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Saturday, December 3, 2011

Rand and Ron Paul - Classical Liberalism Face Plant

The love of Ron and Rand Paul for bashing the Federal Reserve is well known.  Ol' Ron was just up in New Hampshire, promising that he'd take a run at abolshing it.

The tea waggers sip twice, when either of them talk.

But, this week, we found out just the extent to which both of them are dangerously ignorant and, thereby, public enemy.

In fact, we found out that during American capitalism's most dire hours since the great depression, that 109+ institutions and $7.7 trillion dollars of liquidity were being supported by the lender of last resort, the U.S. Central Bank, the Federal Reserve, an institution that, it should be noticed, pre-dates the Great Depression...

Just stop and think of the magnitude of the economic wreckage, if there was no one around to have done what the Fed did.  Ponder what the massive devastation would look like, if it isn't unfathomable.

With Herman Cain the latest nut to be shaken from the Koch brother's Tea Party tree, there is a danger, perhaps, of pretending that economic policy isn't being jawboned and influenced, yet, or of ignoring that the threat to us all from them and their bankrupting ideology is real.

Update: The Fed releases notes that refute the characterization offered by Bloomberg (suppliers of the figures above). The Fed suggests that $1.2 Trillion was closer to the maximum. The point remains unaltered.