When the truth hurts

More representatives rightly want to know where trillions in Fed spending has gone.

While Congress has been debating the merits of billion-dollar bailouts and recovery packages, the private Federal Reserve Bank has lent trillions of taxpayer dollars to myriad other private banks, and you donâÄôt get to know who they are. The board overseeing the federal governmentâÄôs bailout just calculated that the roughly 50 initiatives and programs set up by the Bush and Obama administrations, as well as by the Federal Reserve, aiming to stem and combat the fiscal crisis cost an unfathomable $23.7 trillion. Much of the spending is paid through the incursion of public debt securities at our central banking apparatus. Some fear the dollar will simply collapse under inflationary pressures. One of those worried about the sustainability of our fiscal practices is Rep. Ron Paul, whose Audit the Fed bill, HR1207, now has 275 co-sponsors, including 75 democrats. At his semiannual report to the House Financial Services Committee yesterday, Fed Chairman Ben Bernanke defended the Fed against the call for full public audit powers, arguing that while the American people have a right to know how the Fed is operating, âÄúreviews or the threat of reviews in [monetary policy] areas âĦ could raise fears about future inflation.âÄù Bernanke and a few other establishment economists would have us believe the truth is too dangerous and that such an audit threatens the FedâÄôs ballyhooed independence. No language in HR1207 or S604, the Senate version authored in part by socialist Bernie Sanders, asks anything more than Fed transparency. Regardless of BernankeâÄôs fear-mongering, there is no avoiding inflation thanks to the myopic spending habits of the Fed. Bernanke was right the first time: The people have a right to know the truth, however shocking the Fed has allowed it to become.