Federal Reserve or Super Regulatory Agency? … Neither

Federal Reserve or Super Regulatory Agency? … Neither

For those who understand what has happened in reference to regulators before and during the current economic crisis, the idea of taking authority and responsibility away from the Federal Reserve and placing it within a new super regulatory agency, as is being proposed, is ignorant, to be kind.
Ron Paul has it right when he introduced legislation which would require a complete audit of the Federal Reserve in order to see what deals they’ve been making, how they distributed money, and how they’ve been interacting with foreign governments and banking institutions.

Now that Paul’s bill has been pretty much gutted and useless (although Paul is attempting to get it reinstated with its original language), the idea of simply creating what would essentially be another Federal Reserve under a different name, but with evidently broader powers, is a futile attempt at trying to fix an economic system, that for the most part, hasn’t received the proper diagnosis yet.

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I am no defender of the Federal Reserve and believe they should be abolished, but not in order to create a new agency which will no doubt create the same problems by misunderstanding what the financial disease is.

What is that financial disease? It has been the monetary policies implemented by the Federal Reserve for decades, which isn’t even being talked about or focused on by those in government, even though Ron Paul, the most informed politician on financial matters and economics, continues to hammer at them and repeat over and over that this is the source of the past and existing economic problems we face.

Until monetary policy and the Federal Reserve become the real focus of our economic problems, nothing will be changed in any way, and we’ll be doomed to repeat this over and over again until they are.

- more at www.americanbankingnews.com/2009/11/17/federal-reserve-or-super-regulatory-agency-neither/