Ron Paul Tears Into Fed Reserve Chair Janet Yellen

Former U.S. Rep. Ron Paul, R-Texas, now the chairman of the Campaign for Liberty after his three presidential bids and retiring from Congress, ripped into Janet Yellen, President Barack Obamas new chairwoman of the Federal Reserve, on Tuesday. Yellen testified before the U.S. House Committee on Financial Services, which Paul served on, on Tuesday.

Janet Yellens testimony confirmed suspicions that she would offer more of the same failed inflationary policies. If I were still in Congress and a member of the Financial Services Committee, I would have asked Chairman Yellen the following questions, Paul said. Why should Main Street, as opposed to Wall Street, have any confidence in the Fed considering that last Fridays jobs report provides more evidence of the failures of Quantitative Easing 1, 2, 3, etc. to help the average American? Why should anyone give credibility to the statements that the Federal Reserve will continue tapering when both Dr. Yellen and her predecessor have made it clear, by their words and actions, that the Fed will not end easy money policies as long as the stock market and the banks are addicted to the morphine of monetary inflation? Where does the Fed get the moral authority to create money out of thin air, something many equate with counterfeiting, and to fix interest rates? How can a chair of the Fed assume to have the wisdom to know what the money supply and the cost of borrowing (the rate of interest) should be? Is it possible to justify this authority to control one half of every economic transaction in a free market, especially when one looks at the results: depressions, recessions, excessive debt, inflation, bubbles, and the destruction of the middle class?

I might also suggest that Dr. Yellen should not expect to have a pleasant tenure, as the policies she and her predecessors pursued will likely lead to a financial crisis that could very well dwarf the meltdown of 2008, Paul added.