US Fed needs shielding from politics: Geithner

[OhioChick]

Source: Reuters

27 Aug 2009, 0343 hrs IST, REUTERS

WASHINGTON: US Treasury Secretary Timothy Geithner said on Wednesday the Federal Reserve should further increase its transparency, but its monetary policy activities need to be shielded from political influence.

Geithner did not endorse proposed legislation that would enable the Government Accountability Office to audit the Federal Reserve.

"You want to keep politics out of monetary policy," Geithner said, adding the Fed already has strong congressional oversight.

"The Fed is dramatically more transparent than it was, is subject to very comprehensive oversight and audits, but there are certain things about what the Fed does that again you need to make sure you preserve as independent of political influence, that is free of political influence, and that is a line that we don't want to cross," Geithner said.



Read more: http://economictimes.indiatimes.com/Fed-needs-shielding-from-politics-Geithner/articleshow/4938929.cms

[sofa king]

1. "You want to keep politics out of monetary policy."

Man, if we lived by those words, the world would be an entirely different place. But it ain't, so I think that's called a "platitude."

Edit: I've got a cookie for the first Walt Kelly reference!

[zbdent]

2. you mean like ...

December 2000, 43 whispers into Greenspan's ear ...

December 2000, Greenspan screams "PANIC! MUST LOWER (symbolic) INTEREST RATES TO NOTHING! WE'RE ALL GOING TO DIE!" ... really encouraging saving by average Joe by giving him or her crap for saving money ...

[bemildred]

3. I think politics very much belongs in economic policy. Top to bottom.

Economic policy needs to be accountable to the people, and politics is the only way to do that.

[Demeter]

4. Start By Keeping Out the Crooks--Like Goldman Sachs Hangers-On

That's YOU, Timmy! and your chauvinist friend Larry, too!

[Babyserendip]

5. EVERYONE SHOULD BE JUMPING ON THIS....and BARNEY FRANK.

Barney is holding up the Federal Reserve Audit Bill (HR 1207) in committee...even when the bill has 274 co sponsors!! When was the last time that has happened!

There is no bill more important to the fate of the U.S. economy and with it the fate of the American people than HR 1207.

You must understand exactly why the true capitalist elite are terrorified of this bill - including those elite within the Democratic party. It will completely destroy their hold and control on broad investment in the United States, and their duplicitous trades off that overseas, think labor arbitrage, etc.

With HR1207 and the eventual end of the Federal Reserve....investing in the United States (not just buying our paper BS bonds that does nothing for the American people) will be the greatest investment opportunity in over a 100 years. Waves of foreign equity capital (not debt purchases) post HR 1207 will come to the US as if it was the 1880s all over again. We will find ourselves on par with China and others in a way that was a true reset...and with it flush down the toilet a whole class of elites that want nothing more to just hold us down....where they can arbitrage the American peoples ignorance.

HR1207 has broad bi-partisan support. There is NO QUESTION this bill can pass the House and Senate VETO proof. PLEASE CALL AND HARASS BARNEY FRANK & THE WHITE HOUSE....to STOP STANDING IN THE WAY OF HR 1207.

[Oregone]

6. I couldn't be laughing more.

No really...a few beers and this is funny....Geithner



Hey? Who's watching the Watchmen, eh?

[Metta]

7. Code for lack of oversight. Saying we can trust them. ... right.

To not put any of them in prison for running the country off the rails. Or for ongoing greed and corruption.

[Nikki Stone1]

11. Exactly.

:kick:

[dixiegrrrrl]

8. I think Timmy means the Constitution

taht piece of paper that gives Congress the sole right to set monetary policy and coin money.
That "quaint" piece of paper that has been ignored for all the years that the Fed. Reserve usurped it.
The written laws that say Congress HAS to have orversight over the Treasury.

Yeah, I can understand why Timmy and the Gang would want plocitics out of his way.

[unkachuck]

9. "You want to keep politics out of monetary policy,"

....why didn't you kindly inform us of this 8 years ago before the current crisis, the current looting of the treasury, the current depression and the current bankrupting of our nation?

"...again you need to make sure you preserve as independent of political influence, that is free of political influence, and that is a line that we don't want to cross..."

....repugs have crossed and trampled upon that line long ago....I think what you're saying is that big-banking and wall-street should continue to be free to do as they please with help from their friends at the fed....

....and us unwashed grassroots Dems don't need to be looking over their rich corporate shoulders....'at a boy, timmy

[alittlelark]

10. Holy SH*T. I cannot believe the level of Arrogance

in his statement.