Is Ben Bernanke the World’s Greatest Counterfeiter?

Channel: Fox Business
Date: 12/16/2009


Jenna Lee: We’re joined now by an outspoken citric of the Federal Reserve who has been calling for its audit. Republican Congressman Ron Paul of Texas is with us for his take on all of this. I have to first ask you about this Person of the Year choice. Here’s what Time said, Congressman Paul. They said that he basically didn’t just learn from history, he wrote it himself. Do you think that he deserved this honor today?

Ron Paul: Oh yes, he deserves the honor but for a completely different reason. I find that Bernanke is the greatest counterfeiter in the history of the world. He has created new dollars out of thin air more than anybody else, and we happen to have the reserve currency of the world. So he was a participant in the grand bubble. He’s responsible for the crash. He didn’t save us, this thing isn’t even over yet. So I don’t see him as being a savior. He’s the participant and he is a counterfeiter. And for this reason he is the most powerful man in the world; he is more powerful than the president.

Jenna Lee: Congressman, one of the things that Time did point out was that he did make sure that the system had lots of excess liquidity. Yes, the dollar is under pressure and I know that bothers you, but at the same time we did not go into another great depression. And we are technically out of a recession now in this country. You don’t want to give him any credit for any of that, sir?

Ron Paul: No, it’s temporary. We might be in 1931 or 1932, so hold on to your chairs and hang on to your hats because it’s not over yet. And he himself was in office for over 2 and a half years before the crunch. Go back and read all his statements. He said everything is going well. Did he take over the chairmanship and say, “Oh, Greenspan inflated too much, he created this bubble, and we need to protect ourselves and prevent a crash”. No. He continued the process, he allowed the crash to occur. And then the very cause of the crash – he doubled that effort. Too much inflating of the money supply was the cause. So what did he do? He inflated even more and more. There should be a picture on Time Magazine with him flying a helicopter pushing out money. Because he’s known to saying that; he’s Helicopter Ben. I mean that would have been a great picture, and I would say, “Yes he deserves every bit of it”.

Jenna Lee: Congressman, my colleagues here have a couple of questions for you. Gentlemen, go ahead.

Michael O’Rourke: Congressman, this is Michael O’Rourke. What Ben Bernanke did is traditional central bank practices. Alexander Hamilton, as the first security of the Treasury, did many of the same things that Ben Bernanke has done. I’m taking you have a problem with Hamilton as well then?

Ron Paul: Oh, certainly. Because I would have been with Jefferson. I would have be arguing on the side of Jefferson who ended the first central bank, ended the first national bank, which was Hamilton. So yes, it started all with Hamilton, but the Constitution was still on the side of Jefferson; that we weren’t to have a central bank. There is no authority for a central bank. Only gold and silver can be legal tender. We shouldn’t be running up these deficits and running up this borrowing. We can’t even borrow the money, so we print the money. It’s insane.

Gregg Jarrett: Congressman, you also make a pretty startling claim in your weekly column. I am reading it right here: “The Fed used its immense power to help elite friends”. Who?

Ron Paul: It sure didn’t help the homeowners, it sure didn’t help the people who lost their jobs. But it sure helped Goldman Sachs and other companies that got bailed out, and the big banks.

Gregg Jarrett: If those companies and banks hadn’t been bailed out, weren’t we looking at something that would have badly injured the world economy and caused, perhaps, a great depression instead of a recession?

Ron Paul: Well, you’re postulating.

Gregg Jarrett: Well, aren’t you?

Ron Paul: Like in the 1930s, we prolong the agony. Well, it all depends on what economic policies you understand. But no, we’re prolonging the agony, we’re doing exactly the wrong things. We did this in the depression and it doesn’t solve our problems. So I would say that there has been no success. It’s like you say that a patient comes to me be and they’re a drug addict and having withdrawal symptoms. And I’ll say, “No sweat, I can take care of it. Here, I’ll give you the drug injection.” And the patient walks out feeling pretty good. The problem is still there. The problem is still there, and that’s what we’re in denial about.

Jenna Lee: Well, I want to move away from this real quick. I want to bring in our correspondent, Peter Barnes, who is also in Washington where you are. Peter, you know, Congressman Paul has been very vocal, he wants more auditing of the Fed. But Mr. Bernanke, even I believe yesterday, was still giving statements to Capitol Hill saying that he believes that the Fed does need more power. He wants to protect the power of the Fed. Isn’t that correct?

Peter Barnes: Yeah, and I’d like to ask Congressman Paul while we’ve got him here because let’s talk about practical politics here. Now the nomination is going to be voted out of committee tomorrow by the Senate Banking Committee. And then it will go to the senate for a vote, probably in January. And there are several co-sponsors in the senate for Congressman Paul’s legislation to require more audits of the Fed, including audits of monetary policy. It would pass in the House tomorrow; Congressman Paul has 350 some co-sponsors. And in the senate it hasn’t been given much of a chance until now, because we have several senators who are threatening to filibuster Chairman Bernanke’s nomination vote in the full Senate. And the price of allowing the vote to go forward maybe a vote on Congressman Paul’s legislation in the senate. Congressman Paul, what’s the outlook in the Senate for your legislation?

Jenna Lee: Let him respond.

Ron Paul: Well, first off, it has already passed the House, it passed the committee and it’s in that banking bill. So the auditing of the Fed is in the house bill. So in the senate, no it’s a lot more different. The senators aren’t as responsive to the grassroots. This is a grassroots movement. And this is the way it’s been in the past. The grassroots usually rebel against fiat money and inflationism because the people want value in their money and they don’t want to lose their jobs. So they’re the ones who have rebelled and the senators aren’t that responsive.

I think Bernanke will end up being nominated. If I were there I’d vote against him. But I’d also make the point that that’s not really the discussion. The discussion is should we have a secret bank fixing interest rates and trying to do central economic planning with no oversight of the Congress, giving us these financial bubbles. Everybody talks about Bernanke and what he did to, maybe, soften things a little bit as of the moment. But nobody asks, how did the bubble occur? Where did the housing bubble come from? Where did the NASDAQ bubble come from? Where did the stock market bubble come from in 1929? It’s all from the Fed, and that is what we have to direct our attention to, otherwise we’ll repeat this over and over again. But unfortunately it won’t be as easy to reflate this bubble, because right now what we’re gang to do is work on the destruction of the dollar. And that’s another problem and it’s much bigger.

Jenna Lee: Congressman, we don’t have a lot of time with you, but we have another question for you here in New York.

Person in New York: Congressman, in principle I agree with you on many issues as far as how we got here, as far as Fed policies in the past. But going forward, is this the correct way? Because I think you’re risking… You think any Fed chairman is a bad Fed chairman, I would say based on the way you talk and that you don’t want the Fed to be there. So are we risking taking the independence of the Fed and putting it in the hands of Congress where you have legislators driving monetary policy in this country? And I guess my point is, in practice are you taking your own beliefs and making the situation worse?

Ron Paul: Well, that’s a total misinterpretation of what the bill does. And, of course, that’s what Bernanke says it does, but it doesn’t. It excludes any control of the Congress over monetary policy. Otherwise I couldn’t have been able to get 317 co-sponsors, because I don’t want to run monetary policy here. And we wouldn’t agree on it anyway. So that is not the issue. The issue really is how much responsibility does the Congress have over the Federal Reserve that can create money, make loans, make deals, have agreements with central banks, have agreements with other governments. That is the whole issue.

Jenna Lee: Alright, Congressman, real quickly before I let you go. It’s a very busy day in the house today. Got a lot of votes and they’re happening right now. Particularly where are you guys and gals?

Ron Paul: Well, right now we’re just doing a lot of cleaning up. We did not get to the medical bill. We have to do things like adjournment votes and a few things like that. But no, there’ll be a lot of votes and I suspect we’re going to be there late tonight.

Jenna Lee: Alright, Congressman Ron Paul from Texas. Congressman we always love having you on Fox Business. We have to see you again sir, thank you.


  • Redfish

    Fantastic new interview on Larry Kings show. Mr Paul is exactly right. How many bumper stickers did we see during Bush’s presidency that said “Bush – Busy raising new terrorists for the next generation”. What will happen is, for the sake of safety all out constitutional rights will be taken. Whatever happened to that age old saying “If someone wants to get you there’s no way to stop them as long as they’re willing to lay down their life for yours”. Look at JFK for instance. You can’t stop them and trying to just creates more terrorists and anger. Diplomacy is what’s needed. What we need to fear is what we’re creating. Another tried and true saying “Be careful when fighting monsters that you don’t become one”. That really also fits. There is time to turn this around.

    BTW, Bernacke kept quoting Taylor in his recent speech in defense that rates had nothing to do with the melt-down. Taylor comes up and says Bernacke isn’t telling the truth. HAAA!!

  • Wondering

    i didnt understand what was the point…. abt WHO else could keep managing our policy monetary when we get rid of FED. Should be the Congress controling our money? Who shld be in charge of? Can anyone explain this to me?

    • Thomas Tang

      Wondering.We do not need a central bank.The wealth exists already in people’s minds,labor and aspirations.Community banks,credit unions are the way to go.Money creation can happen with many independant agencies,we just need rules to make sure they don’t produce too much of it.



    People must indeed, awaken their fellow man to the Federal Reserve’s racketeering scam and stop them.

    Stop any further world war on Iran, stop the Israel Military Industrial Complex, and lay the Federal Reserve on the guillotine!!!

    I envision an America that is free of blood and corruption for the most part, an America FREE of the completely vile Federal Reserve system!!!!

    Onward, free our currency from slavery!!

  • Siegfried

    How it Works…And the Solution
    Imagine a giant FED Musical Chair game, the FED starts the music playing (Low Interest Rates) and starts throwing in a huge number of chairs (Massive Credit Expansion via 1% Fractional Reserves Requirements through Member Banks), adding more and more credit chairs to entice the people to join the game. The FED keeps the music playing for 5-7 years without stop until the economy become overheated. Then suddenly without warning the FED stops the music and quickly removes HALF the chairs (slamming the Credit window shut), crashing 30% or more of the economy, while the FED and its member thieves foreclose on the spoils.
    This cyclical Boom-Bust scheme has been the hallmark of the Rothschild banking legacy starting back in 1790’s and has been the root cause of numerous wars and government financial collapses. This massive Grand Theft scheme was given a formal Government Charter back in 1913 when the Federal Reserve System was created. Ever since then, these Robber Barons (FED Reserve Member Banks) have simply Inflated and Contracted their Fiat Currency at will and have thereby systematically confiscated the people’s wealth, stripping them naked every 5-7 years, thus keeping the Common Citizen dependent on this Predatory Credit System and not allowing Private accumulation of Wealth. These thieves have used every manner of credit enticement and deceit imaginable, credit cards, Insurance Derivatives, Sweep Accounts, Member Bank Lines of Credit to keep rates artificially low to seduce the consumer into extending far beyond his/her ability to pay and always betting on tomorrow’s soup line handout.
    End the FED or at the very least, force banks to hold 100% Reserve on Demand Checking Deposits to stop this boom-bust madness.
    Ron Paul’s HR 4248 bill would allow US Citizens to use alternate, non-fed reserve note, currencies and thereby removing the garret wire from the necks of the People. I pray this will happen!

    • Jack

      Very true Siegfreid.As John Lennon said a long time ago,”It is the people who have the real power,only they don’t realise that they have it.”

      Once many in Congress realise that they too are just tools of the power brokers and that they also will expendible,perhaps we shall get some perspective on true values and the meaning of of our common humanity.

      I see distaster looming,since the egocentric lunatics will risk self destruction at the behest of their adulation of power.They are totally obsessed and infatuated by their own self importance.

      We can win via the values of truth and integrity.

  • carl speed

    good morning america!
    i just wanted to say i really pray for all of that we’re a formal socialist republic,i might not be afforded that opportunity ever again.talking about a sad day in america,thats congressional bribry,open and public theft by the feds,the greatest profits in history for wall street banksters while the rest of us lose our homes,our jobs and our friends,i love you,i respect you and i feel your pain.please,please help in any way you can that will get ron paul elected to the white house.PLEASE!my kids are holding me accountable for the demise of their future.go figure,huh.dang dare them.don’t be surprised if yours do to.i don’t know about yours but mine are very dissappointed,very upset and expect dad to fix it.thats what dads do.RIGHT DADS???????thanks./carl

  • Mike
    • General Strike to reform government starts Feb. 1, 2010

      See Sarah Plain Larry King animated video plan to end corruption in government.. Audit the Fed and all Government Officials… Cutb the size of government 35% and cut the military budget 25% and end all career politics… government service terms only one term allowed….

  • SS

    Tea partiers: America’s last best hope

  • Perception

    No. Ben is the counterfeater.He keeps one hand under the counter and performs feats of distraction with the other.

    Have they no shame? What they don’t realise is that this collapse, if executed by the powers that be,will save no one,and nuclear shelters shared by cockroaches are cold comfort.

  • Ted O’Connor

    Bubble Ben Bernackes nomination as Times Man of the Year is as rdiculous as Obama’s Nobel Peace prize. Neither deserve the honor but their readiness in accepting undeserved awards says volumes about their characters.

  • Three CNN reporters trying to probe Ron Paul.. Why is it when Obama gets interviewed he gets asked the easy “political correct”
    questions? Ron Paul there are more people then you know supporting you! I admire your courage!! everyone buy Ron Pauls new book… (End The Fed) to show your support.

  • SS

    An interview with the man who should be Secretary of the Treasury:

  • Vanwilder

    Im with you Ron!!! Keep telling it like it is… Chopper with cash shooting out the back… Couldnt have said it better myself!

  • Art

    I agree with all of you guys. I am 100% with Paul, and I support and will support Paul as much as I can. God Bless you Paul. And want you to know that we are on your side. There are even more people supporting you than you realise. Keep up with your great work, and we will follow you, and help you fighting real evil.

  • May this Fox News Scum die in hell, and it’s going to.

    Ron Paul did a very amazing interview though!

  • GB

    Don’t these people tire of trying to disprove/discredit Dr. Paul? The guy is unmoved.

  • Siegfried

    Time’s declaration of Bernanke as a Financial Savoir is proof positive of how Ignorant of Fundamental Economics they are. Ron Paul is right, Bernanke and his predecessor are being honored as Master thieves of America’s wealth while orchestrating the next big heist in plain sight.
    The FED doesn’t have to print Fed Reserve Notes anymore, they simply key stroke in another three Trillion dollars ($3,000,000,000,000.00) and hit the Enter key to cover the bad loans with more Fiat currency further diluting the Dollar into a Mexican Peso equivalent. When this bogus Three Trillion begins to circulate in the world markets, the Treasury will be forced into printing Dollars on perforated paper rolls with holes for convenient use in your home bathroom.

    • carl speed

      the fed is an illegal operation and we ALL know that.whats the real deal.when are we ALL going to grow a set and stand up.i mean really stand up?these people,with the full support of our elected official are stealing our children absolutely that ok with you?you poor gutless souls.look you kid in the eye and tell him or her how much you love them.go ahead,i want to hear this one.courage,discipline,vision.thats ron paul and that should also be us my fellow americans.god bless you all and hey!MERRY CHRISTMAS!

    • Jack

      Very true Siegfried.Counterfeit money is theft.That is why we get jailed for it.This is the mentality of those born to rule.They see it as a birth right.

      Past generations would have revolted decades ago,but modern technology/psychology have the masses seduced by their own foibles.The mass media have us entranced by image and hero worship.Our goal is to buy the corporate image so we feel accepted and secure.

      The persuit of money and not values or ethics has enslaved us.