If Ben Bernanke has a recurring nightmare, it is arriving at work to find Ron Paul running oversight on him. If the rumors are true he might have to learn to live with it.
In the wake of the huge election win by the GOP it appears that Congressman Ron Paul of Texas is about to be appointed Chairman of the Financial Services subcommittee. If this occurs it is a massive win for the fiscal conservative Tea Party wing of the party. The committee has near complete oversight of the Federal Reserve.
Paul has stated that he wants the position from the time the results became clear, and although there has been some resistance from the establishment Democrat lite, RINOs, he seems to be firming up in the calculations. This should be hard for his opponents to resist, as he is a Tea Party favorite and has wide support from the rising fiscal conservative element of the party. It will be in the backs of their minds that the Tea Party, flushed with success are already checking out who to target in 2012.
Speculation has swirled that Paul would immediately use his subpoena powers as chairman of the subcommittee to compel testimony from Federal Reserve officials…
Paul said he wants to foster a debate about the Fed’s role in the American economy and begin the push for greater congressional oversight. He said he wants to use the subcommittee to “discuss the relationship of monetary policy to the business cycle and particularly how they create the booms and the busts” in the economy.
A slew of Republican leaders, ranging from former Alaska Gov. Sarah Palin to Speaker-designate John Boehner (R-Ohio), have criticized the Fed’s decision to buy $600 billion worth of Treasury bonds in an attempt to boost the economy. Republican critics argue the action, which essentially amounts to printing money, will only lead to a less valuable dollar and higher inflation.
It is Boehner and soon-to-be House Majority leader Rep. Eric Cantor who have final say in the appointment.
Ron’s views are articulated well in his Bloomberg interview.