See other Ron Paul Articles
Title: Ron Paul Wants to Stop QE3 Before It Destroys America: He May Have a Point
Source:
Policy Mic
URL Source: http://www.policymic.com/articles/1 ... america-he-may-have-a-point%3E
Published: Sep 21, 2012
Author: Chris Miles
Post Date: 2012-09-23 15:05:28 by X-15
Keywords: None
Views: 266
Comments: 10
Ron Paul will try and batter down QE3 today. And he’s on a mission. The Texas congressman, who is a fierce critic of the government’s hand in the free markets … and by default the Federal Reserve and any decision it makes …, announced that as the chairman of the Domestic Monetary Policy and Technology Subcommittee, his subcommittee would hold a hearing to examine the effects of the Federal Reserve’s interest rate policy on the American people. In typical flamboyant Ron Paul fashion the hearing is entitled “The Price of Money: Consequences of the Federal Reserve’s Zero Interest Rate Policy.” It will be held on Friday at 9:30 a.m. Witnesses scheduled to testify include James Grant, editor at Grant’s Interest Rate Observer, and Lewis E. Lehrman, the senior partner of L.E. Lehrman & Co. Paul has previously said that Quantitative Easing ... also known as QE ... is a "detachment from reality" and that the Fed plan won't work. The Federal Open Market Committee last week announced the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions, will keep interest rates at zero percent until at least 2015, will make additional purchases if the employment picture doesn't improve, and in general will maintain a stimulative policy for a "considerable time." The announcement sent stock and commodities prices soaring, and the U.S. dollar plummetting, as the Fed gave a clear indication that ZIRP (zero-interest rate policies) and monetary stimulus will be the new normal going forward. Although the announcement would seem to fall short of the expectations many had — that the Fed would make asset purchases totaling upwards of $400 billion over the coming months — the open-ended nature of the Fed's latest action makes it clear that more monetary stimulus is not only possible, but probable. So what exactly did the Fed do ... what is this whole policy all about? Well, Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions with newly created money, in order to inject a pre-determined quantity of money into the economy. This is distinguished from the more usual policy of buying or selling government bonds to keep market interest rates at a specified target value. Quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield. In response to today's announcement from the Federal Reserve, Congressman Ron Paul issued the following statement: "No one is surprised by the Fed's action today to inject even more money into the economy through additional asset purchases. The Fed's only solution for every problem is to print more money and provide more liquidity. Mr. Bernanke and Fed governors appear not to understand that our current economic malaise resulted directly because of the excessive credit the Fed already pumped into the system. "For all of its vaunted policy tools, the Fed now finds itself repeating the same basic action over and over in an attempt to prime the economy with more debt and credit. But this latest decision to provide more quantitative easing will only prolong our economic stagnation, corrupt market signals, and encourage even more misallocation and malinvestment of resources. Rather than stimulating a real recovery by focusing on a strong dollar and market interest rates, the Fed's announcement today shows a disastrous detachment from reality on the part of our central bank. Any further quantitative easing from the Fed, in whatever form, will only make our next economic crash that much more serious."
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: X-15 (#0)
The derivative market is cracking. QE3 will lead to currency and trade wars. The president of Brazil warned Obama about QE3 in April 2012 and China threatened to float their currency in relation to the dollar if another quantitative easing is pushed through. If China makes good on that threat expect all Chinese items at Walmart to double in price over night. This nation is run by idiots. All the sanctions on Iran have only been skirted and removed petro dollars from the market. India and China both made agreements with Iran to purchase oil in gold and have been doing so since April. India purchases about a million dollars worth of oil EVERYDAY in gold. Expect more of exit of petro dollar hegemony with a QE3. It's time to get out of paper in lieu of tangibles folks. Petro dollar is dying and QE3 will hasten the demise. " If you cannot govern yourself, you will be governed by assholes. " Randge, Poet de Forum, 1/11/11 "Life's tough, and even tougher if you're stupid." --John Wayne
I was just reading Bloomberg TV's Marc Faber interview on LP concerning QE3 and its consequences and unsurprisingly they are all calling him a CT kook, completely disregarding his tract record. Frigging morons have so much faith and trust in the government and politicians that they just cannot grasp the concept that we are being driven over a cliff. It's as if history doesn't exist and no one really knows what will happen if you continuously print money out of think air. These same idiots will be the first ones to demand the government "do something" to "save" them, unable to grasp that it was the governments "doing something" that led them there in the first place. Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown I WITHDRAW MY CONSENT! Remember when the same idiots over there were endlessly arguing that the housing market wouldn't collapse? I looked at that thread....the same idiotic argument is made today re: Faber warnings....WHEN? Why doesn't he say WHEN? An answer to WHEN would never bring them to their senses on the content, but this is what they demand...... They will never accept that a collapse has been long in the works and that the government is bringing it on....never. When it finally occurs, like the housing market, they will act as if it was some tragic "accident" that NOBODY saw coming. " If you cannot govern yourself, you will be governed by assholes. " Randge, Poet de Forum, 1/11/11 "Life's tough, and even tougher if you're stupid." --John Wayne
Ah yes, I remember those arguments well.
Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown I WITHDRAW MY CONSENT! CT FREAK! LOL! : ) I gave them the best of reasoning, but, alas, I was just another CT FREAK pissing in the wind.
" If you cannot govern yourself, you will be governed by assholes. " Randge, Poet de Forum, 1/11/11 "Life's tough, and even tougher if you're stupid." --John Wayne
It's easy peasy if you have the right people in place:
#2. To: abraxas (#1)
(Edited)
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#3. To: F.A. Hayek Fan (#2)
These same idiots will be the first ones to demand the government "do something" to "save" them, unable to grasp that it was the governments "doing something" that led them there in the first place.
#4. To: abraxas (#3)
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#5. To: F.A. Hayek Fan (#4)
#6. To: F.A. Hayek Fan, abraxas (#2)
It's as if history doesn't exist and no one really knows what will happen if you continuously print money out of thin air.
-Alex Kurtagic
#7. To: F.A. Hayek Fan, Dakmar, 4um (#2)
Egads! Reading ElPee so the rest of us don't have to. I hope Dakkie has something in the Official 4um Prize Stash for you.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)
#8. To: abraxas (#3)
I remember Judge Parker calling the realestate collapse and getting raked over the coals at LP by those same idiots. He quit posting until the market bombed, then returned and rubbed their noses in it. I found it pretty funny myself.
#9. To: F.A. Hayek Fan (#2)
looks like you hit the critical straw of ewecon's mind, pulled it once and the whole thing just collapsed. it'll take fireisland and gaylin days to pile his brains, or is that brain his piles.
If either Moromney or Mammyjammyobammy win the November (s)election peoples with common sense will pray that December 21 2012 will indeed be the end of the world!
#10. To: X-15 (#0)
Ron Paul is good man, but he won't be able to stop this. If we can last to 2016, that is the only chance we have right now. I am commend him for at least trying, even though I am sure he knows that he will fail.
God is always good!
Top • Page Up • Full Thread • Page Down • Bottom/Latest