{"id":184553,"date":"2010-01-14T10:50:52","date_gmt":"2010-01-14T15:50:52","guid":{"rendered":"http:\/\/nw0.eu\/2010\/01\/14\/why-the-fed-likes-independence.html"},"modified":"2010-01-14T10:50:52","modified_gmt":"2010-01-14T15:50:52","slug":"why-the-fed-likes-independence","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/184553","title":{"rendered":"Why the Fed Likes Independence"},"content":{"rendered":"

Ron Paul
\nCampaign For Liberty<\/a>
\nTuesday , January 12th, 2010<\/span><\/p>\n

Last week it was revealed that when Treasury Secretary
\nTim Geithner was Chairman of the New York Federal Reserve, he urged AIG
\nofficials not to disclose to the Securities Exchange Commission
\nrelevant details of agreements with banks to bail out Goldman Sachs.
\nApparently he felt at the time that regulators and the public would be
\nangry that taxpayer money was used to fully compensate bankers who made
\nsome horrifically bad investment decisions. These banks should have
\nsuffered the consequences of the huge risks they were taking. After
\nall, they kept plenty of rewards when times were good. Instead, the Fed
\nfound a way to socialize these major losses so these banks could
\nsurvive and continue making more bad decisions, at the expense of the
\nAmerican people and the value of the dollar.<\/p>\n

Geithner claims that they had to take politically unpopular actions
\nto save the economy from collapse. Half of that is right \u2014 it was
\npolitically unpopular, but it is extremely premature at best, to claim
\nthe economy has been saved. It was just reported that 85,000 more jobs
\nin December. Unemployment stands at 10 percent officially, and 22
\npercent according to more traditional calculations. It is hard to argue
\nthat this sort of government waste has done anything but harm to our
\neconomy. Raiding Main Street to bail out Wall Street is a foolish idea.
\nMain Street productivity and the strength of the dollar is the bedrock
\nof the economy. You cannot gut this foundation without eventually
\ntoppling everything else. This is what too many policy makers either
\ndon\u2019t understand or refuse to face. Or even worse, perhaps they
\ndo understand, but don\u2019t care!<\/p>\n

In any case, this revelation makes precisely my point about the need
\nfor Fed transparency. This claim that the Fed should have
\n\u201cindependence\u201d is a canard. They very much enjoy their
\ncomfortable pattern of bailing out friends and devaluing the currency
\nwith no oversight and no accountability. Geithner specifically asked
\nofficials at AIG not to disclose to the SEC or to the public
\nparticulars about this special deal for his friends. We only know these
\ndetails now because AIG was eventually forthcoming when Congress
\ndemanded some answers.<\/p>\n

We should be getting this information, and information on all such
\ndealings, straight from the Fed. The Fed should be accountable to
\nCongress because it is a creature of Congress. The Constitution gives
\nCongress the authority to oversee the integrity of the monetary unit.
\nWe have unwisely and unconstitutionally delegated this authority to the
\nFederal Reserve, which has in turn devalued our dollar by 95 percent
\nand counting. When the Federal Reserve engages in harmful policies,
\nCongress is still ultimately responsible. If the Fed is not made
\naccountable through a GAO audit at least, it will continue to be
\naccountable to no one, and that is unacceptable.<\/p>\n

Geithner expects to be praised and thanked for his actions instead
\nof rebuked and fired. He expects to be given more power to engage in
\n\u201cexperimental\u201d monetary policy in the future. But he has
\njust given us a very good idea of what the Fed and Treasury would do
\nwith more power, what they consider good monetary policy, and why they
\nlike their so-called independence.<\/p>\n

<\/embed>Popout<\/span><\/p>\n

<\/div>\n

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Ron Paul Campaign For Liberty Tuesday , January 12th, 2010 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 […]<\/p>\n","protected":false},"author":2604,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-184553","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/184553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/2604"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=184553"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/184553\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=184553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=184553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=184553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}