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Put Up or Shut Up: Ron Paul Is Now Out Of Excuses

• Market-ticker.org
 
Representative Ron Paul, Texas Republican and author of “End the Fed,” will take control of the House subcommittee that oversees the Federal Reserve. House Financial Services chairman-elect Spencer Bachus, an Alabama Republican, selected Paul, 75, to lead the panel’s domestic monetary policy subcommittee when their party takes the House majority next month, the committee chairman said today. Good. I've sat through years of watching Mr. Paul during Humprey-Hawkins "testimony" where he has spent most of his alloted couple of minutes railing about the gold standard and inflation, never putting forward to Mr. Bernanke - or anyone else - an actual question that can be answered, or allowing the deponent to prattle on with abject nonsense. The excuse of "limited time" and "mission creep" is now gone. Here's the problem, as I see it. Mr. Paul has an allegedly-laudable claimed goal - ending The Fed, or at least shackling its excesses and outrages. But he hasn't done anything with this goal, despite multiple years of attempts, other than filing his "End (or Audit) The Fed" bill every session. Yes, there was some traction this last legislative session with that, and part of it got into Dodd-Frank. And yes, legislation is the art of making sausage - and it's pretty messy. But that doesn't change the fact that the most-outrageous acts are not about audits at all, but rather intentional blindness when it comes to supervision and allowing essentially-unlimited leverage to be taken by institutions doing knowingly-unsound things. Such as, for example, having 80% of your loan production be unsound - which we now have under oath testimony on related to one of the TBTF banks under the Fed's putative "supervision." Then, as Janet Tavakoli put forth in withering detail yesterday, you have the essential characteristics of a Ponzi Scheme, where a more-and-more frenzied pace is necessary to maintain the pyramid as the top of the inverted cone becomes heavier and heavier - lest it all collapse. And Janet did not mince words - she essentially charged criminal conduct occurred and that an organized cover-up was perpetrated. But perpetrated on whom?

3 Comments in Response to

Comment by JT Williams
Entered on:

Ron Paul calls out the criminality all the time. How to go about exposing it is another matter completely. He has already said he doesn't want to subpoena private individuals (which is good in theory). The fact is- the banks lobbied for the laws in place currently. For all we know, the complexities of the "financial instruments" we are talking about (regardless of their lack of soundness, fairness, etc) may be completely legal under current law. With all the market manipulation, insurance fraud, computerized high frequency trading, bundling and reselling of worthless assets- it points to systematic corruption of the banking and insurance sectors. Experts have claimed that the technology has been far ahead of regulation, and we all know that the system went rogue after the elimination of Glass-Stighull. 

The subcommittee will eventually need to focus on systemic corruption, to hopefully inform the public that the necessary reforms must be vast. But to preemptively strike out at the man who has done more than anyone to fight the Fed is outrageous!


Comment by Sam Weathersby
Entered on:

OK, Ron Paul is in a position to do some thing about the 'Fed'.

What I am wondering is that before he even has had a chance to do any thing why there are so many who are jumping his case BEFORE the fact. I would recommend waiting till he ACTUALLY does nothing before we get all the negative thoughts.

Those who put Ron Paul down would do well to put up some citations. Other wise we are going to have to put up with more lame stream prog style Palinization. I for one am really weary of all the accusations that have no proof with them. I am NOT interested in your speculations. I AM interested if you actually have something to say that reflects something verifiable. The Rules For Radicals play book has no place in open & HONEST  discussion!

Before attacking Ron's voting record for example: how about you actually read about it first?

SamFox

Comment by Anonymous
Entered on:

What's reality about the Fed is only in the eyes of the beholder. Nothing is real in the eyes of the consumers. Mark my words. I could write more about this, my academic baby to inform you further, but it is no go at FP.com.

The shooting characters ... how qualified are they to shoot and hit their mark ... and the songs they sang are all in this political broadway that entertains you and me. By the way, Dr. Ron Paul, M.D. to head the fiscal sub-committee that would teach the Federal Reserves a lesson to improve their banking expertise on fiscal and monetary economics is homebased in this website. Ridiculing him as a talking parrot as this "shut up, Paul" admonition suggests is inviting a swarm of butterflies that sting like a bee, of course other than pushing the delete button for the author never to be seen or heard again.


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