This morning, I was reading the Wall Street Journal, when I came across an op-ed written by Rep. Ron Paul (R-Texas) and Sen. Jim DeMint (R-S.C.) that I found particularly interesting. You see, I have been quite outspoken about my desire to see the Federal Reserve eliminated (hopefully, in my lifetime, I will see this agency gone), because the agency was supposed to protect the value of our currency, yet the dollar has lost nearly 95% of its value. Full transparency is needed at the Federal Reserve level (and I believe transparency is needed with all branches of government, with the exception being anything that compromises our national security), and both Paul and DeMint argue this point eloquently in their op-ed.
Another good point that this op-ed brings up is how the Federal Reserve Chairman, when testifying before Congress often provides vague answers, instead of addressing the questions about how Federal Reserve is complying with mandates of prices and employment. Both Paul and DeMint call for an audit of the Federal Reserve by saying that there is a need to find out where the money is going, the numbers and types of securities purchased, and the amount paid for those securities.
In coming weeks we plan to offer companion amendments to legislation already before the House and Senate that will open the Fed up to a complete audit. The amendments set a six-month time lag on the publication of previously unreleased audit data to address the Fed’s concerns that actions undertaken in support of monetary policy would immediately be politicized. The transcripts and minutes of the Federal Open Market Committee meetings would continue to be made public at the Fed’s discretion, with unpublicized details of meetings not subject to any additional scrutiny. Finally, the amendments make clear that the purpose of the audits is not to interfere with or dictate monetary policy.
As strong opponents of government intervention into the economy, we do not want to see Congress directly dictate monetary policy. But while the Fed is involved so heavily in monetary policy and its actions so heavily influence the future of our economy, it is necessary that it be fully transparent. Interventions into the economy on the order of trillions of dollars cannot continue to escape public scrutiny. American taxpayers deserve better.
Exactly, both Paul and DeMint hit it on the nail. American taxpayers deserve better, and we deserve to see exactly what is happening with our currency. This is the type of transparency that is needed at the Federal level, and it is one step closer to an open, more efficient government.
Recent Comments