Ron Paul: QE2 Is a Total Failure and Ben Bernanke Is Delusional About Inflation

See also:

As ‘THE BEN BERNANK’ Is Losing Control Of The Long-End, Will Vigilantes Push ‘THE BEN BERNANK’ To Act On The Short-End?

Bernanke Speech Translation

Ben Bernanke’s Poverty Effect: Food Stamp Recipients Jump by 400K In November, Hit New Record Of 43.6 Million

The ‘Obama Bin Bush’…

Government Economists: America Faces The Biggest Budget Deficit In History

… and the ‘Ben Bernank’ …

Quantitative Easing Explained

… know exactly what they are doing:

“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

Mission almost accomplished!

Ben Bernanke faced some tough questions at the House Budget Committee hearing Wednesday. Still, the Fed chairman is probably glad he wasn’t before the House Domestic Monetary Policy and Technology Subcommittee, which is chaired by Rep. Ron Paul (R-Tx.)

Rep. Paul joined Dan Gross and me Wednesday afternoon to discuss Bernanke’s testimony and his subcommittee’s hearing. As you might expect, the longtime Fed critic took umbrage with Bernanke’s testimony, most notably the chairman’s claims that QE2 is working and that inflation isn’t brewing. (See: Under Pressure: Bernanke-Ryan Square Off as Ron Paul Waits in the Wings.)

QE2 is a “total failure,” except for those folks who work on Wall Street,” Rep. Paul says. “It hasn’t done anything for Main Street; hasn’t done anything to give us real jobs; hasn’t done anything for people who are losing their houses.”

As for inflation, “I think there’s plenty,” Rep. Paul says, citing “skyrocketing” commodity prices and rising food prices. One problem is the Fed’s reliance on core CPI, which famously excludes food and energy and relies on hedonic adjustments. “They rig that number,” he says. “[Bernanke] looks at government stats that are fudged to reassure him he doesn’t have to do anything.”

Read moreRon Paul: QE2 Is a Total Failure and Ben Bernanke Is Delusional About Inflation