Johnson does not want to audit the Fed – he wants to abolish it!

by Aya Katz

In a recent interview on Kitco News, Gary Johnson stated that he would gladly sign legislation to abolish the Federal Reserve. On the other hand, the Libertarian presidential candidate had grave misgivings about merely auditing the Fed, warning that might cause an economic panic.

While auditing the Federal Reserve is a staple plank of the liberty movement, long fought for by Ron Paul, abolishing the central bank would solve more problems than a mere audit. Auditing would imply that the federal government’s grant of a monopoly on issuing fiat currency to a semi-private bank is constitutional, as long as that bank behaves prudently. But abolishing the Federal Reserve would return us to a constitutionally lawful mode of banking, and could allow for competing currencies and the gold standard to create a stable currency market based on supply and demand.

While Gary Johnson, as Libertarian candidate to the presidency, has a calm and almost self-effacing manner, what he said in the interview is revolutionary. He acknowledged that in all likelihood the current Congress would oppose abolishing the Federal Reserve, but he said: “If Congress were to submit legislation to do so … Yeah, I’d sign it.” When questioned about auditing the Federal Reserve, however, Johnson replied: “It could cause a world-wide panic …The issue is just the shock. How many assets are they holding? … What percentage of government bonds are they buying….?”

Johnson’s approach is pragmatic. He knows that the Federal Reserve is engaged in unsound business practices. To publicize the corruption at the central bank would destabilize the market. But abolishing the Federal Reserve altogether would solve the underlying problem, leading to real fiscal responsibility and a stable market based on supply and demand.

For a mild-mannered candidate who causes very little drama, Gary Johnson is capable of entertaining some very big ideas! He understands that none of these plans can take place without the support of a majority in Congress, but he will act on libertarian principle within the framework of our constitutional form of government. What more can we ask of a candidate for the presidency? Do either of the other two major parties have anything to offer compared to this?



