ON US MONETARY POLICY | Long time Congressman Ron Paul; on Bernankes Replacement and still demonstrating he isl the QE-hating Canary in the Financial mine Q: What do you make of Janet Yellen coming in as the next Chair. RON PAUL: Well, it’s easy to be a critic if you don’t even believe they the Fed should exist. Generally, not a lot will change. If anything, it will be slightly worse because she’s a very aggressive inflator. She really believes in Quantitative Easing, and that’s the only thing they know, and she’s just going to be more aggressive about it. I think she’s very dangerous. I think she’ll be dangerous to the dollar and she will not revive the economy. Q: What effects will that have on the US dollar? RON PAUL: Eventually it will destroy confidence in the dollar, and I would say the confidence has already eroded because without the Fed buying mortgage debts and treasury bills, where would interest rates be? Where would the economy be? They are therefore temporarily holding the markets in check by making some people richer on Wall Street and helping out the bankers, but they haven’t done anything for the economy. It’s dangerous because people get lulled to sleep; the bubble keeps getting bigger, the distortions, and the mal-investments. Everybody looks at only the CPI, but of course, the CPI is not an accurate measurement of even prices, so they miss looking at many other important things. The accumulation of debt and the misdirected investments, the mal-investment…there’s so much of that and it’s gotten worse in the last five years. It hasn’t solved it. We have not had a correction and are determined not to allow the market to correct the errors of the monetary officials.
Posted on: Mon, 02 Dec 2013 09:06:53 +0000
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