New Branch of Govt.

Reader comment on: Fleckenstein on the Fed

Submitted by J.Johnson (United States), Nov 5, 2010 15:20

Let's see. According to the Constitution, we have the Executive, the Legislative and the Judicial branches of government, except that now we also have the newest branch too, the Federal Reserve, and our newest branch has, it surely seems, as much or more power than the Executive and the Legislative combined when it comes to decision making affecting our economy. I cannot conceive of the founding fathers approving of so much power in the hands of people who are so unaccountable. How is it that we need the Fed in America but most other countries get along just fine without one as powerful as ours? The original justification for the Fed was that it would add stability to the banking system and the economy and its record of success on that point is mixed, at best. No doubt the U.S. Congress won't abolish the Fed, but they should at least find the gumption to start making the Fed explain its actions often, and in plain English, and keep a close watch on how the Fed's projected outcomes square with actual outcomes. They also need to rotate the Chairmanship and Board of Governors more often and have some Treasury officials who vote on the Board of Governors. Bernanke and his Governors have done everything possible, including lawsuits, to conceal which banks they aided and/or continue to aid. That should end immediately and would end if the Congress demanded transparency.

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