Monday, June 22, 2009

Dodd: Giving the Fed More Power...

Dodd: Giving the Fed More Power is like Awarding a Son a “Bigger, Faster Car Right after He Crashed the Family Station Wagon;" Washington's Blog

The chairman of the senate banking committee - Christopher Dodd - quoted a critic of the plan to expand the Federal Reserve's powers as being:

like awarding a son a “bigger, faster car right after he crashed the family station wagon.” He added that he hadn’t made a conclusion on the issue.
The critic is correct.

The Fed caused the Great Depression, according to Bernanke himself. The Fed largely caused the current financial crisis. The Fed creates new "money" out of thin air, and then charges massive amounts in interest to the federal government, impoverishing the nation and stealing its natural wealth. And the Fed has refused to tell Congress or the American people where the trillions of dollars in bailout money are going (see this, this, this, and this).

And the Fed is not even really a governmental institution. The Fed itself states that its 12 member banks are private institutions, owned by private banks.

However, Dodd's statement that he hasn't yet made up his mind about expanding the Fed's powers is just for show. In fact, Dodd and House banking committee chair Barney Frank were involved with Summers and Geithner every step of the way in drafting the plan to give the Fed more power.

Read the rest here.

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