To be asked by Ron Paul – from the Committee on Financial Services:
Domestic Monetary Policy and Technology Subcommittee Chairman Ron Paul announced today the Subcommittee will meet for a hearing to examine the impact of Federal Reserve policies on job creation and the unemployment rate. The hearing will be held on Wednesday, February 9th at 10 am in room 2128 Rayburn.
Subcommittee Chairman Paul said, “I’m very pleased to hold our first subcommittee hearing in the new Congress on a topic that could not be more critical, namely unemployment. Despite enormous amounts of monetary and credit expansion by the Federal Reserve in recent years, the nation’s unemployment picture remains bleak. While many focus on the impact of fiscal policies on employment, the effect of monetary policy often goes unexamined. In my view we are now experiencing the bust that inevitably results from the misallocation of capital and human resources in a period of artificially cheap credit. It is important to understand the Federal Reserve’s role in creating today’s unemployment crisis, while also highlighting that high unemployment and low economic growth can persist even in the face of tremendous monetary inflation.”
The Federal Reserve has taken unprecedented action to provide liquidity to financial markets and some U.S. corporations; however, unemployment remains above 9 percent. The hearing, entitled Can Monetary Policy Really Create Jobs?, will focus on the Fed’s recent actions, the likelihood those actions will reduce unemployment, and the critical role of the private sector in job creation…
Long time readers will recall that I’ve not often had kind things to say about Ron Paul – I disagree with him heartily in matters of foreign and defense policy, as well as in some areas of social policy where he takes far too libertarian a view. But in matters of monetary policy, Ron Paul and I see pretty near eye to eye. I can’t imagine anyone I’d rather have looking in to the actions of the Federal Reserve than Ron Paul. The Federal Reserve has been uniformly baleful to the American economy since it was first created in 1913 – it has been the instrument of our currency devaluation, our de-industrialization and our massive debt. The tough thing about the Fed, however, is that most Americans are only slightly aware of it – a good series of hearings about what it is up to can go a long way towards educating the people about the Fed, and thus setting it up to be dissolved.
Don’t expect immediate revolution – this is the opening shot. This is where we just start the process of getting rid of the Fed and eventually getting ourselves back to a sound money economy. This effort will be fought tooth and nail by all those who stand to lose – the gigantic banks, the bureaucracy and every grafting politician out there who looks at the Treasury as a means of buying votes for re-election. They’re already a bit worried but if it starts to look like their fiat money cash cow is going to be pole-axed, they’ll rise in fury. Be ready for it – with your best defense being a presumption of “BS” on any story which asserts that without the Fed things will completely fall apart (we had no Federal Reserve from 1776 until 1913 – during which time we rose from agrarian backwater to global powerhouse…a century on in to our Federal Reserve and we’re being out-competed by the Chinese, for crying out loud).
Onwards to revolution, my fellow Americans – the beast is cornered and we will have it down.
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