It seems that the Federal Reserve is unwinding faster than many, including myself, thought possible. Revulsion over QE2 is certainly stronger than I could have hoped for.
And after being repeatedly blocked from chairing various financial committees, Congressman Paul may finally get the chance to do something he’s been working towards for 40+ years: Call the Fed on their bullshit from a position of authority, and attempt to implement desperately-needed reform.
Ron Paul won easy reelection in the 14th district of Texas with almost 77% of the vote. (His opponent, a police chief, had signs that said, “Tell Dr. No he has to go.” No one took up my suggestion for opposing signs: “Send the cop to the donut shop.”
If the Republicans weren’t dishonest, and entirely in the pocket of the big banks, Ron Paul would be taking Barney Frank’s place as chairman of the finance committee. Not satisfied with blocking him there, they have even kept him out of the chairmanship of the monetary policy subcommittee, as Barney has frequently remarked. The first time the Republicans erased Ron’s seniority; the second time, they imported a congressman from another committee to take the job; the third time, they temporarily abolished the subcommittee. This time, I think they would fear the backlash, so Ron will probably be chairman. If so, I can’t wait for his hearings on the QE2, the gold, the business cycle, and much else.
If Dr. Paul somehow does not get the nomination, the backlash will be substantial, as Mr. Rockwell states. I am starting to think banksters may lack the credibility necessary to fight such firestorms. (time to sell silver, so soon? my anxious side says).
I am not sure yet what this means for further QE efforts. My gut says the Fed will win, and continue printing, bullying other countries into acceptance. But their opposition has become rather strong, rather fast.
Since QE1, the dissenters have grown from a fringe group led by Dr. Paul, to include the majority of developed nations. Plus a growing percentage of domestic dissenters, most notably Fisher and Hoenig. The banks are still my favorite to win the flation-currency wars, but at least the match is getting interesting.