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2009-11-24 Home Front: Politix

Fed rage at Federal Reserve boils over on Capitol Hill

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Posted by gorb 2009-11-24 03:07|| || Front Page|| [11126 views ] Top

#1 He warns it would interfere with the central bank's ability to carry out independent monetary policy.

If true, very dangerous. The lesson of the last 50 years is that governments without an independent monetary authority print money, fuelling rapid inflation.

Posted by phil_b 2009-11-24 06:29|| 2009-11-24 06:29|| Front Page Top

#2 "Make no mistake; this move to bring the ~~Fed's~~ Congress'es conduct of monetary policy under the control of Congress is a grave threat to our economy,"

Posted by newc">newc 2009-11-24 06:57|| 2009-11-24 06:57|| Front Page Top

#3 Phil_B,

The problem is the Fed isn't independent, it's run for the benefit of a few big firms.

Posted by Bright Pebbles 2009-11-24 07:39|| 2009-11-24 07:39|| Front Page Top

#4 When the good old boy club rotates between social engagements of the New York money brokers, the New York Fed, and the Fed in Washington, they're not independent. They're just operating field offices of their their own interests and not the people who ultimately get stuck with the bill or consequences. There's a reason the regulators failed to regulate this time around and it wasn't just Congressional interference.

Posted by Procopius2k 2009-11-24 07:43|| 2009-11-24 07:43|| Front Page Top

#5 P2k, you are very right. BUT the warning is in your "...and it wasn't just Congressional interference. ."

This is a true dilemma and both points are sharp. How do you get the money grubbing fat cats from all over the world (this isn't just Wall St. Americans) out of the equation without turning this into the total political football that would turn us into Weimar Germany?

I know enough economics to see the dilemma but don't have a clue how to solve it.

Posted by AlanC">AlanC 2009-11-24 08:59|| 2009-11-24 08:59|| Front Page Top

#6 I know enough economics to see the dilemma but don't have a clue how to solve it. Posted by AlanC

You are not alone Alan. Unfortunately, there may BE no solving it. I do have an extra wheelbarrow you may borrow however.

Posted by Besoeker 2009-11-24 09:16|| 2009-11-24 09:16|| Front Page Top

#7 Oh thanks Besoeker just one more cheerful thought leading up to Thanksgiving. 8^(

Hope you don't have to pawn that wheelbarrow before I can borrow it.

Posted by AlanC">AlanC 2009-11-24 09:50|| 2009-11-24 09:50|| Front Page Top

#8 I want to be paid in gold or silver?

Posted by 3dc 2009-11-24 10:13|| 2009-11-24 10:13|| Front Page Top

#9 Undoubtedly many people who think keeping the Fed on a short leash attached to an elected body is a good thing also think the Federal Reserve should have been much less aggressive in creating money and risking inflation. History shows that the risks are actually skewed the other way: tighter political control of central banks more often means more inflation and a higher risk of a debased currency.

From a commentary on Reuters.

Posted by phil_b 2009-11-24 10:25|| 2009-11-24 10:25|| Front Page Top

#10 He warns it would interfere with the central bank's ability to carry out independent monetary policy.

The point of an independent monetary policy is to allow for the making of politically unpopular decisions. Unfortunately, since Greenspan took over there haven't been any politically unpopular decisions. We have had over twenty years of loose money, and now we have quantitative easing.

I want to know where the money is going because I no longer trust the Fed more than I trust congress.

Posted by DoDo 2009-11-24 11:24|| 2009-11-24 11:24|| Front Page Top

#11 Congress has always been responsible for the Fed. Congress brought it into being.

Posted by Anguper Hupomosing9418 2009-11-24 12:24|| 2009-11-24 12:24|| Front Page Top

#12 For once, on something other than being prolife, Ron Paul is unequivocably correct:

AUDIT THE FED!

Posted by Hupoluck 2009-11-24 15:19|| 2009-11-24 15:19|| Front Page Top

#13 I suppose an audit would be fine, but not anything within a couple of years or so. Don't want people being able to out-guess them, and I wouldn't want it to be so close that Congress could influence the Fed in their usual brain-dead self-serving manner.

Posted by gorb 2009-11-24 22:06|| 2009-11-24 22:06|| Front Page Top

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