Auditing the Federal Reserve’s decision-making process poses a serious threat to the economy, former Federal Reserve official Frederic Mishkin told CNBC.
“This is I think the most serious attack that I have seen on the Federal Reserve in the many, many years that I’ve studied it as a scholar,” said Mishkin, an economist at Columbia Business School. “This is really dangerous stuff.”
According to Mishkin, the legislation being pushed by Congressman Ron Paul is an outright attack on Fed’s independence. He agrees with the notion that the Fed needs to be as transparent as possible in terms of describing its objectives but said “second-guessing them is going to be extremely problematic.”
“We’re going to get bad outcomes,” he said. “It’s not I think what the Congress wants.”
Have you noticed that the only people that are apposed to the audit are FED officials with lame reasoning. You don’t fear an audit unless you’ve got something to hide. They will just keep cooking up fear and propaganda just like those scientist did for Al Gore.
Professor Mishkin is one of the numerous economists who are or were on the Federal Reserve’s payroll. I can recommend the article “Economists Opposing Fed Audit Have Undisclosed Fed Ties”
found by using the following link:
http://www.huffingtonpost.com/2009/11/18/economists-opposing-fed-a_n_362287.html
One might ask why supporters of Federal Reserve secrecy – many of whom are or have been on the central bank’s payroll – resort to making dire economic predictions rather than engage in a factual debate over transparency.
Many of the individuals attacking the audit/transparency joined Federal Reserve spokespersons and claimed that unemployment would reach 8% unless the central bank intervened on behalf of the large financial institutions and bailed them out to “unfreeze” credit. Billions of taxpayer dollars later, unemployment is past 10% unemployment.
One might wonder what it will take for a substantial quantity of the citizenry to start disbelieving these Federal Reserve defenders or at question their motives.
Likewise, one could wonder why the Federal Reserve saw a need to hire the lobbyist who previously worked for Enron’s benefit.
A reasonable person might also ask why our economy hasn’t recovered as predicted by the Federal Reserve’s Chairman, Vice-Chairman, the economists who still support it, et cetera. How many times must they “get it wrong” before they’re held accountable for the economic harm they are doing to our nation and its citizenry?
An audit such as House Resolution 1207 is well in order.
Best regards,
Charles
This is not second guessing the FED we the people just want to know where our money is going. The Federal Reserve has been giving then PRIVILEGE of absolute control our currency. Keep in mind that the Federal Reserve is the only private CORPORATION(not part of the government) not regulated by the U.S. Government. Why doesn’t our country great as is create it’s own money? Corporations are on this earth to do what? Make profits! All that I get from this is the Fed is threating to raise interest rates(scare tactic) because they want their profiters to remain secret. The only people that are defending the Federal Reserve are people that work for the Fed or have something to gain. This is an Audit! We just want to see where the money is going. If this audit will have that much effect on there/our dollar maybe we should really consider why we have given the Fed the PRIVILEGE to controling our currency/economy.
“Give me control of a nation’s money and I care not who makes the laws.”
Mayer Amschel Rothschild
This quote shows exactly why we should have a central bank in our republic.
I have one suggestion for the Fed “Run as fast a you can because the secret out!”
Sgt Raymond
USMC
Please excuse me but I must make a correction to my post above.
“Give me control of a nation’s money and I care not who makes the laws.”
Mayer Amschel Rothschild
This quote shows exactly why we SHOULDN’T have a central bank in our republic.
Also I completely agree with Charles post.
Sgt Raymond
USMC
First, Mr. Mishkin, has Fed controlled the inflation? No. Dollar has lost 95% of the value since the inception of Fed. Thus, get rid of Fed.
Woo Hoo! Let the fear mongering begin! I can smell the desperation from Florida!
Educate yourself on the history of Federal Reserve:
http://freedocumentaries.net/media/157/The_Money_Masters_Part_1_of_2/
If 2000 years of historical precedence serve as any notice, I fear for Ron Paul’s life.
Not one positive comment for FED secrecy (aka “Independence”). Great! Let’s open the books. Why should any branch of Government be above public scrutiny?
Correction to above post: the FED isn’t even government. It’s PRIVATE.
We the people deserve to know whom the FED is lending OUR money to. Whether it’s domestic or foreign banks – we ought to know who is receiving the funds and WHAT the lending terms are.
Mishkin and the entire cabal of FED-funded economists are running scared of transparency, and their arguements are completely void of reality or truth.
I suspect that when the Fed’s veil of secrecy is removed, what we will find is more proof that, to quote Lord Acton, “Absolute power [in this case, secrecy is power] corrupts absolutely.”
END THE FED! END THE FRAUD!
“Serious attack on Federal Reserve” – is it a joke? No one is attacking, but asking for transperancy.
“Attack on Independence of Federal Reserve” – you mean the banking cartel that almost destroyed all our Liberties including Constitution, Bill of Rights?
This “analyst” simply contradicts himself:”it’s good to know what Fed is doing, why it’s doing what it does.” Refer to the answers from Bennie – “No.” “We can’t disclose that.” When Trillions (and that is Millions of Billions) are gone somewhere and no one knows where… “VERY Dangerous?” booga-booga… everyone get VERY scared! NOW!!!
Taxpayers money is simply vanishing and now this “intellectual” is trying to convince everyone… There should be NO DEBATE! Just audit the darn thing – everything will become very clear than! Othwerwise – we will be all in Zimbabwe economy tomorrow! What’s so difficult to understand here?
What are their crimes? what are they hiding? They never EXPLAIN what exactly how this would effect the economy.. “they have a “feeling” that it will effect inflation.. they keep saying its VERY DANGEROUS ! WHY?? you NEVER get a direct answer.. Its trying to control everyone through FEAR..
Follow the money..
I wonder even if Warren Buffet is in the mix..
It MY MONEY YOUR PLAYING WITH!! get the hell off my show!!!!! GET OUT!!!
mishkin .. pssshh
You’ll swing for your crimes, Mishkin! There will be nowhere on earth you and all the other con-men can run.
Let us pull back the curtain and see for our own eyes the true reality!!!! It’s way over due to expose the TRUTH …….as the TRUTH shall set you free! knowledge is power but only the the extent that the knowledge is understood. The FED has NEVER been audited since it’s conception and the dollar has lost 95% of it’s value since 1913??? It dosen’t take a genius to figuer this out??? The fed has been screwin us over for years that’s why your paper money (federal reserve notes) are not worth shit. It’s also why they so desperatly want to keep the secret………….. Audit the bastards and vote out the ones that don’t…………..FREEDOM!!!!!!!!!!!!!!!!!!!
The FED is not independent !
It colludes with other entities, e.g. foreign central banks.
Central banks are not independent, they collude.
If a person has a right to view the status of his bank account at their local bank then you would expect the people to have the right to know the state of their money supply; e.g. How fast is the supply expanding (i.e. inflating), who is accessing/using the supply, etc.
It is the people’s money supply,the people pay taxes and the people have the right to know about their property.
Transparency is a good thing and if it adds more light to the fallacy of Keynesism economics then that’s a bonus.
If a politician at election time was to tell the people that he/she would authorise use of the peoples money supply for bailout of foreign (even undeserved local) entities, would that politician be worried about a voter back lash ? I would think yes and the lack of transparency for the FED/GOVERNMENT connection has helped enforce the politician’s habit of fiscal irresponsibility.
Money is “easy” when it is fiat based.
Commodity based currency forces the politicians to be fiscally responsible and reduces access to dangers of easy money (e.g. inflation). However, most politicians do not like fiscal responsibility since it restricts their ideological fantasies.
The FED worried about inflation ?
On the FED’s watch, the money supply has been inflated to the point that in nearly 100 years the US dollar has lost about 95% of it’s value.
Would you bet against ~5000 years of history ?
Gold (and perhaps other commodities) is/are real money, not this fiat-based imposter acting as a currency.
It’s obvious the FED (Greenspan) did not see the financial crisis coming and why should we believe they can steer us out of this mess.
How are they handling the massive amounts of toxic derivatives ?
By looking after wall street and forgetting about the plight of main street.
The FED has been negligent, time for it to be CANCELLED.
More politicians need to study the main facets of Austrian Economics and Keynesism Economics needs to be relegated to history.
Fiscally responsibility should be the “norm” for a politician, not the exception.
The FEDs buddies are all wooried about the “house of cards” falling down if Ron Paul get’s his way.
Even if this were the case (which I do not believe), so what !
this would just mean relaoding of the “matrix” and hopefully without the stench of FIAT currency.
There was no depression in 1920-21 when the government/FED did not fiddle with the markets (“less government in business”);
http://www.cato.org/pub_display.php?pub_id=9880
Mishkin has never worked a day in his life, he’s never worked at a factory, never owned a company. He’s just a hack for the Fed and International Banking Cartel’s. He’s a Ivy league fool who so educated he can’t understand the Fed has failed in price stablity or stable employment. Give me my Gold and Silver money back. Mishkin is a thief!
Mishkin claims Ron Paul is trying to audit the Fed’s decision-making process. An audit does no such thing. It simply checks the books for inaccuracies and irregularities.
He goes on to call an audit, an attack. The only person who would consider an audit an attack would be one with something to hide.
The Fed independent? How long would the Fed survive without the blessings of Congress? Whether the relation is sybiotic or parasitic, the Fed would be nothing without that relationship and is therefore anything but independent. What he meant to say there was, “The legislation being pushed by Congressman Ron Paul is an outright attack on Fed’s xixnxdxexpxexnxdxexnxcxex _secrecy_.” This is a bad thing?
He goes on to claim that he is in favor of transparency which is a laugh because that is the entire purpose of an audit. Perhaps we can quote him and say he is in favor of auditing the Fed then?
Finally he states that if Ron Paul gets his way we’re gonna have some bad outcomes. Oh PLEASE!! No bad outcomes. It would be horrible if there were bad outcomes. Apparently where Mr. Mishkin is the worst economist ever if he looks around and doesn’t see bad outcomes right now. It’s like he’s on the Titanic saying, “If we aren’t careful, we’re gonna start taking on water.” I will not be recommending Columbia Business School to anyone soon.
This guy feeds at the trough. Listening to him on the Fed is like reading a study sponsored a drug company about how great their product is. Talking about conflict of interest. The Fed has destroyed us financially. It is time to rethink what we are doing.
This guy thinks Americans are bunch of idiots.
Our system is a system of representatives!
With all due respect sir, you can represent THE FLAW SYSTEM of the so call fed.
But, YOU DO NOT REPRESENT American system of government.
INFLATION is an increase in the quantity of money and credit. Its chief consequence is soaring prices. Therefore inflation—if we misuse the term to mean the rising prices themselves—is caused solely by printing more money. For this the government’s monetary policies are entirely responsible.
The most frequent reason for printing more money is the existence of an unbalanced budget. Unbalanced budgets are caused by extravagant expenditures which the government is unwilling or unable to pay for by raising corresponding tax revenues. The excessive expenditures are mainly the result of government efforts to redistribute wealth and income—in short, to force the productive to support the unproductive. This erodes the working incentives of both the productive and the unproductive.
THE CAUSES of inflation are not, as so often said, “multiple and complex,” but simply the result of printing too much money. There is no such thing as “cost-push” inflation. If, without an increase in the stock of money, wages or other costs are forced up, and producers try to pass these costs along by raising their selling prices, most of them will merely sell fewer goods. The result will be reduced output and loss of jobs. Higher costs can only be passed along in higher selling prices when consumers have more money to pay the higher prices.
Price controls cannot stop or slow down inflation. They always do harm. Price controls simply squeeze or wipe out profit margins, disrupt production, and lead to bottlenecks and shortages. All government price and wage control, or even “monitoring,” is merely an attempt by the politicians to shift the blame for inflation on to producers and sellers instead of their own monetary policies.
Prolonged inflation never “stimulates” the economy. On the contrary, it unbalances, disrupts, and misdirects production and employment. Unemployment is mainly caused by excessive wage rates in some industries, brought about either by extortionate union demands, by minimum-wage laws (which keep teenagers and the unskilled out of jobs), or by prolonged and over generous unemployment insurance.
To avoid irreparable damage, the budget must be balanced at the earliest possible moment, and not in some sweet by-and-by. Balance must be brought about by slashing reckless spending, and not by increasing the tax burden that is already undermining incentives and production.
So please STOP the INSANITY!
Listen to him dodge the questions! What a clown! AUDIT THE FREAKING FED. This is an absolute joke. People are sick of being robbed of their wealth thru inflation and the bailing out of corrupt banksters. You guys are DONE. The curtain has been lifted. I wouldn’t be surprised if the people want to hang these guys in public after they find out what’s revealed in an audit.
Wow – reading this gives me hope for America.
T R U T H – will TRULY set us free. Let us see what’s between the covers of their books. . .no hiding anymore and pretending they know what’s best for you and me. When the Federal Reserve books open – they will go down in flames. I am SO looking forward to that day.
The really good news, thanks to Congressman Paul, is that reality appears on the horizon, and getting closer by the hour.
Anyone in their right mind KNOWS that something is desperately wrong when an entity wants to stay shrouded in secrecy. There should be NOTHING they want to hide from Americans.
America needs a beacon of light to shine in on the darkness of the Federal Reserves books and accounting. . .NOW!
The Fed thinks that its an insane notion for them to be accountable to anyone. This is the begining of the end for the fed and all the corrupt thieves that have been plundering our nation for so long.
We have 290 million INDEPENDENT citizens, thousands upon thousands of small, medium, and large INDEPENDENT corporations, 50 INDEPENDENT states, various territories, thousands of INDEPENDENT counties/parishes, townships, cities, boroughs, the US Government, etc…ALL subject to an audit, but auditing the Fed will affect its independence? What is Oz hiding? Smells fishy to me!
It is time that everyone really understand where these FED guys are coming from. He is absolutely right that an audit will be dangerous – dangerous to the FED that is.
People always assume that when these guys talk they are speaking for “the people.” Nothing could be further from the truth. An audit won’t be bad for us, it will be bad for HIM.
Mishkin is speaking for himself and his buddies. They like getting away with financial murder and any audit would be dangerous to THEM.
Oh well.
Wow! What a great read! The comments I mean. God, I really love my country! You guys rock!
END THE FED! Restore Economic Liberty and you restore Individual Liberty.
Mishkin and his ilk can rot for all I care. The only danger to the economy of a Fed Audit is the increased damage they will do to it to resist exposure and maintain thier control of the currency.
They create a wealth vacuum with inflationary policy, and then tell us this is good for the economy. “it’s growth” they say. B.S.! It’s growth in the same way a balloon “grows” when the air is sucked out of the room!
The Fed is a dog and pony show for organized thievery! Mishkin is a thief trying to tell us “nicely” that if we look too closely at the den of thieves, then there will be consequences.
“We’re going to get bad outcomes,” he said. “It’s not I think what the Congress wants.”
Is that a Threat or a Promise Professor?
If this is not what the congress wants then why have over two thirds of them signed on to this bill? Who is this twerp to question two thirds of our Representatives?? ? The FED only has what the Congress / We the people who do not work for the Fed grants to it as far as rights go. The fed and deals like NAFTA and endless war has run this country in to the ground. Do any of these people read history? Has any paper currency ever met any other fate than to become worthless? I want my money back!
If he doesn’t want an audit then how does a criminal investigation sound?