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Ron Paul and Chairman Bernanke discuss economics

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  • Fri, Apr 10, 2009 - 07:01am

    #1

    investorzzo

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    Ron Paul and Chairman Bernanke discuss economics

 

Ron: Chairman Bernanke, you consider yourself an expert on the Great Depression, is that true?

Ben: Yes, I have devoted a substantial part of my career to the study of the Great Depression.

Ron:
I too have spent some time studying the Great Depression. Please, as
succinctly as you can, tell me what you think caused the Depression.

Ben:
It was Federal Reserve policy mistakes that caused the Great
Depression, ones that I intend not to repeat. First, they precipitated
the 1929 stock market crash and subsequent recession by tightening
monetary policy in 1928. Then, they helped turn a recession into a
depression with yet two more mistakes. First, they let the money supply
contract very sharply. Prices fell. Deflation. So monetary policy was,
in fact, very contractionary. Very tight during that period. And then
the second mistake they made was they let the banks fail. They didn’t
make any strong effort to prevent the failure of thousands of banks.
And that failure had terrible effects on credit and on the ability of
the economy to right itself. The answer was to stabilize the financial
system by providing liquidity to the system via low interest rates,
loans to the banks and generally easy monetary policies. They did not,
and the result was the Great Depression.

Ron:
Thank you Chairman. How familiar are you with the Austrian theory of
the boom bust cycle, specifically the work of Mises and Hayek?

Ben: I am familiar with their position, yes. But it is not a viable theory.

Ron:
Chairman, in all candor, I couldn’t disagree more. According to Mises
and Hayek, the Depression was caused by the low interest rate and loose
monetary policies of the Federal Reserve in the 1920’s. These policies
created the1920’s boom which NECCESITATED the stock market crash of
1929 and economic bust of the early 1930’s. You see, by lowering
interest rates and increasing the money supply, the Federal Reserve
creates economic and financial distortions – malinvestments, which
eventually must be liquidated. The mistake was the Federal Reserve’s
easy monetary policy of the 1920’s. The bust was the economy cleansing
itself of these mistakes. Sooner or later, the Federal Reserve induced
boom REQUIRED a bust. Chairman, the Federal Reserve did indeed cause
the stock market crash of 1929 and the subsequent Depression, but
through EASY money policies, the same policies that caused today’s
economic mess and the same policies you still continue to advocate.

Chairman, did you know that Mises and Hayek predicted the 1929 stock market crash and 1930’s bust?

Ben: I don’t recall.

http://www.financialsense.com/fsu/editorials/2009/0409.html

  • Fri, Apr 10, 2009 - 07:09am

    #2
    Peak Prosperity Admin

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    Re: Ron Paul and Chairman Bernanke discuss economics

darn, I wast to read the rest….I can’t get to it from my computer system…Ill have to check it out tonight…

  • Fri, Apr 10, 2009 - 07:16am

    #3
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    Re: Ron Paul and Chairman Bernanke discuss economics

 Ron Paul tries to explain why we need to rid ourselfs of the Fed and go back to the gold standard.

http://blogofbile.com/2008/03/21/austrian-vs-keynesian/

  • Fri, Apr 10, 2009 - 11:15am

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    Re: Ron Paul and Chairman Bernanke discuss economics

So where do we go from here?

https://www.peakprosperity.com/comment/29075#comment-29075

  • Fri, Apr 10, 2009 - 11:19am

    #5
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    Re: Ron Paul and Chairman Bernanke discuss economics

 

Be sure to read the bit at the top

"Listen in on my mock Congressional Joint Economic Committee Q&A
session, between fellow “nut” Congressman Ron Paul and Ben Bernanke:"

………….. 🙁

 

Cheers Hamish

  • Fri, Apr 10, 2009 - 01:57pm

    #6
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    Re: Ron Paul and Chairman Bernanke discuss economics

Interesting Interview although I’m still curious what the future brings with the current situation.

  • Fri, Apr 10, 2009 - 03:32pm

    #7
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    Re: Ron Paul and Chairman Bernanke discuss economics

Thanks gyrogearloose,

I was just about to point out the same. Entertaining reading and I agree with it, but it’s not a genuine QUOTATION.

DavidC

  • Fri, Apr 10, 2009 - 03:46pm

    #8
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    Re: Ron Paul and Chairman Bernanke discuss economics

[quote=RubberRims]

So where do we go from here?

https://www.peakprosperity.com/comment/29075#comment-29075

[/quote]

Good clip.  Every time I watch Bernanke, or any of "the others", respond to real questions, I realize we are being lied to on the highest order.

  • Fri, Apr 10, 2009 - 05:03pm

    #9
    Peak Prosperity Admin

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    Re: Ron Paul and Chairman Bernanke discuss economics

[quote=gyrogearloose]

 

Be sure to read the bit at the top

"Listen in on my mock Congressional Joint Economic Committee Q&A
session, between fellow “nut” Congressman Ron Paul and Ben Bernanke:"

………….. 🙁

 

Cheers Hamish

[/quote]

Oh………………so disappointing.  I gleefully went off in search of a video, thinking that this was some new development, before finally realizing that it wasn’t real………..this conversation SO needs to happen…..why hasn’t it?  Surely Ron has tried to; I’ve seen enough video clips where Ron makes a general statement to the house on "what if…", etc, but none where he is directly confrontational, like Peter Schiff.   Does anyone know of any such an event/conversation/interview?

Ron Paul is brilliant, but seems like he is too "nice" for such directness.  Am I wrong?

  • Fri, Apr 10, 2009 - 10:10pm

    #10
    Peak Prosperity Admin

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    Re: Ron Paul and Chairman Bernanke discuss economics

I wonder how can gold resolve anything, when it`s scarce and will only deepen a shortage of money.

Money is just a register or receipt that a certain work has been done or goods delivered. Creating money by government through lending and/or spending it into an economy is one thing or stage in the process necessary to obtain acceptance of everybody and latter use of that kind of permanent money by society is what is follow. Amount of new, fresh money should be consistent with GDP growth. That way, there is no inflation, no public debt, no unemploiment, little or no taxation. Money keeps its value over time like it should. Btw, GDP doesn`t include stock trading or any speculative activities. No money should be created for that kind of purposes. If you want to gamble, use your saving.

What causes problems today, including inflation of prices, is a lack of real or permanent government issued money and consequently flooding an economy with so-call "funny" or bankers money which is essentially a never-ending debt. More debt needs more such kind of privately created money to cover the interest charges and taxation. Add huge amounts of imported goods which prices rise along with exchange rate of dollar and you`ll see why most of prices goes up even in the time of recession.

Inflation of prices is a straw man argument of private bankers plutocracy to preserve their current position and to continue robbing the society. Ron Paul seem to have good intentions, but unfortunately don`t understand that and only creates confusion with his austrian-school "arguments".

 

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