Change of Heart Over Stimulus and FED

In a grand turn of event's Telegraph reporter Ambrose Evans-Pritchard has reversed his pro-Fed, pro-stimulus position, issued an apology, and is now calling for an end to the central bank. This marks an important milestone for those of us who call for a return to sound money. People are starting to realize that the emperor has no clothes when it comes to fiat currency and interventionist fiscal policy and are waking up from their state-induced dream. Let us welcome these new converts as they join the battle against Leviathan's central banking and fiat currency system. 

My favorite line from Ambrose reads, "My apologies. Mercy, for I have sinned against sound money, and therefore against sound politics."

 I encourage you to read the whole piece. It begins:

I apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking its first shots of quantitative easing.

My pathetic assumption was that Ben Bernanke would deploy further QE only to stave off DEFLATION, not to create INFLATION. If the Federal Open Market Committee cannot see the difference, God help America.

We now learn from last week’s minutes that the Fed is willing “to provide additional accommodation if needed to … return inflation, over time, to levels consistent with its mandate.”

NO, NO, NO, this cannot possibly be true. (Read the rest here.)

Bernanke Re-confirmation Met with Opposition

If you haven't already heard, FED Chairman Ben Bernanke was re-confirmed by a vote of 70-30 yesterday afternoon. In this two clear signals were sent: 1. Failure will continue to be rewarded in DC. 2. Some are ready to stand up to the FED chairman.

The vote did not go along party lines with the failed chairman of the currency debasing giant finding support on both sides of the aisle. Sadly, both of my Republican senators (Alexander and Corker) gave their support, but that was to be expected. Each are statist in make-up, moderates at best, and completely ignorant in the field of fiscal policy. Major supporter of the FED Sen. Bob Corker even went as far as to say:

“We need to mature a little bit. ... If we continue constant witch hunts, which is what happens here on a daily basis, no one in leadership is ever going to make a bold decision. You’re going to reduce people to just not taking leadership.”

This is a severely misguided statement. First, it assumes that Bernanke has made bold decisions. Keeping interest rates extremely artificially low and injecting volumes of paper money into a hungry system is not bold. Rather, it is politically expedient. Second, Corker assumes that bold equals correct. And even if Bernanke was being bold-he wasn't-he sure wasn't acting rightly. Moreover, Mr. Corker this is not a matter of immaturity by the FED chairman's opponents. In fact, immaturity has shown forth quiet brightly in statements you have made over the last year involving the FED, fiscal policy, and basic economic theory. Perhaps the finger needs to be pointed back at you.

There is an upside to the recent re-confirmation process, however. Some are upset with the FED, its chair, and our current fiscal policy. The speeches made on the senate floor and the 70-30 margin are proof of this.

The senate usually skates through these confirmations. Not this time. A record 30 senators voted against him, which is a very good sign. I can't help but see this as a major victory for Texas Congressman Ron Paul. He has single handedly brought the FED issue to national prominence and led his colleges on a crusade for FED transparency.

May this opposition continue to grow and lead to good things down the road. If you haven't already checked out the effort to audit the FED through legislation going through the House and Senate, please do.

Bernanke: Time Person of the Year

It seems that little shocks me in our current political climate, but I was forced to do a double take when I read the headline: Ben Bernanke named Time Person of the Year.

The man who added to the build-up of our current economic crises, the man who has continued to dig us into a deeper hole, that man is the man of the year.

In a year the President Obama can escalate a war and win the Nobel Peace Prize, I should not be surprised.

It seems that, war is peace, lies are truth, and failure is success here in the good ole U.S. of A.

I agree with Ron Paul that Bernanke himself is not evil, but the system of which he is head definitely is very evil.

*Note: I just found this cool video right now. Pat Buchanan and Ron Paul both talking about the issues. I am a fan of both men.