海角大神

It鈥檚 been a long ride for Ron Paul and Ben Bernanke.

Since 2006, when the latter was named as the chairman of the Federal Reserve system, the former 鈥� the libertarian congressman from Texas 鈥� has been haranguing Mr. Bernanke during his annual visits to the House Committee on Financial Services.

But with Mr. Paul retiring after this term, Wednesday marked the final chapter of six years of Paul-Bernanke combat. Their engagements have often been the stuff of Internet lore.

Paul-Bernanke matches 鈥渃ertainly made the hearings more interesting 鈥� and provided several memorable YouTube moments,鈥� said Rep. Spencer Bachus (R) of Alabama, the chairman of the House Committee on Financial Services at the top of the hearing.

The script usually goes like this: Paul launches into a lecture about Austrian economics for somewhere near half of his allotted time, followed by a perfunctory question to Bernanke. Bernanke answers succinctly, often with a slim smile. Paul then fires off several other questions which Bernanke deflects with a mix of concision and respectful disagreement.

Wednesday wasn鈥檛 much different 鈥� but it dropped a curtain on a poignant, long-running episode of a broader battle within the GOP on fiscal and monetary priorities.

On one side of that divide stands Bernanke, a Republican and economist with technocratic bona fides after being thrice nominated by President George W. Bush to various posts, including his current spot, before being reappointed by President Obama. On the other is Paul, the leading light for the Republican Party鈥檚 disaffected libertarian cohort who see the Bernanke years, including bank bailouts and rock-bottom interest rates for years on end, as not distasteful necessities but deep betrayals of conservative financial principles.

Many on the Financial Services Committee were in a reflective mood early in Wednesday鈥檚 hearing 鈥� including Paul.听
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鈥淚 have over the years obviously been critical about what goes on in monetary policy, but it hasn鈥檛 been so much the chairman of the Federal Reserve, whether it was Paul Volcker or Alan Greenspan or the current chairman, it鈥檚 always been the system,鈥� Paul said. 鈥淚 think they have a job that they can鈥檛 do because it鈥檚 an unmanageable job, it鈥檚 a fallacy, it鈥檚 a flawed system, and therefore we shouldn鈥檛 expect good results.

Burnished by double a member鈥檚 usual time allotment 鈥� fellow libertarian Rep. Walter Jones (R) of North Carolina gave up his time so Paul could speak at greater length 鈥� Paul uncorked one of his standard diatribes about the Federal Reserve鈥檚 secret deliberations over monetary moves.

The argument has particular weight this week, as the House is set to take up (and likely pass) next week听Paul鈥檚 bill to force the Federal Reserve to reveal more about its deliberations over monetary policy moves.

鈥淲hose responsibility is it under the Constitution to manage monetary policy?鈥� he asked.
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鈥淐ongress has the authority and it's delegated to the Federal Reserve. That鈥檚 a policy decision that you鈥檝e made,鈥� Bernanke replied.

Paul was unimpressed.
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鈥淏ut [Congress] can鈥檛 transfer authority. You can鈥檛 amend the Constitution by just by saying 鈥榃e鈥檙e going to create some secret group of individuals and banks.鈥� That鈥檚 amending the Constitution. You can鈥檛 do that, and then all of a sudden allow this to exist in secrecy,鈥� Paul fumed.

Bernanke parried by saying Congress has given that authority and they could decide to take it away. He wouldn鈥檛 recommend it, as he argued independent central banks have delivered better economic results than nonindependent ones. But Congress could do so.

Paul鈥檚 reply?

鈥淐ongress ought to get a backbone, we have a right to know, we have an obligation to defend our currency,鈥� he said.
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And that launched a soliloquy that was picture-perfect Paul.
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鈥淚t鈥檚 the destruction of the currency that destroys the middle class. There鈥檚 a principle of free market thinking that says destroying the value of the currency through inflation, you transfer the wealth from the middle class and it gravitates to the very wealth. The bankers, the government, the politicians 鈥� they all love this. It is the fact that the Federal Reserve is the facilitator. If you like big government, love the Fed. They can finance the wars and all the welfare you want ... but your country ends up in a crisis. It鈥檚 a solvency crisis, and it can鈥檛 be solved by printing a whole lot of money,鈥� he concluded.

Paul, whose warnings about debt, deficits, and inflation have been his calling card during some 20 years in public service, later offered another line of argument that could stand in as an essential statement of his critics during his time in Congress.

鈥淲e鈥檙e in deep doldrums and we never change policy. We never challenge anything. We just keep doing the same thing. Congress keeps spending the money, welfare expands exponentially, wars never end, and deficits don鈥檛 matter,鈥� Paul said.

And what did Bernanke say to that? Nothing, directly. Paul had gobbled up all of his available time. Only when Rep. Barney Frank (D) of Massachusetts asked for a moment for Bernanke to respond did he get a word in to defend the Fed鈥檚 current procedures.

鈥淪o far my views have not prevailed,鈥� Paul later said, 鈥渂ut I have appreciated this opportunity to have served on the [financial services] committee.鈥�