Senator Bunning: Crisis Caused by the Federal Reserve [1]

September 16, 2008, U.S. Senate. Senator Jim Bunning [R-KY] speaks against the bailout, exposing the Federal Reserve as the principal culprit in the present financial crisis.

Unlike the House of Representatives that has defeated the bailout bill by an ample majority, the stench coming out of the Senate indicates a very different result from that well-greased body of pork legislation.

It is egregious to witness how American Senators spend their precious time licking each other, Harry Reid [D-NV] being a very distinguished queen in this regard. There seems to be a few good men among them: Jim Bunning [R-KY], Jim DeMint [R-SC] and David Vitter [R-LA] might vote against the bailout legislation with no apologies. FOR LIBERTY.

Stay tunned on Thursday 2nd. Oh, oh, anyone in a rush? Vote moved to Wednesday 1st: TONIGHT. Looking forward to Senator Robert Byrd's take on this bailout-rape.

Senator Bunning: Crisis Caused by the Federal Reserve [1]
http://www.youtube.com/watch?v=paG-PawqWHM

Senator Bunning: Crisis Caused by the Federal Reserve [2]
http://www.youtube.com/watch?v=w7vX13pp8CA

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TRANSCRIPT:

Mr. President, I rise to speak about the current economic situation and the bailout bill that will soon be coming to the floor of the Senate. Let me start by saying I am as concerned about what is going on in the financial markets and the economy as everyone else. I know there are extreme tensions in the credit markets, and those problems could soon have an impact on businesses and individuals who had nothing to do with the mortgage mess. However, I do not agree that the bill we have been discussing,
and would probably come to the floor of the Senate, will fix those problems.

I also strongly disagree with the Senators who have come to the floor and declared that this crisis is a failure of the free markets. No. The root of the crisis is the failure of Government. It comes from a failure of regulation and, most importantly, monetary policy. In the long term, we certainly need to update our financial regulations to reflect the realities of our modern economic system. But it is just plain wrong to blame failures of our regulations and regulators on the markets.

A little history is in order. Our financial regulations are based on structures put in place during the Great Depression. Our laws simply do not reflect the current landscape of the financial markets. Once upon a time, banks may have been the only instruments that were a danger to the entire financial system, but it is now clear that other institutions are now so big and connected that we cannot ignore them in the future. Also, many of today's common financial instruments did not even exist 20
years ago, much less when our laws were written.

But our regulatory structure is not the only problem. The real fuel on the fire of this crisis has been the monetary policy of the Federal Reserve. I have been a vocal critic of the Fed for many years and have been warning that their policies would hurt Americans in the short and long run. For most of these years, I did not have much company. But I am glad many economists and commentators have recently joined me in my criticism of the Fed.

(...)

[ http://www.c-spanarchives.org/congress/?q=node/77531&id=8898225 ]

Category:

News & Politics

Tags:

• senator
• bunning
• no
• bailout
• federal
• reserve
• dollar
• inflation
• greenspan
• bernanke
• paulson
• us
• constitution
• liberty
• ron
• paul

[babbittd]

He will run again in 2010.

[badmuffy]

The government should be the only one able to print money, and the money should be backed by gold or silver. The fed should be abolished.

[streetwhereulive]

Get rid of the Federal Reserve not unemployment!

[QIQrrr]

ZeroHedge(dot)com ;)

[QIQrrr]

LOL

[maskedphrogg]

You're kidding right?

US Bonds aren't the same as Tooth Fairy Bonds?

OMG!

The world really is ending!!!

Feel better now?

You cast that bait a year ago according to YouTube.

What? Not happy with the catch?

Maybe you should troll a different stream.

[maskedphrogg]

whoops!

thought the question was buys bonds

Assuming you mean Treasury Notes, the Federal Reserve is not obligated to purchase Treasury Notes.

Did you think they were?

[QIQrrr]

China doesn't issue them, they buy them.

[QIQrrr]

You don't know much about the system, do you? Who do you think issues bonds? The tooth-fairy?

[PoorMansPlato]

maskedphrogg, You are quite right my friend, Fed Reserve is an entity unto itself, Causing more harm than anything! Printing money to pay interest on money they never had in the first place, ergo massive inflation and economic ruin!

[maskedphrogg]

That's where you are categorically wrong.

The Federal Reserve is no more "Federal" as in Government than is Federal Express. Whereas mail and parcel delivery are regulated activities, the activities of Federal Reserve Banks are accountable only to Fed Res Bank owners.

It is a cartel of privately held Banks with sanction by Law to create money from nothing.

You have the master/slave relationship backwards. The Federal Government depends upon the Federal Reserve, not vice versa.