Rep. Congressman Grayson Demands Fed Accountability

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Rep. Alan Grayson,
D-Fla., is upset that Congress is in the dark about much of the
Federal Reserve’s activity. He notes that he asked Fed Chairman
Ben Bernanke what happened to $500 billion that the Fed extended
in swaps to foreign countries, Grayson writes on the Naked Capitalism
Web site. Bernanke’s response: He didn’t know. The $500 billion
lent out should have been discussed by Congress, Grayson says. "That
is how democracy is supposed to work – not through secret deliberations"
of 12 unelected bankers, the members of the Federal Reserve. …
That’s the point.

The Constitution
grants to Congress power over the currency and power over the public
purse strings for a reason, because we are accountable to ordinary
citizens through the ballot box. The Federal Open Market Committee
isn’t." ~ MoneyNews

Dominant
Social Theme: A reasonable request: Make the Fed accountable.

Free-Market
Analysis:
More than almost anyone else, recently, Alan Grayson
has put Federal Reserve Chairman Ben Bernanke on the hot seat during
Congressional hearings. And Grayson has grilled other Fed personnel
as well, most notably Inspector General Elizabeth Coleman –
a Youtube performance that has now garnered over two million views
and several thousand comments.

What Grayson
evidently wants as a result of all his grilling, is a Fed that is
more accountable to Congress. He seems to believe that if Congress
understood and Okayed what the Fed had in mind, then the monetary
system would work better, or at least along constitutional lines.
Good for Grayson. But now let us turn to a colleague of his and
a "fellow traveler."

Former Republican
presidential candidate Ron Paul (R-Tex) is one of the most fiercely
literate people in the world when it comes to free-market economics.
He understands, probably much more than Grayson, that congressional
supervision of the Federal Reserve is probably not the answer. Ron
Paul believes that central banking doesn’t work no matter who is
in charge of it.

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the rest of the article

August
4, 2009

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