Congressman Ron Paul issued stern words in response to Fed chairman Ben Bernanke’s “historic” first ever press conference yesterday, noting that it “predictably provided no substantive information,” and served as an extremely poor PR attempt to placate an incensed American public.
The Congressman, who is currently the chair of the House committee that oversees monetary policy, issued a scathing statement following Bernanke’s unimpressive appearance before the press.
A “staged press conference will not be enough to stop the growing demand for real Fed transparency,” said Paul, adding that ” the American people want real answers about Fed bailouts, lending to foreign banks, and most of all inflation.”
The Congressman vowed to press ahead with his efforts to audit the Fed, and to continue to expose bernanke’s deliberate devaluation of the dollar, which Paul urges is paving the way for “hyperinflation and the destruction of our currency.”
“It is well past time that we begin to rein in the Fed.” the Congressman urged.
Ron Paul’s statement on Ben Bernanke’s press conference in full:
“Chairman Bernanke’s press conference today was unprecedented, and it demonstrates that Federal Reserve officials are very concerned about growing public criticism of Fed policies. Although Mr. Bernanke predictably provided no substantive information, the American people want real answers about Fed bailouts, lending to foreign banks, and most of all inflation. Mr. Bernanke continues to ignore his culpability for the inflation all Americans suffer due to the Fed’s relentless monetary expansion. Rising prices are the direct result of Fed devaluation of our dollar. Yet rather than addressing the Fed’s loose dollar policy, Mr. Bernanke continues to assure us that inflation is not a problem.
Without the Federal Reserve’s relentless expansion of credit throughout the 1990s and early 2000s, there could have been no excessive borrowing or explosion of subprime lending. Through easy credit, the Fed initiated the economic boom that created the dot-com bubble. When that bubble burst the Fed pumped additional liquidity into the system, which led to a new boom that created the housing bubble. Commodity prices have risen rapidly, producer prices have followed suit and consumers are already seeing the beginning of massive price increases passed on to them. And now the Fed’s additional trillions of dollars in monetary pumping is creating yet another bubble. This is the exact opposite of stability in the marketplace and has nothing to do with free markets. It is central economic planning at its worst. And the end result may be hyperinflation and the destruction of our currency.
Now Americans are waking up to the dangers of the Fed’s inflationary monetary policy, and they want it to stop. Today’s staged press conference will not be enough to stop the growing demand for real Fed transparency, and I hope to build on that grassroots demand by passing legislation that will result in a true audit of the Fed’s activities.
Support from my colleagues was vital in the last Congress in making progress towards Fed transparency, and I hope to build on that support in this Congress. It is well past time that we begin to rein in the Fed.” – Congressman Ron PaulThe Congressman expanded on the statement in comments to MarketWatch, calling Bernanke’s words “smooth talking, to make current policy sound reasonable,”
“He says, ‘Our position is a strong dollar’ … with constant devaluation, even while he spoke it was devaluing. Against gold, it went down 1.5%. It doesn’t make any sense.” the Congressman said.
Paul followed up with television appearances on CNBC’s Squawk Box and MSNBC’s Dylan Ratigan.