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WSJ op-ed: Ron Paul and Jim DeMint: Americans Deserve a Transparent Fed

Wall Street Journal | November 18th, 2009

Americans Deserve a Transparent Fed
By RON PAUL AND JIM DEMINT

For nearly a century the Federal Reserve has operated in the shadows, away from the prying eyes of Congress, journalists and the American people. Created in 1913, the Fed was given enormous responsibility to protect the value of our currency. Yet in the last 96 years the U.S. dollar has lost more than 95% of its purchasing power. The Fed’s unprecedented actions over the past year in attempting to stabilize the financial system have now forced it into the spotlight, and caused millions of people around the country to question the opacity of the Fed’s financial transactions.

While the Fed is more transparent now than it was 20 or 30 years ago, there is still a long way to go. If the Fed were fully transparent, organizations such as Bloomberg and Fox News wouldn’t have to sue its board of governors to receive materials that should be available through Freedom of Information Act requests. These include information on which banks and companies received loans and for what amounts after the 2008 financial meltdown.

One puzzling assertion made by the Fed and its supporters is that the Federal Reserve has some sort of independence from the government and independence in undertaking monetary policy. Nothing could be further from the truth. The Federal Reserve is a government-created banking monopoly, and its top decision makers are appointed by the president and confirmed by the Senate. If they do not perform satisfactorily in the eyes of politicians, they will not be renominated.

The Fed has also, for the past three decades, been required to engage in monetary policy with the goal of maintaining stable prices and full employment. Since the natural trend over time is for prices to decrease, a mandate to maintain stable prices is a mandate to pursue an expansionary monetary policy and inflate the money supply to counteract the lower prices we would expect from increased productivity.

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great article.

it blows my mind that some people argue against a full audit. going through the comments at the WSJ site is hilarious haha... some people are so stupid. lots of austrian economics defenders there too though! it was good to see

bump

Very uplifting to see this in a major newspaper.
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I am proud to say

jim demint is my senator

But so is Lindsey Graham.

But so is Lindsey Graham.

The main thing, I believe, is to try and make sure Demint becomes the minority/majority leader of the senate Republicans.

shut up

just shut up

No

I think I deserve to be free to trade what I want and not be forced to use fiat dollars. Transparent or no, it's a racket.

SteveMT's picture

Bravo WSJ: Timely, especially with vote today on Fed Audit!

Nice to see a Congressman and a Senator collaborate on this story.

"Mr. Paul is a Republican congressman from Texas. Mr. DeMint is a Republican senator from South Carolina"

I wonder

I wonder when Demint is going to endorse Rand think,

1. McConnell has obviously chosen Trey when he decided to do another fundraiser.
2. Demint's PAC overwhelmingly chose Rand over Trey
3. Demint's been the biggest senate supporter of the Fed Audit effort, was anti-bailout, ect.