Paul Krugman seems to be losing his mental capacity at an especially rapid rate these days. His latest idiotic remark is that the reason the Fed is “doing nothing” about unemployment ( He’s wrong: The Fed has CREATED plenty of unemployment) is that Ron Paul is the chairman of the House Financial Services Committee.This is a theme among the more rabid Fed defenders — that criticisms of the Fed by people like Ron Paul actually created the “Great Recession” by somehow restraining the central planning powers of the Fed.

Krugman sounds not only silly but hypocritical as well. Ron Paul’s first hearing on the Fed was on the subject of the Fed and unemployment. I was the lead witness. As LRC readers know, the hearing was turned into a farce by a shameless liar named Congressman Lacy Clay (D-Banksters). Clay first proclaimed that no amount of money printing could possibly reduce the value of the dollar, ever. Then he denounced Austrian economics on methodological grounds. (An uneducated  hack politician from North St. Louis posing as a philosopher of science is arguably the dumbest stunt ever at a congressional hearing). He then lied about my resume, claiming that there were no economics publications on it(!), and then lied again, claiming that I “work for” the League of the South, which he denounced as a “hate group” (the group does hate Big Government, admittedly). I have never worked for the League of the South, and said so by interrupting Clay when he made this ridiculous smear.

All of the lapdog statist media, including Paul Krugman, repeated Clay’s lies and libels and wrote absolutely nothing at all about what I and fellow Paulian witness Professor Richard Vedder said about the Fed and unemployment. The purpose of this charade was to “censor” criticisms of the Fed, and of course to attempt to smear Ron Paul.

The Best of Thomas DiLorenzo