The power wielded by unelected bureaucrats at the Federal Reserve is brought to bear worldwide. Their latest intervention in the global economy made it cheaper for Europe to borrow dollars, thereby propping-up Europe’s tottering banks and left-wing economies such as Greece – but at the cost of further inflating the dollar and depressing interest rates for American savers.
Establishment politicians, like Mitt Romney, dismiss Presidential candidate Congressman Ron Paul’s crusade to open-up and potentially abolish the current American central bank system, but every time the unelected bureaucrats at the Fed take action that creates untold profits for Wall Street, and props-up tottering left wing governments in Europe, at the expense of American savers, investors and taxpayers the libertarian Texan gains more support.
The stock market surged almost 500 points on the news that it would be cheaper for Europeans to borrow dollars, but how this helps American taxpayers and the average citizen on Main Street is getting harder and harder to figure out.
Everyone appreciates that a European economic crash would hurt the economy of the United States. Europeans would buy fewer American products, invest less in American businesses and confidence in the system would be shaken, but lowering Fed interest rates doesn’t solve the fundamental problem with the European economy, which is an unsustainable left-wing social spending model built on government lies and phony economic predictions.
Nothing has been solved in Europe because European politicians are not doing anything to solve their underlying problems, they are merely postponing the inevitable day of reckoning, so that they can continue to stay in office — little wonder the Germans don’t want to bailout their neighbors who get longer paid vacations and better pensions than they do.
So if the Germans won’t bailout their undisciplined left wing neighbors, why should Americans? For an answer to that question you have to go the Federal Reserve Chairman Ben Bernanke, and he’s not talking.
But Presidential candidate Congressman Ron Paul (R-TX) is talking and as the European crises worsen his message will rise in relevance and resonance.