Rand Paul: I’ll Block Yellen Unless My Bill Gets a Vote

The Wall Street Cheat Sheet has the article Rand Paul: I’ll Block Yellen Unless My Bill Gets a Vote.

Procedurally, Paul could only stop a vote on Yellen’s confirmation if he had the support of 40 other Senators in the body. CNBC reported that the junior senator from Kentucky released a statement saying he would tie voting on confirmation of the new Fed chair to voting on his own bill, the Federal Reserve Transparency Act, an effort that would remove current oversight on the Fed and institute a system of audit involving figures from Congress. The measure would effectively limit the U.S. central bank’s independence.

The Republicans’ appetite for making fools of themselves seems insatiable.  Can you imagine giving the dysfunctional Congress any type of oversight for the Fed?

If Rand Paul could have forced the Fed to go by his policies since 2008, we’d now be in such a deep depression that their would be breadlines all over the country and there would be 25% unemployment.  How could I make such a prediction?  The policies that Rand Paul endorses were exactly the policies that were followed until FDR took office in 1933, and the result I described was exactly what happened then.  Ben Bernanke has had the Fed following its current policies exactly because Ben Bernanke is a deep student of what went on in the Great Depression.  Even Milton Friedman blames these policies for causing the depression.  Of course Milton Friedman did fudge the data so that he could blame it all on monetary policy and deny the need for fiscal policy too.  That little bit of subterfuge is what won Friedman his Nobel prize in Economics.

If you want to get an idea where compromise with Rand Paul will get us, see my graphic depiction at Why We Should Not Always Just Compromise.

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