There Is No Hope Left: Listen to Bernanke's Answers To Ron Paul's Questions Yesterday

[buzzy2]

Quote from scriabinop23:
You guys are out of your minds. It is an incomplete conversation, and one that Bernanke handled well.
Ron Paul's little hobby of his Austrian agenda is a joke. If you want us to have a 2T GDP instead of a 14T, then by all means, go worship him.

Hey scriabino,
Why don't you go to Iceland and ask people what do they think of banks and fractional reserve banking?
As of 2007 they were one of the richest countries in the world, now they are back to an african standard of living.

A free banking system like the one proposed by austrian economists is much more stable. It might not go to 100-200 trillion GDP, but then again, that's the "cost" of avoiding bubbles and the accompanying crashes.

These people are so stupid they will only learn the economics of bubbles and crashes, the hard way, that is, with famine, unemployment, civil wars, revolutions... watch Bernanke, he's a total liar, and he looks like he has no sense of responsibility no guilt whatsoever, no shame.

 

[jem]

scribinop23 -

I have no preference nor should you between a 2 trillion dollar or and 14 trilllion dollar GDP. You have not given me enough info to discriminate. But question does illustrate whey the Fed so scary. People autmatically think they have more buying power because they have more money.

But I know the 200,000 dollar home I grew up in, in Greenwich Ct was far more valuable than the million dollar home I owned in Florida 35 years later.

Money is bullshit. Real buying power and Real GDP is what matters.

I would rather have 2 trillion in strong dollars GDP than 14 trillion in banana republic dollars.

 

[jem]

Quote from lolatBushites:

lol. Is that why you want Bush back in DC?

Those are fighting words.

I never voted for Bush senior and I mistakenly voted for bush junior once.

I lost repect for him when he let CA get shafted by Enron. I have despised him since he tried to sneak a former liberal Harriet myers on the Supreme Court. Similar to the way his dad snuck souter on there.

If you care you could see in my posts that is when I completely turned on him. But, I still do not know if Kerry would have been better. He is a scum ball too. I abstained from casting a vote for president that time around.

Note: I respect good liberal justices who really believe in the constitution. there are just very few of them.

 

[nevadan]

Ron Paul looked a little lost there after Bernanke's response. It seems Paul's question was completely scripted and previously prepared and he had zero follow up.

Paul talks to much trying to make his point. He should just stick with the question. He asked whether it was too easy and to much credit in the twenties that caused the crash and the depression or the Fed's tight money policies. It was a good question and one that I would have liked to have heard Bernanke answer. If Paul would have set back and waited for the answer he would have been better off. By continuing he gave Bernanke a way to avoid it. Paul's follow up should have been: Do you reject the idea that too much credit set the stage for the speculative excesses that resulted in the crash? The only way to deal with someone as slippery as Bernake is to ask short questions that give him no wiggle room.

 

[ljyoung]

Quote from nevadan:

Paul talks to much trying to make his point. He should just stick with the question. He asked whether it was too easy and to much credit in the twenties that caused the crash and the depression or the Fed's tight money policies. It was a good question and one that I would have liked to have heard Bernanke answer. If Paul would have set back and waited for the answer he would have been better off. By continuing he gave Bernanke a way to avoid it. Paul's follow up should have been: Do you reject the idea that too much credit set the stage for the speculative excesses that resulted in the crash? The only way to deal with someone as slippery as Bernanke is to ask short questions that give him no wiggle room.

You make a good point nevadan. A minor clarification in what you said (which I'm sure you already know) is that the tight money policies followed the crash.

lj

 

[nevadan]

lj, thanks, you are of course right

 

[matgallis]

Quote from makloda:

Ron Paul looked a little lost there after Bernanke's response. It seems Paul's question was completely scripted and previously prepared and he had zero follow up.

Too bad ben completely ditched the underlining argument by Ron and decided to point out the fact a stagnant MS prolonged the great depression. Ben's points were not central to Ron's argument. Classic political question dodging.

 

[scriabinop23]

Quote from matgallis:

Too bad ben completely ditched the underlining argument by Ron and decided to point out the fact a stagnant MS prolonged the great depression. Ben's points were not central to Ron's argument. Classic political question dodging.

Ron Paul is a silly hyperbole of someone who lacks the capacity to understand the implications of his ideas if actually enacted. He uses every moment in front of Bernanke to grandstand, and Bernanke is justified to treat him as if he is an ill-informed, albeit enthusiastic student in one of his intro to economics classes. Bernanke could do intellectual acrobatics that would put Paul to shame. I think its popular to identify with mediocrity (Ron Paul) on these message boards, esp. since being a trader has an analogous prerequisite (none) of knowledge, intellectual edge, and social standing.

That said, when I said 2T versus 14T in GDP, I meant in real terms, not nominal. My point stands strong. Frac reserve banking and use of credit allows much more efficient use of capital. The problem here was that of regulations and lack of common sense. But don't even think Ron Paul's grand proposals will somehow prevent the cyclical nature of economies from occuring. That has more to do with human nature - a natural need to cycle through bubbles and busts. This can be easily proven throughout history.

 

[Anaconda]

Quote from scriabinop23:

You guys are out of your minds. It is an incomplete conversation, and one that Bernanke handled well.

He contradicted the concept of price discovery & free markets in his own statements. He completely avoided the fact that there was, is and will be a market for the toxic securities without the TARP program.

Just because he looked as if was even a remotely credible answer, does not mean he did. Next week, he will have the same look while saying that 2+2=5. My guess is that you will believe it.

 

[ljyoung]

Quote from scriabinop23:

Ron Paul is a silly hyperbole of someone who lacks the capacity to understand the implications of his ideas if actually enacted. He uses every moment in front of Bernanke to grandstand, and Bernanke is justified to treat him as if he is an ill-informed, albeit enthusiastic student in one of his intro to economics classes. Bernanke could do intellectual acrobatics that would put Paul to shame. I think its popular to identify with mediocrity (Ron Paul) on these message boards, esp. since being a trader has an analogous prerequisite (none) of knowledge, intellectual edge, and social standing.

That said, when I said 2T versus 14T in GDP, I meant in real terms, not nominal. My point stands strong. Frac reserve banking and use of credit allows much more efficient use of capital. The problem here was that of regulations and lack of common sense. But don't even think Ron Paul's grand proposals will somehow prevent the cyclical nature of economies from occuring. That has more to do with human nature - a natural need to cycle through bubbles and busts. This can be easily proven throughout history.

One should be careful about equating acrobatics with an edge. I doubt if Gentle Ben could do a forward roll without toppling to the side just after initiating his performance.

It would seem to me that the artificial creation of wealth (fractional reserve banking) should not neglect the second adjective in the phrase, e.g., reserve. That seems to be the case in what has been happening most recently. It is true that there is a cyclical nature to economies but again that likewise seems to have gone by the board, a natural outcome of the neglect of the 'reserve' component of fractional reserve banking.

Your points about social standing, knowledge and intellectual are as contrived and condescending as the pudgy, little twerp you defend. Bernanke is indeed slippery, an engorged leech , bloated with the blood of his host but nothing that the glowing ember at the tip of a freshly-lit cigarette (or cigar if you prefer) can't quickly eliminate.

The time of reckoning for Bernanke and those he giveth succor to, is fast approaching. Ron Paul's efforts have not gone unnoticed and as things get worse (we aren't in the 'thirties', as no doubt you know) more and more people will come to view what has been done in the name of price stabilization as a calculated, arrogant mistake of disastrous proportions.

lj