Monday, October 26, 2009

Galbraith: Fed is Unlawfully Withholding Information from Congress


The Federal Reserve is unlawfully withholding information from Congress.

Says who?

Says noted economist James Galbraith:

To this day, Chairman Ben Bernanke has refused to disclose to Congress exactly who has received help under the many crisis measures and under what terms. The legal and constitutional situation is clear: Congress has a right to this information. There are no plausible national security concerns.
Galbraith also slams the idea that the Fed should be the main regulator:

Finally, there is the question of financial reform. In the new effort to bring systemically dangerous institutions (now called “Tier One Financial Holding Companies”) under effective supervision, the administration proposes to vest regulation of those entities in the Federal Reserve. The Federal Reserve naturally agrees. But the Federal Reserve has never been an effective regulator for the straightforward reason that it is dominated by economists and bankers and not by dedicated skeptics who make bank regulation a full-time profession.

If you think Galbraith is wrong about the Fed's capacity to act as regulator-in-chief, look at this article by the Washington Post.

3 comments:

  1. so what should we do? Corruption is rampant and is allowed to occur thanks to CONgress.

    So what should we do? Anyone...anyone at all.

    Buehler?

    ReplyDelete
  2. Begin with a subpoena of the tapes and transcripts. Then pass HR1207/HR604.

    ReplyDelete
  3. Grab the pitchforks and start setting cars on fire. That might be the only option.

    Or Plan B: Let them shoot themselves in the foot. Eventually people will get outraged (20% inflation should easily achieve this - and just imagine what a worse outcome would accomplish in a short amount of time) and demand the Federal Reserve Act be repealed.

    Case closed.

    And in the meantime... just strap in. Oh, and fire those idiots in Washington, they don't know the first thing about the Fed.

    ReplyDelete

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