scenario'



Federal Reserve Chairman Ben Bernanke warned Wednesday that an audit bill pushed by Rep. Ron Paul (R-Texas) could create a "nightmare scenario" for the central bank.



Testifying before the House Financial Services Committee, Bernanke pushed back against efforts to subject the Fed to full audits by the Government Accountability Office (GAO), cautioning that doing so would subject the politically independent institution to the whims of lawmakers and render the Fed ineffective.



"The nightmare scenario that I have is one in which some future Fed chairman would decide to say, raise the federal funds rate by 25 basis points, and somebody in this room would say, 'I donít like this decision and I want the [Government Accountability Office] to go in ... and give us an independent opinion of whether or not that would be the right decision," he said.



Establishing a system in which the Fed's monetary policy moves could be immediately called into question by lawmakers would have a "chilling effect" on the institution and generally reduce its ability to help steer the economy, he warned.



"There's a lot of evidence that an independent central bank ... will deliver lower inflation and better economic results," he said. (Uh, where is that evidence?)



...Paul's bill, which has garnered 271 co-sponsors, was approved by voice vote by the House Oversight Committee in June, and GOP leadership has committed to a floor vote on the measure sometime this month.



..."I agree absolutely with Dr. Paul that the Federal Reserve needs to be transparent and it needs to be accountable," he said. "I would argue at this point we are quite transparent and accountability."



He went on to indicate that Paul's bill is not being accurately sold to the public, contending that the Fed is already being audited under common understanding.



"I think the term 'audit the Fed' is deceptive. The public thinks auditing means checking the books ... making sure you're not doing special deals," he said. "All of those things are completely open." (A bloody lie. Without Sen. Bernie Sanders efforts, the $15 trillion in currency swaps would have remained out of the public's view)



Paul, who likely was facing Bernanke for the final time before he retires this fall, was unconvinced.



"When the Fed talks about independence, what they're really talking about is secrecy," he said.


More.



Indeed secrecy is what Mr. Bernacke is fighting for, lying for, tooth and nail.
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Old July 18th, 2012, 08:57 PM   #2
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Bernanke's objection that congress might spontaneously audit the fed in response to an interest rate adjustment is weak and pathetic, and surprisingly so. Interest rate adjustments to fend off inflation or as an attempt to stimulate borrowing (and thus, the economy) are completely a judgement call by the fed board. Nothing to audit there, except opinions resulting from discussions about statistical probabilities. What Ron Paul and his 271 co-sponsors want to audit is what the Fed is doing with the money, and to whom he is sending it...short term or otherwise. Ben knows it.
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Old July 18th, 2012, 09:07 PM   #3
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Quote:
Originally Posted by scrjnki View Post
Bernanke's objection that congress might spontaneously audit the fed in response to an interest rate adjustment is weak and pathetic, and surprisingly so. Interest rate adjustments to fend off inflation or as an attempt to stimulate borrowing (and thus, the economy) are completely a judgement call by the fed board. Nothing to audit there, except opinions resulting from discussions about statistical probabilities. What Ron Paul and his 271 co-sponsors want to audit is what the Fed is doing with the money, and to whom he is sending it...short term or otherwise. Ben knows it.


And he's not telling, unless he has to.
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Old July 19th, 2012, 01:08 AM   #4
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People just roll their eyes when someone starts talking about monetary policy and currency swaps simply because they are very complicated subjects. What is not complicated is that the Fed has been bailing out European banks to the tune of trillions of dollars. And all of it done under the radar. Canít have those pesky little taxpayers start buying torches and pitchforks now can we?



It works like this. Nations exchange currencies all the time to ensure each has a sufficient supply of each otherís currency to keep everyday transactions flowing. Japan, for example, might ask for $100 million US Dollars in exchange for an equal amount of Yen, plus a small transaction fee (half of 1%). Putting dollars in Japanese banks guarantees they and their customers can do transactions easily with US firms. Pretty much standard operating procedure.



Except when it comes to Euros.



The EU has multiple problems, one of which is their rigid stance to keep inflation low. In other words, they donít want to print money by the boatload as it would spike inflationary forces. So they turn to the US, who has no problem whatsoever printing money by the boatloads. Using currency swaps, the EU can increase the money supply in Europe without spiking inflation. The US gives them a sweetheart deal on exchange rates and dollars flow into EU banks, pumping up their balance sheets.



Itís kind of like Obamaís sweetheart deal on his house in Chicago. The house might be worth a million dollars but he picked it up at a bargain basement price of $ 600 K. The minute he moves in Obama has an instant $ 400 K in equity. Same thing with currency swaps if you get the bargain basement price.



Now the US could simply loan the money to the EU, but that would make the natives restless. So they use this under the table method instead.



And that is why Bernanke insists on secrecy.



If Joe Six-Pack learns that the reason the price of groceries has skyrocketed is due to the Fed bailing out EU banks he just might get a little restless. And to be fair, there are many reasons prices for all types of goods have skyrocketed, the Fed is just one of them. Still, it is easy to rile up the masses when you show them how easy it is to connect the dots.



And it would make an ideal campaign issue for Team Romney.
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Old July 19th, 2012, 06:55 AM   #5
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Quote:
Originally Posted by Podium Pentothal View Post
People just roll their eyes when someone starts talking about monetary policy and currency swaps simply because they are very complicated subjects. What is not complicated is that the Fed has been bailing out European banks to the tune of trillions of dollars. And all of it done under the radar. Canít have those pesky little taxpayers start buying torches and pitchforks now can we?



It works like this. Nations exchange currencies all the time to ensure each has a sufficient supply of each otherís currency to keep everyday transactions flowing. Japan, for example, might ask for $100 million US Dollars in exchange for an equal amount of Yen, plus a small transaction fee (half of 1%). Putting dollars in Japanese banks guarantees they and their customers can do transactions easily with US firms. Pretty much standard operating procedure.



Except when it comes to Euros.



The EU has multiple problems, one of which is their rigid stance to keep inflation low. In other words, they donít want to print money by the boatload as it would spike inflationary forces. So they turn to the US, who has no problem whatsoever printing money by the boatloads. Using currency swaps, the EU can increase the money supply in Europe without spiking inflation. The US gives them a sweetheart deal on exchange rates and dollars flow into EU banks, pumping up their balance sheets.



Itís kind of like Obamaís sweetheart deal on his house in Chicago. The house might be worth a million dollars but he picked it up at a bargain basement price of $ 600 K. The minute he moves in Obama has an instant $ 400 K in equity. Same thing with currency swaps if you get the bargain basement price.



Now the US could simply loan the money to the EU, but that would make the natives restless. So they use this under the table method instead.



And that is why Bernanke insists on secrecy.



If Joe Six-Pack learns that the reason the price of groceries has skyrocketed is due to the Fed bailing out EU banks he just might get a little restless. And to be fair, there are many reasons prices for all types of goods have skyrocketed, the Fed is just one of them. Still, it is easy to rile up the masses when you show them how easy it is to connect the dots.



And it would make an ideal campaign issue for Team Romney.


I was with you until the last sentence. In times like these, fairy tales do provide some relief for those seeing what is going on.



But, I'd bet the farm that you won't hear a peep from Team Romney on this issue.
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Old July 19th, 2012, 02:38 PM   #6
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Quote:
Originally Posted by imaginethat View Post
But, I'd bet the farm that you won't hear a peep from Team Romney on this issue.


I tend to agree with you.
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