Sunday, September 23, 2007

Ron Paul to Bernanke - Moral hazard of currency devaluation

"I love Ron Paul. My fear is that if he ever get's elected as president of the US, he may suffer the same fate as JFK. Remember, JFK wanted to do something about the secret society and remove their power from the IMF. A month later he was killed.

WAKE UP EVERYONE!!! This is not a bunch of fools on some crazy conspiracy but reality of what's being played out by a bunch of evil elitists."

Bernanke Stumped by Representative Ron Paul

"I want to follow up on the discussion about moral hazard. I think we have a very narrow understanding about what moral hazard really is. Because I think moral hazard begins at the very moment that we create artificially low interest rates which we constantly do. And this is the reason people make mistakes. It isn't because human nature causes us to make all these mistakes, but there is a normal reaction when interest rates are low that there will be overinvestment and malinvestment, excessive debt, and then there are consequences from this. My question is going to be around the subject of how can it ever be morally justifiable to deliberately depreciate the value of our currency?"

..."You will not be surprised to know that B-52 Ben didn't answer the question. He couldn't answer the question (at least truthfully). Was he going to say that the Federal Reserve is a quasi-private institution whose prime directive is to cartelize and protect the profits of the banking industry? Was he going to say that the only policy the Fed knows is based on the flawed Keynesian logic that wealth can be created out of thin air via printing presses? Of course not."

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