Ron Paul Calls Out Herman Cain For Lie Over Fed Audit During GOP Debate

At the GOP Bloomberg/Washington Post debate Tuesday night, Ron Paul, the longest-serving advocate of a Fed audit in Congress, asked Herman Cain, a former director of the Kansas City Fed, why he opposed an audit of the central bank, and why he called advocates of such an audit ignorant.

"Mr. Cain, in the past you have been rather critical of any of us who would want to audit the Fed. You have said -- you've used pretty strong terms, that we were ignorant and that we didn't know what we are doing, and therefore, there was no need for an audit anyway, because if you had one, you're not going to find out anything, because everybody knows everything about the Fed," Paul said.

"But now that we have found and we have gotten an audit, we have found out an awful lot on how special businesses get bailed out -- Wall Street, the banks, and special companies, foreign governments. And you said that you advise those of us who were concerned, and you belittled -- you say call up the Federal Reserve and just ask them. ... Do you still stick by this, that that this is frivolous, or do you think it's very important? Sixty-four percent of the American people want a full audit of the Fed on a regular basis."

Cain said that, in fact, he didn't oppose an audit, and that when he served on the Fed it was a different institution. "You have misquoted me. I did not call you or any of your people ignorant. I don't know where that came from," he said. "You've gotta be careful of the stuff you get off the Internet."

A careful check of the Internet, however -- guided by the Paul campaign -- turns up audio of Cain saying just what Paul accused him of saying. As recently as 2010, long after the Fed began engaging in the lending Cain says he opposed, Cain belittled those calling for an audit.

"Some people say that we ought to audit the Fed. Here's what I do know. The Federal Reserve already has so many internal audits it's ridiculous. I don't know why people think we're gonna learn this great amount of information by auditing the Federal Reserve. I think a lot of people are calling for this audit of the Federal Reserve because they don't know enough about it. There's no hidden secrets going on in the Federal Reserve to my knowledge," he said.

LISTEN:

Comments

[Lin96]

09:58 AM on 11/29/2011

@Giovanni. I have to keep editing my comments due to length and they're not a cohesive as they'd be if I didn't have to do that.

[Christopher Key]

05:02 PM on 11/02/2011

If the "Federal Reserve" is NOT part of the FEDERAL GOVERNMENT (...and, according to its own employees, it is NOT) then 1) Why is the word "Federal" part of the name ....and 2) why does there website use a ".gov" adress?

Herman Cain said call the FEDERAL RESERVE BANK SO I DID and you should http://www.youtube.com/watch?v=bySbkGY3_bg

[Lin96]

02:54 AM on 10/26/2011

"Greed is good"? Only Gordon Gekco thinks that. Greed has gotten this country to where it is now.
That's why Bernie Madoff is in jail and all his investors were left holding the bag. "The less natural talents a creature has for producing tangible results, the more selfish characteristics it acquires." Greed has produces parasites who absorb everything and produce nothing. I admire Ron Paul's stance on the Federal Reserve. However, for a medical professional, and a Libertarian (which he has defined himself) I find it ironic that he feels people without insurance should get help from charities. He obviously didn't get into medicine because he has compassion for human beings. Sometimes his words and actions just don't match. That's a sure sign that you have to pay attention to the actions. That's where the truth lies.

[Giovanni Campanella]

06:58 PM on 11/14/2011

Charity should be voluntary, not forced. That is simply where we disagree. It does not mean he doesn't care about people. You should research more information about his medical years, and when you know all the facts then ask yourself why you declared that he has "no compassion". Government forcing people to give is not compassion, it is force. Libertarianism is compassion because charity is voluntary.

[Lin96]

10:22 AM on 11/15/2011

As a doctor, forget the political Ron Paul. During the debates in Texas, when asked if he would leave a patient die because he had no insurance, Ron Paul said nothing, and that was followed by a thunderous applause by the audience in Texas that he should die rather than be treated. I found it repulsive. I think charity should be voluntary, but if you're going to be a leader it should be for ALL people and not just some. I support Ron Paul's views completely on the Fed., but so do Kucinich, Sanders and Grayson. If these men banned together they might have a possibility of getting something done, but Ron Paul doesn't want to associate with these men because they're not Republicans. He best not hold his breath if he's waiting for Republicans to agree with him on the Fed. His party doesn't take him seriously. I also find his son's views disturbing, and wonder how far from the tree the apple falls. If you have no compassion for ALL the people, then you should evaluate if you're in it for yourself, or why you're in it. Ron Paul says to let charities and churches take care of people who have no health insurance. That's totally unrealistic because who would fund them? Those like yourself? Nobody is forcing anyone to donate to charities and they never will. The Government is only as good as the people running it and 8 years of Bush proves that.

[CoreyBurn]

11:36 PM on 10/17/2011

Ron Paul has been wrong before. Just like every human being on earth. Even Cain and Paul share similar beliefs and policies.

As for the article...Was Cain lying? No, he wasn't. He is not against the audit and he is not for the audit. He didn't call anyone ignorant, only that people want to audit because they don't know enough about it is...which is in fact a reason to audit. Also, Cain hasn't been involved with the Fed Reserve for a LONG time, he has less info to go off than Paul.

Concerning 9-9-9, it is one of the only plans out there that tackles tax reform. I for one, would love to pay 6 percent less in income taxes, have more money in my pocket (I am middle class) and CHOOSE where to spend and how to spend that 9% sales tax. AT LEAST I am spending the money and the fed. Oh yea, everyone will pay taxes to the fed...which is needed. I don't understand all the hate for the plan. There are some things that I don't like, but that is no reason to completely throw it out the door, it sure as hell is better than our current progressive tax system where 40% pay 0 and the rest of us pay for them to sit on their couch and complain all day.

We don't want Obama in 2012.

[MarketAnarchist101]

02:17 AM on 10/18/2011

He's been more right than wrong.. He's been pretty consistent when it comes to being right as well. They share similar beliefs and policies they just have different conclusions about them.

Cain did lie, the definition of ignorant is lack of knowledge or lack of knowledge on a subject. He was against an audit before he became for it. Ron Paul has pushed for it since the beginning.

As for the 9-9-9 plan.. you pay 6% less in income but you pay 9% more as a national sales tax. It's a substitution tax plan that increases your tax by a percentage. You may choose where you get to spend your money, but it doesn't mean that you wouldn't have spent it otherwise in the first place. Ron Paul on the other hand doesn't want to only lower taxes.. he wants to eliminate them completely and not add another new type of tax. The last part.. I completely agree 'There are some things that I don't like... We don't want Obama in 2012' parts.

[autonym]

01:40 PM on 10/20/2011

I've not been a supporter of his candicacy, but Ron Paul has been right about the Fed for years. The October 4th hearing on the most recent and comprehensive Fed audit since 1974 conducted by the GAO found evidence of corruption in the Kansas City Fed---CAIN'S FORMER CHAIR from 1995-1996. OH RILLY.

The fact alone, that Cain can claim there is no need for oversight of the control of the nation's money supply and system of debt--TODAY--is utter absurdity and makes Herman Cain corruption fairly evident.

You can watch the hearing on Youtube. If you want the more interesting parts, skip to the second and third panels, who provide some testimony of the Fed's historical corruption of goverment, but more importantly policy recommendations like the need to peel back all layers of the operation for oversight, to conduct regular outside audits of the Fed and for the Fed to provide records of all decision making and policy every six months--any of which should uncover activity that will undoubtedly lead to some degree of public enlightenment on the country's monetary policy, and probable outrage at the practices of the world's banks.

http://www.youtube.com/watch%3Fv%3DPUVWJGBZWQA

[autonym]

02:01 PM on 10/20/2011

Well, that link was broken by HP. Search "Fed Audit Hearing Oct 4 2011" and you'll find it.

[Lin96]

10:01 AM on 11/29/2011

Read the book "Monster from Jeckel Island". It goes back way farther than Ron Paul. He's not the only one who is in favor of removal of the Fed. Kucinich, Grayson, Nader and many more. It's not his solo campaign, but he is the only Republican that I can think of who has fought for it.

[gamok]

03:23 PM on 10/17/2011

The USA is 14.6 trillion dollars in debt, and there are 307 million citizens. With some simple math you can see that each man, woman, and child owes over $47,000. Since only half of the population actually pay taxes it comes to $94,000 per taxpayer. If we expect just the top 2% of the wage earners to pay for it, they will owe over $2,000,000 each. We have a big problem caused by overspending, not so much because we tax too little. We need to shrink the government and elect people that are willing to make hard choices, not just lip service. Too often we elect people that say one thing and do another. Please vote for the only person that has been talking straight to the American people for 30 years, support Ron Paul go to http://www.blackthisout.com/users/gamathers.

[CoreyBurn]

11:40 PM on 10/17/2011

Talking straight to Americans for 30 years? Not true at all. He too is a politician. Here is an example of one of his lies.

I’d like to request a fact check on Ron Paul’s claim regarding the enforcement of the health insurance mandate, "16,500 ARMED bureaucrats coming to make this program work." . . .

This wildly inaccurate claim started as an inflated, partisan assertion that 16,500 new IRS employees might be required to administer the new law. That devolved quickly into a claim, made by some Republican lawmakers, that 16,500 IRS "agents" would be required. Republican Rep. Ron Paul of Texas even claimed in a televised interview that all 16,500 would be carrying guns. None of those claims is true.

www.factcheck.org/2010/03/irs-expansion/

[MarketAnarchist101]

03:11 PM on 10/18/2011

Using a youtube video that is blocked doesn't help you. However, the addition of new agents to the IRS wouldn't only be for that program. It's naive to think that new personnel would only be used for that purpose. However, the agents themselves don't have to be 'Armed' in the sense of carrying a weapon. They are however, armed with the backing of the state that will bring guns if you don't comply with what they say. The claim is true they are armed with the complete backing of the state.

[Juggernaut09]

09:44 PM on 10/16/2011

Ron Paul or nothing at all!!!!!!

[Cecil Cain]

01:34 PM on 10/17/2011

That would lead the US even further back into wealth disparity.

http://www.obamaftw.com/blog/ron-paul/ron-paul-2012-ron-paul-economy

[Jason Crittenten]

04:46 PM on 10/17/2011

At first I thought you were on board for Oct 19th but on closer inspection those are shades.

[MarketAnarchist101]

07:36 PM on 10/17/2011

lol...Take it from a blog that doesn't face the reality of the situation.

[Planetnewsw]

06:49 PM on 10/16/2011

Cain/Paul on the Housing Bubble

Of course, there is no comparison. One was absolutely right and the other was absolutely wrong. No one is perfect and this is especially true of politicians, but to be so horribly wrong–even arrogantly wrong–about one of the worst financial crises in American history does not bode well for anyone seeking this nation’s highest office.

Would anyone hire Cain as an economic adviser? If not, then why would anyone hire him for president?

Video: Cain/Paul Comparison on the Housing Bubble

Once again, there is no comparison. Paul saw the crisis coming because he understood the economic factors that were creating it, particularly Federal Reserve interest rate policy. Cain did not see it coming because he still does not understand basic economic truths, hence his notion that Fed policy isn’t important or deserving of scrutiny. (Stunning comparison, must view!)
http://www.youtube.com/watch?feature=player_embedded&v=Tn0EApd5wgw

[sloppybear16]

10:34 PM on 10/16/2011

Ron Paul words from 2003 where so accurate they make me feel sick to my stomach because no one wanted to listen to him. So many problems could have been avoided. Such a shame.

[Jason Crittenten]

04:24 PM on 10/17/2011

He also predicts a 15 year depression and a currency collapse beginning around 2013.

http://www.youtube.com/watch?v=kADXWXgxKJk&list=FLBBjTTbOm1HqQJd9AZNUzlw&index=1

More reason to feel sick.

[leob112]

12:39 PM on 10/21/2011

You are so right ! Why did people not believe it !! I hope, for the good of America, they do this time around. Ron Paul 2012 !!!

[Planetnewsw]

06:46 PM on 10/16/2011

Cain Also Thinks the Fed Missing $9 Trillion Is Unimportant

Herman Cain made it clear at the Bloomberg Debate in his answer to Ron Paul’s question
about auditing the Federal Reserve that he simply doesn’t think it’s important.

In 2009, the Federal Reserve admitted it could not account for $9 trillion. This is not a misprint. It wasn’t $9 million.
Not $9 billion.

$9 TRILLION.

Does it have to get to $999 trillion, Mr. Cain, before you think the Federal Reserve issue is important?
http://www.ronpaul2012.com/2011/10/14/grover-norquist-explains-the-danger-of-999/

Cain’s Favorite Fed Chairman is: “Print More Money”

In the Bloomberg GOP Debate, Herman Cain said that Alan Greenspan was his favorite Federal Reserve Chairman. That the TARP-supporting, financial crisis-denying Cain would think Greenspan had a good head for economics should be no surprise, since he shows himself to speak like a true insider does.
http://www.youtube.com/watch?feature=player_embedded&v=GZUpZ_onC2k

[Planetnewsw]

06:37 PM on 10/16/2011

A recent Harris Poll revealed that Ron Paul would prevail over Barack Obama 51 percent to 49 percent in a general election race. Paul stands at 13 percent in New Hampshire, site of the first-in-the-nation primary.

Revolution PAC is bolstering Ron Paul’s consistent, constitutional message with targeted TV advertising campaigns complemented by billboards and radio ads in key primary states. Proceeds will support the airing of game-changing commercials, like the game-changing Plastic Men” in the months to come. Unlimited donations by individuals, businesses and organizations can be made to Revolution PAC.
http://www.revolutionpac.com/2011/10/plastic-men-to-air-preceding-cnn-debate-october-18/

Huffington Post Provides Proof That Herman Cain Lied At The GOP Debate
http://www.huffingtonpost.com/2011/10/11/ron-paul-herman-cain-fed-audit-gop-debate_n_1006228.html

[Planetnewsw]

06:35 PM on 10/16/2011

“He was completely clueless about the condition of the economy right up to the moment of collapse,” notes Revolution PAC Chairman Tom Woods.

Cain proceeded to wholeheartedly back, in big government liberal fashion, the controversial Troubled Asset Relief Program, which he deemed a “win-win for the taxpayer.” He flippantly argued, “The ownership by the taxpayers is going to be relatively small and nowhere near the amount needed to be called nationalization. So what’s the problem?”

“We need sweeping, systemic changes, carried out by a real supporter of the free market who sees the whole picture,” Woods urges, “not trivial tinkering by Herman Cain or his friend Mitt Romney, whom he endorsed in 2008.”

Woods continues, “Dr. Paul specifically warned in 2001 that Alan Greenspan and the Federal Reserve, whose NASDAQ bubble had just burst, were in the process of creating a housing bubble. That Ron Paul is the candidate best equipped to lead us back to economic prosperity is nearly undisputed.

[Planetnewsw]

06:31 PM on 10/16/2011

Pizza Man Herman Cain Will Not Deliver!

Federal Reserve insider unfit to lead economic recovery, charges Revolution PAC.

From his faulty recession predictions in 2008, to his support of TARP to his resistance to a Federal Reserve audit, GOP presidential candidate Herman Cain is unqualified to shepherd America to honest economic recovery, asserts Revolution PAC.

As conservatives, including Rep. Ron Paul and Newt Gingrich, rally for fiscal transparency, Cain – a former Kansas City Federal Reserve chairman – continues to dismiss the push for a thorough audit of the public-private agency. While Cain asserts in his new autobiography, “I don’t think you’re going to find anything to audit on the Federal Reserve,” Paul’s Domestic Monetary Policy subcommittee has overseen a GAO investigation of the Fed’s crisis response emergency lending that uncovered $16 trillion in emergency loans to foreign banks.

Cain’s pattern of misjudgment and obfuscation is not a recent phenomenon. Just one week before the economic collapse and subsequent banker bailouts in 2008, he went on the record to defend the strength of the financial markets and suggest an “imaginary recession.”

[roark183]

05:02 PM on 10/16/2011

This is probably the level of integrity we should expect from a former Federal Reserve director. Herman Cain really doesn't know where to take a stand on the Fed. This is probably because he really doesn't want his actions at the Fed to be known, and they might well come out in an audit. So it really is important to find out what actions he took, what policies he implemented, what decisions he made when he worked at the Federal Reserve. I'm sure this will not be a pleasant topic for Mr. Cain, therefore he trivializes any effort to audit the Fed.

[Jason Crittenten]

04:26 PM on 10/17/2011

As long as Mr. Cain is getting promotions, selling books and getting TV time he could care less about the future of the country.

[Jacana5]

03:34 PM on 10/16/2011

Cain's a Koch man too.

[Joe Goforth]

02:39 PM on 10/16/2011

Cain is just yet another Republican money man. Elect him and we get more of the same. It's unfortunate that some people think Ron Paul is detached from reality. I think that these people are just in denial about the truth for the most part. The Federal government is out of control and it needs to be gutted and the power returned to the people at the local level. Ron Paul will do this as the next president of the United States of America. The media and the big money politics and black out Ron Paul but it's up to the people to see the truth.

[Troops Support Paul]

04:20 PM on 10/16/2011

October 19th http://www.blackTHISout.com

[ThomasMc]

02:32 PM on 10/16/2011

Cain is a Tea Partier. They believe reality is whatever lie you told last.

[Pyrum]

11:35 AM on 10/17/2011

Cain, who's a former Federal Reserve chairman, is NOT a teapartier.

[GuiltyUndertaker]

05:35 PM on 10/20/2011

He is now.