Ron Paul vindicated on the real rate of inflation

(GoinsReport.com) -- A recent report by CBS vindicates what Rep. Ron Paul (R-Texas) said yesterday during an exchange with Federal Reserve chairman Ben Bernanke during a House Financial Services meeting--namely, that the inflation rate is much higher than what government statistics suggest.

While Paul was likely referring to the Congressional Budget Office's Consumer Price Index (CPI) or Bureau of Labor Statistics Data, the CBS article refers to the American Institute for Economic Research's everyday price index which says that prices are up 8 percent over a year--just one percent short of what Paul said during the hearing yesterday.

During the exchange yesterday, Paul told Bernanke: "Ok, so you’re aware of the prices, but you know this argument that the prices are going up about 2 percent, nobody believes it."

He continued: "You know in the old CPI says prices are going up about 9 percent so they believe this," he continued.

"People on fixed incomes – they’re really hurting, the middle class is really hurting because their inflation rate is very much higher than the government tries to tell them and that’s why they lose trust in government," Paul said.

Read the rest of the CBS article by clicking the link below.

Inflation: Not as low as you think || CBS News

Paul: "The Fed's going to self-destruct eventually anyways"

Rep. Ron Paul (R-Texas) took a break from his presidential bid to pursue one of his favorite pastimes — criticizing the Federal Reserve.

Paul returned to Capitol Hill on Wednesday to question Fed Chairman Ben Bernanke, who was appearing before the House Financial Services Committee to deliver his semiannual testimony.

I'm glad The Hill got this. But I reported on this a lot sooner--perhaps even first--on my own blog back in November and the story was technically published in December (due to a conflict).

Here's the relevant excerpt:

In his speech, Paul said that he would not end the Federal Reserve in one day because it will “eventually shut itself down” when it destroys the currency. Rather he will work to break the FED’s monopoly on issuing currency by legalizing sound money including gold and silver and repealing legal tender laws.

Paul returns to DC to assail Bernanke - The Hill's On The Money

Bernanke Points to 'Increased Possibility of a Sudden Fiscal Crisis' | CNSnews.com

(CNSNews.com) – Federal Reserve Chairman Ben Bernanke said that the current trajectory of the federal budget – marked by large annual deficits – was “clearly unsustainable” and that “serious economic consequences” could result.

“Having a large and increasing level of government debt relative to national income runs the risk of serious economic consequences,” Bernanke told the Senate Budget Committee Tuesday.

Bernanke Points to 'Increased Possibility of a Sudden Fiscal Crisis' | CNSnews.com

Fed Now Largest Owner of U.S. Gov’t Debt—Surpassing China | CNSnews.com

In its latest monthly report, the Federal Reserve said that as of Sept. 28, it owned $1.665 trillion in U.S. Treasury securities. That was more than double the $812 billion in U.S. Treasury securities the Fed said it owned as of Sept. 28, 2010.

Meanwhile, as of the end of this September, entities in mainland China owned $1.1483 trillion in U.S. Treasury securities, according to data published today by the U.S. Treasury Department. That was down slightly from the $1.1519 trillion in U.S. Treasury securities the Chinese owned as of the end of September 2010.

At the end of September 2010, the Chinese owned about $707 billion more in U.S. Treasury securities than the Fed owned at that time. At the end of September 2011, the Fed owned about $516.7 billion more in U.S. Treasury securities than the Chinese owned.

Fed Now Largest Owner of U.S. Gov’t Debt—Surpassing China | CNSnews.com

The Onion - Drunken Ben Bernanke Tells Everyone At Neighborhood Bar How Screwed U.S. Economy Really Is

Courtesy of The Onion:

Drunken Ben Bernanke Tells Everyone At Neighborhood Bar How Screwed U.S. Economy Really Is

Video: You Have No Rights, What in the Gold?!?

Bernanke faces a crucial decision as economy teeters - TheHill.com

Bernanke faces a crucial decision as economy teeters - TheHill.com

Old News: Fed might have to act if short-term cuts too severe, Bernanke says - The Hill's On The Money

Fed might have to act if short-term cuts too severe, Bernanke says - The Hill's On The Money

What is the Federal Reserve? Ben Bernanke Speaks

Ben Bernanke as Juggler of Digits

Gary North wrote an interesting piece this week on Ben Bernanke. It is surprisingly more narrative than his usual stuff:

The juggler I most remember was a young man who was juggling a bunch of hoops. He was really good . . . until he dropped all of them in his grand finale. They came down in disarray. He picked them up and walked out of the ring. What else could he do? The finale was not so grand.

What if he had been juggling the world 's interconnected banking system?

What if he had been juggling in secret?

What if he had dropped all of the rings?

He's no Jonathan Franzen or John Updike, but he's got something going on for him here. It got me interested in the rest of the piece. Read the rest on Lew Rockwell.com.

Video: Schiff Report: Chinese inflation is getting worse!

That spells "b-a-d-n-e-w-s" for Americans, because the Chinese will have to stop expanding their money supply and start contracting it to stifle inflation in their own country.

This means reducing exports to the United States and keeping more of their own goods.

As Peter Schiff notes, that's when U.S. inflation will speed up because they may stop hoarding our dollars - and lots of em - and may stop sending us their goods.

Gary North was right: Ben Bernanke is a juggler of digits. But China is juggling, too. It has a decision it has to make about its currency: The RMB.

It has to let its currency rise. The purchasing power of the RMB must go up in order for the 5.1 percent inflation to drop.

Ding! Ding! Ding! It may be time to invest in the RMB, while its still low.

Jon Stewart on Ben Bernanke

Every single word made against the Federal Reserve by mainstream television personalities is always welcome.

See The Daily Show's lambasting of Ben Bernanke here.

Video: Ben Bernanke was Wrong

Think of this video as "contra-Peter-Schiff."

Collegian Writings

So, I am also a writer for The Collegian, La Salle University's student-run newspaper. Please check out my published articles online (you may have to type 'Goins' into the search bar). So far, they've only posted 6 articles, but I've written more than that. I plan to expound on some of the ideas presented in the articles later in this blog.

1. La Salle's Lessons and Laissez-Faire
2. Shroud of Turin Mystifies but provides no certainty
3. Hyperinflation an Under-Reported Story
4. Walter Williams a notable city native
5. Miller Shows Faults on both sides
6. Aching for the truth on health reform

I also encourage you to read the other columnists in the Commentary section and beyond.

Ben Bernanke Admits He is a Central Planner

I encourage EVERYONE who visits my blog to watch this supremely revealing video.

Ben Bernanke, the FED chairman, and one of the men prolonging our current economic crisis, is a SELF-ADMITTED CENTRAL PLANNER. Socialism over in Russia failed for a reason. As Thomas E. Woods once explained, socialism in Russia involved the planning of the steel industries. In America we have a Federal Reserve that plans interest rates and produces dollars.

After you watch the video, feel free to download these short documents called "The Cliches of Socialism." There are plenty of them. In fact, there are 76.

Another good book to download is the "Inflation Primer" offered by the Ludwig Von Mises institute.

BONUS: Video critiquing socialism from a Biblical worldview.