Ron Paul: QE2 Is a "Total Failure" and Bernanke Is Delusional About Inflation
Posted Feb 10, 2011 08:51am EST by Aaron Task in Newsmakers, PoliticsBen Bernanke faced some tough questions at the House Budget Committee hearing Wednesday. Still, the Fed chairman is probably glad he wasn't before the House Domestic Monetary Policy and Technology Subcommittee, which is chaired by Rep. Ron Paul (R-Tx.)
Rep. Paul joined Dan Gross and me Wednesday afternoon to discuss Bernanke's testimony and his subcommittee's hearing. As you might expect, the longtime Fed critic took umbrage with Bernanke's testimony, most notably the chairman's claims that QE2 is working and that inflation isn't brewing. (See: Under Pressure: Bernanke-Ryan Square Off as Ron Paul Waits in the Wings.)
QE2 is a "total failure," except for those folks who work on Wall Street," Rep. Paul says. "It hasn't done anything for Main Street; hasn't done anything to give us real jobs; hasn't done anything for people who are losing their houses."
As for inflation, "I think there's plenty," Rep. Paul says, citing "skyrocketing" commodity prices and rising food prices. One problem is the Fed's reliance on core CPI, which famously excludes food and energy and relies on hedonic adjustments. "They rig that number," he says. "[Bernanke] looks at government stats that are fudged to reassure him he doesn't have to do anything."
With the Republicans controlling the House and Rep. Paul's views now more mainstream, the Texas Congressman has somewhat toned down his public criticisms of the Fed lately. Still, he hasn't changed a fundamental view that central economic policymaking via the Fed is doomed to fail.
"We're trying to correct the massive problems we had this decade with more" of the same policies, he laments. "He's supposed to give us full employment and stable prices and we have neither. How did the Fed do?"
Rep. Paul says he'd support stripping the Fed of its dual mandate - full employment and price stability - as others in Congress have discussed. But he doesn't think it will do much good and continue to push for a full audit of the Fed and some "competition" for the dollar, as you'll see in part 2 of this interview.
Aaron Task is the host of Tech Ticker. You can follow him on Twitter at@atask or email him at altask@yahoo.com
Citibank Review - Jan 2011
Stock price moves downtrend since 18th of January. Profit missed target reported. Selling almost done by now. Overbought signal seen twice in 5th and 13th Jan.
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