US Congress Question Morals of Monetary Policy

On Thursday, just after approving the financial overhaul bill, the US Congress held another hearing in attempt to bring more clarity in what’s being going on in the financial service sector over the last years. Among those called in to answer questions from Congressman Dr. Ron Paul was the FED chairman Ben Bernanke and the FED specialist Professor Allan Meltzer. What will it take for you to admit you’ve screwed up, and change your policy? Ron Paul asked Ben Bernanke.

“It interesting to know that the $3.7 trillion bailout cost is almost identical to the rise in national debt.”

Ron Paul

Dr. Ron Paul, House of Representatives, US Congress

In his opening statement, Congressman Ron Paul pretty much sums up what most Americans are wondering about; why is the  $3,7 trillion in economic stimulus and bailout cost almost identical to rise in national debt, with almost no new jobs created? And is it morally right to deflate the value of the dollar to get out of debt?

Here’s the first of two video clips from the Financial Service Hearing in the US Congress on Thursday July 22.

After his opening statement, Dr. Ron Paul, have a few questions for the FED chairman Ben Bernanke:

Congressman Ron Paul represents the 14th district of Texas. Congressman Paul enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency.

He is known among both his colleagues in Congress and his constituents for his consistent voting record in the House of Representatives: Dr. Paul never votes for legislation unless the proposed measure is expressly authorized by the Constitution.

The next in Ron Paul’s “Hot Seat” was Dr. Alan Meltzer, professor of Political Economy at Carnegie Mellon University‘s Tepper School of Business in Pittsburgh, Pennsylvania.

Capitalism Without Failure Is Like Religion Without Sin

Meltzer is the author of dozens of academic papers and books on monetary policy and the Federal Reserve Bank, and is considered one of the world’s foremost experts on the development and applications of monetary policy.

His book A History of the Federal Reserve is considered the most comprehensive history of the central bank.

Volume II of his History of the Federal Reserve Bank, which covers the years since the Federal Reserve accord in 1951 to 1969, was released in February, 2010.

Meltzer is considered to have originated the aphorism;  “Capitalism without failure is like religion without sin. It doesn’t work.”

The US have doubled the monetary base, but the Nation still have deflation, so obviously the quantitative easing isn’t working, Congressman Ron Paul pointed out, and asked Professor Meltzer straight forward; what should we do?

Related by the Econotwist:

Beware: Global Asset Bubbles Growing!

Is Goldman Sachs Predicting A Double-Dip?

Fitch: Global Economy At Critical Juncture

Mr. Rubin’s Still Rockin’ The House

JPMorgan’s “Poison Pill” Strategy

Global Economy On Fast Track To Disaster

How To Create A 3 Trillion Dollar Bubble And Burst It

Rosenberg: “Statistical Illusion Of Recovery”

S&P 500 Drops 3.4% On Disappointing Job Report

Goodbye Keynes – Hello Ricardo!

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