Show: Your World with Neil Cavuto
Channel: Fox News
Neil Cavuto: Man oh man, a busy day for Ben. Time, Magazine picking the Fed head, Ben Bernanke, as person of the year. The Federal Reserve today deciding to leave interest rates at near 0%. My next guest is fed up with Bernanke and the Fed, and just fed up with these guys who are just spending a lot of money on financial rescues. He says don’t rescue. Republican Congressman, former presidential candidate, Ron Paul, is joining me now. The name of his book says it all: “End the Fed”.
So, congressman, what did you make of Time making him person of the year?
Ron Paul: Well, I don’t find it offensive. I mean, they pick people who are very important and instrumental. And he certainly has been. He is an individual who in the past year has been able to counterfeit a lot of money, more than any other one man ever did in the history of the world. And he’s inherited a system that’s very secret; we don’t know what he does. He’s more powerful than the president. The president has to at least come to the Congress for the money and we can have a little oversight on the president. There is no oversight [on Bernanke], this is done in secrecy. The Federal Reserve board chairman can increase the money supply and pass it out, and nobody is allowed to know. So I say he is very, very important and why I like this is that the people are putting their attention toward the instrument of inflation and the business cycle. So I want people to look at the Federal Reserve.
Neil Cavuto: You know, congressman, you’re a great student of the Fed and have been great critic since the time of Greenspan and before. But for a lot of people this cover story will be their first exposure to the Federal Reserve and what the heck it does and how secretive it is, and that it’s a very powerful institution. You say too powerful and spending too much money, right?
Ron Paul: Right. And it makes people wonder about the whole idea of a Federal Reserve System and fiat money and they will come around to thinking because millions of people have already come around to understanding how the Federal Reserve creates the business cycle, how they create the bubble which leads to the inevitable bust. So Bernanke came in two and a half years before the bust. But he never told us there was a bust coming. He hardly can become the man of the year because he saved us from something. He gave us something, he didn’t warn us. And now he says the recession is over. At least the people think he is such a genius that he has ended the recession and he prevented something much, much worse.
Neil Cavuto: But congressman, Time Magazine’s argument is: “Boy, we’d be in really deep trouble if he didn’t do what he did”. There is no way to prove that, of course. But what do you make of that argument?
Ron Paul: Well, I think it means they don’t quite understand what’s happening. Because to me it’s a lot like a drug addiction and the person who gets a fix feels better. We’ve been addicted to big spending, deficits, inflation and Federal Reserve easy money. I mean, the crisis came because we had easy money for too long and artificially low interest rates. How does Bernanke say we’re supposed to solve this? Easier money. Lower the interest rates. Keep them [low] forever, double the money supply. It’s really quite bizarre that the people believe that this is a solution and it just really emphasizes the beginning of a different problem, and that is the destruction of the currency. That’s what he is ushering in. So, maybe next year he’ll be man of the year too when the dollar goes really down and prices really soar. You know, we had a hint of what’s coming. A 1.8% increase in producer prices in one month. That just might be a slight hint of what’s coming.
Neil Cavuto: Very good point, congressman. Maybe next year you’re on the cover of that magazine for warning about all this. Congressman, always good seeing you. Thank you.
Ron Paul: Thank you.