Wednesday, July 16, 2008

They’re catching on… (BJ Lawson)

BJ Lawson has more on the Fed and the bailout of Freddie and Fannie, and likes the fact that there is another voice in Congress speaking out against the Fed:

Slowly, our government is catching on to the fact that the Federal Reserve is the cause of our slow-motion train wreck. Senator Jim Bunning from Kentucky appropriately questioned increasing the Federal Reserve’s power in today’s hearing:

Now the Fed wants to be the systemic risk regulator. But the Fed is the systemic risk. Giving the Fed more power is like giving the neighborhood kid who broke your window playing baseball in the street a bigger bat and thinking that will fix the problem. I am not going to go along with that and will use all my powers as a Senator to stop any new powers going to the Fed. Instead, we should give them less to do so they can do it right, either by taking away their monetary policy responsibility or by requiring them to focus only on inflation.

While I don’t understand specifically what he means by “taking away their monetary policy responsibility," or even “requiring them to focus only on inflation," another dissenting voice is a good start.

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