Wednesday, December 15, 2010

[Video] CNBC - Ron Paul v Ben Bernanke ... Prepare for Thunderdome

One of the most eagerly awaited developments in 2011 for certain fiscal conservatives is the appointment of Ron Paul to head the House's subcommittee on monetary policy.  Paul is extremely libertarian and in many ways for a few decades represented a large part of what the Tea Party has tried to grab hold of lately.  After being a 'lone wolf' for a long time, suddenly quite a few are coming around to his way of thinking.  With most politicians being attorneys and having little to no economic training or knowledge (with sometimes embarrassingly vacant questions during these hearings), Paul's commentary during any Fed hearing is always compelling, but having the gavel should make for 'must watch' TV.  Anyone who has written a book called "End the Fed" - and who then has oversight over the organization, certainly is going to create some interesting moments - although I am still doubtful much will change; too many powerful interests demand the status quo.

Ron Paul was on CNBC yesterday and the opening line of the questioning explains in a nutshell why we're going to have some fun video in 2011.

Maria B: "So you've written a book titled 'End the Fed'.  Do you still want to eliminate the Federal Reserve?"
Paul: "Oh sure, but I think the Fed will end itself before I'm able to do it."

8 minute video

(one interesting side note - I often mention how the government has massaged statistical inputs in their economic reports, so that the outputs better fit into the story they are telling us; usually I use labor statistics but inflation statistics is another place a host of changes have been made.  Paul says if we used the 'old version' of CPI we'd be printing 4% consumer inflation rather than much more convenient 0.3-0.5% or whatnot. With the cover of 'there is no inflation' Ben can keep doing his QE and 0-0.25% fed fund rates thing, and the government can save some sheckles by not handing out cost of living adjustments to seniors.)

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