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Source link: http://archive.mises.org/11212/a-note-on-the-independence-of-the-fed/

A Note on the Independence of the Fed

December 10, 2009 by

Congressmen Ron Paul and Alan Grayson seek to bring more transparency and accountability to the U.S. central bank and “to subject the Fed’s monetary policy and discount-lending actions to an audit by the Government Accounting Office (GAO).” See the full letter and sign below (include affiliation please) in support

{ 75 comments }

David Gordon December 10, 2009 at 8:40 am

I fully support this letter.

fundamentalist December 10, 2009 at 8:40 am

It will be difficult to change the Fed while most Americans support outright socialism. Bloomberg conducted a poll and found that most Americans want the guv to spend as much as possible to create jobs and make the rich pay for it. It makes me ashamed to be an American. Greed and envy are running wild. Here’s the link: http://www.bloomberg.com/apps/news?pid=20601087&sid=awkrRPMONDW8&pos=9

MacDonald Phillips December 10, 2009 at 8:56 am

I, too, fully support this letter.

Richie December 10, 2009 at 9:27 am

Fundamentalist, I read that same article last night and I was not surprised at all. That article sums up perfectly the dangers of “democracy”.

Dick Fox December 10, 2009 at 10:10 am

I still think Grayson is a “mole.” Grayson is my congressman and I have know of him for a long time. He is basiclly a nut looking for publicity. Right now the Democrats are containing Paul’s initiative and have successfully folded it into other legislation. But if it actually looks like it will become law Grayson will be used to sink it all. I certainly hope Ron is not trusting him.

Dr. Mark Thornton December 10, 2009 at 10:12 am

I fully support this letter.

Ted Amadeus December 10, 2009 at 10:46 am

A for effort, but I think they’re attacking a lunatic asylum with a banana:
Der Holy Mother Schtaat” has not yet created a large enough economic crisis to rationalize other options, and continues to borrow and spend like nobody’s business.
Let’s hope they don’t tear a page from Kim Jong Il’s playbook when the economic consequences do arrive!

Drew December 10, 2009 at 11:13 am

Fundamentalist is right, going after the Fed is putting the cart before the horse. You simply can’t have an honest gold standard with government’s taking up 40-50% of GNP.

As Milton Friedman pointed out

“If you could re-establish a world in which government’s budget accounted for 10 percent of the national income, in which laissez-faire reigned, in which governments did not interfere with economic activities and in which full employment policies had been relegated to the dustbin, in such a world you might be able to restore a real gold standard. A real honest-to-God gold standard is not feasible because there is essentially no government in the world that is willing to surrender control over its domestic monetary policy.”

Drew December 10, 2009 at 11:14 am

Fundamentalist is right, going after the Fed is putting the cart before the horse. You simply can’t have an honest gold standard with government’s taking up 40-50% of GNP.

As Milton Friedman pointed out

“If you could re-establish a world in which government’s budget accounted for 10 percent of the national income, in which laissez-faire reigned, in which governments did not interfere with economic activities and in which full employment policies had been relegated to the dustbin, in such a world you might be able to restore a real gold standard. A real honest-to-God gold standard is not feasible because there is essentially no government in the world that is willing to surrender control over its domestic monetary policy.”

Jimmy T. LaBaume December 10, 2009 at 12:02 pm

I too fully support this letter.

Walt D. December 10, 2009 at 12:43 pm

What difference will it make if the GAO audits the Fed? The financial condition of the Fed is what it is. The proverbial “Krugman Hole” has already been dug. Besides, why would we accept GAO numbers? Using GAAP accounting standards, the budget deficit is trillions more than the GAO states. The GAO uses “Congressional Rigged Accounting Practices” aka CRAP. If they audited the Fed, they would come up with a “Federal Reserve Audit Understatement Division” aka FRAUD to misrepresent the financial condition of the Fed. Come on, do we really expect any difference than if the Zimbabwe government had audited the Zimbabwe Central Bank?

Chris Tiede December 10, 2009 at 1:00 pm

I fully support this letter.

John P. Cochran December 10, 2009 at 1:09 pm

I fully support this letter.

Dennis Monrella December 10, 2009 at 1:41 pm

I support the effort noted.

Lucas M. Engelhardt December 10, 2009 at 2:00 pm

I support this letter.

Lucas M. Engelhardt
PhD Candidate
The Ohio State University

Bert Bergami December 10, 2009 at 2:04 pm

I fully support this letter .
In addition please note the source and location of the supporters of the Fed.

Timothy Terrell December 10, 2009 at 2:18 pm

I support this letter.

Timothy Terrell
Associate Professor of Economics
Wofford College

Michael Robers December 10, 2009 at 2:25 pm

I fully support this letter.

Michael Robers
Financial Analyst
San Diego, CA

Andrew Zener December 10, 2009 at 3:11 pm

I fully support this letter!

Greg Huff December 10, 2009 at 3:56 pm

I support this letter.

Derek Underwood December 10, 2009 at 4:24 pm

I support this letter and the Paul-Grayson bill.

I am a RWVA Rifle Marksmanship Instructor, teach American Revolutionary War history and have worked in the radio frequency and telecommunications field for over a decade. This bill strikes the root of our nation’s ills.

Deo Vindice

Ken Zahringer December 10, 2009 at 5:53 pm

I fully support this letter!

Fundamentalist is right, but so is Hulsmann. The only strategy that will be effective over the long term is to change “the hearts and minds of the American people.” That’s what LvMI is all about, and the main reason I am in this profession. However, one of the reasons so many people support socialism in this country is they have seen it “working” through bigger and bigger government becoming everyone’s apparent sugar daddy, while the propaganda mill, er, I mean the state-run education system and the lap-dog media, never shine a light on the unseen cost. One of the many tactics we can use in this project is to use the political system to hack away at the jungle of state intervention and just maybe show people that things actually get better when the state gets smaller. Paul and Grayson may be going elephant hunting with a pea shooter, but hey, look at what David did with one little rock!
This bill may not have the desired effect, but the best way to ensure nothing is accomplished is to never try it in the first place.

Ken Zahringer
Graduate Teaching Assistant
Department of Economics
University of Missouri

Ralph Fucetola JD December 10, 2009 at 6:21 pm

As I stated at the End the Fed Rally, 11.22.08, in NYC, quoting a message from Gen. Bert Stubblebine, Natural Solutions Foundation President,

“War is bad for your health. Unstable money systems are the tool of those who generate wars for their own financial health. Health freedom implies the freedom to live free from the threat of engineered wars to enrich the few and kill and subjugate the many. It also implies the right to earn enough real money to support the health and well being of your body, your family, your community and your world.”

We concluded,

“We reject the usurpation of Constitutional right which the Federal Reserve represents. That usurpation, over a century old, known as the “Legal Tender Cases” abrogated to the US Government the unconstitutional power to declare legal tender and led directly to the crisis of the moment. This usurpation must end: End the Fed! Return to Constitutional money!”

Therefore, the Foundation and http://www.HealthFreedomUSA.org are pleased to join this call for Congress to audit the Federal Reserve Bank, for transparency and as a second step (the first was the re-legalization of gold ownership) toward a return to Constitutional money.

Ralph Fucetola JD
Natural Solutions Trustee

YouTube End the Fed Statement:
http://www.youtube.com/watch?v=R9PSETSdTgw

Evan Rogers December 10, 2009 at 6:30 pm

I support this letter. Unfortunately my credentials are a bit wanting!

Evan Rogers
The Ohio State University Graduate
Friend of Liberty
English Teacher currently teaching in Japan.

George F. Smith December 10, 2009 at 6:46 pm

I support this letter as a step in the direction of establishing a free market in money and banking.

George F. Smith
Author, “The Flight of the Barbarous Relic”

Matt Nellans December 10, 2009 at 7:06 pm

I support this letter.
Matt Nellans
Citizen on the State of Florida

Arthur A. Fay December 10, 2009 at 8:22 pm

I fully support this letter.

Arthur A. Fay,
Retired and a founding director of the Houston Church of Freethought

Jonathan Mariano December 10, 2009 at 8:34 pm

I fully support this letter.

Jonathan Mariano
MBA, Sustainable Management, 2010
Presidio Graduate School

Jeremy December 10, 2009 at 9:11 pm

I support this letter.

Jeremy Hopwood
Undergraduate student
Boise State University

Alex Risman December 10, 2009 at 9:38 pm

Wow. Literally every macro professor I could ever have is a signer of the “petition for Fed independence”, including my professor for next quarter. Boo. Oh well, I give this my full support nonetheless!

Alexander Risman
Mathematical Methods in the Social Sciences, Economics
Northwestern University WCAS ’13

Brian Woodburn December 10, 2009 at 11:06 pm

The federal reserve takes money from those of us that don’t have it, and gives it to those do have it, completely destroying Americans’ chances of creating true wealth.

It’s past time the federal reserve came clean.

best,
Brian

Jim Clayson December 11, 2009 at 12:26 am

I support this letter.

Take back responsibility for where we are and where we go, I say.

Software Developer, Human Rights Activist.

Jim Clayson
London, UK

Kerem Tibuk December 11, 2009 at 1:01 am

” Literally every macro professor I could ever have is a signer of the “petition for Fed independence”, ”

Macro economics is a farce. The logic is basically if size grows the rules somehow change.

In micro you need to produce before you can consume. In macro, magically, you need to consume to be able to produce.

I advice every college student to challenge their macro profs and ask them the reason for the this division.

Zach Bibeault December 11, 2009 at 1:10 am

I support this letter.

Zach Bibeault
Undergraduate student, University of MInnesota Twin Cities

Les Elliott December 11, 2009 at 3:43 am

I fully support this letter.

Les Elliott
Austro-Libertarian
End The FED! (I am FEDup).
Restore free market money (gold).

Hans Fredrik Hansen December 11, 2009 at 3:59 am

I’m backing this letter

Hans Fredrik Bøe-Hanssen
Senior Oil Market Analyst
Norway

Timothy Roush December 11, 2009 at 7:41 am

I fully support this letter.

Timothy Roush
Holy Trinity Catholic

Christopher L. Watson December 11, 2009 at 8:14 am

I fully support this letter.

My wish is to someday use money that doesn’t evaporate from my savings.

C.L. Watson
Computer Consultant (Legal, Financial, Retail, Communications. 25yrs)
Participatory Element in the Economy
Electronics and Computer Science Major
Lover of Philosophy, Physics, and Economics

Eleuterio Martín December 11, 2009 at 8:15 am

I fully agree with and support this letter

Víctor Justo García December 11, 2009 at 10:36 am

I fully agree with Mr Hülsmann

James Farrington December 11, 2009 at 11:32 am

I agree fully and support this letter.

Garry Bartsch December 11, 2009 at 12:11 pm

I support this letter.

Independent Trader

R. M. Renne December 11, 2009 at 2:27 pm

I support this letter.

Rob Ross December 11, 2009 at 2:48 pm

This is baloney. First, empirical evidence does not support the idea that political intervention in the central bank’s actions improve monetary policy. If you employ a statically sound method of comparison and look at different central banks in different countries, their levels of independence and the effectiveness of their monetary policy, you find a strong negative relationship. Banks that are politically motivated pursue short term gains at the expense of long term growth, and many onlookers believe that the Fed’s low interest rates over the last half-decade were politically motivated.

Larry Burkett December 11, 2009 at 7:44 pm

I support this letter and the Paul-Grayson bill.
Citizen of Michigan

Rowan Parchi December 12, 2009 at 1:43 am

I fully support this letter
Australian living in NYC
Vice President at Credit Suisse
Libertarian

Rowan Parchi December 12, 2009 at 1:44 am

I fully support this letter
Australian living in NYC
Vice President at Credit Suisse
Libertarian

Israelem December 12, 2009 at 2:44 am

I fully support this letter.

Israel Rodríguez Martín.

Yvonne Kelly December 12, 2009 at 1:14 pm

Audit the Fed,
Then End It.

Yvonne Kelly
Republic of Texas

Roberto December 12, 2009 at 1:45 pm

I fully support this letter.

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