Hacker News new | ask | show | jobs
by cconroy 2913 days ago
@JumpCrisscross how independent are they really? The fact that they will not entertain a thorough audit is in itself instructive. Perhaps central banking is too "centralized" and susceptible to corruption even in a well-run system like the Fed (the fact that the dollar is the reserve currency and they fight inflation ruthlessly too the detriment of employment). Perhaps a p2p software system could help ;)
1 comments
JumpCrisscross 2913 days ago
> they will not entertain a thorough audit

The Fed is audited by the GAO, the OIG, outside auditors, and its Board [1]. Its balance sheet is published weekly and closely scrutinized by the investing public as well as every bank.

> they fight inflation ruthlessly too the detriment of employment

The Fed has a dual mandate. Its post-crisis journey has been one of trying to stoke inflation.

[1] https://www.federalreserve.gov/faqs/about_12784.htm

link
cconroy 2913 days ago
You're right when I used the word I was referring to "Audit the Fed" slogan à la Bernie Sanders & Ron Paul. The bill in question that was striked down is here [0].

The bill's purpose

> ...If enacted, the bill would also have ensured that the

> audit results would be available to Congress. The audit

> would include the Fed's "discount window", its funding

> facilities, its open market operations, and its agreements with foreign bankers. [1]

[0] https://en.wikipedia.org/wiki/Federal_Reserve_Transparency_A...

[1] https://en.wikipedia.org/wiki/Federal_Reserve_Transparency_A...

link
JumpCrisscross 2913 days ago
> audit results would be available to Congress

This would effectively end the Fed's political independence. Agreements with foreign bankers seems acceptable, though even then it would be better to release it to a committee after a delay.

link
dragonwriter 2913 days ago
> Its post-crisis journey has been one of trying to stoke inflation.

Well, “avoid deflation” would probably be more strictly accurate.

link
AnimalMuppet 2913 days ago
The problem is that they're a gnat's whisker away from deflation. They want to stoke (some) inflation to give them a bit more maneuvering room.
link