Sunday, March 01, 2009

Paul Volcker acknowledges Ron Paul has legitimate concerns

Sitting on the House Financial Services Committee, Congressman Ron Paul is often given the opportunity to question the movers'n'shakers of America's two key economic policies - monetary policy and fiscal policy.

Last week, Congressman Paul had the opportunity to question former Federal Reserve Chairman Paul Volcker.

In response to Congressman Paul's questions on monetary policy and fiscal policy, Mr. Volcker responded:

I would like to see the questions you’re raising debated…

I think there are problems with the present international monetary system that have not received sufficient attention. (laughing) I will leave it at that...

Yes. I agree. I can’t tell you… the answers are not apparent.

Make no mistake about it. This is a unique moment in economic history where the world is going on the basis of fiat currencies. And that’s kind of what all economists like and they thought it was a good idea and let it float up and down and you don’t get constricted by gold or other artificial arrangements, but it’s a little tricky. If you’re gonna were… on a roll… on a world of fiat currency, you better pay attention to the stability of that currency and the maintainability of the currency and I think we’re inclined to forget that.

I'm glad to see Volcker acknowledge there are problems and recommend a discussion occur. Now if Congressman Paul could just get Congress to realize that ignoring a problem won't fix it.

See the full video here:

Tim White

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