Tuesday, July 21, 2009
Today there was a front page article in the Wall Street Journal about Ben Bernanke, the Federal Reserve, and the heat that is being put on the Fed recently. In this article Ron Paul’s HR1207 and S604, which would allow for a far-reaching audit of the Federal Reserve, are cited as the source of some of this pressure. Bernanke has stressed that the independence of the Federal Reserve is crucial to its ability to function properly.
Unfortunately the past couple decades there has been little questioning of the Federal Reserve in the mainstream. Spurred by Paul, there is a new movement of resentment towards the Fed and its policies. What is really pressuring politicians to sign onto this bill (1207 has over 270 co-sponsors, while 604 has 18) is the grassroots effort behind the movement. People are calling in, emailing, and being confronted by constituents about this issue. Contrary to what the Fed says, this bill would be a far-reaching and revealing audit; not a takeover by politicans.
Democrat Senator Chuck Schumer of New York said, “Anyone who doesn’t like the Fed’s independence should wait until the policians can control it. Then they’ll wish for independence.” To this I say “ah, nah, not likely!” At the very least, politicans are responsible to the voter. Currently, the Fed is far from acocuntable to the public, yet they control the most important aspect of our country, monetary policy. They can destroy our economy like no ones business if they truly wanted to. Our dollar is already doomed to failure as it slowly (and currently rapidly) loses its value. Since there is no backing of anything of value (such as gold) the dollar as well as all other currencies will eventually be worth zero.
With so many people becoming passionate about ending the Federal Reserve we should see a far-reaching education campaign continue to reach across the nation. Ron Paul’s new book, End the Fed, will be coming out this Fall and surely will add gas to the already raging fire. As long as the American public is oblivoius to what the Federal Reserve does, the history behind it, and its purpose, it is easy for the Fed to go on its merry way and to be painted as an “essential” and “important” institution. Not for long. Along with many others, I view it as a “detrimental, unconstitiutonal, and damaging” institution. I hope that, if nothing else, the recent focus on the Fed will motivate you to at least figure out why the heck they do what they do (or what they even do!).