Without the Federal Reserve’s relentless expansion of credit throughout the 1990s and early 2000s, there could have been no excessive borrowing or explosion of subprime lending. Through easy credit, the Fed initiated the economic boom that created the dot-com bubble. When that bubble burst the Fed pumped additional liquidity into the system, which led to a new boom that created the housing bubble. Commodity prices have risen rapidly, producer prices have followed suit and consumers are already seeing the beginning of massive price increases passed on to them. And now the Fed’s additional trillions of dollars in monetary pumping is creating yet another bubble. This is the exact opposite of stability in the marketplace and has nothing to do with free markets. It is central economic planning at its worst. And the end result may be hyperinflation and the destruction of our currency.
Now Americans are waking up to the dangers of the Fed’s inflationary monetary policy, and they want it to stop. Today’s staged press conference will not be enough to stop the growing demand for real Fed transparency, and I hope to build on that grassroots demand by passing legislation that will result in a true audit of the Fed’s activities.
Support from my colleagues was vital in the last Congress in making progress towards Fed transparency, and I hope to build on that support in this Congress. It is well past time that we begin to rein in the Fed.” – Congressman Ron Paul