Friday, February 13, 2004
From The Office of U.S. Representative Ron Paul 2004 02 12:In a hearing before the House Financial Services committee yesterday, Congressman Ron Paul took the opportunity to ask Federal Reserve Chairman Alan Greenspan several pointed questions. Greenspan’s normal evasiveness was tested when Paul asked him directly whether Fed actions represent a threat to freedom and prosperity. Mr. Greenspan’s startling response: The Fed does indeed have “inordinate power” over the American economy.
“I certainly appreciate Mr. Greenspan’s candor,” Paul stated after the hearing. “The Fed does have a tremendous impact on the economy and our lives, but its board members generally escape any political scrutiny for their actions. I want to make the public and Congress more aware of just how powerful--and destructive-- the Fed really is. The unbridled expansion of the money supply will hurt all of us in the long run, in the form of price inflation, destruction of personal savings, and higher interest rates.”
Paul also cited economist Friedrich Hayek’s “pretense of knowledge” principle during the hearing, arguing that no amount of Fed “wisdom” can substitute for the discipline and price setting of the free market. He pressed Greenspan to admit that no government planner can know the “correct” interest rate for the economy, but the Chairman again sidestepped this central question.
[...] (Also see  Ron Paul's latest floor speech, from Feb. 11. The topic is the importance of adhering to the Constitution.)Labels: Ron Paul .....---
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