Friday, August 28, 2009

Stopped clock or red flag? 

Let's suppose you're one of those real conservatives, you know, the ones who talk in whispered tones to their friends about the Secret of Jekyll Island or some such. Your Facebook page is full of "audit the Fed!" and "support H.R. 1207!" fan groups. And you read here, even though you know I'm not in your camp.

Meet your newest friend: Barney Frank.
Secondly, they have has since 1932 a right under Herbert Hoover to intervene in the economy whenever they could. Last September, the Federal Reserve they were going to advance $82 billion to AIG. I was kind of surprised and said, 'Mr Bernanke do you have $82 billion?' Mr. Bernanke replied, 'I have $800 billion and under section 13.3 of the Federal Reserve Act they can lend anything they want.'

We are going to curtail that lending power. We are going to put some restrictions on it.

Finally we will subject them to a complete audit. I have been working with Ron Paul, who is the main sponsor of that bill. He agrees that we don't want to have the audit appear as if influences monetary policy as that would be inflationary.

One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. This will probably pass in October.
So is Barney Frank one of you Jekyll Island theorists? Is he just a stopped clock that's right twice a day? Or do you realize that you may be helping to hand the keys to monetary policy over to Nancy Pelosi?

Everyone who believes the audit run by Pelosi and Frank will not "influence monetary policy" in a way that would be inflationary, raise your hand. How about you, Rep. Bachmann?

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