ISSUE OF MAJOR CONCERN TO ALL INDEPENDENT NATION
STATES IN THE WORLD-TO DESTROY THE FOX IN LAMB'S
I was very pleased that hearings were held on
the independence of the Federal Reserve system.
My bill HR 1207, known as the Federal Reserve
Transparency Act, was discussed at length,
as well as the general
question of whether or not the Federal Reserve
should continue to operate independently.
is demanding transparency in government like
never before. A majority of the House has
cosponsored HR 1207. Yet, Senator Jim
DeMint’s heroic efforts to attach it to another
piece of legislation elicited intense opposition
by the Senate leadership.
hearings on Capitol Hill provided us with a
great deal of information about the types of
arguments that will be levied against meaningful
and how the secretive
central bankers will defend the status quo that
is so beneficial to them.
are made that auditing the Fed would compromise
its independence. However, by
independence, they really mean secrecy.
The Fed clearly cherishes its vast power to
create and spend trillions of dollars, diluting
the value of every other dollar in circulation,
making deals with other central banks, and
bailing out cronies, all to the detriment of the
taxpayer, and to the enrichment of themselves.
I am happy to challenge this type of
the Fed is endowed with special intellectual
abilities with which to control the market and
that central bankers magically know what the
market needs. We should just trust them.
This is patently ridiculous. The market is
a complex and intricate thing. No one
knows what the market needs other than the
market itself. It sends signals, such as
prices, that should be reacted to and respected,
not thwarted and controlled.
Bankers are not all-knowing and cannot ignore
the rules of supply and demand. They might
act as if they are, but their manipulation of
the market just ends up throwing it wildly off
balance, which gives us the boom and bust
claim the Fed must remain apolitical. No
organization is apolitical that relies on the
President to appoint the Chairman. In
fact, it is subject to the worst sort of
politics – power to create trillions of dollars
and affect the value of every dollar in the
country without the accountability of direct
elections or meaningful oversight! The Fed
typically enacts monetary policy that is
favorable to particular administrations close to
elections, to the detriment of long term
considerations. They do this partly
because of the political appointee process for
accountability the Federal Reserve has is
ultimately to Congress, which
granted its charter and can revoke it at any
time. It is Congress’s constitutional duty
to protect the value of the money, and they have
abdicated this responsibility for far too long.
This was the issue that got me involved in
politics 35 years ago.
It is very encouraging to finally see the issue
getting some needed exposure and traction.
It is regrettable that it took a crisis of this
magnitude to get a serious debate on this issue.
Mr Brummer stated
'Even now, Goldman Sachs could not be operating
at its current velocity without the help of the
trillions of dollars being flushed through the
financial system by central banks including the
Federal Reserve and the BANK of ENGLAND,
of its friends in the highest places of global
finance no one even dares question the notion
that what is good for Goldman Sachs is good for
the global economy. That ,I suspect is a precept
that is going to be increasingly challenged.'