The Federal Reservations

What is the federal reserve? Honestly, most people don’t really know. Most have only heard the name, if even that. Why does such a secretive institution get so much power? I’ll post some good music videos soon, but I must now address this important issue:

This is why Ron Paul is presenting a bill to audit the Fed. The only major reason why we shouldn’t get more info on them is, according to the Federal Reserve’s own representatives, is because it would undermine their “Independence.” Proponents of the bill have said that in this case “Independence” is nothing more than a codeword for secrecy.

So let’s clarify: There’s a difference between wanting information and wanting to make decisions. If the bill was that the Fed’s decisions were subject to congress’ approval, that would undermine their independence, but that’s not what we’re talking about.

The bottom line on this bill: Why not? It’s not going to undermine your independence to just tell us what you’re doing.

In a greater context: Milton Friedman, recipient of the prestigious Nobel Prize in Economics for his work on monetary policy:
“I’ve always been in favor of replacing the Fed with a computer.” (Jim Powell. FDR’s Folly. New York: Three Rivers Press, 2003. p 272.)

So, after analyzing centuries of the Fed’s work, Friedman concluded that a computer could have done a better job. Pretty tough stuff. I agree.

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