Bernanke is asked about a Fed audit...

Video - National Press Club Q&A - February 03, 2011

Another first for DB readers. Thanks to Dr. Pitchfork, here's a clip from this afternoon's speech that was just posted to Youtube. No other sites have published it yet. Quoting Bernanke:

"The Dodd-Frank legislation...has basically created a completely transparent Fed, as far as the financials are concerned."

Even I'm shocked by this blatant lie, and I'm cynical and jaded. He makes it up as he goes along and shovels it to the faithful. Let us continue with Bernanke's distorted view of transparency:

"Currently, every program that we initiated during the crisis has been completely open to the GAO. All the information has been provided to the public.”

"On December 1st, we put out a complete record of all 21,000 loans that we made during the crisis....explaining...who was the borrower, what was the collateral....All that information was provided.”

"Every aspect of the Fed’s financial dealings are wide open.”

All of the above quotes are absolutely untrue. Indeed, they have NOT provided all the information, in particular information about collateral. The information they provided in regard to Dodd-Frank only lists a dollar amount for the loan, along with the face value of the collateral – but we have NO IDEA what kind of collateral was used or how it was valued. Bernanke just flat out lied here.

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Look out. Here comes the diversionary, false argument that 'monetary policy independence' is somehow now in jeopardy...

“What Audit the Fed means, in the language that has been used by some members of Congress, is not about the financials of the Fed. Rather, it’s about, quote, auditing monetary policy."

“[T]he GAO would be assigned by the Congress to look at monetary policy decisions, to take the materials prepared for the [FOMC] meeting, to depose, potentially, the members at the meeting, to essentially provide an evaluation to the Congress at very short horizons of whether or not the Fed was making the right monetary policy decision.”

“[Auditing the Fed] has nothing to do with financials. It would be very much a significant step towards direct congressional oversight of the decision-making process itself.”

No one. I mean, NO ONE, who favors an audit of the Fed wants Barney Frank and John McCain running our monetary policy. Ron Paul has made it crystal clear that his Audit the Fed bill has NOTHING to do with monetary policy, and there is nothing in the bill that suggests otherwise. Moreover, the release of FOMC minutes will be delayed by several months to a year before disclosure. Again, Bernanke is just making things up.

And the uninformed, gullible denizens of our Republic turned Debtopia notice nary a word. Say what? Who's Ben Bernanke. $700 billion for a TARP? Where the hell do you buy your camping gear.

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However, Ron Paul does know who Bernanke is...

Video - Texas Straight Talk - Dec. 13, 2010

Ron Paul Lectures Bernanke: U.S. Moving Towards Fascism

House Monetary Policy Chairman Ron Paul says go back to Princeton, Ben...

Give Us Fed Transparency Or Give Us Death (Op-Ed - Ron Paul & Jim Demint)

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A Full and Complete Audit of the Fed in 2011

By Chairman Ron Paul

Since the announcement last week that I will chair the congressional subcommittee that oversees the Federal Reserve, the media response has been overwhelming. The groundswell of opposition to Fed actions among ordinary citizens is reflected not only in the rhetoric coming out of Capitol Hill, but also in the tremendous interest shown by the financial press. The demand for transparency is growing, whether the political and financial establishment likes it or not. The Fed is losing its vaunted status as an institution that somehow is above politics and public scrutiny. Fed transparency will be the cornerstone of my efforts as subcommittee chairman.