Ron Paul was born August 20, 1935. Mr. Paul's economic policy to end the Federal Reserve is analogous to religious fighters killing innocent people claiming their deeds were done in god's name. His strict interpretation of the Constitution is not taken seriously Inside the Beltway. The end the Fed nonsense is nothing more than an empty promise, aimed at convincing misguided consumers who search for anti-government solutions to their economic problems.
Supporters of Mr. Paul need to acknowledge the limitations of a gold standard, the inability of gold to adequately ease the Great Depression and its place in history. With a gold standard, the total economic output is finite, measured by the amount of gold circulating through the economy. As the world population increases, economic output increases accordingly. It is not reasonable to assume that the rate of change of gold production can keep pace with economic output. Furthermore, interest rates under the gold standard are tied to a commodity in fixed supply, not tied to economic cycle and unable to expand and contract based on supply and demand. The premise of the Gold standard is the belief that there is one side of the economy- artificial demand-created by production mines that have little correlation with the market.
This blog represents a mixture of libertarian, conservative and liberal economic philosophies aimed at increasing economic wealth for the greatest number of people. The Federal Reserve System was created by the Federal Reserve Act of 1911, under Woodrow Wilson and the Progressive Movement. The Federal Reserve System is largely free to act within its legal powers outside the purview of Congressional Oversight. However, the Chairman does have to be confirmed by 51 votes in the Senate. Mr. Bernanke was appointed by President Bush, a Republican, and reappointed by President Obama, a Democrat. His creative policies and quick action helped soften the Financial Crisis and lead the U.S. to a path of recovery that would not be feasible under a gold standard.
Mr. Paul's rhetoric is good for publicity, short on political feasibility. Libertarians have many economic causes worth fighting. The Federal Reserve is not one of them. Those who buy Mr. Paul's 'End the Fed' rhetoric would be better served with a more educated and healthy reading list--
http://www.amazon.com/Lords-Finance-Bankers-Broke-World/dp/159420182X
http://www.amazon.com/Ascent-Money-Financial-History-World/dp/0143116177/ref=sr_1_1?s=books&ie=UTF8&qid=1325482811&sr=1-1
Supporters of Mr. Paul need to acknowledge the limitations of a gold standard, the inability of gold to adequately ease the Great Depression and its place in history. With a gold standard, the total economic output is finite, measured by the amount of gold circulating through the economy. As the world population increases, economic output increases accordingly. It is not reasonable to assume that the rate of change of gold production can keep pace with economic output. Furthermore, interest rates under the gold standard are tied to a commodity in fixed supply, not tied to economic cycle and unable to expand and contract based on supply and demand. The premise of the Gold standard is the belief that there is one side of the economy- artificial demand-created by production mines that have little correlation with the market.
This blog represents a mixture of libertarian, conservative and liberal economic philosophies aimed at increasing economic wealth for the greatest number of people. The Federal Reserve System was created by the Federal Reserve Act of 1911, under Woodrow Wilson and the Progressive Movement. The Federal Reserve System is largely free to act within its legal powers outside the purview of Congressional Oversight. However, the Chairman does have to be confirmed by 51 votes in the Senate. Mr. Bernanke was appointed by President Bush, a Republican, and reappointed by President Obama, a Democrat. His creative policies and quick action helped soften the Financial Crisis and lead the U.S. to a path of recovery that would not be feasible under a gold standard.
Mr. Paul's rhetoric is good for publicity, short on political feasibility. Libertarians have many economic causes worth fighting. The Federal Reserve is not one of them. Those who buy Mr. Paul's 'End the Fed' rhetoric would be better served with a more educated and healthy reading list--
http://www.amazon.com/Lords-Finance-Bankers-Broke-World/dp/159420182X
http://www.amazon.com/Ascent-Money-Financial-History-World/dp/0143116177/ref=sr_1_1?s=books&ie=UTF8&qid=1325482811&sr=1-1
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