Many people are wondering, what exactly is the Federal Reserve System (Fed)? The Fed was first started in 1913 with the passage of the Federal Reserve Act. As defined on Wikipedia, it is a quas- public/ quasi-private government entity. It is comprised of:: 1.a presidentially appointed Board of Governors, of the Federal Reserve System in Washington, DC.,2. the Federal Open Market Committee, 3. 12 regional Federal Reserve Banks in designated regions in the US operating as agents for the US Treasury (each with a 9 member board), 4. numerous member banks which subscribe to required amounts of non transferable stock in the Federal Reserve banks and 5. various advisory councils. Ben Bernake is the present Chairman of the Fed.

On February 25th, Federal Reserve Chairman Ben Bernanke appeared before the House Financial Services Committee and Ron Paul took five minutes to lecture Bernanke about the fallacy of Keynesian economics and ask one simple question: What if you're wrong?

It's no surprise that Congressman Ron Paul isn't pleased with bailouts and economic stimuli. He recently appeared on MSNBC's Morning Joe and explained why he believes that the current path of economic intervention will turn a bad recession into a depression.

His point is essentially this: What got us into the current mess was excessive consumption and excessive leverage -- and now we are trying to do more of both to get the economy out of this mess.

Watch the video below. It's hard to argue with.

Say what you will about Ron Paul, but give him credit for this: he talks about important issues that almost no one else does. Given his status as one of the biggest critics of the burgeoning national debt, I've been waiting anxiously for his reaction to the $700 billion debt-funded bailout of the financial industry.

PressTV has some quotes from Mr. Paul. The Congressman from Texas called it a "mistake" because we "don't have the money." He added that, "We could change our foreign policy. We could take care of our people at home. We could lower taxes . . . the worst thing that we can do is perpetuate the bad policies that gave us this trouble in the first place."

That echoes one of the most important concerns expressed by critics of the bailout: moral hazard.

Paul handed Federal Reserve Chairman Ben Bernanke a dressing down for the ages today -- look for it on YouTube soon. In the meantime, check out these classic videos from Paul's battle against irresponsible fiscal policy.

Former Massachusetts Gov. Mitt Romney, who proved that presidential politics is a lousy investment, is poised to endorse Republican front-runner and his one-time rival John McCain, according to the New York Times.

This is hardly a shock.

Republicans, with the exception of Mike Huckabee and Ron Paul, are rallying around the Arizona senator who is their party's best hope of keeping the White House. The GOP has a lousy history, though, with Arizona senators running for president. Barry Goldwater was trounced by Lyndon Johnson in 1964 and odds are growing that McCain will get a whooping equal too or potentially worse at the hands of Hillary Clinton or Barack Obama.

I've been intrigued by Ron Paul's Presidential candidacy because I think he's talking about issues that are deserving of attention but aren't getting it: the role of the Federal Reserve, our interventionist foreign policy, and the IRS, just to name a few.

But an article in The New Republic raises questions about Congressman Paul's character. It seems that for years, he edited a newsletter that frequently contained racist and homophobic tirades, and paranoid conspiracy theories. Read the article for all the juicy examples.

Wanting to be fair, I waited for Ron Paul's campaign's response to post on this. In a press release, he stated that "When I was out of Congress and practicing medicine full-time, a newsletter was published under my name that I did not edit. Several writers contributed to the product. For over a decade, I have publicly taken moral responsibility for not paying closer attention to what went out under my name."

Much as I would like to ignore them, there is no escaping the Iowa caucuses. Every pundit within 1,000 miles of Des Moines is weighing in on their meaning, or lack thereof. But there is one message coming loud and clear from the campaign from average voters that will continue to be heard, regardless who wins the hearts and minds of Dubuque: We're scared.

Consider that consumer confidence ended the year on a negative note. Oil prices are at or about to pass $100. The real estate market continues to scrape along the bottom. People are unhappy about the war in Iraq and Afghanistan. They are unhappy with president. They are unhappy with the Democratic-led Congress. All of this crankiness is a great boon for the Democrats and a potential problem for Wall Street.

John Edwards, perhaps the most anti-corporate candidate, is in a statistical tie with fellow Democrats Hillary Clinton and Barack Obama. Anti-tax zealot Ron Paul continues to break fund-raising records even though he stands no chance of winning the Republican nomination. Republican Mitt Romney, who made his fortune in private equity and would presumably be Wall Street's friend, continues to struggle against economic populist Mike Huckabee. Rudy Giuliani, another potential Wall Street friend, is avoiding Iowa and New Hampshire because he's probably going to get beaten badly there.

As the election heats up, so will the anti-corporate rhetoric. Remember that many voters don't know the difference between a stock and a bond, and think 401 is a type of Special K. Fear, uncertainty and doubt will play a large role in determining the next president, and that's why the markets are going to remain volatile for quite some time, regardless of how many times the Federal Reserve cuts interest rates.

Hitwise is a top-player in analyzing Internet traffic. So, why not look at the data to predict the results of the Iowa caucus?

Well, according to Hitwise, Barack Obama is the clear winner (as well as in New Hampshire). In fact, over the past month, he got 31% more Internet traffic than Hillary Clinton.

OK, what about the Republican side? The clear winner is reengage Ron Paul, who has become a darling of the internet crowd.

Also, there is another predictor to look at – that is, the market trading on the Intrade futures market (according to a piece in Reuters). The results show that Obama is going to be the winner. And, on the Republican side, it's Mike Huckabee.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Ron Paul may be a second-tier candidate in the polls, but his fund raising acumen perches him at the top of his party. By raising $19 million in the fourth quarter [subscription required], the Texas Congressman known for his calls to abolish the IRS established the second best quarter of any Republican in this election cycle. Only Mitt Romney, who raised $20.8 million in the first quarter, has reported better numbers.

What will come of Paul's strong fund raising and weak poll numbers? Here's where it could get interesting: According to the Washington Post, "Ron Paul, the Texas congressman stirring up the Republican presidential contest with his libertarian-leaning views and online fund raising prowess, left the door open Sunday to running as an independent, should he not win the Republican nomination."

Part of Paul's problem in the primaries could be that his views aren't in line with the party line: He has always been a strong opponent of the war in Iraq, he supports leaving most social issues up to the states, and he's skeptical of the FBI and CIA.

But his fund raising and YouTube celebrity (and great performance on Jim Cramer's Mad Money) show that he strikes a chord with a lot of Americans.

Ron Paul is big on college campuses and he appeals to a lot of people the other Republican candidates don't. I'm a registered Democrat, but I'd give serious thought to voting for Ron Paul if he somehow gets the nomination or runs as an independent.

I just found this video that features Ben Bernanke testifying before Congress and Congressman/Republican Presidential candidate Ron Paul chewing him out.

Paul, a professed opponent of the Federal Reserve, argues that the lowering of the interest rate robs the savings of retirees and others looking to live off CDs or other investments.

Interestingly, Bernanke doesn't really answer. Certainly something to think about ...

Republican Presidential candidate Ron Paul's campaign is gaining steam, as evidenced by the $5 million he raised in the third quarter. In spite of his status as a lower-tier candidate without strong name recognition, he still managed to raise half as much as front-runners Rudy Giuliani and Mitt Romney.

Paul, a Congressman from Texas, is attracting support with his libertarian ideology and opposition to the war in Iraq. He is staunchly opposed to raising taxes, and has earned the nickname "Dr. No" for his policy of voting no on any legislation that he does not believe is expressly authorized by the Constitution.

With many Republicans (including Alan Greenspan) disenchanted with the current administration's free-spending ways, it's not surprising that Paul has carved out a niche. Whether he can take his campaign to the next next level and emerge as a serious threat to Giuliani and Romney remains to be seen.