“Gimme A Break” — Liberal Economist Scoffs at Senator DeMint
During a hearing in the Joint Economic Committee, liberal economist and former Federal Reserve Governor Laurence Meyer scoffed at the notion the Federal Reserve is involved in central planning. Senator DeMint had expressed free market concerns over the Fed's recent actions, including effectively monetizing the debt over the past year, when Dr. Meyer interjected. http://www.youtube.com/watch?v=LpT0o75ccw0
As C4L Members are all too aware, of course the Federal Reserve is involved in central planning. Through the Fed's easy money policies, keeping interest rates artificially low, engaging in quantitative easing, and acting as a lender of last resort for overleveraged banks around the world, the Fed is indeed acting as a central planner interfering with free market activities. As DeMint expressed in the video, we don't know what the market would have set interest rates at throughout this recession, but we do know the Fed has promised to keep them at near zero until 2014.
This just further underscores the need for a full and thorough audit of the Federal Reserve. If a former Fed Governor, and Clinton appointee, doesn't realize intervening in the marketplace constitutes central planning, who knows what the Federal Reserve has been up to over the years?
If your representative is not yet a cosponsor, contact him or her today by calling 202-224-3121 and asking for your representative. Urge them to cosponsor H.R. 459 and to support a stand-alone vote on the bill.