This is interesting ... Jim Grant, editor of Grant's Interest Rate Observer, told CNBC that the Federal Reserve would be shut down if audited!
If the Fed examiners were set upon the Fed's own documents-unlabeled documents-to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down. The Fed is undercapitalized in a way that Citicorp is undercapitalized.
Hey, I'm all for it. Let's shut down the Fed!
He also criticized the Fed's handling of the "crisis":
I think zero is the wrong rate for almost any economy. [The Federal Reserve has] embarked on a vast experiment in moral hazard. Interest rates are the traffic signals in a market economy, and everything's green. ... You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank.
Grant supports Rep. Ron Paul's HR 1207, The Federal Reserve Transparency Act of 2009 (which now has 213 sponsors!). The Federal Reserve controls the entire money supply in America. It's about time "we the people" get to learn what's been going on!
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