Thursday, October 1, 2009
You've heard the arguments:
- If we audit the Federal Reserve, that is a “line that we don’t want to cross,” and it would be “problematic for the country”, according to Tim Geithner
- If we audit the Fed, it could lead to higher interest rates and reduced confidence in central bank policy, according to the Fed's chief counsel, Scott Alvarez
If an audit would reduce confidence in central bank policy, wouldn't that be because central bank policy has been terrible, and an audit has revealed that fact?
On the other hand, if an audit showed that the Fed had been doing an honest and competent job, wouldn't that increase confidence in the Fed?
And doesn't the whole "problematic for the country" and "higher interest rates" thing sound a wee bit like the old protection racket scam?
I'm just saying.