Fed official: policy audits undermine independence
WASHINGTON (Reuters) - Letting a U.S. agency audit Federal Reserve monetary policy decisions would undermine the U.S. central bank's independence and could hamper its ability to control borrowing costs and support the dollar as the world's reserve currency, a Fed official said on Friday.
The things that made America great in earlier days no longer hold true today. The Constitution provided The People with a Republic that limited government and allowed for free society to run a free market. The Constitution states that it is the duty of Congress to issue money. Other countries that were not governed by a Republic were not allowed to think, create, and innovate. Products improved and became less expensive due to increased competition and greater efficiency. For the most part, the economy ran itself with little oversight. As a result America's prosperity soared. If you failed to make a decent product then you went out of business. If you were a bank and recklessly lended money you went bankrupt. If you made cars and paid a labor union worker $75 per hour to run pneumatic lug wrench, you went out of business. No company was ever too big to fail. These were the initial reasons why the US dollar was favored by other countries as form of backup currency.
In 1913 under President Woodrow Wilson, things changed. Against the Constitution, the money press was outsourced to a non governmental entity. Slowly but surely throughout the years, numerous wars, (most of which undeclared by Congress), labor unions and governmental intervention in businesses, the free market has all but vanished. Presidents have slowly taken their turns at chiseling away at the Constitution to the detriment of The People. Some countries have decided to opt out trading Oil in dollars for Euros, as well as ditching the dollar as a secondary currency. FDIC which insures that you will be able to withdraw your money is bankrupt. Are the other countries loosing faith in the dollar and should this be a warning sign to Americans? Iran issues their own currency and trades oil in Euros. Is this the reason for the recent interest in the hidden Nuclear facility in Iran and for the news to be conveniently released during the G20 summit, while the Audit the Federal Reserve 1207 hearings are taking place, all while the current administration is asking that the Federal Reserve have even more authority over our money? Senator Dodd supports the Fed as a "Super Cop". It makes your head spin.
Other countries have voluntarily used the dollar as a secondary currency because of what it represented. Why does America have an obligation to foreign countries for monetary policy as stated by the article above? Are you obligated to keep your neighbor a float, and provide food on his or her table when they can't make ends meet, or pay their car note, or their house note? Do you have an obligation to fund their healthcare too? Is it your problem when you are financially responsible and someone else chooses to carelessly live in a way that is beyond their fiscal means? Do you then have the right to step in and tell your neighbor what they can and can't buy, where to shop, what they can wear, what vehicle to drive etc?
Ask yourselves, how can this war in Iraq, Afghanistan, and now potentially Iran continue to persist, while at the same time the stock market is climbing? Even though we pay our fair share of taxes, is it possible that our Federal tax dollars can accommodate such lengthy wars? The media says that we are borrowing money from China, but that doesn't cover all the expenses. China has 20% of the economy of the US. Where is all the money coming from? Is the government and media working together to conspire fear into the people through Iran to divert attention from the audit of the world's largest economy that is so strong that is voluntarily used by other countries as a backup currency? Will audting the Fed for the first time in history, audit the world?
Are they merely trying to add to the confusion and warm the people up to what lies ahead?
The article from Reuters is misleading for several reasons.
1) The Federal Reserve is no more federal than Federal Express.
2) Terminology: "as world's reserve currency". The terms backup currency or secondary currency are less confusing.
3) The only Independence it undermines is OUR Independence.
