Saturday, January 07, 2012

Lies about Ron Paul Part 1.

The first thing Gary Weiss claims in his article ("Ron Paul's wacky but influential Fed policy") is that the Republican party is falling "deeper into the clutches of Ron Paul's radical ideology,". Yeah right, that's why there's so many Republicans who want to end the Fed, FDIC, bailouts, etc. etc. That this lie can be told in a mainstream publication with the assumption that nobody will check (good luck on that one pal, the Pauline Church don't tend to miss much).

This is immediately followed by another lie, that "Castrating" the fed is part of an "anti-popularist agenda". Since when has supporting the Fed in any manner been "popularist"? If memory serves the Fed was created by closed-door discussions (oh no, a conspiracy theory! But we'll get to the conspiracies later) on Jeckyll Island by elites intent on foisting the abomination on the populace without it's understanding. Whether it qualifies as "popularist" or not it certainly doesn't count as "falling deeper into the clutches of Ron Paul's ideology". Anyone who read an article which mentions RP's actual Fed policy would know this. The weird thing is THIS IS ONE SUCH ARTICLE. It specifically says in paragraph 7 that Ron Paul doesn't support "castrating" the Fed. Perhaps like the grazier talking to the dingo population control officer with the dart gun that makes them impotent he understands that the problem is they're EATING the sheep. So this guy can't even keep a deception up for 8 paragraphs and thinks he's going to go up against Republican politicians? Again, good luck feller.

He keeps up with this lie by claiming that "Bray’s legislation amounts to 'Ron Paul Lite.' The proposed law wouldn’t toss the Fed in the ashcan, as Paul wants, but it would go to the very heart of the Fed’s mission.". But the good doctor isn't arguing with it's mission but with it's powers, unaccountability, inherent potential for corruption, misuse, political influence, incompetence and disaster and it's unconstitutionality. Limiting it the use of it's power supposedly to reducing inflation (which is more efficiently done by simply adopting a commodity currency) is like telling a coal power plant to only send it's electricity to the West not the East, the posions it spews don't get better Not that it would even do that because "some of those regional bank presidents might want to keep the Fed focused on job creation, even if it’s ostensibly stripped of its ability to do so.". Again this guy doesn't even bother to keep the evidence of his deception out of his own article. If its ability to "keep... focused on job creation" is only "ostensibly stripped" then what's the big worry? In fact this only proves that RP is absolutely on the worth-7-cents-on-the-dollar money when he says it's grandstanding.

Then he brings the claim that the good Doctor is a "faux popularist". This is somewhat puzzling as AFAIK RP never claimed to be a popularist, nor have any of his followers claimed this as far as I know. The term "popularist" is of course one with a long and complex history, but the Popularist Party was best known for it's radical anti-strong money position.

At least Weiss acknowledges good things that have come from RP's focus on the Fed, that is to say he acknowledges that some of these things happened, not that they came from RP's actions. How did Bloomberg "break the story" of $13T in loans to the banks? Because Dr. Paul pushed for, and got, some sort of accounting from the Fed (which was far short of a legal audit).. Note that Weiss calls auditing the Fed (and he puts the "auditing" in scare quotes) "throw[ing] a bone to the right". Why the right? Since when has the Fed been a friend to the poor, the disabled, racial mionrities and all the other people the Left is supposed to care about? The Fed has historically been bosom buddies with crony capitalists, arms dealers, Coca-Cola, and everyone else the Left sees as conspiring to rob the 99%. To call examining it's activities a "bone to the right" is an open admission that the left no longer cares about the link between big government and big business, it only cares about... it only cares about... I'm sorry I though I could finish that sentence but I have no idea what the Left cares about any more. It's not like they even care about taking power from the "Right" anymore or they'd be volunteering to audit the Fed's behaviour in the Bush years and shouting the results from the rooftops.

Weiss then claims the statement "The Federal Reserve is the chief culprit behind the economic crisis" "ideologically driven rhetoric". The problem is that it's incontestable. Whatever you think of the behaviour of the banks (and Dr. Paul and I are no fans) what caused the crisis was the inflation and subsequent collapse of housing prices. Without that there might have been defaults but they would have had minor effects on the banking sector because the houses would just have been sold to pay off the loans. No Fed money spout means nobody gambling their future on housing price increases, no sudden collapse of that housing price, and no banker left high and dry by the fallout. In the history of America there has not been an asset price bubble that didn't come from government interference in the money supply. Dr. Paul isn't ignoring the pre-Fed history of booms and busts, he's quite aware of them and the role government interference in the money supply in causing them. It is Weiss who ignores the historical evidence.

Then he accuses Dr. Paul of "retailing the conspiracist humbug" of an accusation that he doesn't bother to refute. All he does is helpfully link to a post that has Bernanke calling Ron Paul's accusations "absolutely biazrre" which we are supposed to take as proof positive that they are. There is no actual refuting of Paul's accusation, not even an indication that Bernanke would know if they were true or not before slinging mud. In fact the comments section includes this link: which seems to indicate that the accusations are the opposite of "humbug". That Weiss didn't do the most basic checking and was outresearched by the comments on his own link is disgraceful. How can you hold your head up in polite society Mr. Weiss?

"Ryan was quoted as pushing the Ron Paul nostrum that what the Bureau of Engraving and Printing churns out is really 'fiat money,' since it’s not backed by gold. ". Again this is a falsehood, although I hesitate to call it a lie since it's unlikely someone would tell a lie that demonstrates they don't know what "nostrum" and "fiat money" mean. A nostrum (and I admit I had to look it up ) is "a medicine of secret composition recommended by its preparer but usually without scientific proof of its effectiveness " or "a usually questionable remedy or scheme". Calling something fiat moneyis not a scheme or remedy. In this case it's the simple truth, which if Weiss really had enough economic knowledge to criticise Dr. Paul's belief's about economic history he'd know. Oh and it's not fiat money because it's not backed by gold. It's fiat money because its not backed by anything but the word of Wesley Mooch.

He also claims, with his VAST knowledge of monetary policy that didn't unfortunately include the definition of "fiat money" or indeed any apparent research into who called the current economic downturn (I'll give you some hints, 12 term congressman, loved by the guys on, reads actual books before making claims about what caused 9/11, was therefore able to pwn Rudolf Guiliani), that a gold standard would cause another Great Depression. Never mind that the Fed has openly admitted that IT caused the Great Depression, never mind that there has NEVER been a boom and bust sufficient to cause such under a strict gold standard. No never mind that because he's got a link to Paul "I get pwned by Austrian economists so often they don't even take the tag off when they buy me back." Krugman. Seriously. Krugman. That's your best shot?

Well I'll give him one thing, when he claims that a GOP controlled Fed wouldn't stop the next depression, he's on the worth-less-than-an-Aussie-buck-even-though-it-was-over-40%-more-only-3-years-ago money. After all it didn't stop the current one. Congratulations Gary, you got one important thing right. Given how you started I didn't even expect that. You know, because you're an idiot.

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