Dr. Ron Paul’s latest “Texas Straight Talk” gives a report on the progress of H.R. 1207, his “Audit the Fed” bill that would audit the Federal Reserve for the first time in decades. He also addresses the bill’s critics, and presents a sound argument for why an audit the the Fed should occur:
The main argument seems to be that Congressional oversight over the Fed is government interference in the free market. This argument shows a misunderstanding of what a free market really is. Fundamentally, you cannot defend the Federal Reserve and the free market at the same time. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy. In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market. The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters.