Under questioning from Rep. Jeb Hensarling, Fed chairman Ben Bernanke perjured himself by claiming that the Federal Reserve would not monetize the debt. It has been pointed out by several market commentators including Karl Denninger that the Fed inflated the money supply just last week by purchasing securities issued by the Treasury. Their fingerprints were left on $4.8 billion which was traced through the unique identification number issued by the Committee on Uniform Security Identification Procedures (CUSIP).
The Fed is feeling the increasing pressure which we the people are placing on it. They have sent Bernanke out on a public relations tour to try and improve its image. However, when asked where the Fed is putting our dollars, he is unable to give an honest answer and instead he tries to tell us that we don’t understand monetary policy.
The argument for an audit has become stronger in the wake of the extraordinary and unprecedented steps the Federal Reserve has taken in response to the market turmoil that began two years ago. Among them: the Fed has printed hundreds of billions of dollars to purchase what are delicately called “troubled assets”; it has created mammoth Wall Street bailout funds with acronyms like CPFF and TALF.
Meanwhile, the courts have rebuffed a request by Fox News under the Freedom of Information Act to obtain a copy of the Fed’s balance sheet.
A federal judge ruled against Fox News Thursday in a key Freedom of Information Act case involving bailout-related documents held by the Federal Reserve Board.
Judge Alvin K. Hellerstein in the U.S. District Court in Manhattan ruled that the Federal Reserve Board in Washington had properly withheld more than 6,000 pages of documents from Fox because the records fell under the FOIA exemption protecting trade secrets and confidential information.
Fox sought information about the Federal Reserve’s emergency lending program, known as the discount window.
The tide is turning against the central bank and its crooked cronies. 75% of the public supports auditing the Fed, according to a recent Rasumussen poll. Since a liberal judge has blocked the measure in court, we should push legislation over the finish line in Congress (H.R. 1207 in the House and S. 604 in the Senate).