Ron Paul slams Bernanke Today…

[barnaby33]

kewp, I think it would be more accurate to say, the inflation through credit creation has already occurred. What is happening right this instant is that the FED is sucking liquidity away from the big banks who were just hoarding it or buying stocks with it, to get it to smaller institutions via the TAF. All of this is being done to slow the deflation that is occurring through correspondent credit contraction. Why we are finally seeing prices rise, what most people think of as inflation, is that all of that exported inflation to you-know-where is starting to come home to roost.

Which do you think will kill the economy first, re-imported inflation, or credit contraction deflation? My votes on the second.

Josh

[kewp]

Ugh, this is making my head hurt.

I think whats going to kill the economy is the inflation/deflation 2-hit combo.

Our economy is driven by discretionary consumption financed via cheap credit. Once inflation pushes up the prices of food/energy and deflation removes the ability to even finance that, its game over. Unemployment goes up, consumption goes down and the cycle feeds on itself.

[kewp]

Ugh, this is making my head hurt.

I think whats going to kill the economy is the inflation/deflation 2-hit combo.

Our economy is driven by discretionary consumption financed via cheap credit. Once inflation pushes up the prices of food/energy and deflation removes the ability to even finance that, its game over. Unemployment goes up, consumption goes down and the cycle feeds on itself.

[kewp]

Ugh, this is making my head hurt.

I think whats going to kill the economy is the inflation/deflation 2-hit combo.

Our economy is driven by discretionary consumption financed via cheap credit. Once inflation pushes up the prices of food/energy and deflation removes the ability to even finance that, its game over. Unemployment goes up, consumption goes down and the cycle feeds on itself.

[kewp]

Ugh, this is making my head hurt.

I think whats going to kill the economy is the inflation/deflation 2-hit combo.

Our economy is driven by discretionary consumption financed via cheap credit. Once inflation pushes up the prices of food/energy and deflation removes the ability to even finance that, its game over. Unemployment goes up, consumption goes down and the cycle feeds on itself.

[kewp]

Ugh, this is making my head hurt.

I think whats going to kill the economy is the inflation/deflation 2-hit combo.

Our economy is driven by discretionary consumption financed via cheap credit. Once inflation pushes up the prices of food/energy and deflation removes the ability to even finance that, its game over. Unemployment goes up, consumption goes down and the cycle feeds on itself.

[greekfire]

I am no expert on Congressional testimonial sessions, but I don’t think it lends itself to a debate-style exchange of ideas. Committee members make their remarks, Mr. Bernanke gets to speak X minutes, the committee members give their responses/questions (all timed), and those testifying answer. Very structured, very formal. Ron Paul knows that everything said at these meetings is a matter of public record and he is trying to prove a point – our current fiat monetary system is failing, and will only get worse. We can’t expect to constantly print money on a whim and not suffer the effects of inflation and debasement of the dollar.

[greekfire]

I am no expert on Congressional testimonial sessions, but I don’t think it lends itself to a debate-style exchange of ideas. Committee members make their remarks, Mr. Bernanke gets to speak X minutes, the committee members give their responses/questions (all timed), and those testifying answer. Very structured, very formal. Ron Paul knows that everything said at these meetings is a matter of public record and he is trying to prove a point – our current fiat monetary system is failing, and will only get worse. We can’t expect to constantly print money on a whim and not suffer the effects of inflation and debasement of the dollar.

[greekfire]

I am no expert on Congressional testimonial sessions, but I don’t think it lends itself to a debate-style exchange of ideas. Committee members make their remarks, Mr. Bernanke gets to speak X minutes, the committee members give their responses/questions (all timed), and those testifying answer. Very structured, very formal. Ron Paul knows that everything said at these meetings is a matter of public record and he is trying to prove a point – our current fiat monetary system is failing, and will only get worse. We can’t expect to constantly print money on a whim and not suffer the effects of inflation and debasement of the dollar.

[greekfire]

I am no expert on Congressional testimonial sessions, but I don’t think it lends itself to a debate-style exchange of ideas. Committee members make their remarks, Mr. Bernanke gets to speak X minutes, the committee members give their responses/questions (all timed), and those testifying answer. Very structured, very formal. Ron Paul knows that everything said at these meetings is a matter of public record and he is trying to prove a point – our current fiat monetary system is failing, and will only get worse. We can’t expect to constantly print money on a whim and not suffer the effects of inflation and debasement of the dollar.

[greekfire]

I am no expert on Congressional testimonial sessions, but I don’t think it lends itself to a debate-style exchange of ideas. Committee members make their remarks, Mr. Bernanke gets to speak X minutes, the committee members give their responses/questions (all timed), and those testifying answer. Very structured, very formal. Ron Paul knows that everything said at these meetings is a matter of public record and he is trying to prove a point – our current fiat monetary system is failing, and will only get worse. We can’t expect to constantly print money on a whim and not suffer the effects of inflation and debasement of the dollar.

[gdcox]

Well this guy was right to raise the issues BUT these seeds were sown by Greenspan and Congress in the early 2000’s when rates were kept too low for too long. With that inheritance and the rise of China etc all , a surging commodity boom has been unavoidable and with it a fall in the standard of living for the US and the UK where I live. I am re-modelling my houe and when i first discussed plans it was going to cost about $140K and now it will be more like $200 K all due to the surge of commodities (should have bought gold futures !) .

The Bernanke Fed did not cause the present problem at all and he cannot but lower rates. He missed a major trick though by not reminding Paul that the Fed is required by Congress to keep growth going , so inflation fighting is undertaken with one hand tied behind the back.

[gdcox]

Well this guy was right to raise the issues BUT these seeds were sown by Greenspan and Congress in the early 2000’s when rates were kept too low for too long. With that inheritance and the rise of China etc all , a surging commodity boom has been unavoidable and with it a fall in the standard of living for the US and the UK where I live. I am re-modelling my houe and when i first discussed plans it was going to cost about $140K and now it will be more like $200 K all due to the surge of commodities (should have bought gold futures !) .

The Bernanke Fed did not cause the present problem at all and he cannot but lower rates. He missed a major trick though by not reminding Paul that the Fed is required by Congress to keep growth going , so inflation fighting is undertaken with one hand tied behind the back.

[gdcox]

Well this guy was right to raise the issues BUT these seeds were sown by Greenspan and Congress in the early 2000’s when rates were kept too low for too long. With that inheritance and the rise of China etc all , a surging commodity boom has been unavoidable and with it a fall in the standard of living for the US and the UK where I live. I am re-modelling my houe and when i first discussed plans it was going to cost about $140K and now it will be more like $200 K all due to the surge of commodities (should have bought gold futures !) .

The Bernanke Fed did not cause the present problem at all and he cannot but lower rates. He missed a major trick though by not reminding Paul that the Fed is required by Congress to keep growth going , so inflation fighting is undertaken with one hand tied behind the back.

[gdcox]

Well this guy was right to raise the issues BUT these seeds were sown by Greenspan and Congress in the early 2000’s when rates were kept too low for too long. With that inheritance and the rise of China etc all , a surging commodity boom has been unavoidable and with it a fall in the standard of living for the US and the UK where I live. I am re-modelling my houe and when i first discussed plans it was going to cost about $140K and now it will be more like $200 K all due to the surge of commodities (should have bought gold futures !) .

The Bernanke Fed did not cause the present problem at all and he cannot but lower rates. He missed a major trick though by not reminding Paul that the Fed is required by Congress to keep growth going , so inflation fighting is undertaken with one hand tied behind the back.

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