Some Paulite posted this thinking that this was some rare species of
brilliance coming from a Congressional member. Far from it. Even though
I may not personally agree with what the current Fed Chairman is doing
I don’t entertain the thought of overpowering him intellectual in a
dual of economic thought. But Ron Paul, being the arrogant Congressman
that he is (is there really any other type of Congressman?) tried to
pull the rug out from under Bernanke with a whopper: [paraphrased by
me] “We don’t know what caused the tech bubble and we don’t know what
caused the housing bubble.”
Really? I thought the tech bubble was caused by overly optimistic
valuations of high technology companies. That’s odd, I thought that
everyone else pretty much accepted that as well. And the housing bubble
was caused by land grab precipitated by subprime loans. The devaluation
of the dollar, which Mr. Paul is obviously fixated on, didn’t have much
to do with either of these economic events. Even with the dollar losing
its buying power that buying power is being lost in regards to imported
goods.
And when he talks about the CPI being meaningless and the money supply increasing significantly I had to stifle laughter. The CPI is a fairly basic measurement that even most Third World countries can get relatively correct.
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