Monday, May 25, 2009

I Smell A Trap

Ron 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 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.

1 comment:

  1. RP's coming famous last words regarding his Fed audit bill:

    "Oh shi-"

    Hmm, this could prove an instructive lesson as far as why libertarians shouldn't get involved with traditional politics and run for office in the first place.

    We're doomed. I truly think this thing needs to just run it's course, completely obliterate itself in a sea of blood and beheadings French Revolution style, let the masses get frenzied and fearful of their own extremism, let a true dictator come to power and ruin the country in a disasterous war of aggression a la Napoleon (maybe he's already in office) and then, for the coup de grace, let the political system devolve into a kind of static, "soft-socialism" like that of modern France where nothing good ever happens except for everyone to sit around reminiscing about how great their culture was/is.

    Yes, I am planning on heading for the exits in the next couple of years, unfortunately I think it's just a little too early to tell where the exits lead to yet. The smoke has to clear from the battlefield before you can see whose town is left standing. Though for my part, I hope it's Switzerland... always been fond of those lush green Alps.