Politico reports that: Rand Paul traveled to Des Moines, Iowa, recently and delivered a sure-fire applause line. “Anybody here want to audit the Fed?” the Kentucky senator asked. “Anybody feel that the Fed’s out to get us?” He followed it up with an op-ed comparing the Federal Reserve to Lehman Brothers and calling it essentially bankrupt. The bash-the-Fed routine, perfected by Paul’s father, former Texas congressman Ron Paul, is political gold with libertarian voters suspicious of all federal authority, especially a central bank with a $4.5 trillion balance sheet. But Paul could face a significant challenge if he emerges from
The New Republic, in its February 8th issue, carries an article by Danny Vinik entitled Rand Paul Has the Most Dangerous Economic Views of Any 2016 Candidate. It appears that TNR’s fact checkers decamped along with its top journalists. Vinik: Speaking in front of more than 150 Iowa activists, Paul ripped into the Federal Reserve and promoted his “Audit the Fed” bill, which he introduced earlier this week. “I think there needs to be some sunshine,” he said, according to reports of the event. … Paul’s bill …would significantly damage the Fed’s independence, which exists so that politicians cannot influence
The Hill is reporting Sen. Rand Paul’s “Audit the Fed” bill is gaining momentum: “The ‘Audit the Fed’ movement has grown from an oddball pet project of former Rep. Ron Paul (R-Texas) into legislation that was passed with broad bipartisan majorities in the House two Congresses running, before stalling in Democratic-led Senates,” notes The Hill, which calls the prospect of Congress passing the measure “more real than it has ever been before.” The Hill, and presumably pro-Fed Democrats, are particularly perturbed by the fact that one Democrat, Hawaii’s Sen. Mazie Hirono, has signaled support for the bill, with an argument based not
It isn’t often that I agree with Paul Krugman. But on Friday, Krugman devoted his NYT column to the idea that “[m]onetary policy probably won’t be a major issue in the 2016 campaign, but it should be.” Well, Krugman got it half right anyway. In truth, not only should monetary policy be a campaign issue, it already is. Last week we watched Bobby Jindal force everyone from Chris Christie to Jeb Bush to start talking about Common Core. In a press release last week from American Principles Project, we called this “The Jindal Effect.” Maybe we should start talking about
In a Bloomberg article from February 12, Senator Rand Paul discussed his views on Bitcoin and other alternative currencies. He stated that his concern with Bitcoin “was whether or not something has real value. I could imagine a kind of coin that was exchangeable.” He felt that if Bitcoin, “Wal-coin,” or a similar company currency was exchangeable for stock in that company, it would give real value to the currency. That currency would, in Sen. Paul’s opinion, raise profit margins for those companies, which he believes would be an interesting prospect. You can read the full story here.
On February 5, The Hill reported on criticism of Senator Rand Paul’s Audit the Fed bill. In response, Sen. Paul was quoted as saying, “Citizens have the right to know why the Fed’s policies have resulted in a stagnant economy and record numbers of people dropping out of the workforce.” You can read the full story here.
In an orchestrated orgy of protests, Fed governors and regional bank presidents have roasted Sen. Rand Paul and his co-sponsors for reintroducing a bill mandating an audit of the Fed. Loretta Mester, president of the Cleveland Fed, wants us to know that such a thought is “misguided.” Why? “They really are about allowing political considerations to influence monetary policy decisions,” she said in a speech in Columbus. “This would be a tremendous mistake, because it would ultimately lead to poorer economic performance.” What performance? Presumably the Fed wants a pat on the back for the zero-interest-rate policy of the last