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Articles (2012) |
When Fed Chairman Ben Bernanke address the Joint Economic Committee on April 14, Congressman Paul raised a question about the answer Bernanke gave to Congressman Kevin Brady [R-TX] about monetizing debt. The Fed is proposing training a thousand bank examiners whose job it will be to make sure the banks are toeing the line (as the Obama White House attempts new legislation to further strangle the economy) and not profiting at the expense of the taxpayers. Paul argued that whether they train one thousand or ten thousand examiners is pointless because the problem isn't the lack of examination if you don't deal with the problems that exist in the banking system. The problem, Paul said, comes from a monetary policy that doesn't make sense and gives bad information to the investor. All of the bank examiners in the world, he noted, can't compensate for this. The systemic problem, Paul noted repeatedly is the practice of creating money out of nothing by monetizing debt as if debt was an asset when every working class stiff who, due to rapidly increasing prices and increased taxes, now pays out more than he earns, understands debt is a liability. Paul said he was still trying to understand how an economy can thrive on that because it rejects every notion of free market capitalism. The core of Paul's trust was asking Bernanke how the government can promise to loan the International Monetary Fund $560 billion when the Treasury is empty and the nation is broke. In point of fact, the world is broke. The world, that is, except the IMF, which is receiving loans and grants from every nation on Earth. Why? Because as the money barons collapse the nation states, the IMF will become the central bank of the world. |
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