Paul on Greenspan's follies

Representative Ron Paul's (R-TX) latest column is critical of Alan Greenspan's easy money policies and lack of congressional accountability. [via Bill St. Clair]

Of course capitalism is based on the premise that centralized economic planning is bad. I?m always amazed that otherwise pro-market conservatives, who rightfully scorned disastrous Soviet economic policies, are so willing to accept centralized monetary planning by the Fed. True capitalism requires a free market for money and interest rates, just as surely as it requires a free market for wages and prices.

Mr. Greenspan declined to answer my question about the tumbling value of the dollar, citing a kind of gentlemen?s agreement between him and the Treasury department not to discuss dollar policy. This is preposterous, of course, because he is unquestionably the one man on earth most responsible for the value of the U.S. dollar. If a member of Congress cannot ask the Federal Reserve Chairman a straightforward question about dollar policy, how can we expect the American public to have the faintest idea about what the Fed really does? The answer is that very few Americans pay any attention to the Fed, which has successfully insulated itself as a ?nonpolitical? entity.

After reading the howlers made during the last week by the Democratic wannabe-presidents, it is refreshing to hear a politician say something intelligent for a change.

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