The Banker’s Lament: ‘We Need Independence’

In a recent Congressional testimony, via the Vice Chair of the Fed, the central bankers repeated their sob story about their need for independence and how a more transparent Fed would stifle debate among those who set economic policy. This is forming the basis of their argument against an audit of the Fed. See video below:

The George Washington blog pointedly explains why this argument is false:

Congress is elected by the people, and the people can throw the bums out if they don’t listen to the people’s demands. So even though most congress members are political hacks, they are subject to at least some accountability.

The Fed, on the other hand, is subject to no accountability. The Fed is refusing to provide Congress any information on where the trillions of dollars it has handed out have gone. The Fed is also refusing to disclose what toxic assets it has taken from the banks and put om its own books.

And there are a few congress people who actually have the best people’s interests in mind, and want to hold the Fed accountable – on behalf of the people.

What the Fed is really arguing is that it should not have to answer to the American people. [Even though they're extracting and profiting off the American people's money while the nation collectively sinks into another depression]

America’s struggle to hold central bankers accountable for the economic policy they set and the consequent economic boom and bust cycles they create is nothing new. A close look at the amount of money-creating/economy-destroying power that is enshrined in the Fed will reveal that most often what the central bankers want is not independence, but rather complete secrecy. This is why the early Founders of this nation explicitly wrote into the U.S. Constitution that it is Congress, not private central banks that shall have the power to “To lay and collect Taxes…to coin money…[and] To borrow money on the credit of the United States.”

But again, central bankers need the “independence” to be able to speak openly while completely hiding all of their actions. Just look at all the good things this has brought us:

According to many PhD economists (such as Marc Faber), the Fed caused this economic crisis, as well as the Great Depression.

The Fed has also replaced assets with some real value with toxic derivatives on its balance sheet, in order to act as a giant garbage disposal for the big-stakes gamblers at the giant banks.

And the Fed makes trillions of dollars in profits for its member banks by creating credit which the U.S. government has every right under the Constitution to create itself. In other words, the Fed’s member banks get trillions in interest charges from the U.S. government and the taxpayer which would not be incurred if the government created the credit and money itself.

The Fed has also violated the Federal Reserve Act and other laws. In what ways? Well, I can guess at probably 10 or more categories of unlawful activity off the top of my head.

But we’ll have to await a real audit to get the full list.

So we’re all really sad that the bankers might soon lose what they call their “independence”. Here’s a song to cheer them up from one depression era to another:

(Woody Guthrie – “Jolly Banker” Aka “The Banker’s lament”)