128 votes

Paul Subcommittee to Examine Federal Reserve Interest Rate Manipulation 9/21/2012

Hearing on the Price of Money Sept 21, 2012


H/T JohnPhillipSousa

Live Stream - Lower right corner of the site, click "Live Webcasts"

Congressman Ron Paul, Chairman of the Domestic Monetary Policy and Technology Subcommittee, announced today that the subcommittee will hold a hearing to examine the effects of the Federal Reserve’s interest rate policy on the American people. The hearing, entitled “The Price of Money: Consequences of the Federal Reserve’s Zero Interest Rate Policy,” will be held on Friday, September 21st, at 9:30 a.m. in room 2128 of the Rayburn House Office Building.

Witnesses scheduled to testify:

  • James Grant, Editor, Grant’s Interest Rate Observer
  • Lewis E. Lehrman, Senior Partner, L.E. Lehrman & Co

“The Federal Reserve is relentless in pursuing a policy of zero interest rates, as manifest by their decision last week to do another round of quantitative easing and keep the federal funds rate at zero for another three years. The Fed is intent on ignoring that their policy of low interest rates in the past brought us the financial crisis of 2008 and their zero interest rate policy of today is prolonging the agony while sowing the seeds for a much larger crash in future,” stated Chairman Paul. “Their manipulation of interest rates – essentially price setting – can only ever have destructive effects on the American economy. Artificially low interest rates continue to cause malinvestment and misallocation of resources throughout the economy. Savers and investors suffer from negative real interest rates, while the federal government takes advantage of the Fed’s zero interest rate policy to run up gargantuan fiscal deficits. These problems cannot and will not be remedied until the Fed stops manipulating the price of money.”


Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.


I love it when Jim Rogers calls currency wampum.

YT video of hearing-


"If you want something you've never had before, you have to do something you've never done before." Debra Medina

reedr3v's picture

Thank you. Can you imagine what a different world

we could have made if this man had been treated with the respect he deserves by the media? Think of a President educating the entire thinking public to understand the issues.

You've echoed

my thoughts often, Reed, and I yours...and now, this one, for sure.

"If you want something you've never had before, you have to do something you've never done before." Debra Medina

WTF.... WTF... WTF....

We are on the eve of the national end the fed rallies and where is the end the fed post, it should be kept on the front cover at least till the 22nd ends... Yes I know Adam Kokesh is an organiser and if you don't like him go to the other side of the fed building or goto the fed building in your state and start your own rally.. for this shit to go global we need you Americans to make a big stink about it. You are letting down the team big time. How can I sell this concept to south Africans if you guys aren't amassing by the hundreds of thousands outside FEd buildings making youtube videos.... you guys need to bring your A GAME.

It is prompting me for a

It is prompting me for a password for the stream :|
Why isn't it on CSPAN

Southern Agrarian

What's the outcome going to be?

So do they have any power to change the Fed's policy or is this just all talk?


Will this also be on C-SPAN?


“It is not our part to master all the tides of the world, but to do what is in us for the succour of those years wherein we are set, uprooting the evil in the fields that we know, so that those who live after may have clean earth to till." -J.R.R. Tolkien

Michael Nystrom's picture

Probably not


He's the man.

Give em hell Harry...

Give em hell Harry, I mean Dr Paul.


Joη's picture

Ron suggested Jim Grant would be a great fed chair

good to bring him over.

"You underestimate the character of man." | "So be off now, and set about it." | Up for a game?


come on guys.. its coming up quick we need this on the front page.

Here is a link to my post, but if you don't like it make your own up or vote someone elses up.. I don't care simply get this on the front page.


It's good that Ron Paul is

It's good that Ron Paul is providing a forum for capturing this testimony on film even though only those of us on the fringe will watch it. Someday though, historians will thank him for documenting just how perverse the mainstream thinking is in our day.

He should invite David Stockman to testify as well:


I must be willing to give up what I am in order to become what I will be. Albert Einstein

David Stockman, Pres. Reagan Administration Budget Director

Excellent suggestion.

Also see: David Stockman DailyPaul

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Great news.

Hey take the political quiz and compare yourself to Ron Paul.


Protect your assets and profit from the greatest wealth transfer in history.

The Federal Reserve banks

The Federal Reserve banks have a perverse incentive structure. While they are mandated to try to stabilize prices and achieve near-full employment, they have no consequences if they do not. They DO have consequences if they do or don't make money.

So their incentive is to adjust interest rates to, over the long term, maximize the transfer of wealth from everywhere else in the economy to the member banks. The only reason for any restraint on their part is to keep the economy running well enough to make more wealth for them to siphon off.

They have been given a license to tax the whole world's economy and to set their own tax rates. You can bet they have a better, and more quantitative, understanding of the Laffer Curve than congress. B-b

= = = =

Incidentally: Industrial process innovation increasing productivity makes it progressively cheaper to make stuff as time goes on. So prices should fall, and if the division of profits between the workers, managers, and investors remains reasonably stable the amount of stuff the workers can buy with their wages should rise roughly in proportion to productivity improvements (or a tad more slowly as some - but far from all - is paid to the inventors who came up with the improvements and the investors who paid to implement them). Even if the Fed merely succeeded in "stabilizing" prices (rather than inflating them faster than wages rise), they'd be ripping off the workers (and especially the retired).

Of course with the robbery of the workers by taxes and inflation going up to the point that we've gone from a good life with a single-income family to holding on by our fingernails with a two-income family, a question of interest is where that productivity went. As I understand it: A little went to engineers. A little went to investors. A lot went to banks. But most of it went to upper management. Why do they get it? Because the boards hire them and pay them the big bucks. Why do the boards hire and pay them? Because they ARE the "cronies" who can be "first in line" for the newly printed money from the Fed. THAT'S the value they bring to the company that lets them earn thousands of times as much as the workers who actually design and build the stuff or perform the services.

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Does the Fed limit robbery to taxes & inflation?

The Fed creates money out-of-thin-air. - Ron Paul. Same with credit. Aren't they ripping off all that have faith & confidence in their promissory note scam? Is there a limit to their practice in the art of deception?

The Fed: Loaning you blind, since 1913.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Plan A - 200 Million letters to your Congressman and Senator

Responding to the Obama administration’s new regulatory reform plan, which will officially hand the Federal Reserve complete dictatorial control over the U.S. economy, Congressman Ron Paul told MSNBC that the Fed was now more powerful than Congress.

Ron Paul emphasized that no amount of regulation could compensate for a financial system created and controlled by the Federal Reserve that was completely unstable to begin with.

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress,” said Paul.

As we reported yesterday, the new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

Obama’s regulatory “reform” plan is nothing less than a green light for the complete and total takeover of the United States by a private banking cartel that will usurp the power of existing regulatory bodies, who are now being blamed for the financial crisis in order that their status can be abolished and their roles handed over to the all-powerful Fed.

“They’re giving a tremendous amount of more power to the Federal Reserve – the very institution that created our problem. That’s about the way Washington works,” said the Congressman

“Too much regulations to begin with, so they give it more. The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply – you can’t solve the problems that way. That’s like saying you can take care of a drug addict by just giving them more drugs,” concluded Paul, adding that the lack of understanding about how the Federal Reserve created the problem and how the free market ought to work was the root of the crisis.

It is obvious the American people are OK with all of these Government matters as long as they get to watch there favorite TV sports/reality shows shows and only believe MSNBC, FOX...etc. is true. Democracy is just as hard to mantain as the struggle to achieve it and when they loose it, that will be their reality check!


James Joyce


Debbie's picture

Awesome - thank you

Awesome - thank you Congressman Paul!!




"We are not human beings having a spiritual experience; we are spiritual beings having a human experience"—Pierre Teilhard de Chardin

I wish RP would say

Listen, if you are going to just print more money and hand it out...why not give 4000 random people in America 1 million dollars a peice each month instead of always giving the free money to your already fantastically wealthly friends?

Come right out and tell whoever it is from the FED that shows up that the American people know that you all are nothing but criminals who are stealing money from the unborn. RP should call for some police and have them handcuff the crooks and taken off to jail.

I really wish RP would tell it like it is. The FED is running a counterfiting ring and a ponzi scheme. That's illegal. You must go to jail for looting the American people!

The near zero interest policy

makes no sense to me. If the policy is truly designed to help people afford a home mortgage, just how many people can actually qualify for a loan? Same goes for small business loans. The low interest rates paid on savings are particularly irritating, since none of us can get a decent return on savings. The stock market is way too volatile and returns on government securities is a joke. Even people struggling to get by, had incentive to save what they could in the past, when there was a decent return. It used to be that interest earned was the portion of my retirement income that I spent on "extra" purchases throughout the year. That has not been the case for the past 4 years. There is no unnecessary spending going on in my household. Just how many of our fellow citizens are doing the same thing? How is our inability or apprehension to make major purchases helping out the economy?
Raise the interest rates, allow a decent return and let the income flow back into the economy. For the Fed to claim that the low interest rates will help the consumer, is just not true. Only the banks and the government are benefiting from the low rates.

Cents are minted by the Bureau of Printing & Engraving.

Dollars are printed-out-of-then-air. - Ron Paul, US Congressional Record.

The US penny was worth its weight up till 1982. It was made of copper.
Today, a 1982 penny melt value is double: 2¢. http://www.coinflation.com/coins/basemetal_coin_calculator.html

"Now, we are on the Zinc standard." - Ron Paul, US Congressional Record.

Search: immaculate creation of credit

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Interest Rate

If the interest rates were higher, lenders would be more willing to lend because of the higher profits. The low interest rates make it so only someone who doesn't need a loan can qualify for a loan.
Mainstream media does not explain this clearly.

As rates go below zero, even the news reporters are aghast.

Imagine yourself, as I did... a news reporter. Explain how banks make a profit at zero or less interest rates.

Please consider this a rhetorical request.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

This is one to probably share

This is one to probably share far and wide once a video is posted. Grab the popcorn, CSPAN will never be more interesting!