Politico questions Republican support for Bernanke and Ron Paul Posted by Kevin Barber — February 16, 2010 @ 7:27PM
Politico proposes the idea that since Republicans are at least hesitant to re-confirm Bernanke (who was appointed by a republican), whether they have turned on themselves. It asks whether this makes Ron Paul (the nearly lone conservative Republican) the leader of the Republican party.
My response below:
I'd LOVE to see Ron Paul lead the republican party, but as of today, the republicans have not yet seen the errors of their actions in recent years. Sure, now that Obama has taken the whitehouse, they're all fiscally conservative, railing against deficits and social programs. But this does not reflect their actions over the prior 8 years. Once you're okay with deficits, what's the big difference between a huge deficit and a really huge one?
To demonstrate how much the republicans are trying to convince you that they have seen the light, they even resist confirming Bernanke, the man who a Republican appointed not long ago. A man who won 'man of the year' for totally failing to see that the flawed 'easy money' policy of the Federal Reserve was causing mal-investment by banks, investment firms, and individuals. Artificially low interest rates led to this bubble of credit, the lack of savings and financial sense, and ultimately caused the 'collapse of 2008'. Bernanke then proceeds to 'raid the cookie jar' of American taxpayers to bail out these banks and institutions, allowing Goldman Sachs and American Express (among others) to become banks just in order to join the free money party.
The fact is, if Goldman failed to act responsibly in its investments, that is the purpose of bankruptcy court. Bankruptcy is important to capitalism just like your kidneys are to your body. They both serve to keep the good and purge the bad from the system... keeping it healthy. Bernanke continued and expanded the policy of prior chairman greenspan, effectively addicting our economy to easy money, not unlike putting us on a "high" of cheap money. Then, when we crashed, instead of recovering, he just injected a few trillion more, hoping it gets us off the fed's back for their screw up and feeling the pleasure of easy money again, but literally *hoping* it was not enough to over-dose us kill the dollar.
Bernanke does not deserve to re-chair the fed. But, it's not bernanke that is flawed. it's the idea that a group of bankers can determine the proper interest rate for our economy better than the market can. it's the idea that the federal reserve deserves the power it has to bail out its buddies when the fed's own actions led to the problem. Not only does Bernanke deserve an early retirement slip to go with his man of the year award, but the federal reserve deserves a full audit. I propose the senate pass the audit the fed bill (S.604) before they agree to re-confirm Bernanke. what a deal, the taxpayers will win for once!
Regarding Ron Paul - he is the IDEAL leader of the Republican party b/c he stands alone in having a proven track record of being a true conservative, truly for small government and state's rights, truly for individual freedom and a limited federal government as defined in the constitution, and has fought a 30 year battle against the Federal Reserve, the entity that causes the majority of our fiscal problems and yet answers to no citizen, politician, or governming body. that doesn't sound very American, does it? Ron Paul, please help us fix it. Republicans, please show us you're ready to change.. I'm not yet buying it... but following Ron Paul will be a good start!