Campaign for Liberty Statement on the Fed’s European Bailout

Below is a statement on the latest Federal Reserve actions concerning the financial crisis in Europe:

Late Sunday, we learned that the Federal Reserve opened a program to ship U.S. dollars to Europe in an attempt to avoid the spread of a financial crisis occurring in that region.

The United States, through the International Monetary Fund, has already pledged the bulk of a $1 trillion aid package to bailout the euro, which is suffering due to the Greek debt crisis. This latest move only further confirms suspicions raised by Congressman Ron Paul in his questioning of Fed Chairman Ben Bernanke at an April Joint Economic Committee hearing.

Chairman Bernanke responded with annoyance at the suggestion of the Fed being involved in bailout discussions about Greece, but it has proven to be the case as the Greek crisis continues to drag down the rest of Europe.

Campaign for Liberty has been sounding the alarm about greater Fed transparency. This latest crisis is just a prelude to something much more expansive, so it has never been more critical we know what our central bank is doing.

Greece and the majority of European nations are an example we have yet to take to heart here in the U.S. Our government has been living beyond its means for far too long and delaying the needed corrections through manipulating monetary policy, making the ultimate outcome much worse and prolonging the agony once it arrives.

We must take heed from the example of some of the worst tendencies of Keynesianism now on display. Our leaders continue to believe that spending more money we do not have will get us out of the hole we are in, due to spending money we did not have propping up systems that are unsustainable.

Campaign for Liberty demands that Congressman Paul's H.R. 1207 and its companion, S. 604, which require a complete and thorough audit of the Federal Reserve by the Government Accountability Office, be given an up or down vote as a standalone measure.

Campaign For Liberty | 5211 Port Royal Road, Suite 310, Springfield, VA 22151 | (703) 865-7162 (V) | (703) 865-7549 (F) Posted by Gary Howard on 05/11/10 10:11 AM