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Bernanke: There Should Be No Audit Of Central Bank

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Bernanke: There Should Be No Audit of Central Bank

Published: Wednesday, 22 Jul 2009 | 12:29 PM ET

Federal Reserve Chairman Ben Bernanke ran into more tough questions Wednesday on Capitol Hill about the central bank's extraordinary actions to rescue the economy and its ability to take on even more responsibility.

Bernanke spoke before the Senate Banking Committee, one day after waging a defense of the Fed's actions before lawmakers in the House.

Last year's taxpayer-financed rescues of insurance giant American International Group and others outraged many ordinary Americans and some lawmakers.

"Why does the Fed deserve more authority" when it failed to spot the current financial crisis before it struck? wondered Sen. Christopher Dodd, D-Conn., chairman of the committee.

Sen. Richard Shelby, R-Ala., raised the same concerns about an Obama administration proposal that would expand the Fed's duties to police globally interconnected financial firms whose collapse could imperil the entire U.S. economy.

"It was the failure, I believe, of the Fed to adequately supervise" that contributed to the financial meltdown, said Shelby, the most senior Republican on the committee.

The Fed chief insisted that the Fed's role under the administration proposal "would not be radically different" from its current role.

On the economy, high unemployment is "the most pressing issue" as the nation struggles to emerge from recession, Bernanke told the Senate panel. He also said the Fed is closely monitoring the troubled commercial real estate market, where defaults are rising.

Bernanke's innovative policies have been credited with helping avert a financial catastrophe last year. But critics worry about putting more taxpayer money at risk -- and about leaving companies more inclined to take big gambles, confident the government will support them.

The Fed chief also argued against congressional proposals to let the Government Accountability Office, Congress' investigative arm, audit the central bank. He says audits that delve into the Fed's interest-rate decisions could compromise its independence in setting interest-rate policies.

"You've argued for transparency and haven't delivered," huffed Sen. Jim Bunning, R-Ky. "You still resist fully opening your books. You are the one throwing away independence by acting as an arm of the Treasury."

Bernanke said he would work with Congress to release information about how taxpayer money is being used in the financial bailout. But he resisted the idea of providing more information about interest-rate policy.

"Where I'm resisting is monetary policy," Bernanke said. The Obama administration's plan to overhaul financial oversight, if it became law, would avoid additional AIG-like taxpayer bailouts, Bernanke says.

In his first day on Capitol Hill on Tuesday, Bernanke ran into skepticism from lawmakers on the House Financial Services Committee about giving the Fed more powers, since it failed to spot problems that led to the financial crisis in the first place.

Continues with videos

http://www.cnbc.com/id/32082013

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since he couldn't give account of the half a trillion dollars in swaps, i'd say there's a good case for auditing. half a trillion sounds, on the face of it, like quite a lot

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since he couldn't give account of the half a trillion dollars in swaps, i'd say there's a good case for auditing. half a trillion sounds, on the face of it, like quite a lot

If it was his money it would be no one else's business. The fed are hiding something and are fearing a public lynching.

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If it was his money it would be no one else's business. The fed are hiding something and are fearing a public lynching.

http://www.financialsense.com/editorials/q.../2009/0311.html

1832bank1.jpg

President Jackson, shown here "driving out the devils and money changers"

with his order to withdraw public money from the central bank

-Edward Clay lithograph, published 1833

President Jackson’s honesty and anger at the bankers should resonate today, as bankers have again brought our country to its knees.

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out.â€

A President with Jackson’s strength of character would put the blame where it belongs today. He would rout out these criminal bankers, rather than give them more taxpayer money to squander. A President with a moral backbone would put an end to the disastrous 96 year experiment of the Federal Reserve. Instead our last two spineless Presidents have put Goldman Sachs bankers in charge of our national Treasury. An examination of inflation throughout the history of the United States proves that from the beginning of our nation through wars and the Industrial Revolution, the country experienced virtually no inflation as our currency was backed by gold. The creation of the Federal Reserve in 1913 and the closing of the gold window in 1971 unleashed a tsunami of inflation that continues today

post-2696-1248295090_thumb.jpg

Edited by lowrentyieldmakessense(honest!)

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http://www.financialsense.com/editorials/q.../2009/0311.html

1832bank1.jpg

President Jackson, shown here "driving out the devils and money changers"

with his order to withdraw public money from the central bank

-Edward Clay lithograph, published 1833

Yeah, they only tried to kill him half a dozen times because of it.

Can you see any of the current crop of smiling liars having this sort of backbone?

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only one at the moment

edit to add

you ready to stand yet

ffs

we have an 18 yr old showing the way

Thomas Burridge

Constituency: Norwich North

Age: 18

Home Town: Great Massingham (Dereham), Norfolk

Candidate Statement:

Most sensible people will be saying, what the hell does he know about anything?

This is what I do know. The last twelve years of Labour has left my generation in massive debt. My generation will be paying off the excesses of the last twelve years for the rest of our lives. And we may even pass this debt on to our as yet unborn children. Did we have any say in the spending splurge that led to this debt mountain? No we did not.

Currently the Tories and Labour are arguing about cutting a pifling 5% off our current bloated state spending. The LPUK are talking about scrapping the whole rotten system. They will get rid of the high personal taxes, squalid services, corrupt Parliament and start again.

I may not win this time, but I will be back in five years, and in another five years and in another five years. By then the guilty ones will still be enjoying their gold-plated pensions or will be long dead, but the debt will remain.

I am from the Debt Generation and I believe only the LPUK has fresh answers for a new generation.

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I think the FED is running out of road.

Some interesting videos from yesterday, and the day before yesterday.

MSNBC - Bill to Audit the FED

Ben benanke gets nailed on this one. Shows up the game the FED have been playing.

Ben Benanke in trouble

LOL!

Ber*****y is all over the place in that clip. Nice! :lol:

Edited by MOP

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Guest BoomBoomCrash
He's just digging himself a deeper and deeper hole. He isn't going to fix the economy, and his choice, whether he realises it or not, will be to open up the books voluntarily, or do it at gunpoint.

I hope it is at the point of a gun with a very loose trigger.

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