Tuesday, July 21, 2009

Ron Paul: "Maybe inadvertently I’ll help them get more power at the Fed.”

As I have pointed out for some time, Ron Paul's audit the Fed bill may result in more govenment control of the financial sector and a great disaster for the economy. Back in May, I wrote:

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.
It's clear Ron Paul now understands this possibility and to his credit, Paul the straight shooter that he is, admitted as much to a WSJ reporter:

Mr. Paul recognizes that his movement to audit the central bank ultimately may help the Obama administration expand the Fed’s oversight role in the economy. “I think what they’ll do is they’ll give in to some of the transparency at the same time they’ll give them more power,” Mr. Paul said. “We’re going to be bugging you a lot more. We’re going to be keeping eyes on you. That might be the way. Maybe inadvertently I’ll help them get more power at the Fed.”
You have to give Paul credit. He's hot right now. His bill is getting major league media attention, and he lays it on the line that he may have blown it by creating a bill that ultimately results in more power for the Fed. What other Congressman would do that? All others would sugarcoat the problem.

But, on the plus side, he is getting tremendous focus put on the Fed, and his up coming book, End the Fed, should make it clear what Paul thinks should really be done with the Fed.


  1. p.s. I don't think Dr. Paul should blame himself if increased power for the Fed accompanies any public attention/action his bill gets in the end. I think everything in this world technically comes with increased powers for the Fed. The Fed is some sort of experiment in financial quantum physics, much like the great Douglas Adams' theory of bistromath.

    Except that Adams' theory is more likely to work than any of the curiously hollow, lead-filled golden rules that guide the Fed.

  2. If your fears come true, and Ron Paul's bill makes things worse, then I think things are already worse and the idea that things can still be saved is an illusion.

    America has been sliding down this slope for over 100 years. Ron Paul trying to force some light on to the subject will not change that, only show us how bad they actually are, either by actually doing an audit of the Fed and revealing all of it's secrets, or by taking the veil off of the Federal government and showing everybody what a monster it has become.

  3. Wenzel,

    Which is worse-- a politician who foresees some "unforeseen consequences" and pushes on ahead regardless, or one who is surprised by "unforeseen consequences" after the fact?

    I don't think RP gets a free pass on this just because he's self-aware. If the Fed gains power due to his bill, he has harmed liberty, not helped it. He doesn't get a gold star for trying.