Let’s Get Ready To Rumble-Paul versus Bernanke
by Hossein Askari and Noureddine Krichene
The fascinating two-year “rumble” that has been threatening since the November 2010 mid-term United States elections will unfold after the new congress is seated this week. The feature bout on the card will pit: in the right corner, Ron Paul, the Texas Republican congressman, a graduate of Duke University Medical School, 1988 presidential candidate and author of the best-selling 2009 book End the Fed; and in the left corner, Ben Bernanke, chairman of the board of governors of the US Federal Reserve System, MIT PhD economist, former chairman of the Council of Economic Advisors and Fed governor.
This dream prize fight should take place because the Republicans have “mischievously” nominated Ron Paul as the chair of an important sub-committee of the House Financial Services Committee, namely the sub-committee on domestic monetary policy and technology, which scrutinizes US monetary policy.
The two combatants, Paul and Bernanke, have sharply opposite views in ideology and policy-making.
Paul, a well-known libertarian, belongs to a school of thought that rejects Keynesian economics, and abhors fiscal deficits and a government that polices the world. He supports the market mechanism, including for interest rate determination, supports bankruptcies, and dislikes bailouts and moral hazards, advocates the gold standard and a safe and stable dollar, and is critical of the law that banishes the use of gold in domestic circulation.