Fed’s Ben Bernanke’s is feeling the auditor’s breath on his collar [updated]
In testimony to Congress and in the Wall Street Journal, Federal Reserve Chairman Ben Bernanke continues to resist Ron Paul’s bill to audit the Fed. Indeed, in his Wall Street Journal op-ed Bernanke whinges that Paul’s Audit the Fed will give politicians control of monetary policy, that “congressional audits would expose the Fed to dangerous political pressure,” to which Ron Paul calls horseshit. "It's not like it's not politicized now," he says:
And Bernanke continues to insist, both in his Wall Street Journal piece and in his testimony to Congress, that he has an “exit strategy” to ensure that, come recovery time, the US economy doesn’t explode with double digit price inflation as a direct reflection of the double digit monetary inflation. He will, he says, simply turn off the tap when the first signs of “green shoots”appear.” That’s his “strategy.” Peter Schiff calls horseshit on that one:
UPDATE: About ten years ago, a reporter from the Detroit News did an interview with ‘Austrian economist’ Richard Ebeling about the Federal Reserve and Greenspan's monetary policy.
This reporter has just reprinted this interview on his blog, pointing out Ebeling’s "prevision" in seeing where Fed monetary policy was leading: serious interest rate distortions, imbalances between savings and investment, and an inevitable economic correction.
Good reading to get a handle on what happened, why ‘The Fed’ was responsible, and why it didn’t need rocket science to see what the Fed’s meddling would eventually lead to – not rocket science, just the sound economics that mainstream economists don’t have.