Earlier this week the Obama administration proved once again that it is incapable of true change by giving Federal Reserve Chairman Ben Bernanke four more years to devalue our dollar, make secret deals, and do whatever other things it is the FED does. I would tell you just what those “others” things are but I don’t know myself. Heck…even Congress doesn’t know.
You see, the FED is an institution cloaked in secrecy and accountable to no one. It has never been fully audited in its nearly 100 year existence. But, hopefully, that will soon change as Dr. Ron Paul has introduced a bill in the US House currently sporting 282 cosponsors, while the Senate version is cosponsored by 23.
Still with transparency nipping at the FED's heels from a congress frustrated by a lack of accountability, Bush appointee Ben Bernanke, whose time at the FED has been nothing more than to make the bad worse, has just received the administration’s seal of approval.
Let’s forget for a moment the constitutional implications of what is going on with the FED. (As Jefferson and Madison both argued, a central bank is unconstitutional!) The damage of Bernanke’s reappointment points to a dangerous thread in the current administration’s actions on a practical level. The CATO Institute’s Mark Calabria took the words out of my mouth when he noted, “Re-appointing Bernanke sends the worst possible message to both the American public and to government in general: not only will failure be tolerated, it will be rewarded.”
One final note is needed before I leave you.
Congress is upset with the FED’s lack of accountability. Democrats and Republicans…liberals and conservatives are upset with Bernanke and the FED’s transparency-lacking actions. So am I. But when we act unconstitutionally, we must understand that there often will be huge negative consequences.
Article 1 Section 8 of our Constitution gives Congress the sole power over monetary measures. But in 1913 the Congress cast off that responsibility to the Federal Reserve. They created a monster, and now that monster is a hard one to tame.
What’s for sure is this: President Obama is unwilling to behead this monster, and by being so, he has sent a dangerous message to the American people and to the World.