Congressman: Only way to solve financial crisis is to work, produce and save - not to create credit out of thin air
Paul Joseph Watson
Wednesday, February 25, 2009
Congressman Ron Paul again took the opportunity to lecture Federal Reserve chairman Ben Bernanke on sound money principles at this morning’s House Financial Services Committee hearing, warning that the financial crisis cannot be solved by merely creating credit out of thin air.
Paul said that yesterday’s record consumer confidence slump was a reflection of monetary policy in Washington and that it was impossible to patch up a failed system.
“This is the end of an era,” said the Congressman, “we can’t reinflate the bubble….if we think that we can reinflate this bubble by artificially creating credit out of thin air and calling it capital, believe me we don’t have a prayer of solving these problems - we have a total misunderstanding of what credit is versus capital.”
Paul stressed that capital could not be created out of thin air by the Federal Reserve. “We have to work hard, produce, live within our means and what is left over is called capital,” said Paul, dismissing the notion of recapitalizing markets by turning on the printing presses as a “total fallacy”.
The Texas Congressman said that central bankers were only failing forward in creating another new system doomed to crash by creating internationalized regulations and giving up on the dollar standard.
“We have to have a system that encourages people to work and to save - what are we doing now - we’re telling consumers to spend and continue the process - it won’t work,” concluded Paul.
Watch the clip.
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