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Rep. Ron Paul, (R-Texas), on the Federal Reserve’s decision not to take further action on the economy and efforts to audit the Fed.
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Right the Federal Reserve wrapped its two day meeting today in supply -- they decided to hold off on taking action I'm gonna bring in congress' most.
Critic of the -- representative Ron Paul thank you so much for joining us are.
Thank you what do you what is your reaction to today's decision.
But not a big reaction is more of the same I think -- Made it a little more enticing that they are more likely to -- something be by using the word wheel and one of their sentences they will respond and everybody knows that already -- That they're going to respond it's just one day -- going to do it there -- one day closer for quantitative easing coming back again.
So -- it's the same old thing it's just a shame that.
The whole market plays the whole world you know hangs on one or one sentence in the one come out that's not the way markets are supposed to work.
Nobody is the way markets are are working I -- did you essentially want to change that right I mean you would like to audit the Fed or.
What do you think should change.
Well we when he got to fit and find out more on what they do and why they do and they we can figure this out.
I would like the marketplace and a lot of people and in on Wall Street and their places they they say that they like free markets to.
But we have monopoly control of interest rates they're controlled by the Central Bank in because distortion its price fixing price fixing distorts market.
Nobody wants wage and price controls come back but one half of our economy.
Is working on a price control price of money so all the information you get from interest is felonious if it doesn't give you the right information.
So when there's no savings and interest rates -- 1%.
Just like bubbles war yet and then they have they have to be corrected -- -- -- -- -- and they won't allow the correction but this is why we're in effect on her.
Yet you auditing the Fed makes sense having to meet that seems like -- putting more cooks in the kitchen.
Perhaps what makes us very much limiting their mandate here.
-- now I mean you don't anymore cooks in the kitchen because it doesn't having to do with that.
I'm designing monetary policies just say that you -- responsible for we need to what you're doing.
You're bigger than the whole congress so what you stand and -- always money scout.
-- you don't have a right to bail out one company and -- -- another country the congress hasn't responsibility.
To.
Had to be in charge of monetary policy they certainly have a responsibility for.
Transparency.
And auditing and and and and looking at what people do.
But because as they've been negligent the Fed does whatever they want they're prepared to -- Europe and everybody else and they did that once already.
And it's very damaging its if this doesn't damage the big guys that do big -- And they love that foods and I -- what is the -- of having -- -- -- -- -- -- look at the middle class is shrinking and shrinking for ten years that's offends my I don't offering to blame the pet it.
I'm not why not because the Fed creates the bubble in the correction is a result of the bubble.
-- we knew the bubble was there and advice that interest rates are too low too long and and Christmas were saying don't do it don't -- Still the correction -- are not mistakes and that's your recession.
The -- when you don't -- the recession to proceed quickly.
And let the bankruptcies go then you prolong the agony and that's where we -- we're we're we were in the depression we -- -- the Japanese have been hurt.
Twenty year earth and the right now we do not allowed to correct the B made no liquidation would like to just a daily limit.
-- mandate so that really what they're there for is to stabilize the dollar I -- I think it is fair to say that they certainly served a purpose when the financial as system with seizing during the financial crisis to preventing a run on the bank.
But you know maybe by the time we get to QE3 they've gone a little too far would you like to have it there and I don't.
-- yeah yeah I can't wanted to.
We can't monetize that.
Just think if the congress in him to back up with a bad thing they're -- -- -- The politicians spend the money they take care of the military industrial complex -- -- the welfare state they don't worry about deficit.
In the bad all leases there because there the lender -- last resort they always by the debt to keep interest rates low to make Wall Street happen.
And usually get ends up -- -- massive that's where we are they can get us out of recessions now and beyond that until the bubble gets too big.
And the bubble is too big and -- in 070 wait we knew how big bubble was.
And they're doing everything it exactly wrong.
And they cannot -- how the correction to occur if they don't again on the people gee are you can't shrinking -- yes.
Go to the college campuses the kids that are inheriting well yeah I get a lot of risks are you getting support for limiting the -- wrong.
Well hope that the first big step -- find out what you're doing and I got.
Only 98 people.
Voting against the -- in the Fiat.
In on it was very clear the transparency is what people want.
And that's what the -- -- -- was bipartisan so many great strides in finding out calling attention.
To the organization.
Accuses the booms.
And gives us the inevitable -- that occur.
Have today manipulate the economy pretending that they're going to take care -- its central economic planning.
-- monetary policy.
It's doomed to fail we're witnessing is failure and we need to wake up and decide we need a different system and a congressman Ron Paul thank you so much for joining us tonight.
