QE2: The Fed’s Last Stand?

85 Responses



The World Shorts the Dollar

by Ron Paul

A remarkable confluence of recent events has brought unprecedented but very welcome attention to both U.S. monetary policy and the global political economy in general.

First, Federal Reserve Board Chairman Ben Bernanke recently announced that the Fed would embark upon another round of monetary easing by purchasing $600 billion worth of U.S. Treasury debt. This amounts to an admission that markets have run out of patience with our profligacy, and therefore our own central bank literally must serve as the buyer of last resort for Treasury debt.

Second, World Bank president Robert Zoellick openly suggested that gold could play a helpful role in the global monetary system by serving as reference against more volatile fiat currencies. This is almost heresy coming from a neoconservative globalist like Mr. Zoellick. It hints at an obvious but unspoken truth that is anathema to politicians and central bankers alike: namely, that gold could be viewed as…. money!

Finally, Mr. Obama attended the G20 summit in South Korea last week and found a very chilly reception for his vision of American economic policy. Mr. Obama argued for continued worldwide stimulus, via continued debasing of the U.S. dollar, to bolster American exports. Several powerful European and Asian finance ministers, however, rejected this approach out of hand as nothing short of a currency war. They are committed to austerity measures at home, and don’t want to let the U.S. simply monetize its past sins at their expense.

All of these events culminated in a tremendous amount of political and media scrutiny aimed the Fed. Ordinary Americans are demanding answers and accountability, and they are putting heat on their political representatives in Washington to end the cozy “independence” from congressional oversight the Fed has enjoyed for so long.

In the 35 years I have been studying, speaking, and writing about monetary policy I have never before seen Congress or the financial press pay much attention to the Fed. Monetary policy has always been considered boring on Capitol Hill, something left to remote policy wonks far away from the din of presidential or congressional politics. Congress always has been eager to leave Fed governors well alone, with no oversight or accountability, as long as they played along and papered over the growing budget deficits.

But it’s amazing what a global economic meltdown will do to the political and media landscape. In just two short years, the Fed has become the hot topic and a lightning rod for criticism. While it is gratifying to see so many formerly uninterested politicians, economists, talk show hosts, and pundits suddenly rally to attack the Fed, one can only wonder whether they truly understand that central banking is inherently incompatible with our Constitution and a free market economy.

In other words, it’s not enough to show outrage at the latest Fed action or argue about the relative merits of Mr. Bernanke compared to his predecessors. To reclaim our dollar and our economy, Americans must oppose central banking per se. Fiat currencies cannot be “reformed” or “managed”. They are fundamentally subject to ruinous debasement courtesy of the political and economic ruling class. History shows that this is true in all nations at all times.


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85 responses to “QE2: The Fed’s Last Stand?”

  1. D.

    Please read everything you can at Global Research.ca

    This should be of particular interest to Dr. Paul and all other members of congress:
    http://www.globalresearch.ca/index.php?context=va&aid=21880

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  2. D

    Implications isn’t going to be pretty but were heading that direction anyway so might as well and face all this head-on. Think global.

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  3. osgeek

    Wow. An actual example of someone more concerned with the presentation than the actual message. How very shallow and hateful of you. The sound could be improved, but seriously? That’s the first thing you think to attack?

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  4. D.

    TO: fra59e –

    QE2 stands for Quantitative Easing, 2nd round. Search it.

    The monarch!!! The ship!!! Oh good grief.

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  5. fra59e

    Interesting, but what does it have to do with QE2, either the monarch or the ship?

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  6. lomocan

    “Paper money eventually returns to its intrinsic value — zero.”
    - Voltaire

    The sooner the people realize this very truth the better for them, prophetic words which a lot of the world’s people staunchly believed in & then paper-money banking-cartels took over, caused wars & bought politicians/governments were bought & people didn’t oppose the system but hopefully, now they will wake up to that

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    1. D

      That is true, we don’t realized that it is slowly happening and we ignore the fact that it has happened to other countries already. Since USD is the currency reserve is the reason why majority of the politicians don’t want to abolished the Federal Reserve. Also, USD is the currency reserve that affects all the prices globally. Global events are connected to this flawed system affecting everyone, not just the US but other countries as well. It is a domino effect. The system is eroding moral values.

      »crosslinked«

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      1. D

        The whole system is getting ready to expire and the way to continue would be to understand the very basic that we need, not the want, not the desires but the one thing the we truly do everyday. The complexities today is blinding us, but the very basic that we do everyday is that we eat. Look at the big picture and think global. We are not living in a Sims City that when you click something to make changes that it would just show up like mushrooms and everyone is happy, there are implications. Look back to the very basic and don’t be blinded by your portfolio. We need to think about other people and not just the people here in the US. The true meaning of all the words has turned into survival nowadays that which nature dictates.

        “When the true meaning of the words starts to fade is when everything fades as well.”

        -unknown-

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  7. Coquina

    We have another chance to learn about the truth. This man is the most knowledgeable of any one it the congress and etc. He has tried to get the truth out two times. Wake up and listen to what he says. Pass his knowledge on to every one you know. Lets tell the news media to publish the truth.WE NEED TRUE FREEDOM> GOD BLESS

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  8. trexx32

    regulated they need to be eliminated

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  9. thinkrevolution

    RonPaul2012store . com

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  10. billtorny

    Feds have gotten out of control. They need to be regulated and given less powers.

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  11. legalizeliberty

    Down With Fascist NWO Tyranny!
    visit LibertyPoet
    website

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  12. animalattacksvideo

    Free markets? These crackhead don’t know economics, he knows the penis cause he a doctor!

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    1. SSDD

      You obviously don’t know English because you’re an idiot.

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  13. animalattacksvideo

    Ron Paul’s videos do suck. I can’t vote for a man who can’t produce a simple video. He won’t be able to fix f..ked up America! So Ron Paul don’t got my vote. Sounds like he talking thru a door or something. Can’t hear the motherf..ker!

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  14. animalattacksvideo

    Ron Paul are you for masterbation?

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  15. animalattacksvideo

    Ron Paul, do you masterbate?

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  16. czubspenx

    What would things be like now if it weren’t for Ron Paul? He is the man!

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  17. LoveHolsters

    Ron Paul needs good sound, let’s up our game on the video’s for Ron Paul.
    Dr. Paul if you need a good team for your video editing and sound just say the word. The public has your back. if we get the chance again, there wont be one of the most successful grassroots campaigns and Ron Paul Money Bomb, this time we will blow the lid off of it in the name of Freedom and Liberty for all. Last time. I gave a paltry poor mans donation, I am still poor but $25.00 last time,$250.00 this time,count on it

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  18. Jakearoo14

    sad thing is the heart stopped beating a while ago

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  19. Zombienationlive

    If prisonplanet.tv uses such weak security, was Alex Jones himself attempting to mine people’s passwords, perhaps to turn in their personal information to the government?

    Is Alex Jones running a massive data mining operation for the government?

    This is one of the simplest hacks that anyone can achieve. Only amateur programmers would allow such a flaw.

    Was this leak an inside job?

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  20. Zombienationlive

    If prisonplanet.tv uses such weak security, was Alex Jones himself attempting to mine people’s passwords, perhaps to turn in their personal information to the government?

    Is Alex Jones running a massive data mining operation for the government?

    This is one of the simplest hacks that anyone can achieve. Only amateur programmers would allow such a flaw.

    Was this leak an inside job?

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  21. Zombienationlive

    If prisonplanet.tv uses such weak security, was Alex Jones himself attempting to mine people’s passwords, perhaps to turn in their personal information to the government?

    Is Alex Jones running a massive data mining operation for the government?

    This is one of the simplest hacks that anyone can achieve. Only amateur programmers would allow such a flaw.

    Was this leak an inside job?

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  22. JDLUTZ2007

    Ben Bernanke disliked this video.

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  23. uturniaphobic .

    I don’t call it “stimulus” anymore.
    CLEAR!…..BZZZZZZZT …hmmmm CLEAR!…. BZZZZZZZZZZZZT!

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  24. uturniaphobic

    I don’t call it “stimulus” anymore.
    CLEAR!…..BZZZZZZZT …hmmmm CLEAR!…. BZZZZZZZZZZZZT!

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  25. killergames187

    This man is smart and we need more people like hem!Think you Mr.Paul!!!!

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  26. Kyle Hul

    That WILL NOT work in a free market economy. Nor would anyone want it to.

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  27. kylhul81

    That WILL NOT work in a free market economy. Nor would anyone want it to.

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  28. Kyle Hul

    You can’t eliminate government. That’s a stupid statement. There has to be some sort of law and order.

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  29. kylhul81

    You can’t eliminate government. That’s a stupid statement. There has to be some sort of law and order.

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  30. klscott5

    All four of our assassinated Presidents were against the Rothschild’s central banks. Lincoln,Garfield,McKinley, Kennedy, Even Tyler recieved 100′s of assassination threats for his veto.
    First Bank of the United States,
    Second Bank of the United States
    Fed. Resv.
    All have one common factor, Rothschilds

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  31. klscott5

    All four of our assassinated Presidents were against the Rothschild’s central banks. Lincoln,Garfield,McKinley, Kennedy, Even Tyler recieved 100′s of assassination threats for his veto.
    First Bank of the United States,
    Second Bank of the United States
    Fed. Resv.
    All have one common factor, Rothschilds

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  32. klscott5

    All four of our assassinated Presidents were against the Rothschild’s central banks. Lincoln,Garfield,McKinley, Kennedy, Even Tyler recieved 100′s of assassination threats for his veto.
    First Bank of the United States,
    Second Bank of the United States
    Fed. Resv.
    All have one common factor, Rothschilds

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  33. kihjin

    Who decides what the threshold is? You make a lot of assertions, for example, that a threshold would “eliminate alot of this madness”. What madness, specifically, and how would it eliminate it? Monopolies are government grants for production. The way to eliminate monopolies is to eliminate government grants for production. The way to eliminate corruption is to eliminate government, because without government, corrupt businesses would not prosper.

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  34. RepentAndBeRaptured

    What we need to do to eliminate the corruption is simple tax all assets over a certain threshold. 100% of assets over 1billion dollars for instance would eliminate alot of this madness. It would also stimulate the economy through ineffiencies. It would eliminate monopolies. It would open up new opportunities for all americans. Consider microsoft with its tens of billions in revenue if it was limited to 1billion in assets how many more operating systems would there be?

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  35. 18bcarlsonify

    I think the best way for congress to show its disapproval of what the fed has done is by taking the ability away for the fed to have control over its own budget. Then slowly remove some of the fed’s responsibilities so that it does less. Finally Congress should impose consistent operating manual. But again what do I know. I am no economist, but I do think that a central bank, depending on how its ran, can be compatible with the Constitution.

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