261 responses to “Ron Paul Asks Ben Bernanke: How Do You Define a Dollar?”

  1. MrStevieification

    Continued: The basic logic for increasing the money supply during a recession (or slow recovery) is as follows: Decreasing real interest rates increases investment. Increasing the supply of money makes money more plentiful in the economy, makes it easier to borrow money, and in the end stimulates aggregate demand, hence increasing output (GDP) in the short run. It’s a monetary tool (designed by economic models) to help counter low-GDP and high unemployment times, like now.

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  2. MrStevieification

    Continued: As for printing money: remember that printing money is only one monetary tool the fed allows us. The Fed can also decrease the money supply to keep the economy from overheating or to keep inflation under control. These things are crucial for managing effective monetary policy.

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  3. MrStevieification

    Forget about “backing the dollar”. That’s irrelevant to an economy. The only purpose of currency is to facilitate exchanges for goods and services. That’s it. Lots of people say that fiat currency has evolved starting all the way from primitive bartering systems, to exchanging claims on commodities (i.e. gold-backed dollars), to eventually people not caring about the underlying asset and simply exchanging the claim itself as currency.

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  4. chupacoto007

    cant wait for this shit to go down hill, thats the way everything is gonna get solved, there’s no other way, unless ron paul wins these elections

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  5. jase1311

    so what is the backing behind a dollar? and spending trillions of dollars to other countries whats up with that? and seeing as you like the fed reserve im assuming you like the idea of printing money out of thin air? im not really trying to be a dick i just want to know your logic behind all this

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  6. MrStevieification

    This isn’t delusion, it’s evaluation of what happened. We know two things: 1) There was a financial crisis and a recession that followed. 2) The recession ended in mid 2009 and now we are in recovery. Look at the Fed’s actions, read a basic text on macroeconomics, and you will understand what happened and why the Fed is important. I think if more people actually understood some basic economics they wouldn’t be so anti-Fed.

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  7. MrStevieification

    I might also add that these market forces for gold (supply and demand shifts) are uncontrollable and often unexpected. With the Fed, it is possible to control and calculate how much money we would like in the economy at any given time. For recessions, like the recent one, it is wise to increase money supply to stimulate aggregate demand. In prosperity, one should decrease the supply of money to keep the economy from overheating.

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  8. jase1311

    your delusional…you probably are one of those people that thinks the government cares about you. you like big government dont you

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  9. MrStevieification

    The markets are exactly what determines the value of the currency. The suppliers set wages and prices while the consumers decide how much and what to buy with those wages they get. There is absolutely no need for commodity based currency, and in fact there are very good reasons NOT to go back to that. For example, gold-backed money means that the value of your dollar is set by the supply of gold available. Hence, the value of your money is subject to supply shocks and demand shifts for gold.

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  10. MrStevieification

    The Fed fucked up big time in the Great Depression. Even Bernanke will admit this. The Fed has learned from past mistakes and does monetary policy much more effectively now. And for the recent recession, as bad as it was, it was still relatively short. Many economists will tell you that the recent recession had the potential to be disastrous, possibly as bad as the Great Depression. But the Fed and the government acted quickly to help stimulate the economy into recovery

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  11. TheFreeMentality

    What the hell is a dollar in today’s terms?

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  12. alex beldean

    Is Ben Shalom Bernakie Jewish? no wonder

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  13. muiere2

    Is Ben Shalom Bernakie Jewish? no wonder

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  14. jase1311

    it wasnt until the fed that we had the great depression and recessions as bad as now

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  15. WeveGotNoTimeToLose

    4:12 “consumers don’t want to buy gold

    SINCE WHEN WAS FREE MARKET THE BASIS OF THE FEDERAL BANK

    IMPEACH AND IMPRISON THIS SOB

    BEAT HIM LIKE QADDAFI, not justifying that but this is who should really get the bat

    The central bank is here to hold money that was supposed to be it, but they’ve ravaged the system, destroyed our currency, corrupted every aspect of our thinking, indoctrinated our youth, and starve and kill innocents in foreign land, IMPEACH EVERY MEMBER OF CONGRESS,not RON PAUL

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  16. WeveGotNoTimeToLose

    4:12 “consumers don’t want to buy gold

    SINCE WHEN WAS FREE MARKET THE BASIS OF THE FEDERAL BANK

    IMPEACH AND IMPRISON THIS SOB

    BEAT HIM LIKE QADDAFI, not justifying that but this is who should really get the bat

    The central bank is here to hold money that was supposed to be it, but they’ve ravaged the system, destroyed our currency, corrupted every aspect of our thinking, indoctrinated our youth, and starve and kill innocents in foreign land, IMPEACH EVERY MEMBER OF CONGRESS,not RON PAUL

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  17. WeveGotNoTimeToLose

    You sound smart dude, smart enough to stop defending the fed, there’s nothing constitutional about it. I’m gonna go ahead and call you a terrorist now, for defending these modern day slavemasters. Terrorist.

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  18. MrStevieification

    I don’t believe the Fed (on it’s own at least) caused the recent bubble. It may have contributed to it by not paying enough attention to what was actually going on the financial markets when setting the interest rate. But there was so much more going on that it would be ridiculous to just blame it all on the Fed. Also, there were plenty of bubbles when we had the gold standard. In fact, recessions were more frequent before the Fed and GDP was more volatile with the gold standard.

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  19. south6bt

    Maybe, but when the privately owned Fed lends trillions of dollars to the banks at 0.01% interest and then those banks lend that money to consumers at an inflated rate, failing won’t happen to those select banks that have powerful connections. They will be free to create another bubble due to the Feds ability to print money at will and bail them out. If the Fed required their currency to be backed by gold, these bubbles wouldn’t occur. Check out executive order 11110

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  20. MrStevieification

    Continued: The Dodd-Frank legislation attempts to address both of these issues in that it tries to make it so that banks can “fail safely”. What I mean by that is that the banks will be allowed to “fail” but the FDIC now has the authority to protect the depositors’ and investors’ holdings with the bank so that they can help ensure security and thus stability in the financial sector, so investor/depositor confidence doesn’t get undermined.

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  21. MrStevieification

    Well one of the primary objectives of the Fed is to provide financial stability in the economy to minimize the systematic risk in the financial markets. Bernanke recognizes the moral hazard and the problem of “too big to fail” in this context. But at the same time he realizes (rightfully) that we can’t just let the financial sector burn to the ground cause it made bad decisions since that would inadvertently affect the entire economy.

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  22. south6bt

    My argument stands, Bernanke and other “Trained” economists couldn’t see the GFC coming. In Japan they would take their own lives for such a massive stuff up. Anything that comes out of Bernanke’s mouth can’t be taken seriously anymore. Maybe you’re willing to forgive Bernanke for the GFC, but when he backs that up with a 9 trillion dollar bail out to the very banks that caused it….. The stupidity award goes to Bernanke.

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  23. MrStevieification

    So what if he predicted that bad shit would happen? That all of a sudden makes him an economist? The fact is that Ron Paul is not an economist. He’s a medical doctor. If you are trained in economics its not hard to see that what Ron Paul is saying is really, really, stupid. It’s really sad because Bernanke is trying to be polite but Paul believes what he says to the core (even if its wrong).

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  24. south6bt

    So true economists couldn’t see the financial crash coming, but the simple man could… Hmmm

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  25. tothemax01

    3:48 Lol priceless expression. ‘Ah cummon get to the point’.

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  26. MrStevieification

    Ron Paul is a simple man playing on simple minds by only thinking in Nominal terms. Bernanke is a true economist, who naturally, thinks in Real terms. :)

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  27. MrGman543

    i think Ron Paul bored him to death lol.

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  28. MueraTelevisa

    And what about the question Ben?
    What is a dollar?
    Not what people wants to buy with their money?

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  29. MrLivePositive8

    lol

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  30. dethcorebree

    he skipped around the question like everyone does such bs

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  31. dethcorebree

    wow sleeping on america this is why people need to wake up and find out the real people these media people brain wash up telling there good people.

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  32. miiikoooo

    We need to be eternally grateful to Ron Paul. He has planted the seed and there WILL be more politicians like him. The Federal Reserve are the biggest piece of shit on this planet. There is so much suppression of information limiting people from higher levels of awareness. One thing people need to realize though is that it is not just greed fuelling the fed. When you commit a transgression the size of the fed’s, they have to hide it for their survival. That is why they are taking over the world!

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  33. kylescotternest

    IMPEACH OBAMA.COM. need 100,000 to make it official.

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  34. benjamincheong

    So, what is the definition again, Ben?

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  35. Lolp821

    ‘Consumer Market’ Sounds like a fancy word for moneymaker.

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