Audit the Fed or Washington Rope-a-Dope
Posted by Larry Doyle on January 13, 2010 8:47 AM |
The American public wants answers.
The Washington establishment, primarily in the persons of Ben Bernanke and Tim Geithner, clearly feel America can’t handle the truth. What truth? The depth of economic despair and problems primarily embedded in our nation’s financial system. What institution has tried to fill the hole in our financial system? The Federal Reserve.
Given the shadowy operations of the private institution that is our central bank, Americans are justifiably nervous and concerned as to what lurks behind the shadows inside the Federal Reserve. To this end, with the leadership of Ron Paul (R-TX) the calls to ‘audit the Fed’ are growing ever stronger.
Fed Chair Ben Bernanke is concerned that if he acquiesces to the public’s call, he may lose independence over monetary policy and go down in history as the central banker who caved to public pressure.
In my opinion, the public’s concern currently is focused on the growing size and illiquidity of the assets on the Fed’s balance sheet. Bernanke as much agreed to a Fed audit as long as the line is drawn to exclude interference in monetary policy.
While the Fed and its supporters play the ‘rope-a-dope’ in an attempt to stall the debate, the American public is growing increasingly anxious.
Cut a deal. Compel the Fed to open its books. Leave monetary policy outside the purview of the audit. Reveal the nature of its holdings and let’s get on with it.
Give truth and transparency a chance. Can it be worse than what we have currently?