Ron Paul grills Uncle Ben

[Boerg]

YouTube - CNBC: Ron Paul's question makes Ben Bernake's voice quiver

Bernanke: MZM is rising because people are selling securities and putting money in the bank

Really? As if the "market" is a money tank rather than a place to buy from a seller. Does the buyer create the money?

Bernanke: A holder of the dollar who buys US goods like a typical American will not feel the value of the dollar.

A typical American buys US goods? I guess typical Americans don't shop at Wal-Mart.

I know Bernanke is smarter than that which leads me to believe he's lying.

[Dumpy Dooby]

Yesterday, the Congressman also confronted Federal Reserve Chairman Ben Bernanke over what he described as a 35 plus year dollar bubble, telling him "You are probably the biggest taxer in the country", citing the inflationary fiat money system as the most unfair and regressive form of taxation there is.

A stunned Bernanke put up little resistance and simply agreed with Paul, stating “Congressman, I couldn’t agree with you more that inflation is a tax, and that inflation is currently too high.”

[JaJae]

Bernake's hands are tied though at this point. He's trying to keep everything together, he has a lot of pressure on him. The spending is out of control and the over regulation in prime markets is only worsening things. I don't blame Bernake here, I blame the politicians who consistently force this on our economy.

[Ardentfrost]

There isn't shit he can do. Monetary and fiscal policy go hand-in-hand. If one is bad, so will the other. He only controls one of them.

[thewise1]

I think the fed is doing "the right thing" if you operate under the idea that we must maintain our current system. I'm not sure that it is sustainable at this point, but I don't see what else they can do if you assume we want to keep it.

I would like to see it change, and thus there are better courses of action in my eyes, but from a realistic point of view, that just won't happen, so yeah, they are doing the best thing to reach their goal.

[Fed Up]

When the Fed voted to keep interest rates the same a couple weeks ago, it was a 9-1 vote with the lone dissenter being Richard Fisher.

I decided to write Fisher and comend him for want to do what I believe is the right thing (raise rates to strengthen the dollar).

He replied through one of his associates. The exchange follows. It could have been a canned response, but I was satisfied with the answer. In a nutshell, they are "sincere in their efforts," just as sincere as the Harvard MBA's and PhD's who have advised our government over the years on this fantastic economic condition we are currently experiencing (the one's who basically booted Comptroller General David Walker out). JMHO...and being sarcastic...of course.

I've written the Federal Reserve 3 times and received a reply each time.

(I delted my last name in the emails copies below for privacy reasons)

Fed Up

Subject
To: Richard W. Fisher
info-dallasfed@dal.frb.org
06/25/2008 02:12 PM

Dear Mr. Fisher,

I commend you on your wanting to raise rates. The dollar is at a critical
juncture and it seems the majority of the board wants to do all they can
to stimulate the economy when they forget that the most important part of the economy is the strength of the dollar.

I fear that as the economy deteriorates, which it will after the election
is over, the majority of the Fed will continue to lower interest rates,
ala Japan, in a last ditch effort to stimulate an economy where no one is
buying or borrowing as they are just trying to pay their survival
expenses.....and I'm an optimist!

Are there any other reasons behind your thinking of wanting to raise rates
than to keep the game of dollar strength alive?

Thanks for you time,

Doug xxxxxxxx

-----------------
REPLY:

Thank you for your message. I have shared your e-mail with Richard
Fisher, and he sends the reply below.

James Hoard
Public Affairs
Federal Reserve Bank of Dallas



Dear Mr. xxxxxxx,

Thank you for your kind letter. My colleagues and I share the same goal:
sustainable non-inflationary growth. We differ only on the tactic of how
to achieve that goal and we agree to disagree knowing that each of us is
sincere in our devotion to doing our level best to get it right.

I am glad you are following our deliberations so keenly.

Be well,

Richard Fisher