“This is very deceptive — this bill is very deceptively titled,” Bernanke said during a discussion at Nasdaq’s Times Square headquarters to promote his new book, “The Courage to Act.”
Bernanke suggested the bill wasn’t about increasing transparency so much as giving lawmakers more control over the Fed and its monetary policies.
“You’re basically saying that Congress should run monetary policy,” he said. “I always like to say, if you love the way they’re managing fiscal policy, let them run monetary policy.”
On this specific point, I happen to agree with Bernanke.
From the start, I have not been a big fan of the Audit the Fed bill.
In May 2009, I wrote:
My view has always been that the focus should be on ending the Fed, or at least preventing the Fed from expanding the money supply. An audit of the Fed just leaves the door open for all sorts of power players attempting to gain control of the printing presses rather than destroying them. Do we really want Mitch McConnell or Nancy Pelosi (or for that matter Rand) having a say in the money printing?
I Smell A TrapRon Paul's House bill calling for an audit of the Fed is getting support from the strangest places.
Lew Rockwell today links to a column by Dean Baker who now supports an audit of the Fed.
The problem with Baker's column is that he doesn't quote Ron Paul. He doesn't even mention that Paul introduced the bill. He does, however, mention Elizabeth Warren, who heads a congressional oversight panel, dealing with bailout money.
I've discussed Warren before, her oversight committee went so out of bounds that two members of the five member panel dissented. She is a big time Obama operative. You don't want columnists using Warren as a signal flag to support Paul's bill.
This what Baker would like to see come from an audit:
The proposal for a GAO audit of the Fed is a first step towards reasserting democratic control over this institution...In a democracy, it is difficult to justify a situation in which the most important economic policy making body is, by design, more answerable to the banking industry than democratically elected officials.I hope Congressman Paul knows what he is doing, to me it sounds like this may evolve into a power play over who controls Fed money printing, rather than an investigation into whether the Fed should be printing money in the first place. If Democrats start signing on to the bill in heavier numbers, it may be a sign that an audit may come, but it will end with a restructured Fed controlled by left wing radicals, who believe money is for handing out and who have no fear of inflation.
By all means, audit the gold, audit Fort Knox, but not the Fed. End the Fed.