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.
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?
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