[An] audit of the Federal Reserve and return to it’s original purpose – a single charter to only manage inflation.Sound familiar? He is trying to grab from Ron Paul's playbook by calling for an audit of the Fed, but has no clue that the original purpose of the Fed was just as bad as what the modern day Fed has morphed into. It makes no sense to return to the original purpose of the Fed The Fed was founded to create inflation. As Murray Rothbard wrote in The Mystery of Banking:
The new Federal Reserve System was deliberately designed as an engine of inflation, the inflation to be controlled and kept uniform by the central bank.This management of inflation causes the boom-bust cycles that we see in the economy. Rothbard again:
[New York Fed Governor Benjamin] Strong pursued an inflationary policy throughout his reign, first during World War 1, and then in spurts of expansion of the bank reserves in the early 1920s, 1924 and 1927...With the Federal Reserve System established and in place after 1913, the remainder of the road to the present may be quickly sketched.....Fed inflation led to the boom of the 1920s and the bust of 1929...This is what Santorum wants to return to?
Ron Paul is calling for an audit, because the Fed has been up to even more mischief since its founding, but this in no way means that he wants to bring the Fed back to simply its original purpose of inflating the money supply and causing the boom-bust cycle.
Santorum's call for a return to just the original purpose of the Fed shows just how clueless he is about the subject.
He is basically saying, "Let's return the Fed to the days when it created the boom-bust cycle that ended up creating the Great Depression."
Scary.
