Is auditing the Fed really the elephant in the room?

I question how accurate that "reality" is.

For example, the RS article claims "The Fed sent ... more than $2 trillion in loans each to Citigroup and Morgan Stanley..."

Yet the comprehensive GAO audit of the Fed referenced in that article says:

"Loans outstanding for the emergency programs peaked at more than $1 trillion in late 2008."

That inaccuracy in the RS article leads me to question the understanding and/or objectivity of the author.

Link to the GAO audit and discussion can be found in this thread:

http://www.politicalforum.com/4216815-post9.html

 

In what manner does a central bank and lender of last resort interfere with robber barons needing capital?

 

i didn't say anything about robber barons needing capital

my point is that the fed makes funds available to smaller banks at reasonable rates, this breaks the robber baron's hold on the credit market

see post #130 on page 13

 

uhmmmm in 1980 interest rates skyrocketed to 20% so of course gold and all commodities would fall....it was so obvious to anyone that understands economics.

So tell me....does Bernacke plan to raise interest rates anytime soon? Name me one boom that ever died during very low interest rates? You see, I do know what I am talking about....you don't!

 

but smaller banks still go bankrupt if they get into enough trouble. Its only the too big to fail that have the luxury to fleece the taxpayers!

 

Are you in favor of central banking as a public sector means of production that can defray the cost of government?

 

you didn't answer the question

was the fed doing a good job in the early 1980's?

i think it's necessary to support bank stability and manage monetary policy

 

after Paul Volcker came along I would say yes....as he understood that the excess liquidity needed to be removed from the economy! And so he let interest rates rise!

 

So I am gullibility is to not believe there was no whistle blower who came before congress and outed the SEC for destroying records for Wall street?
Gullibility is a fine word. You sight they have the NUMBERS wrong so throw out the entire map because it does not jive with the map of your reality.

IF the SEC is destroying records of rampant Wall Street cheating the general public has a right to know. If a whistle blower came forward as the article states and no news agency or any action in Congress on this information it would seem to cloud your map. Of Course that our elected serve as pimps for the monied and the leaders of the Fed trumpeted the need for no oversight, how the financial markets could police themselves...How did that work out?
I am gullible...Uh huh.

 

Now he's answered your question - now answer his.

And don't skirt around the issue - 'yes' or 'no'.

 

I agree with you that promoting and providing for the general welfare can be better accomplished with a central bank than without a central bank and that resource in capital management for a public sector.

Public sector intervention in private sector markets should be done to promote and provide for the general welfare and the common defense.

There is no market based reason why full employment of resources in any given market can not be subjected to a Standard fixed by the general government as an official public act.

From that perspective, any inefficiency greater than zero percent should be viewed as correctable through public sector intervention and that form of resource optimization for ventures of sufficient scale economy.

In my opinion, only public policy decisions that promote and provide for the general welfare and generate revenue to defray the cost of Government may be rightfully termed, for the general welfare and the common defense. The market for labor is an example of scale economy can result in a more optimal allocation of existing resources for a specific result. Ensuring full employment in that market can provide for the general prosperity on the same principle of a tide raising all boats, but through Commerce that is well regulated among the several States of the Union.

 

Public sector competition with the private sector could also have a similar effect, but that could also ensure full employment as a benchmark Standard for the Union. A hypothetical minimum wage that could be as easy to administer as our minimum wage regime is now; could solve several social dilemmas through that form of investment, by generating a positive return when operational simply by increasing the circulation of money in our money based markets.

 

In my opinion, we could be increasing the efficiency of our economy through market friendly means, instead of having a more expensive People's audit of that mostly autonomous organ of the executive branch of our federal government.

 

but the fed needs to stop manipulating interest rates!

 

0 for 2, care to try again.

 

my answer is 'no'

 

Numerous large corporations do not generate revenue ins a "market friendly" manner, and use the "coercive force" of numerous things, ncluding pet government officials, to maintain their monopolies!

They use laws, regulations, monopolies, choking off supply points or sources, spreading lies and propaganda (Microsoft even ran ads saying Linux is being "used by terrorists! ), filing BS lawsuits or paying others to do the same, the list is endless.

 

Manipulating interest rates to a certain Standard can be considered a power of the general government of the Union and that mostly autonomous organ of that branch of government.

Why do you believe a mostly private central bank and lender of last resort should not be able to set its own rates?

 

why do you believe that everything a bunch of well connected, powerful and wealthy men do is good for your general welfare ?

 

Probably because he wants to.

That's the allure of big government...it allows people to take less responsibility for their lives because big brother - er - big government will handle things for them.

 

That is the whole point; they take an oath or pledge their allegiance to support our federal Constitution and republic. Providing for the general welfare of the United States is a specifically delegated, general power.

 

And you believe they will honor this oath?

 

I believe it is rational to expect our elected representatives to government to do a good job, simply because they are receiving a decent wage and decent benefits; the same as if they were in the private sector and getting paid an efficiency wage or its equivalent.

 

Trusting our govt to audit those that pay them is like getting button men to audit a mafia don.http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817

 

show me where that article says anything about the federal reserve