Ron Paul, Bernanke's Worst Nightmare, Heading Fed Oversight Panel

In what has probably kept Ben Bernanke up in cold sweats since Republicans took control of the house, were fears nemesis Ron Paul would be named as head of the House subcommittee that oversees the Federal Reserve, and by extension, Bernanke.

Paul isn't going to waste any time in his new role, saying he's going to hit the ground running and have a plethora of hearings on U.S. monetary policy.

He added he's going to renew his effort to have the Federal Reserve undergo a full audit.

Jim Bunning, Senator from Kentucky, whose seat will be taken by Ron Paul's son Rand, said this, “Congress must act to rein in Chairman Bernanke and the Fed before they destroy our currency and permanently damage our economy and financial system. Public awareness of what the Fed is doing is increasing while public opinion of the Fed is falling.”

The Federal Reserve, which has largely received a free pass for decades as to its secretive actions and deals, can't be happy about the renewed interest and focus on them, which is a worst case scenario from their point of view.

Add Ron Paul, who has written a book called "End the Fed" to the mix, and things aren't going to be boring over the next several years concerning the Fed and the increasingly nervous and defensive Ben Bernanke.

Rand Paul Says U.S. Debt Unsustainable

In an interesting comment which is somehow being spun as being in agreement with Federal Reserve chaiman Ben Bernanke, Rand Paul said on "This Week" on ABC, that “We need to do something about it," referring to Bernanke saying in the past that U.S. "debt is unsustainable."

With many bankers and others on Wall Street uncomfortable with the negative exposure the Federal Reserve policies are getting, along with Bernanke's hand in them, it's strange to see Paul's agreeing to Bernanke's statement as construed sort of starting point to work with by some.

Rand Paul knows Bernanke is the problem, as the huge amount of debt the U.S. owes is largely from the hands of Bernanke and his attempt to stimulate the economy by printing money, which he's now calling "quantitative easing."

The idea has also been thrown around that Paul could have a chance at being seated on the Senate Banking Committee, which would no doubt quickly eliminate the idea he's in any way supportive of Bernanke and his policies.

Paul has called for spending cuts in a number of areas, including the military and other areas, understanding there's no way Washington can proceed doing business as usual.