Ron Paul vows renewed Fed audit push next year

WASHINGTON Thu Nov 4, 2010 6:14pm EDT

Texas Congressman Ron Paul speaks at the 2010 Southern Republican Leadership Conference in New Orleans, Louisiana April 10, 2010. REUTERS/Sean Gardner

Texas Congressman Ron Paul speaks at the 2010 Southern Republican Leadership Conference in New Orleans, Louisiana April 10, 2010.

Credit: Reuters/Sean Gardner

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WASHINGTON (Reuters) - Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January.

"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."

Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy, and is likely to head the panel when Republicans take control of the chamber in January.

That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.

Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.

"It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.

Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.

Global organizations like the International Monetary Fund also will come under scrutiny, he said.

"Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.

Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.

"With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.

(Editing by Cynthia Osterman)

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Comments (67)
Bludde wrote:
Fed Chairman Bernanke announcement of 600b plus in Tsy purchases, sent several signals on the 3rd..
1. To Wall Street speculators that its ok to borrow indirectly from the Fed to buy commodities. Sock it to the people (main street). Already crude prices have risen about $7 per bbl and gasoline some 10 cents per gallon..
2. To the Obama administration that wider trillion plus deficits are ok because the Fed stands ready to “monetize”
a slap in the face to Main Street. Struggling to pay rents and mortgages, now will have to choose betwen the high price of gasoline and food on the table. Some will lose their only mode of transport..
These and other outrageous “ivory tower” decisions by academics with no “reality connection”, warrants impeachment… Indeed I hope Congress will wake up and abolish the FED and instead mandate a 3% interest rate on deposits. This will “hurt” the Soros and Buffett’s of this world BUT will be a boon to the retired, their savings fast disappearing under zero rates and bank charges.. and will have zero imopact on the high 11% interest rate currently charged

Nov 04, 2010 6:40pm EDT  --  Report as abuse
JohnPD wrote:
What difference does it make what cut and run says. He has been in congress for about 30 years and has gotten absolutly nothing done, except collect as many earmarks as possible, the ones he says he is against.

Nov 04, 2010 7:18pm EDT  --  Report as abuse
kenstepp wrote:
I’m amazed they haven’t caused Dr Pauls plane to crash or something. I hope he wins his fight to audit the fed. They are criminals.

Nov 04, 2010 7:28pm EDT  --  Report as abuse
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