Bernanke and Ron Paul uneasy in Showdown in DC
Was the US the sole recipient of bailout money?
Ben Bernanke’s testimony before Congress continued today, punctuated by a very entertaining exchange between Bernanke and Rep. Ron Paul (R – TX), part of which was an allegation that the Fed was lending to Greece to ease the turmoil there. Decide for yourself whether Greece should be allowed to borrow money from the Federal Reserve.
For the record, Bernanke denies all of Mr. Paul’s allegation, calling them “bizarre.”
Is it truly that bizarre?
Is the Federal Reserve going to perform a Greece bailout? Has that been done for other countries in the past? As to Greece, it remains to be seen, despite what Ben Bernanke testimony indicates. The writing may already be on the wall.
Written in “Texas Straight Talk”
In a recent weekly column at House.gov, Ron Paul wrote about the unveiling financial crisis in Greece. The government is close to defaulting on public debt, as the Treasury is almost dry. The level of debt, according to Paul, sits at “about 120 percent of their gross domestic product,” so the public sector soaks up “what amounts to 40 percent of GDP.” European investors have been skittish, suffice to say. The European Central Bank seems suspiciously calm.
Why would that be? Outsiders aren’t sure. Is it possible that the Federal Reserve is going to perform a Greece bailout? We aren’t aware, says Paul, partly due to the Federal Reserve’s distribution of bailout funds hasn’t been disclosed as well as promised, and also because if they had aided a foreign central bank, they don’t have to disclose it by law and it is exempt from audit. Considering Greece isn’t the only European nation in dire straits, many with some tie to Goldman Sachs, one wonders if they will also be deemed “too big to fail” by the U.S. banking concerns. Who will be liable if that is the case? It would be the taxpayers at a time when unemployment is incredibly high.
Creating fiat currency and shoveling it around with impunity
Our government buys into the idea of fiat currency. It’s creating money for whatever purpose they like; it’s a check the bank doesn’t have the actual capital to cash. America’s government and the Federal Reserve are obviously happy to keep such a system in place, with no thought of the debt burden it will place of future generations. Ron Paul has upheld that the people deserve to know if they are “going to be left holding the bag” by the Federal Reserve spending money they don’t really have!
Evidence log for your consideration
- Federal Reserve money supported Saddam Hussein and the Iraq military
- Federal Reserve money was involved in Watergate
- Here’s the Senate Watergate Report for more on Watergate.
Bernanke testimony does not inspire confidence
This is exactly why Ron Paul would like laws to be changed so that we can audit the Federal Reserve. Fast cash from our pockets to other nations cannot continue when our nation bears this burden of its own. We need to know what’s happening. That’s the kind of transparency American taxpayers deserve.
