Ron Paul: Federal Reserve A Fallacy, Flawed System
The Market Ticker ® - Commentary on The Capital Markets
Posted 2012-07-18 13:16
by Karl Denninger
in Politics
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Ron Paul: Federal Reserve A Fallacy, Flawed System
 

Nice speech, but he's being far too nice and politically-correct.

We now know that The Fed -- at all levels from the NY Fed to the entire Board of Governors, knew LIBOR was being diddled in early 2008.  If the allegations are true this was fraud -- and therefore, their failure to act, failure to refer to law enforcement, failure to refer to Congress (Bernanke said nothing about this in his testimony before Congress at the time) and more is active co-conspiracy with the banks that committed these acts.

And that's just the start.  The fact of the matter is that The Federal Reserve Act of 1913 lacks any sort of "or else", and The Fed has intentionally violated the Price Stability mandate for one hundred years on an intentional basis and yet nothing has been done about it.

Why not?  Because there is no sanction in the law such as "or go to prison for 20 years."

Were the law on bank robbery simply "Don't rob banks" and the "or else go to prison for 20 years" was missing there would be a line of masked men toting guns out the door of every bank in America.

Confidence comes from the knowledge that the law will be followed and those who break it will face actual and enforced sanction. 

So close, and yet so far..... will the Libertarian Party pick up the torch?  The Democrats and Republicans will not, and if the Libertarians will not then perhaps the people of this nation need a new political party that will.

http://www.bloomberg.com/video/ron-paul-federal-reserve-a-fallacy-flawed-system-aHX~ABDeR2WBvWdt3WPgng.html

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User Info Ron Paul: Federal Reserve A Fallacy, Flawed System in forum [Market-Ticker]
Jal
Posts: 520
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http://www.zerohedge.com/news/santelli-s....

'it's not my job. I don't regulate that.' unbelievable!" The CYA, not-my-problem, someone-else-did-it, keep-my-job mentality when it's front-and-center in the most powerful financial entity in the world is deplorable.
Adrenaline_junky
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Ultimately the "or else" here is that Congress pull the charter.

So there is a potential consequence, but Congress clearly lacks the will to even consider it.

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"If Goldman Sachs is doing God's work, they must be referring to the cruel God of the Old Testament who brought forth plagues, floods, and pestilence." - Me
Mdm
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South Florida
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We can all say what we want about Paul - that he doesn't go far enough, that his proposal to go back to the gold standard is misguided, that he doesn't fully understand the ramifications to a non-interventionist foreign policy, etc. The bottom line is the man has brought more awareness to the need for monetary and banking reform than anyone else in recent history. He has spurred a movement towards libertarianism that while still relatively small, will not go away anytime soon. This is an achievement in and of itself.
Smacktle
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I don't get angry anymore.

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The faults of the burglar are the qualities of the financier.
- George Bernard Shaw
Noodleman
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And as the Chair or the congressional sub-committee on monetary policy what the **** has he actually done about it?

When's the last time he REQUESTED a subpeona for one of the financial terrorists so he could grill him in public?

Ron Paul is a bit actor in the political porn industry.


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"It may be true that you can't fool all the people all the time, but you can fool enough of them to rule a large country." William James Durant, 5 Nov 1885 - 7 Nov 1981

Drench
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Well, I got distracted by the whole Syria thing, but here's today's entire two-hour clown show.

http://www.c-span.org/Events/Ben-Bernank....
End_the_bubbles
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Quote:
"Don't rob banks" and the "or else go to prison for 20 years" was missing there would be a line of masked men toting guns out the door of every bank in America.


Why the **** would they need a mask? You could just show your face the same as Bernanke, Dimon, Blankfein, etc. all do.......

In fact, why would they even need a gun?

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In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters.
Pika-steph
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Live Free Or Die; US Army Est. 1775
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I would only add that it appears that Timothy Geithner was also involved. Because of his position, this goes beyond fraud...and straight into TREASON.

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Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/
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"The only regulation that really works is failure."--Rick Santelli
Genesis
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He wasn't Treasury Secretary when he did it, so it's just fraud.

But I'll take a conviction for that.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Ghopper
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There will not be another party.
They made the mistake of ignoring the Reform Party, until Ventura won the Governor's chair. That's when they realized that the people just might be pi$$ed off enough with the two party system to vote for anyone else.
So they sent in Trump on the left and Buchanan on the right to crush it to nothingness.
Since then, they take every threat seriously. They discredit and insert wedge issues into anything that might be a problem to make sure the people do not unite behind it (see the Tea Party and Occupy movements).
They won't let anything threaten their two headed snake of the US political system ever again.
Pika-steph
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Except....he had knowledge of, and was involved in, the concealment ever since. This wasn't a one-time act...it was ongoing. Therefore, when Timmah was appointed TS, he took that knowledge of the ongoing scam with him....which was and still is literally robbing the American people.

TREASON.

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Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/
inline
"The only regulation that really works is failure."--Rick Santelli
Genesis
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Ok, I'll go for Treason.

But we have to hold the Trial on The National Mall.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Pika-steph
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Hmmm...are you sure that space is big enough? smiley

Dibs on setting up the rotten vegetable stand!

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Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/
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"The only regulation that really works is failure."--Rick Santelli

Genesis
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I bet you could get $20 for rotten tomato and $50 for a really ripe egg....

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
12bolt
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Blueridge
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+1 Ghopper!


Treason everywhere.

If the USMIL were to honor their oath of enlistment, they'd have to surround, besiege, and ultimately destroy the main domestic enemy of the Constitution. I think we all know who those enemies are, and they ain't Muslim for the most part, and they don't live in the Middle East.

After clearing out the main rats' nest, they could start on the state capitols of the nanny-est states (MA, CA, IL, WI) and work down from there.

It would be a long and grueling campaign as red and blue statists would resist the elimination of their chosen leaders and their cherished provisions to make you and me do or not do what they want.

As far as I'm concerned statists are the enemies of liberty, the Constitution, and our inalienable rights.

Ergo they are my enemy too.








Noodleman
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"They won't let anything threaten their two headed snake of the US political system ever again"

Boy, ain't that the damned truth.

Top to bottom.

From protecting the POTUS from solid evidence that he's using fake documents as identification to unfairly smearing a man who is fighting for his life in the justice system for merely defending himself against great bodily harm.

RP is a manufactured puppet to feed us the illusion that we have political representation.

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"It may be true that you can't fool all the people all the time, but you can fool enough of them to rule a large country." William James Durant, 5 Nov 1885 - 7 Nov 1981

Mannfm11
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I disagree Noodle. They are going to implode. As far as Paul goes? Ron Paul has stood almost alone against this mess for decades. He is published for decades his opinions. Remember, most of Congress is educated in sourcery, known as neo-Keynesian economics. We have Bennie sitting in front of Congress talking about fiscal restraint, then telling them, not now. If not now, when? When the market for US debt totally collapses? Fiscal cliff? We went off the fiscal cliff decades ago.

We want a new politcal party? You can throw rocks at anyone, but Ron Paul is our best chance to start one. He has the ear of young people and it is going to be the 20 somethings that are going to pick up the pieces in this mess. The establishment can only push intellectual bull**** on us so long. Remember, Paul is a doctor, like them or not and you don't get to be a doctor without some kind of deductive reasoning. An idiot can easily buy into a counterveiling theory or idea, but a man with some intelligence is more likely to go with the status quo. Paul called for putting people in jail over this fraud in the debates and he knows the system was gamed.

I think Paul stepped down for a couple of reasons. One is he has more influence and power outside of Congress than he does inside Congress. His son will be his mouthpiece there. Second, making changes as a member of either of the 2 political parties is a foregone conclusion that it isn't going to happen. These political jackasses have big hooks stuck up their asses, in order the bankers can immediately throw them overboard and troll for sharks.

Here is a excert from a book by Henry Hazlitt, who I am quite certain influenced Dr. Paul.

THE EARLY NINETEEN THIRTIES, IN THE DEPTH OF
the Great Depression, the theory became fashionable
that the cause of all depressions was Lack of Purchasing
Power. The people just did not have enough money,
and because of unwarranted pessimism they were
refusing to spend enough even of what they had. The
solution was therefore simple: at such a time the government
should boldly increase its own spending,
"prime the pump," and "get things moving again."
Naive advocates of this theory assumed that more
government spending was the whole answer. The more
sophisticated advocates saw that the increased spending
would not give people more purchasing power if
the government kept the budget balanced and took it
all away again in higher taxes. The thing to do was to
spend more without taxing more. The trick, in other
words, was deliberately to unbalance the budget—to
run a deficit.

Most of the champions of deficits—including the
eminent John Maynard Keynes himself, the theory's
chief architect—at least publicly professed to believe
that the required deficit could be financed by selling
bonds directly to the public, to be paid for out of savings.
But again, the more sophisticated deficiteers must
have seen that a man who buys a $1,000 bond out of his
savings surrenders that much purchasing power for the
life of the bond. In short, he loses just as much buying
power as the government gains. On net balance, no new
buying power has been created.

How, then, can the government "create" new purchasing
power? It can do so only if it does not increase
taxes at all, but "sells" its bonds to the banking system,
and if the banks "pay" for them by creating deposit
credits on their books in favor of the government. This
leads to an increase in "the money supply"—that is, an
increase either in the amount of currency or of demand
bank deposits.

If the government's new bonds are sold directly to
member banks, there tends to be a dollar-for-dollar increase
in the money supply compared with the amount
of new bonds. But if the government's securities get
into the hands of the Federal Reserve Banks, they are
used to create what is called "high-powered" money.
This can lead to the creation of about $6 of new money
for every dollar of new government securities.


page 4, Man versus the Welfare State

http://library.mises.org/books/Henry%20H....

It doesn't take a rocket scientist to read this and see what is going on. The bankers set up this mess to get the people in debt and use tanks in the street as a defense against the Congress ever pulling the plug on this scheme. Thus, bankers and Congressmen are blow buddies. One man stuck in the midst of 534 banker blow buddies doesn't have much of a chance. Middle class America needs to read this short explanation, as it says it all. Hazlitt wrote an informative book that is easy to explain and despite all the degrees in economics to the contrary, cannot be disputed. I have heard the joke, that when government says they are there to help you, grab your wallet and run for the hills.

Link for Ron Pauls published writings:
http://mises.org/Literature/Author/392/R....

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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith

Duc888
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Quote:
You can throw rocks at anyone, but Ron Paul is our best chance to start one.


I think it was smart for him to join the republican party. In my state you can not vote for an independent unless you're registered as an independent.

as far as RP
Quote:
stepping down
.....


The Republican National Convention is quickly approaching (August 26th). For over the past year, avid Ron Paul supporters have won delegate spots in various state conventions across the country. Through this hard-work, Ron Paul will officially be allowed to be nominated for the nominee of the Republican Party.




http://www.examiner.com/article/rnc-conf....


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...burp
Bohemian
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Karl, I don't understand why you say ' ... if the allegations are true', r.e., them knowing in 2008, Treasury and the Fed. They ADMITTED knowing.

No one oversees the Fed (Or BIS ... see global Ponzi) and Congress has no teeth to prosecute anything, because there is no oversight or even a law, yet Bernanke cries and says auditing the Fed would be harmful and a 'nightmare'. The SEC doesn't oversee the Fed. No one really does, and with Congress fractured along party lines, this won't happen. Yeah, an audit nightmare for the Bernanke and the entire Ponzi those ****s have been running with TBTF banks that own dividends in the Fed, which is a privately-owned fiat bank (see original charter, 100 years up Dec. 23, 2013).

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"The politicians are put there to give you the idea you have freedom of choice. You don't. You have no choice; you have owners. They own you. They own everything." - George Carlin
End_the_bubbles
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Quote:
Hmmm...are you sure that space is big enough? smiley


This doesn't take up much space:


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In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters.
Mannfm11
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Duc makes a good point. The executive department has to do the prosecution. Not only that, if the executive doesn't have regulations written, any law Congress makes has no teeth. See California Bankers Association vs Schultz, a 1973 Supreme Court case over the anti money laundering laws.

Karl is probably right, that Ron is too nice and maybe too PC as well. But, for as long as I can recall, Bernanke and Greenie didn't get past him without hm asking them a question they couldn't or wouldn't answer honestly. Woodrow
Wilson should be exhumed and his bones thrown to the jackels, agreeing to a panels of criminals. The bankers and cartelists used political means to set up a non-political Federal Reserve? Horsecrap!

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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
Steelhead23
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Yeah, and I've heard him say that laws were broken by the banksters as well. I cannot for the life of me understand why the Republican Party thinks Mitt would be a better candidate than Mr. Paul. Well, actually I can, but the reason is not very pretty, I have no evidence, and I really don't want to***** off all the Rs on this forum.

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"Give me control of a nation's money and I care not who makes it's laws" —Mayer Amschel Bauer Rothschild Benjamin Bernanke
For-profit commercial banks are a menace and should be eradicated
Floridasandy
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steelhead23,

republicans thought that ron paul would not win the general election, but they were wrong. some remember his run on the last election-but everything changed after the bailouts.

it is very hard to think outside of our "party" box.

i think it is sad, but i do understand the fear behind it-because ron paul does actually represent change, and change is rather frightening for a lot of people. i don't know one american, republican or democrat, who thinks it is okay what the federal reserve is doing. (it is just that most democrats are mostly either government workers or government recipients, so they are afraid to stand up against the federal reserve-except for occupy)

i will always respect ron paul's effort and his virtually one man stand against the juggernaut.
Duc888
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CT, the UNconstitution State
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RP represents a whole new system (imho) and here's why. For 20+ years he's seen clear through the FED's smokescreen. Audit the FED, combined with their knowledge of the LIBOR scam which essentially ****ed every person who has a CC, has a mortgage, a car loan, student loan.....basically EVERYONES rate has been tweaked for god knows how long. RNC does NOT want change. DNC does NOT want change, they're both bought and paid for. After all the bs slander that RP has stood up to as well as MSM ignoring him.....well, he's still there, with enough delegates to be nominated. I think behind closed doors RP would grow fangs and sink them into the Feds ass pronto.

If RP gets elected we get a new banking system. Those that don't want change , RNC, DNC ...are ****ed. RP scares the living **** out of the "establishment", and not because of his non interventionist foreign policy....

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...burp
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