Libertarian economist disagrees with Ron Paul’s plan to audit Fed
I just got this email from an economist with strong libertarian leanings who also thinks that Ron Paul’s plan to audit the Fed is a bad, bad idea:
Congress delegating its monetary authority to the Fed is the only feasible approach. Opening the door to giving 535 politicians the authority to influence policy is a recipe for disaster. Sure a price rule would be great, and so would peace everlasting. It ain’t gonna happen. The most you can realistically ask for is to have policy conducted by people who get it right more than wrong. It’s an imperfect resolution, but we live in an imperfect world.
Me: Again, if don’t like monetary policy under Bernanke, would you like it any better under Pelosi and Reid? If you want monetary policy linked to market indicators, fine. But make that case directly. The Fed audit would only spook the markets, and with good reason. Unless, of course, you expect a Fed audit to reveal a worldwide conspiracy like this one from the film I Married an Axe Murderer:
Stuart Mackenzie: Well, it’s a well known fact, Sonny Jim, that there’s a secret society of the five wealthiest people in the world, known as The Pentavirate, who run everything in the world, including the newspapers, and meet tri-annually at a secret country mansion in Colorado, known as The Meadows.
Tony Giardino: So who’s in this Pentavirate?
Stuart Mackenzie: The Queen, The Vatican, The Gettys, The Rothschilds, *and* Colonel Sanders before he went t-ts up. Oh, I hated the Colonel with is wee *beady* eyes, and that smug look on his face. “Oh, you’re gonna buy my chicken! Ohhhhh!”
Charlie Mackenzie: Dad, how can you hate “The Colonel”?
Stuart Mackenzie: Because he puts an addictive chemical in his chicken that makes ya crave it fortnightly, smart-ss!