Refusing to go quietly into that good night, and taking advantage of a nascent Audit the Fed movement that is gaining steam, Texas Republican Ron Paul is firing a salvo at the Federal Reserve Bank - and it's not a warning shot across the bow.
Ron Paul's latest book, End The Fed, is already a Top-50 bestseller on and the book doesn't even get released until next Wednesday. I managed to get my hands on an advance copy of the first three chapters and the good doctor doesn't disappoint.
He explains in the early chapters that the title wasn't his, but rather it was the thing people started chanting at all his campaign rallies during the 2008 election. Despite the shabby treatment he received (and continues to receive) from the mainstream media, it seems the sound money arguments he based his campaign on resonate with the people.
Predictably, the first couple chapters are all history in order to give the book context. That said, they are well worth reading even by those well versed in the history of monetary policy in the U.S. He also describes his evolution as a student of the Austrian school of economic theory, and how Nixon's reneging on Bretton Woods in 1971 was the singular economic event that drove him to pursue a career in politics.
He even spends a little time grading the various Federal Reserve personalities he's known over his eleven terms in Congress, giving the highest marks to Paul Volcker (which surprised me a little) and the lowest marks to Alan Greenspan and Ben Bernanke (which surprised me not at all).
I'm sure the book will be controversial, to the extent that the lapdog media allows it to even become a topic of conversation. And if my buying the book has a chance of ratcheting up the heat on Bernanke even one scintilla, well then they've got my $13. But this stuff should really be a no-brainer, guys.
I'll leave you with this. It is Ron Paul's take on the bogeyman that is deflation, and how deflation is really a nonstarter when it is inflation that drives a country into the ground.
Today's politicians in Washington, oblivious as usual to the
dangers of inflation, show no concern for the dollar or the operations
of the Federal Reserve. They are, instead, terrified of
deflation. Think of what the word deflation means. Defined as
a declining money stock, deflation can actually be economically
clarifying. It causes banks to tighten up their lending standards
and encourages businesses to run tighter operations. It can put
the squeeze on government, as it becomes more costly to service
the debt. None of these is a regrettable trend.
Another definition of deflation concerns a falling price level.
This is another way of saying that your money becomes more
valuable over time. That is not something to regret, either.
Business can operate and thrive under these conditions: look at
the software and computer industries since the 1980s. And if
we look back at the last quarter of the nineteenth century, increased
purchasing power (deflation) was accompanied by the
greatest period of economic growth in world history, with the
benefits of capitalism spreading to all sectors of society.
You can buy the book on Amazon here.