QE2: The Fed’s Last Stand?

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.

  • legalizeliberty

    Down With Fascist NWO Tyranny!
    visit LibertyPoet
    website

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  • animalattacksvideo

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

    Like or Dislike: Thumb up 0 Thumb down 4

    • SSDD

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

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  • 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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  • animalattacksvideo

    Ron Paul are you for masterbation?

    »crosslinked«

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  • animalattacksvideo

    Ron Paul, do you masterbate?

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  • czubspenx

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

    Like or Dislike: Thumb up 2 Thumb down 0

  • 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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  • http://www.youtube.com/profile?user=Jakearoo14 Jakearoo14

    sad thing is the heart stopped beating a while ago

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  • http://www.youtube.com/profile?user=Zombienationlive 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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  • http://www.youtube.com/profile?user=Zombienationlive 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?

    Like or Dislike: Thumb up 0 Thumb down 0

  • 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?

    Like or Dislike: Thumb up 0 Thumb down 0

  • JDLUTZ2007

    Ben Bernanke disliked this video.

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  • http://www.youtube.com/profile?user=uturniaphobic. uturniaphobic .

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

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  • uturniaphobic

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

    Like or Dislike: Thumb up 0 Thumb down 0

  • killergames187

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

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  • http://www.youtube.com/profile?user=KyleHul Kyle Hul

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

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  • http://www.youtube.com/profile?user=kylhul81 kylhul81

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

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  • http://www.youtube.com/profile?user=KyleHul 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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  • http://www.youtube.com/profile?user=kylhul81 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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  • http://www.youtube.com/profile?user=klscott5 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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