Is auditing the Fed really the elephant in the room?

Congress may be more directly accountable, but it is also more directly influence by political contributions (ie bribery) and pandering to the electorate. That is why in the face of a monumental debt crisis and record deficits, Congress can't even agree on a compromise to get anything close to a balanced budget.

Can you imagine the economic turmoil if Congress had power over the money supply? I don't think "catastrophic" is hyperbole.

That is why the Fed was wisely given a large degree of independence. It's money policy makers are appointed by the president (and most are not bankers) who serve 14 year terms so that they are less susceptible to the sorts of bribery and pandering common to elected representatives. The Fed Board can thus make its policy without feeling they have to pander to the electorate, which is absolutely critical IMO in money policy.

Setting up the Fed as an independent institution was one of the smarter things Congress has done over the past 100 years.

 

do you understand why the federal reserve was created?

 

to screw the american people

 

Lol.

Actually, I think the Fed was set up to help bankers first, politicians second and the U.S. masses third.

But they are supposed to ALWAYS pretend that it is the other way around.

 

it was set up because the money trust was dominating the credit market

lots of small and some large banks went under during the panic of 1907

small banks had no place to go for short term loans to cover withdrawals and maintain liquidity, except for jp morgan and such, but if they did loan them money, they charged as much as they could, hoping to discourage competition

the federal reserve's program made it possible for smaller local banks to stay in business and compete, that generally helped prevent bank runs and panics and helped put seed money in the hands of farmers and finance rural businesses

the last real panic was in 1910 & '11

and please, i'm more than well aware of the great depression, but notice how it's called a 'depression' something that's distinct from a 'bank panic'

there hasn't been a depression in nearly 70 years and no panics in 100 years

why do you think that is?

 

A truth smack for all the anti-fed heads. Good post. Watch them ignore it and go back to repeating their conspiracy meme.

 

Why such a Need to audit a mostly autonomous organ of the executive branch, in the private sector, that generates revenue while functioning as a central bank?

Why would the public monies of the People, not be better allocated to auditing our War on Drugs instead?

What credibility in his sincerity does Dr. Paul hope to confide in, for the greater glory of our republic?

 

it's political, a stabilizing central bank interferes with the robber barons' plots

 

but here is something for your flawed logic,,,,since the creation of the federal reserve the currency has lost 98% of its purchasing power! Before the federal reserve, even though money may have lost some purchasing power it was nowhere near as much....this is why inflation is also called an invisible tax!....or a tax on savings!

 

what a load of malarkey, the usa has more purchasing power now, than any other country has ever had, your propaganda and misinformation are what's flawed

The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.7 trillion in 2010, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The GDP per capita is higher than most other developed countries; it is 50% higher than in the European Union or Japan and 6 times greater than China

Most of the economy is classified as services. The country remains the world's largest manufacturer, representing a fifth of the global manufacturing output. The United States is home to 139 of the world's 500 largest companies, which is almost twice that of any other country. About 60% the global currency reserves has been invested in the United States dollar and only 24% in euro. The country is one of the world's largest and most influential financial markets. Foreign investments made in the United States total almost $2.4 trillion, which is more than twice that of any other country. American investments in foreign countries total over $3.3 trillion, which is almost twice that of any other country.

http://en.wikipedia.org/wiki/United_States_economy

yes, there are some people now days that would rather wallow in gloom and doom than get back to work, but they won't overcome the know-how that makes this country great

the usa has overcome much greater obstacles than the current issues and i have no doubt it will continue to do so for a long time

 

only because the US has ( for now) the world's reserve currency....something it has no business in having as its an unfair advantage as the US can just print money at will whenever they get into trouble......no other nation on earth can get away with what the US is doing.....the US can becuase there is a demand for dollars since dollars are needed in order to import oil from the middle east. Once that reserve status is lost....the US will have to pay just like all other nations do....this is when the US will collapse! Right now they are getting a free ride.....a free pass.....not fair to the rest of us!

 

no, because the usa is the world's largest producer/manufacturer

it also leads the world in innovation and higher education

give up your propaganda and misinformation

 

uhmmmm you do realize that the US is the most in debt nation in the history of civilization right?

As for your nonsence of the largest producer? Well thats why you have such a large trade deficit right? I think its you that needs to stop the propaganda

 

again with your misinformation

debt to gdp ratios were higher after wwII

 

apples and oranges....in 1950 the USA was still an industrial powerhouse...and the US had large trade supluses and a huge savings rate...add to all that the US was a creditor nation and on the gold standard.

To compare the US of 1950 to today is like comparing Japan to Zimbabwe!

 

it's an example that illustrates debt can be overcome

 

only if you have the production and savings to overcome it....the US today has neither!

 

your opinions have been shown to be less than accurate

 

really? how? Because I know what I am talking about? Because I know that the debt to GDP has approached 100% and with little savings and a massive trade deficit the US is fast approaching a credit crisis?

 

you've already shown that you thought you knew some things, but as it turned out that you were completely wrong

it's simple, income and production will overcome debt

 

yup.....thats why gold has gone up 5 fold since 2002 right? Because the federal reserve is doing such a wonderfull job

 

let's test you logic here

in the early 1980's the price of gold tumbled

was the fed doing a wonderful job then?



http://www.kitco.com/charts/historicalgold.html

 

Wild conspiracy theories huuh?http://www.rollingstone.com/politic...e-sec-covering-up-wall-street-crimes-20110817

Read this and keep talking. I love how Big media covers none of those stories. Go kiss your Reagan statue.

 

http://www.rollingstone.com/politic...-look-whos-cashing-in-on-the-bailout-20110411

And this article as well. I Wish I did not believe our elected were completely in the tank yet these stories seem to demonstrate a reality far worse than any I could concoct.

 

the rolling stone? please