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.
‚ÄúShe‚Äôs worse than average,‚ÄĚ the former Texas congressman told The Daily Caller in a phone interview shortly after the Senate voted 56-26 to confirm Yellen‚Äôs nomination, ‚Äúbut I don‚Äôt dwell on that at all.‚ÄĚ
‚ÄúIt was never the chairman himself, herself that‚Äôs the problem,‚ÄĚ Paul said. ‚ÄúIt‚Äôs the whole system.‚ÄĚ
Paul¬†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.
‚ÄúI put a lot of blame on the problems that we have, the booms and the busts and the unemployment and this recession that we can‚Äôt get out of ‚Äď– it‚Äôs all due to the monetary system,‚ÄĚ Paul said, saying they were ‚Äúliving in this dream world‚ÄĚ to assume that one body could set interest rates. ‚ÄúAnd the head of the Federal Reserve just is the symbolic head of a deeply flawed system that should‚Äôve never been created.‚ÄĚ
‚ÄúI think they‚Äôre living a pipe dream and it‚Äôs going to soon be very apparent what terrible shape our economy is in,‚ÄĚ he said.
Yellen will hasten that revelation, Paul said, explaining that the reason he sees her as ‚Äúa little bit worse than average‚ÄĚ is ‚Äúbecause she is probably going to be more excessive in creating money.‚ÄĚ
‚ÄúBut what can she do?‚ÄĚ Paul said. ‚ÄúThey‚Äôve taken the interest rates down to zero, the only tool they have is printing money, creating money out of thin air, so there‚Äôs nothing left. And she believes in even doing more of it.‚ÄĚ
Paul‚Äôs son, Kentucky Sen. Rand Paul, has in some ways taken up his father‚Äôs mantle in congress. The younger Paul introduced the ‚ÄėAudit the Fed‚Äô bill in the Senate and pushed Senate Majority Leader Harry Reid to bring it to the floor, promising to delay Yellen‚Äôs confirmation vote if he did not acquiesce. Reid refused.
The elder Paul said bringing that bill to the floor would ‚Äúbe the first step in the right direction that they‚Äôre serious about finding out what‚Äôs happening,‚ÄĚ but he was emphatically pessimistic about its prospects.
‚ÄúThey‚Äôll 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,‚ÄĚ he said. ‚ÄúSo it‚Äôs not going to happen.‚ÄĚ
There is no chance whatsoever that congress will dig itself out of this hole, Paul said.
‚ÄúSure, they could do it,‚ÄĚ he said, ‚Äúbut they‚Äôre not.‚ÄĚ