Posted tagged ‘Greenspan’

End The Fed Book Excerpt

September 7, 2009

EndTheFedThe good folks at the Ludwig von Mises Institute have made a chapter of End the Fed by Ron Paul available for preview.

Read Chapter 2 here.

I read the entire book this weekend and I highly recommend it to anyone who is at all concerned about freedom and our economic future.

The Mises Institute says this about it:

A blast against central banking this powerful hasn’t been seen since the 19th century. The Fed itself has never been subjected to such a whithering critique. And it is from a man who has been fighting the Fed his entire political career. in fact, several chapters here provide documentary evidence of Congressman Paul’s own verbal exchanges with Chairman Greenspan and Chairman Bernanke.

What is especially impressive here is that Paul’s book goes far beyond old-time populist attacks on the banking elites. He understands Austrian theory as well as anyone, and he has learned from Mises and the whole of his tradition. So here we find patient explanation of the workings of the Fed and how it has distorted the legitimate business of banking, through every manner of intervention.

The political analysis in here is sound but expected. The theoretical analysis is the robust part, and something that few politicians in U.S. history could have provided. In this sense, Ron Paul is unique: courage in public service combined with intellectual rigor. This combination has made him a machine in opposition to the Fed, and this is by far his best presentation of the subject.

It turns up the heat on the Fed as never before. He shows that the central bank bears a large responsibility for the creation of the Leviathan state. It has wrecked our money, funded ghastly wars, and made possible the creation of the social welfare state that is bankrupting us financially and making the population dependent on the state. It has given rise to economic crisis and turmoil of all sorts.

Paul also offers a realistic plan for abolishing the Fed, if not immediately then with incremental steps to reduce its power and eliminate its dominance in American economic life.

Paul wrote this book as a personal statement. But it serves two additional purposes. It educates. And it inspires toward effective action.

Get your copy soon – we really do not have much time to lose.

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Barney Frank Says Audit the Fed Bill Will Pass

August 28, 2009

This is the most excellent news 13 o’clock has heard in a very long time.  Congressman Frank, we’re going to hold you to your word on this. Do not disappoint us.

 

Transcript from The Washington Times:

“I have been pushing for more openness from the Fed. I want to restrict the powers of the Federal Reserve. First of all, the Fed will be the major losers of power if we are successful, as I believe we will be, setting up a financial product protection commission. The Federal Reserve is now charged with protecting consumers. They were supposed to do subprime mortgage restrictions.

Congress in 1994 gave the Fed powers to ban subprime mortgages. Alan Greenspan refused to do it. They had the power to ban credit card abuses. Under Greenspan they did nothing. Under Bernanke they started but only after Congress acted.That’s one of the reasons why in the new consumer protection agency, we will take away from the Federal reserve the power to go consumer protection.

Secondly, they have has since 1932 a right under Herbert Hoover to intervene in the economy whenever they could. Last September, the Federal Reserve they were going to advance $82 billion to AIG. I was kind of surprised and said, ‘Mr Bernanke do you have $82 billion?’ Mr. Bernanke replied, ‘I have $800 billion and under section 13.3 of the Federal Reserve Act they can lend anything they want.’

We are going to curtail that lending power. We are going to put some restrictions on it.

Finally we will subject them to a complete audit. I have been working with Ron Paul, who is the main sponsor of that bill. He agrees that we don’t want to have the audit appear as if influences monetary policy as that would be inflationary.

One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. This will probably pass in October.”