Show: Glenn Beck Program
Host: Glenn Beck
Glenn Beck: Why would we consider it’s sane to give new powers to the Federal Reserve? Yeah, you’re right. It’s not. Republican Senator Jim DeMint is here with us. Senator, how are you, sir?
Jim DeMint: Hey, Glenn, I’m doing great.
Glenn Beck: So help me out. Why in our wildest dreams would we consider giving the Fed, which there’s no transparency whatsoever, more powers to regulate our economy?
Jim DeMint: Well, I’m glad you’re bringing this up and Ron Paul has the right idea on this. The Federal Reserve is supposed to be an independent agency that guarantees the value of our money by managing the money supply, but it has gotten involved in so many other things, regulating our banks, making it harder for them to lend money and at the same time, the Treasury is pushing TARP funds into the banks. They’re starting to monetize our debt, which is basically printing more money than we’ve every printed before.
Glenn Beck: When you’re saying printing the money, their books, we believe that there’s $9 trillion in Fed transactions, but they’re only admitting to 2 trillion and when Congress asked them up the Hill to explain, Bernanke declared something called the Banker’s Privilege, which means they don’t have to answer.
Jim DeMint: Right.
Glenn Beck: Well, what are we doing?
Jim DeMint: Well, the current law apparently does not give us the authority, our comptroller general, to actually audit their books and that’s what Ron Paul has introduced in the House and I’ve introduced in the Senate along with Bernie Sanders, of all people, the ability to audit the Federal Reserve, all aspects of the Federal Reserve, so we can see what they’re doing because we’re questioning their independence. They’re working now with the Treasury and there’s a lot of suspicion that’s well founded that the Federal Reserve has gotten out of control like the rest of our government.
Glenn Beck: You know, I have to tell you, you know, everybody in Washington always talk about a big tent. If you’ve got Ron Paul who is a libertarian, you have Bernie Sanders who is an avowed Socialist, not like… “oh, Glenn is calling somebody..” he’s a Socialist, he admits to that, and then you, one of the only real conservatives in Washington, that’s a pretty big tent. What are the odds that you’re going to be able to wrangle the Fed?
Jim DeMint: Well, we’ve already got 237 House members, enough to actually pass it in the House if we can get Pelosi to bring it up and I think if we can get that much attention on this bill, I don’t believe Senators could vote against it if people knew what they were voting for because everyone is suspicious of the Federal Reserve and I am too.
Glenn Beck: You should be.
Jim DeMint: And I’m just hoping that we can get a clear audit because this is… our money supply, the value of our money, Glenn, our whole economy rides on it and I’m worried that in doubling our money supply over the last year and this plan to withdraw money as our economy improves, I don’t think they can pull it off. We need to know what they’re up to and so Ron Paul, Bernie Sanders, they got the right idea.
Glenn Beck: Okay. All right. So Senator, let me say something risky here. I mean, why not? It’s the Glenn Beck show. Let me say something risky.
Jim DeMint: Oh, yeah. That wouldn’t surprise me.
Glenn Beck: I think you guys are losing power. I think Congress… I think you guys are going to find yourselves in a box if you don’t stop the czars and Fed and the Treasury, the executive branch is going to be all powerful and you guys are… I mean, does anybody is seeing this, what’s happening here. That we’re building a regal executive branch that answers to no one really?
Jim DeMint: Well, yeah. We all see it. The Democrats who are the majority now in the House and the Senate like it because they tend to agree with the executive branch.
Glenn Beck: But wait… but Senator, I mean, can’t you explain to them that the next time, you know, their guy is out of office, they’re going to hate it just as much as they hated it with George W. Bush. This is a very bad idea.
Jim DeMint: It is a bad idea and you’re right that Congress is playing in to their hands. I mean, we’ve given Treasury $700 billion as a slush fund that we thought they were going to bail out banks and they bought General Motors and Chrysler. It’s really out of control. They’re not following the rule of law. We’re way out of the bounds of any constitutional framework and now, we’re going to try to give more power in healthcare to the executive branch and so we’ve got to put on the breaks and I’m glad to see Americans standing up everywhere and saying “enough is enough” and I’m hoping we’ll see a lot more tea parties on July the 4th because if Americans don’t stand up, we’re not going to be able to stop what’s happening here.
Glenn Beck: And a lot of Americans are frustrated, Senator. They just don’t feel like anybody is listening to them in Washington. I know you have and you’re one of the few people that I ‘ve actually trust in Washington. Fannie Mae and Freddie Mac, these guys are really responsible for a lot of what is going on in our economy. There isn’t one word in this new financial regulation, not one word about Fannie and Freddie. They had 200 people looking over their shoulder and they didn’t see it coming. Is this financial regulation going to pass?
Jim DeMint: I hope not. It’s just another power reach by the Federal government. It ignores what really caused the problems, which were bad government policies, bad Federal Reserve policies, and the fact that we’re continuing to push the reform of Fannie Mae and Freddie Mac and hopefully the breaking up and privatization of them, we keep pushing that down the road while we expand government supervision. The government is not going to stop the problems we’ve had if we don’t recognize that we created all these perverse incentives seen in the financial market and the markets were just following government policy.