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The Joke’s On You, Ron Paul

March 16, 2011

While I was initially mortified when Rep. Ron Paul (R-TX) was tapped to Chair the House Financial Services Subcommittee on Domestic Monetary Policy, lately I’ve been laughing that I ever would have worried. These days, I’m thinking the joke’s on Mr. Paul:  GOP leadership doesn’t want to actually reform the Fed, so they went ahead and made Ron Paul Committee Chair. Why? Because they know his chairmanship ensures they won’t have to deal with any serious effort to reform the Fed. Paul will just keep tilting at the windmills of conspiracy theory.

How can I be so certain that Paul’s not to be taken seriously? Well, let’s take a look at the committee hearing he’s holding tomorrow for a lesson. Paul seems excited about it, though,  even tweeting yesterday:

The rest of us, however, may not be so excited. The hearing will have a total of three witnesses: Joseph Salerno Lewis Lehrman and James Grant. To the man, every one of them supports a return to the gold standard.  The GOP seems more than happy to allow Rep. Paul to run his little hearing in a vain attempt to return us to the 1920’s. This dream is going nowhere, but serves the purpose of diverting attention from any real reform at the Fed – and that’s just the way the GOP and their wealthy backers like it.
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3 Comments leave one →
  1. Jesse permalink
    March 17, 2011 4:44 pm

    Congressman Paul has many articles and speeches, but here is an outline that should probably be read by anyone who claims that the goal is to go “backwards” in time.

    The Political and Economic Agenda for a Real Gold Standard
    http://mises.org/daily/2826

    “Banishing inflation is, in fact, the ultimate objective we expect to achieve by creating a new gold standard. The US government has moved so far in the direction of fiscal irresponsibility that the reform of our basic monetary and financial institutions has become much more complex. For political reasons, ending inflation cannot be the “first” step. We must subdivide it into many smaller preparatory steps even to approach the task.”

  2. Jesse permalink
    March 17, 2011 4:36 pm

    The 1920s? Do you even know when the Federal Reserve came into existence?
    Let’s ask Mr Bernanke what his research shows regarding pre-Federal Reserve:

    “The gold standard appeared to be highly successful from about 1870 to the beginning of World War I in 1914. During the so-called ‘classical gold standard period, international trade and capital flows expanded markedly, and central banks experienced relatively few problems ensuring that their currencies retained their legal value.” – http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm

    Bernanke explains in detail that the US economy was destablilized due to mismanagement, not because of the gold standard. There is agreement on such generalizations, but the significant differences between Paul and friends versus Bernanke and friends arise out of the more fundamental understanding of money and economic theory.

    This is nothing to scoff at.

  3. LJSearles permalink
    March 16, 2011 4:54 pm

    Also, attention from lack of jobs legislation

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