Tuesday, March 03, 2009

Ron Paul, AIG, Ben Bernanke and sound money

As usual, I agree with the comments made by Congressman Ron Paul... particularly his comments on today's AIG bailout:

The Washington pols want to bailout AIG again?! How stupid do the Washington pols think we are? It seems Fed Chairman Ben Bernanke thinks his questionable anger will suffice to quell the masses.

From Bloomberg News' Craig Torres and Hugh Son:

“If there is a single episode in this entire 18 months that has made me more angry, I can’t think of one other than AIG,” Bernanke told lawmakers today. “AIG exploited a huge gap in the regulatory system, there was no oversight of the financial- products division, this was a hedge fund basically that was attached to a large and stable insurance company.”

Unsurprisingly, Mr. Bernanke fails to acknowledge that the crooks are always one step ahead of the cops. So if you try to create some sort of complex regulatory system... the regulators will always be one step behind.

I suggest a relatively simple remedy by enforcing a long-forgotten regulation:

The Congress shall have Power... To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures (US Constitution, Article I, Section 8)

Then President Obama should dump Mr. Bernanke and his crony, Mr. Geithner.

Tim White

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