Former Fed Governor Frederic Mishkin Says the Federal Reserve Being Held Accountable for its Actions is “Incredibly Dangerous”

Didn’t he say it that way? Actually, yes he did, just using different words.

In a Bloomberg Radio interview, Mishkin stated: “It is remarkable the kind of attacks that are occurring on Fed independence.”

Think of that in terms of the economic crisis we’re in. It makes you feel good that the Federal Reserve was independent leading up to it, doesn’t it. How about the non-accountable independent Fed arbitrarily handing out money to all the huge corporate beggars looking for a hand out. Does that make you feel good the Federal Reserve is independent?

The attack on Ron Paul’s legislation to audit the Fed, which has the backing of over 300 lawmakers, is an attempt to roll things back to the pre-crisis Fed which blindly watch it all happen. This is why there’s needs to be transparency and accountability.

Bernanke and other Federal Reserve Chairman have unprecedented authority to make deals behind that scenes with no one really knowing what’s going on. If you as me, that’s what’s dangerous, not the idea that they’re going to be held accountable for their actions, or in the case of the Ron Paul bill, even know what the actions of the Federal Reserve are.

Even the President, theoretically, can’t make the types of decisions and deals the cloak and dagger Fed does all the time. Just ask the question on why they’re battling this so hard. They don’t what their actions to be brought forth to the public or political eye.

This was obviously a hit piece or interview with Mishkin, as he continued to use the word dangerous and damaging in reference to the consequences he alleges would happen if the bill passes. Tactics like this are common, and other than Mishkin using tired old idea of Fed independence and inflation, there was nothing much else he said that could be called dangerous, other than repeating it enough to try to associate it with the audit and Ron Paul.

That way the name Ron Paul, audit and dangerous and damaging start to circulate in the minds of people. Again, an old tactic, but not a convincing one in this case.

Bernanke, in his recent article in the Washington Post, said the audit and other proposals to cut back on the authority of the Federal Reserve to supervise the banking system independently could “seriously impair” the economy in America.

Let’s see. Do you mean like happened when you weren’t be reined in? When you were doing whatever you wanted, how you wanted? I can’t believe Bernanke could seriously utter those words without a laughing machine in the background.

We have one of the worst economic crisis the nation has ever faced, largely brought about by the monetary policy of the Federal Reserve, and Bernanke is arguing for business to remain the same as usual.

As far as Frederic Mishkin, he seems to be the only friend Bernanke could find to back up his atrocious incompetence. The biggest “danger” from the audit is supposedly inflation. But inflation comes from printing money. Printing money hasn’t stopped under Bernanke.

What Mishkin is basing his inflation assertions on are how the Federal Reserve would react in the short-term from political pressures on interest rates.

But Mishkin knows the bill from Ron Paul already has some provisions in it to protect that from happening, so this isn’t at all about short-term influence or inflation, as Mishkin is saying, it’s about megalomaniacs who have had extraordinary power unchecked by the Congress and people of the United States. It’s far past time this power is reined in and a light brought on secret workings of the Federal Reserve.