Ron Paul: Why the Fed Likes Independence
http://house.gov/paul
http://CampaignForLiberty.com
Last week it was revealed that when Treasury Secretary Tim Geithner was Chairman of the New York Federal Reserve, he urged AIG officials not to disclose to the Securities Exchange Commission relevant details of agreements with banks to bail out Goldman Sachs. Apparently he felt at the time that regulators and the public would be angry that taxpayer money was used to fully compensate bankers who made some horrifically bad investment decisions. These banks should have suffered the consequences of the huge risks they were taking. After all, they kept plenty of rewards when times were good. Instead, the Fed found a way to socialize these major losses so these banks could survive and continue making more bad decisions, at the expense of the American people and the value of the dollar.
Geithner claims that they had to take politically unpopular actions to save the economy from collapse. Half of that is right it was politically unpopular, but it is extremely premature at best, to claim the economy has been saved. It was just reported that 85,000 more jobs in December. Unemployment stands at 10% officially, and 22% according to more traditional calculations. It is hard to argue that this sort of government waste has done anything but harm to our economy. Raiding Main Street to bail out Wall Street is a foolish idea. Main Street productivity and the strength of the dollar is the bedrock of the economy. You cannot gut this foundation without eventually toppling everything else. This is what too many policy makers either dont understand or refuse to face. Or even worse, perhaps they do understand, but dont care!
In any case, this revelation makes precisely my point about the need for Fed transparency. This claim that the Fed should have independence is a canard. They very much enjoy their comfortable pattern of bailing out friends and devaluing the currency with no oversight and no accountability. Geithner specifically asked officials at AIG not to disclose to the SEC or to the public particulars about this special deal for his friends. We only know these details now because AIG was eventually forthcoming when Congress demanded some answers.
We should be getting this information, and information on all such dealings, straight from the Fed. The Fed should be accountable to Congress because it is a creature of Congress. The Constitution gives Congress the authority to oversee the integrity of the monetary unit. We have unwisely and unconstitutionally delegated this authority to the Federal Reserve, which has in turn devalued our dollar by 95 percent and counting. When the Federal Reserve engages in harmful policies, Congress is still ultimately responsible. If the Fed is not made accountable through a GAO audit at least, it will continue to be accountable to no one, and that is unacceptable.
Geithner expects to be praised and thanked for his actions instead of rebuked and fired. He expects to be given more power to engage in experimental monetary policy in the future. But he has just given us a very good idea of what the Fed and Treasury would do with more power, what they consider good monetary policy, and why they like their so-called independence.
Duration : 0:3:57
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mhlooking for a man …
mhlooking for a man that would give me some experience.
The logical …
The logical conclusion is to do what they did – and deprive them of the means to perpetrate any more crimes against us.
First, run up your credit irresponsibly, and walk on it. (You don’t need a credit rating – it’s for nonsense.) Secondly, pull all your $ and assets – if you have any – from the criminal banks and insurance companies and stocks. (Invest locally and in hard assets.) Thirdly, buy all local, use local products and labor. Buy local food, not govt processed food.
@focus21x After …
@focus21x After recently rereading Marbury v. Madison … I find myself asking the very same question. While judicial review is touted in social policy, I find it odd that real problems that have more to do with collective liberty are ignored. It comes down to this … abortion > constitutionality of the Federal Reserve Bank. Clearly its institution, based upon the Constitution and the intent of old Republican framers such as Jefferson, is unconstitutional. It’s a sad state of affairs.
The Fed and its …
The Fed and its cronies are too big to hide. Their crimes against the people are to many, too obvious. Independent observers are telling the truth and ripping away the Fed’s only protection from prosecution: secrecy and hidden deals.
Absolutly !! Ron …
Absolutly !! Ron Paul 2012 for President and Jessie Ventura 2012 for V.P. We would have two honest men here. That seems to be rare in todays politics. A really good You Tube video is ” Texas Legislature Voting” Its amazing the corruption in Govt.
He and especially …
He and especially Greenspan and Bernanke!!
Why isnt Geithner …
Why isnt Geithner in jail along with the rest of the FED.
Why not challenge …
Why not challenge the Supreme Court to do its job–enforce the Constitution!
I do hope he runs …
I do hope he runs for president again, and in the meantime people wake up. Hopefully, now, that his book is a bestseller…. people will take notice.
Thank you, Mr. …
Thank you, Mr. President, for your weekly update.
Thanks so much for …
Thanks so much for sharing this!
The voice of truth …
The voice of truth and reason speaks again.
Ron Paul for US President 2012!
Schiff has …
Schiff has predicted that the big hit will likely occur in 2010, 11, or 12.
If Ron Paul doesn’t run in 2012 I don’t see him running ever.
Buy some silver and …
Buy some silver and gold folks looks like the US government with the Federal Reserve has taken out world reserve currency. This error will make the Great Depression look minor in comparison.
Americans sure know how to shoot themselves in the foot.
I see no recovery all the US gold reserves are gone too.
Ron Paul for …
Ron Paul for FREEDOM!
@Elizruth, you’re …
@Elizruth, you’re welcome, and you’re right, the storm is coming. It’s hard to predict the exact timing of course, but events have been set in motion that may be impossible to turn around.
ww3 is coming! The …
ww3 is coming! The debt bomb is in play, vote all of them out of office!
Thank you Chris for …
Thank you Chris for the upload. The big unravelling should be happening soon.