The Federal Reserve Debates Itself

“A global economy requires a global currency."
“I fully support a single global currency.” Paul Volcker in 2007


Vanderbilt University in Nashville held a financial research conference on April 18 with headliner and ex-Fed chairman and current Obama advisor Paul Volcker sparing with Vice Chairman Donald Kohn and New York Fed chief William Dudley on the Fed's policies.

It was a scripted, controlled event aimed at lulling the public into thinking that there is an actual debate within the financial elite on the state of the economy and how to reverse the downturn.

Volcker is quoted;

...the U.S. economic recovery will be a "long slog" but that the rate of decline "is going to slow."

a "long slog" but that the rate of decline "is going to slow."

"None of us has seen a decline in economic activity at the rate of speed seen late last year."

"The lack of a good strong recovery works against a strong financial system," he said. The financial system "is not quite comatose, but it's on life support."

Volcker said a review the Federal Reserve's role, something traditionally regarded as taboo, now seems inevitable given the fallout from the long-running financial crisis.

"For better or worse, we are at a point where the Federal Reserve Act is going to be reviewed," said Volcker.

The wide range of proposals, from giving the Fed much more supervisory authority to stripping it of part of its current authorities, "are just an indication of how wide open that question is going to be." {more}

Would that review include passage of H.R.1207 Federal Reserve Transparency Act of 2009?

To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.

It's highly unlikely. Send an email to your congressman urging support of this bill and see what the response is.

In an interview the former Chairman of the Federal Reserve, Greenspan, admits that the Fed is above the law and answers to no one. That's exactly how they intend to keep it.




A true debate on the Fed would include outsiders who have the questions that the Fed does not want to answer. Consider Steve Lendman in his analysis Barack Obama: Crime Boss and wonder how the Vanderbilt conference sparks would have flown had Mr. Lendman, or any number of Fed opponents, been invited and allowed to present an opposing viewpoint.

The insiders of the Federal Reserve can debate among themselves all they want, creating an illusion of openness, but the bottom line is that the secrets of the federal reserve are not to be exposed in public discussion where the masses might finally understand the workings of this criminal enterprise.

The 'higher' education institutions, as Vanderbilt did yesterday, the controlled Congress and the media will see to it.