While no longer actively engaged in politcs, one of Ron Paul’s crowning achievements while in Congress, was to bring some much needed sunlight to the balance sheet, the activities, and secret bailouts of the Fed, and according to some, was being responsible for the “transaprency, openness, and forward guidance” approach to monetary policy. The paradox here, as the whole Taper – Non Taper shocking episode provied, is that the Fed itself is now caught in a reflexive Catch 22, and no longer can “renormalize” and extricate itself from its policy through “guidance” without in the process destroying everything it has achieved during the prior period of central planniing.
Still, despite Ron Paul’s unsung accomplishments there is much more to be done to expose just how actively the NY Fed’s trading desk participates in the fixing of the S&P500’s closing price day after day. For that, he will need the help of his son, Rand. Which is why as the Sunshine State News reports, “Sen. Rand Paul, R-Ky., is ramping up his opposition to President Barack Obama’s nomination of Janet Yellen to chair the Federal Reserve. Paul is teaming up with the Campaign for Liberty, chaired by his father former U.S. Rep. Ron Paul, R-Texas, to stand in opposition to Yellen and push legislation taking aim at the Fed.”
On Thursday, the Campaign for Liberty announced a video on the subject featuring Sen. Paul and John Tate, the president of the group.
“The Senate fight over Barack Obama’s Fed chair nominee is just around the corner,” Norm Singleton, the vice president of policy for the Campaign for Liberty, wrote supporters on Thursday. “And Senator Rand Paul has vowed to block the nomination until Harry Reid brings ‘Audit the Fed’ to the floor for a vote. This will be the fight of our lives — but this is our moment!
Will Paul and Paul succeed in getting some traction in the Democrat governed senate: the same Democrats who loathed the Fed when it was only in the news over how many trillions in bank bailouts it provided, but love it now that it is best known for monetizing the US deficit and funding various insolvent welfare programs? We doubt it, but we wish the luck.
Sadly, it is now far too late to change strategy and direction, and/or focus on anything besides salvage. Which is why it is perhaps best if Yellen et al are allowed unobstructed access to everything they want to engage in: print $100 billion a month? Fine, do it. Print $1 trillion? $1 quadrillion? Go for it!
If anything, encouraging America’s monetary politburo to hit their Weimar endgoal, is now in everyone’s best interest. Frankly, the reset can’t come fast enough.
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/jDe0A9JuEns/story01.htm Tyler Durden