Ron Paul is not a fan of Janet Yellen, the newly confirmed Chair of the Federal Reserve, but he told The Daily Caller Monday she is nowhere near as flawed as the system she is about to take over.
âSheâs worse than average,â the former Texas congressman told The Daily Caller in a phone interview shortly after the Senate voted 56-26 to confirm Yellenâs nomination, âbut I donât dwell on that at all.â
âIt was never the chairman himself, herself thatâs the problem,â Paul said. âItâs the whole system.â
PaulÂ has been criticizing the central bank for years, calling both for an audit of the Fed and for its total abolition. Paul a long-serving Republican member of Congress and 1988 presidential candidate on the Libertarian Party ticket, is a proponent of Austrian Economics, which focuses on the relativity of value and the impossibility of centrally planning a complex and dynamic economy.
âI put a lot of blame on the problems that we have, the booms and the busts and the unemployment and this recession that we canât get out of â– itâs all due to the monetary system,â Paul said, saying they were âliving in this dream worldâ to assume that one body could set interest rates. âAnd the head of the Federal Reserve just is the symbolic head of a deeply flawed system that shouldâve never been created.â
âI think theyâre living a pipe dream and itâs going to soon be very apparent what terrible shape our economy is in,â he said.
Yellen will hasten that revelation, Paul said, explaining that the reason he sees her as âa little bit worse than averageâ is âbecause she is probably going to be more excessive in creating money.â
âBut what can she do?â Paul said. âTheyâve taken the interest rates down to zero, the only tool they have is printing money, creating money out of thin air, so thereâs nothing left. And she believes in even doing more of it.â
Paulâs son, Kentucky Sen. Rand Paul, has in some ways taken up his fatherâs mantle in congress. The younger Paul introduced the âAudit the Fedâ bill in the Senate and pushed Senate Majority Leader Harry Reid to bring it to the floor, promising to delay Yellenâs confirmation vote if he did not acquiesce. Reid refused.
The elder Paul said bringing that bill to the floor would âbe the first step in the right direction that theyâre serious about finding out whatâs happening,â but he was emphatically pessimistic about its prospects.
âTheyâll never allow that to happen. I mean I had it pass twice in the House, but even if the Senate passed it due to public pressure … the president would veto it,â he said. âSo itâs not going to happen.â
There is no chance whatsoever that congress will dig itself out of this hole, Paul said.
âSure, they could do it,â he said, âbut theyâre not.â