James Pethokoukis

Politics and policy from inside Washington

Hey, Ron Paul, end the Fed … as financial regulator

September 28, 2009

If not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.

Yet the Fed finds itself on the defensive on Capitol Hill. There was its general counsel, Scott Alvarez, pleading last week to the House Financial Services Committee to reject attempts to expand Government Accountability Office audits of the Fed. Already, the GAO reviews the central bank’s supervisory and regulatory functions. But a bill introduced by Representative Ron “End the Fed” Paul, a Texas Republican, would also subject monetary policy and discount window operation to GAO audits. The bill has nearly 300 co-sponsors and as well as conceptual approval by Barney Frank, chairman of the committee.

The Fed views these expanded audits as threats to its independence from political pressure. As Alvarez put it, “These concerns likely would increase inflation fears and market interest rates and, ultimately, damage economic stability and job creation.”

For instance, when it comes time for the Fed to start withdrawing monetary stimulus from the economy despite continuing high unemployment, the last thing it will need is haranguing from Capitol Hill that it’s moving too fast, too soon.

And if the Fed becomes the regulator of systemically important financially institutions, as the White House advocates, it’s easy to imagine how the central bank would be subject to even more intense and frequent grilling from an emboldened Congress.

Now the move for expanded Fed audits results from both the Fed’s unprecedented efforts to end the financial crisis and its regulatory failures that contributed the financial crisis. The audit bill should be a wakeup call to the central bank that the more it gets involved in the regulatory process, the great future scrutiny from a skeptical Capitol Hill.

And it’s not just Congress. World Bank President Robert Zoellick says that after reviewing the Fed’s regulatory performance, he’s concluded that it’s a bad idea to “vest the independent and powerful technocrats at the Federal Reserve with more authority.”

Past regulatory failures have already undercut confidence in the Fed – “technocrats” is hardly a compliment — and breaking new regulatory ground in the field of systemic risk increases the chances for further erosion. As it is, the Fed is already buckling to congressional pressure. Alvarez told the committee that the Fed would be “happy to work” with lawmakers on ways to release names of companies that borrow from the central bank, perhaps after a period of time.

Not only should Congress reject the idea of expanded Fed audits, it should reject the idea of expanding the Fed’s role as regulator. If need be, create a new regulatory agency or council. Let Team Bernanke focus on executing its stimulus exit strategy and strengthening its reputation as an inflation fighter.

Comments

Months ago, you stated, “I have taken a lot of heat about my coverage of Ron Paul’s idea to audit the Federal Reserve. I would love to do a piece on economists in favor of the bill. So I am looking for names.”

Many suitable names were provided, so where is the piece?

Posted by yoikes | Report as abusive
 

“If not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.”

My response: If not for the unprecedented actions by the Alan Greenspan and Ben Bernanke-led Federal Reserve, the United States economy would not have found itself on the brink of a depression in the first place.

Posted by Brian | Report as abusive
 

Yeah, I remember that atrical. Where is it?

Posted by Adam | Report as abusive
 

Oops… *artical*

Posted by Adam | Report as abusive
 

One of the key concepts here is with the use of the word “might be” as in “might be mired in a depression”. FED apologists use this mere opinion to base their excuses for FED activities. Again, no substance to the statement just more fear mongering.

In your opinion, if they were doing a good job why not give them more power? Because congress would get more upset?

I see.. So what would happen if they got more upset? Oh, they would probably want to audit the FED more and see what they have been doing. I guess it all comes back to that.

If the FED were not allowed to print US dollars than I think a lot less people would care about what they do. But they do print dollars – tax payer supported, US citizen savings held, dollars. They get to decide what to do with those dollars without congressional consent. They can help facilitate further debt obligation of every citizen through bond purchasing arrangements.

Every decision about those dollars has a direct impact on every US citizen’s life whether they know it or not. They hold within their grasp the ability to absolutely ruin the quality of life of every man, woman and child in the country.

This US was founded on a system of checks and balances. The original law was flawed and it had no major check for the FED.

Thus who should ultimately regulate the regulators and hold last decision power?

The US citizen.

Posted by bgodley | Report as abusive
 

“…it’s easy to imagine how the central bank would be subject to even more intense and frequent grilling from an emboldened Congress.”

Yes, because the last thing we want is the American people or their elected representatives to be “bold” enough to ask how this group of private banks is spending the trillions of dollars it creates from nothing. Centrally “planning” the economy in secret is far preferable.

One would think that the author’s study of Soviet Politics at Northwestern would have acquainted him with last generation’s glaring and tragic example of how centrally “planned” economies inevitably collapse.

Posted by Richard Stands | Report as abusive
 

It would be intellectually dishonest to say we need the Federal Reserve because they “saved” us because by that logic we would NOT need them because they, just the same, almost bankrupted us by their own hand. When they “saved” us, the taxpayer was on the hook for those emergency loans and we will all eventually see inflation further down the road from the Fed’s quantitative easing.

But it goes beyond them being overly active in our economy, it is how the Federal Reserve enables for overspending and excessive borrowing with our government (deficit, anyone? It’s really huge right now despite TARP, you know) and in our economy.

There is nothing wrong with allowing for private deposit insurance in the market instead of a our current cartel of bankers that can lend out any amount of money they please. We should have an economy that grows within its means and from natural supply and demand instead of a system that grows on excessive credit and debt.

 

The fed, since its inception has devalued our dollar by 97 percent. The united states was never meant to have a central bank. Only congress should have the authority to coin money, and regulate its value. Someday we will have to reckon with what our ancestors died for. This new way, its really the old way. @ our current pace , americans will have to leave the u.s. for economic and social liberty. And as far as the current depression goes, there’s no good news. The fundamentals are worse than they were a year ago. Wake up america. Take your country back from corporo- statist fascism. Produce something/ consume less

Posted by jamey | Report as abusive
 

Good article, James. Now put down the crackpipe.

Posted by Timmy | Report as abusive
 

And the lion tells the people of his kingdom:

“Look, like I’ve told you; I will protect and defend all of you! Besides, I am a vegetarian and NO LONGER EAT MEAT”

Posted by Leo the Lion | Report as abusive
 

James,
Go read “End The Fed” before writing any more articles about the federal reserve. *Please*

Here you go:
http://www.amazon.com/End-Fed-Ron-Paul/d p/0446549193

It’s only $13 and will keep you from sounding so uneducated on this topic.

Posted by ChrisCZ | Report as abusive
 

“If not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.”

That is an extraordinary and counterintuitive assumption since the Fed CREATED the problem (other regulation or lack merely channeled the particular location of the bubble) and the Fed has created chaos in the economy of everyone not a bank with its solution.

Posted by spinnikerca | Report as abusive
 

I’m just not sure the media-folk realize that all the Federal Reserve does is print money.

Credit freezes up because people can’t pay bills? print money…
Economy not ‘growing’ fast enough? print money…
People out of work? print money…
Don’t have enough money? print money…

Bernanke did *nothing* but print money to ‘solve’ this crisis… What is so ‘unprecedented’ about that? The Federal Reserve has been printing money since it’s inception… Want proof? A dollar today is worth 3% of a 1913 dollar…

Posted by Michael | Report as abusive
 

Looks like somebody wants a job at the FED.

 

What’s so surprising about this article? The author is going through the pains of the true blue-blooded republican. He liked the idea, at first, because it bashed Obama and was put forth a fellow GOPer; now that it smells like an ‘interventionist’ idea, calling for government trying to exert some control of the private sector, he turns around and shuns it. Typical, in that he didn’t know what he was egging on in the first place, putting blind support behind it because it met the ‘bash the opposition’ criteria. And then it struck me: why is a political analyst giving his opinion about the economy, when in his opinion, the two (politics and economy) are polar opposites? Face it, pal, your politics are shallow and your ideas on the economy are just a babbling of party-line soundbites that you feel free to flip-flop on. Maybe try a column on Russian politics…? I’m curious about your opinion on Medvedev v. Putin, who’s really in charge.

Posted by the Shah | Report as abusive
 

Yes, not only a job with the FED, but an alien to economics

Posted by susan | Report as abusive
 

team-bernanke an inflation fighter?
you do understand that inflation is CREATED by expanding the money supply, right?
maybe if you quit smoking crack you would have time to proof-read your work. i picked out 3 errors on my first skim-through of the article. no big deal, but come on you expect us to take you seriously?

Posted by FtheFed | Report as abusive
 

Go Ron Paul. End the Fed!

Posted by jesse | Report as abusive
 

Articles like these makes me wonder whos side these journalist are on and who THEY are bought and paid for..
The Fed was VERY responsible for the current fiscal crisis.. The American people are WAKING up to this nonsense and more and more journalist like this are being exposed as ignorant and brainwashed.

Posted by jim | Report as abusive
 

Your affection for the Fed is, well, creepy.
You credit the arsonist who saved the burglars from the fire he set- too bad about the residents.
It does make one wonder why you defend this illegal institution so passionately- I would hope it’s not a total lack of common-sense or morality, perhaps you were misled by some bad information.
I too suggest you should read End the Fed. Or ask any child if she thinks its good & fair that a handful of unaccountable, unelected, private bankers should have such control of our money supply through secret meetings and shadow deals.
Even children know that children shouldn’t be allowed to run the candy store, at least without proper supervision.

Posted by Idaho | Report as abusive
 

Some wonder why these articles are circulated. Well the Banks are owned by powerful people, these powerful people also own news agencies. Who owns Reuters, any connection to the Central Bank?

Posted by Anthony | Report as abusive
 

“Let Team Bernanke focus on executing its stimulus exit strategy and strengthening its reputation as an inflation fighter.”

Thanks for the laugh James. It’s been a while since I’ve read anything that made me laugh out loud. “Team Bernanke” has doubled the monetary base. That’s like calling Genghis Kahn and Alexander the Great peaceniks.

Today’s dollar is worth 4 cents compared to the value of the dollar when the Fed was founded. The Fed will always inflate. I agree. The Fed is already too subject to the influence of politicians. An audit will in no way change that. It will simply allow the taxpayers and Congress to see what the Fed has been up to.

Posted by Marcello | Report as abusive
 

You know, James, some old-think here. We need all these maestros dorking around in the middle of the night, regulating, reviewing, dispensing? To do what, exactly, some money laundering? The Federal Reserve is old-think protectionism … give it one good audit and flush it down the crapper with some pink toilet paper.

Posted by Scott Harmon | Report as abusive
 

Oh please… do you not have the slightest idea of the principle of “cause and effect”? The Fed created the bubble in the first place. Anyone that argues for the Fed is blinded by their covering up of their lies.

Posted by Dave | Report as abusive
 

Your logic reminds me of the Curious George books I read my children. George only saves the day after he first creates a problem (albiet, with good intentions.)

If you think the Fed isn’t political already, how do you think our governments continue to run when tax revenues only cover a small portion of the spending budget? Hell, with the Fed unchecked, gov’t could eliminate taxes altogether, which would make the electorate happy, but just loot everyone’s savings un-noticed as the Fed has since 1913. It’s incidiuos at the very least – but I’m of the opinion it’s outright evil.

Posted by Senator | Report as abusive
 

Can you say Munchausen?

Get a clue here Jimmy boy. The crisis is created by the central bank. Their efforts to reduce it are not praise worthy in the least! More “control” is not what WE need, it’s what THEY want!

Audit the Fed, and then destroy it’s monopoly on currency.

Posted by Deefburger | Report as abusive
 

Whatever your true motivation, it is nice to see the Fed(including you James) feels the need to defend itself.

Every time those thieves turn on the printing press or add zeros to bank accounts, our grocery bill goes up and the value of our homes go down. It may take awhile to trickle down, but it is inevitable. I refuse to tell my children they have no hope at the American Dream, and that Dream is NOT a constantly devaluing dollar, nor is it being born into unconquerable debt. As Thomas Woods so kindly pointed out to the Financial Services committee on Friday, the cat is out of the bag. We know, and we will not stop until the shackles of this evil is thrown off us forever.

So what exactly since its inception are you giving the Fed credit for James? The Great Depression? Great Despression II? Other boom and bust cycles? The devaluing of the dollar by 96%? The housing crisis/home devaluation? Sixteen percent unemployment? Yes, they’ve done a great job. You only expose yourself as their tool.
Which family, the Rockefellers or Rothchilds, do you owe your allegiance to?

Posted by BD | Report as abusive
 

“If not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.”

I just like it when I see that someone with a pen on Reuters takes for granted anything that he reads on a cereal box.

And I did not forget about that economists list either. Still looking for the article.

Posted by Jefferson | Report as abusive
 

you carpheads keep talking about the writer smoking crack and crackpipes but your the ones smoking cracks. your hero ron paul is hte one who wants to make everyody smoke pot and crack. so your the crackheads. the auther is write. if the federal reserve didnt take any action we would be in a depression now. if you dont believe that then your an idiot and a moron so go read a book on economics 101. ther are NO economics who belive that we should edit the federal reserve. that is known as a CRACKPOT THEORY. and it goes well with your other CRACKPOT CONSPIRAY THEROIES. you nazis need to be rounded up and throne in jail were you belong. ether that or go to iran were you think its so safe. you and the iranian leader can bomb america since both of you HATE america.

Posted by dan phillips | Report as abusive
 

Wow, dan phillips, you’re the only one supporting this rubbish blog post and your spelling and grammar seem to be at the fifth grade level. How very interesting to contrast your hideous use of English with the excellent grammar and wit of those pointing out the errors in this blog post.

People are waking up to the subtle criminality that is the Fed. Thank goodness for Ron Paul.

Posted by JP | Report as abusive
 

Interesting that almost every commentator on your article could have written a far more informed and informative article than you – with the exception of Dan Philips who is clearly a retarded glue sniffer. Your article actually makes me want to punch you hard in the face and take your wallet, which would symbolise what the Federal reserve (CRIMINAL PRESERVE) has been doing to hard-working Americans for years.

Posted by Scott Acer | Report as abusive
 

@Dan Phillips
Wow what an interesting point of view, albeit contrary to the other comments here. Are you sure you’re not James Pethokoukis writing in a pseudonym? I see quite a few similarities between your post and the author’s article!

Posted by ChrisCZ | Report as abusive
 

You hold a minority view. I can hear the dying gasps of the federal reserve. The audit is coming and the people are not gonna be happy about what we find out. In the “words” of Thomas Woods at the audit hearing its “[like our govt says to us when they try to push through another surveillance program on the people of this country, 'If you have done nothing wrong, then you have nothing to worry about.']” I’m sure the fed is cranking up those shredders right about now.

Posted by GabeNTX | Report as abusive
 

The Fed was the main ingredient in the current dollar crisis, whose painful effects are still being felt by millions, as it will be in the inevitable next one once,after a decent interval, the folks in DC (Ron Paul and precious few others excepted) decide that something as barbaric as sound money ought not impede the achievement of some “great national purpose” (a war, a new welfare program, e.g., free housing or free healthcare). Paul wants to END the Fed, not regulate it, but if a step in that direction is to open its books, then so be it. As an evil conspiracy since its inception, the Fed has no presumptive right to “independence” from the people whose wealth it destroys. That the transition to a sound money will not be pain-free is the jack-o-lantern that the Fed’s defenders dangle before the kiddies. “Oh, how much worse things would have been if the wise men had not gotten us out this mess!,” is the refrain. It would have been better had the whole thing melted down, burning the parasites along the way, and sound economic relations, untethered by legal tender laws, had been allowed to form than that this political shell game continue indefinitely with the rats and parasites as fellow survivors. Hey Pethokoukis! End your ignorance of what the Fed is by reading a few books. The end of your apologetic service to those conspirators will not be far behind.

 

Oh, and Happy Birthday, Ludwig von Mises!

 

“Let Team Bernanke focus on … strengthening its reputation as an inflation fighter.”

ROTFLMAO.

Posted by tiltjp | Report as abusive
 

Thank you bgodley…my sentiments exactly, it’s so simple!

Posted by dsanford | Report as abusive
 

“f not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression”

So what? We’ll get it anyway, just spread out over years. Then we’ll have another one, and another one. They are caused by the fed and fiat money. Get educated.

Posted by Steve | Report as abusive
 

“If not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.”

True. But we need the depression to fix the problems with the economy. Without it, things will continue to deteriorate and get much worse when we do finally face the music.

When people overspend eventually they need to pay the money back. If you just borrow more to get out of debt, well, you haven’t really gotten out of debt have you?

You need a depression to wipe out businesses that did things that were economically foolish. You need the depression to reward those that were wise. You need the depression so that people/businesses will learn to act better in the future.

For example: You had some banks that made silly loans. Ok, so they should have to pay for those losses. They gambled and lost. Instead, the Fed just creates money out of thin air and gives it to the losers. This money creation hurts those that saved their money by making the value of their dollars worth less.

What we need is massive deflation so that the people who saved money and worked hard can be rewarded (and thus, more will decide to save). What we have is that those who gambled are not getting punished and thus, they are continuing to gamble. Why not gamble if you cannot lose?

Financially we need a correction to teach businesses where to put their money. Morally we need a correction to teach people how to behave. Fiscally we need a correction to get our economy back into the black. But, if you reward the bad behavior you will get more of it, none of the money that has been borrowed will get paid back, and when the bills come due it will be even more painful that it would be if we took our medicine now.

The reason things got so incredibly bad was because the Fed kept trying to avoid the corrections. (No teenager ever wants to pay off their bills). If things looked this disastrous this time, how bad do you think it will look next time? Every action taken by the Fed and the administration are only worsening the problem.

You understand all this when it comes to your personal finances. If you owe 10,000 in credit card debt, getting (and spending) another line of credit for 10,000 doesn’t take you out of debt, it puts you 20,000 in the hole (plus interest). The principle holds no matter how many are in debt.

Worse, the Fed took the new money from one group (the savers and people on fixed income) and gave it to the ones who had spent all the money and had all the fun.

Wealth transfer always makes the rich richer and the poor poorer. It sounds like you are on the former side of the equation (otherwise why support the system?) The rest of us are getting a little frustrated.

Posted by Alex | Report as abusive
 

“and strengthening its reputation as an inflation fighter.”

Do you mean how it fights for inflation? It certainly doesn’t fight against inflation. As a matter of fact the Fed wants inflation, why? Politics? But… I thought the fed didn’t get involved with politics. BS!

It’s time We The People decided what is of value and what is not. Federal Reserve Notes are going out of style because of their lack of value.

Posted by Brock | Report as abusive
 

From its inception, the Federal Reserve has been a conspiracy of bankers behaving like gangsters.

Posted by Josiah McGuffog | Report as abusive
 

You guys do know that in American history without a strong independent central bank we experienced boom and bust cycles every 10 years or so. Now we get them once every 80 (1930s to now). Thats a success. The Fed did not create the problem. Greenspan contributed with easy money, but the bubble resulted from new financial instruments that no one knew the underlying value of, along with irresponsible home buying, along with millions of other things like inflation in assets, instead of money. Shut up and realize that if we End The Fed we will have multiple depressions within the next decades you idiots. Get an education.

Posted by Matt | Report as abusive
 

You Sir, Have been drinking the cool-aid.

 

@Matt
“greenspan contributed with easy money” by keeping interest rates artificially low, when in fact the proper interest rates should be chosen by market forces.
Of course this would result in a bubble, as well as the corresponding crash; which is why people educated in austrian economics were able to predict this recession before-hand(At a time when Fed economists painted rosey pictures for the future I might add.)
You can’t sustain a nation that borrows and doesn’t save.

Posted by FtheFed | Report as abusive
 

“team-bernanke” is not smart enough to regulate these things. No one is. Let the market do it, End The Fed.

Posted by FtheFed | Report as abusive
 

I feel like your a someone’s pawn writing this article. You should question whether this is how you would like to be remembered, as a writer that always sold out to big interest.

How can you possibly explain how an audit of the mysterious fed reserve could possibly be a bad thing, especially if they have nothing to hide? Everyone crows for transparency, except when it will expose wrongdoings. (like drug tests for teachers, in Hawaii for example)

Posted by Ryan | Report as abusive
 

The federal reserve is a “non-govermental” institution!

Americans have been deceived for nearly a century of this inflationary FRAUD since 1913.

Your financial advisor lost more than 96% of your investments, you still want to keep them? they should have been FIRED long ago!

It’s time that WE DEMAND our representatives from both houses to return this authority to Congress!

It’s clearly stated in the (U.S. Constitution – Article 1 Section 8) that Congress shall have the POWER:

“To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”

Thanks to brave man like Dr. Paul; for educating and representing the American people.

It is “We, the People” who are the sole owner of our money and there will be NO MORE PRINTING WITHOUT our CONSENT!

Posted by Leo the Lion | Report as abusive
 

Not only should your readers reject your ideas about Fed audits, they should reject your role as a reporter of the news as your are clearly a bought and paid for talking head with your Fed-sensitive propaganda. End the Fed.

Posted by Doug | Report as abusive
 

Wow. Reading the comments here made my day. People are waking up!!! Let’s get it together, America!

Posted by Doug | Report as abusive
 

(Dan Phillips)–”you carpheads keep talking about the writer smoking crack and crackpipes but your the ones smoking cracks. your hero ron paul is hte one who wants to make everyody smoke pot and crack. so your the crackheads. the auther is write.”–

lol, Well this speaks volumes.

(Matt)–”You guys do know that in American history without a strong independent central bank we experienced boom and bust cycles every 10 years or so. Now we get them once every 80 (1930s to now). Thats a success.”–

That might be called a success, if there were any truth to it whatsoever. We have had ONE boom/bust cycle since the 30s? Your knowledge of American history must be pretty selective, or else you possess the math skills of a doorknob.

The Great Depression, the recessions of the 70s and 80s, and this latest debacle added up do not equal “one” boom/bust cycle. You also conveniently ignore altogether the issue of inflation. Can the Fed’s mission of curbing inflation be called a “success” as well? Are you keeping a straight face?

(Matt)–”The Fed did not create the problem. Greenspan contributed with easy money, but the bubble resulted from new financial instruments that no one knew the underlying value of, along with irresponsible home buying, along with millions of other things like inflation in assets, instead of money.”–

So the Fed “contributed with easy money.” Now ask yourself, what might THAT have to do with the “inflation of assets, instead of money” and “irresponsible home buying?” Do you actually know the definition of these terms youre using and how these things affect each other, or are you simply getting off on throwing around economics jargon? Do you really think that rock-bottom interests rates and encouraging the public to buy things they cant afford all have nothing to do with the other elements you just mentioned?

(Matt)–”Shut up and realize that if we End The Fed we will have multiple depressions within the next decades you idiots. Get an education.”–

I think its you who needs to “shut up and get an education,” rather than parroting back what you hear on television and trying to act like you know what youre talking about. You really seem to have no clue how Fed policy actually works, or how it affects the economy.

Posted by J707 | Report as abusive
 

It’s so time for us to get back to the basics. Our country was founded on human potential, and the belief that people are smart and innovative and can make their own way. Fuck you idiots who think the government should choose for us. I beleive in people. We don’t need the government to tell us who to be, or what to say, or what to do. For the people; By the people. It’s time for us to get involved. It’s time for us to choose for ourselves. It’s time for us to make this country our own again. No more diversions,(like entertainment, and sports, and stuff). We need to get our priorities in line. We owe it to the thousands of men who died young to pay for our freedom….. to die for our right to contest the government.. to stand up and say “No you don’t represent me!!!” POWER TO THE PEOPLE

Posted by andrea webb | Report as abusive
 

Meet Baghdad Bob.

That’s where that bastard went. Face it. FED is COMING to an END. There is NOTHING in the world that will stop it. LIVE with it, ya sycophant turd of the NWO Banksters!

Posted by EatMePrincePhilipVirus | Report as abusive
 

“f not for unprecedented actions by the Ben Bernanke-led Federal Reserve, the United States economy might be mired in a depression.”

Are you serious? It’s because of the Federal Reserve that we are in this financial situation in the first damn place. You sir are an idiot.

Posted by Justin | Report as abusive
 

James, did you just get out of high school??? Have you read the book??? I think your idea is to keep spending money that we don’t have???? You and so many other people are so brain washed. I’m sure Ben Bernanke is doing the best for the American people, yeah right LMAO!! What are you going to tell me next that everyone pays their taxes? Go back to school and try again.

 

“you carpheads keep talking about the writer smoking crack and crackpipes but your the ones smoking cracks. your hero ron paul is hte one who wants to make everyody smoke pot and crack. so your the crackheads. the auther is write. if the federal reserve didnt take any action we would be in a depression now. if you dont believe that then your an idiot and a moron so go read a book on economics 101. ther are NO economics who belive that we should edit the federal reserve. that is known as a CRACKPOT THEORY. and it goes well with your other CRACKPOT CONSPIRAY THEROIES. you nazis need to be rounded up and throne in jail were you belong. ether that or go to iran were you think its so safe. you and the iranian leader can bomb america since both of you HATE america.”

Oh my goodness. Thank god these are the people defending the FED. The same people who want to tell people what to do with there lives, which of course is the most antiamerican thing there is. Ron Paul certainly doesn’t want people to use drugs, he just defends freedom which means defending personal choice and responsibility. That way its up to families to talk to their children and be in their lives enough to direct them the right direction. If they fail there are churches and charity groups to do it. Not pork barrel spending programs that are proven to create more crime.

On the fed note (back on topic) there are many economists (I believe that is the word you were looking for). Who follow Austrian economics and oddly enough they made the predictions that the FED would create the problems they did and why. Ignorance is bliss. Learn about economics before you write dumb things. Keynesian economics don’t work we are finally coming to realize it.

Posted by JAy | Report as abusive
 

This article was obviously written by a poor uneducated individual. You can worship the Fed all ya want, but the evidence is stacked against them. We’d be better off without them… audit the Fed, then END IT. Stop drinking the Keynesian Kool-aid and wake up to the reality of Austrian Economics.

Posted by CCarter | Report as abusive
 

For those of you who want to end the FED, lets end the defense depart. The state dept. and Pentagon and our standing army as well. That would save an abundance of our tax money. We shouldn’t be in foreign countries anyway.And we should be promoting peace not war. Oh I forgot peace is not profitable, so that won’t happen. But don’t forget that we the people will have to join militias to protect our country since we won’t have an army anymore. I don’t know about you but I don’t think I would have the time or energy to join, I am too old. :)

Posted by klisco | Report as abusive
 

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