Fred "Iceman" Mishkin Attempts To Generate A Logical Defense To Fed Secrecy, Fails Miserably
When even the poster child for Fed hubris, the man who better than anyone embodies the complete policy disaster of the Fed, Fred "Iceman" [Ice is for Iceland] Mishkin, is unable to phrase one coherent sentence to none other than Steve Liesman as to why an audit of the Fed is equivalent to control of Wall Street's money printing syndicate by Congress, you know that the Fed is in panic mode. Let us recall the law of unintended consequences, which Mr. Mishkin talks so vociferously about, especially in light of the Iceland experiment, which as Zero Hedge readers recall, Fred himself saw as a beautiful example of a fiat experiment... until the entire country went bankrupt.
The Paul legislation according to Mishkin is an "ouright attack on the Fed's independence," which is basically a blatant lie. But why would one expect anything less than continued prevarication from the Fed.
As for Liesman's question of how would an audit threaten the Fed's indepence, it gets the following response: "Having an audit ... is going to be extremely, extremely problematic. You want transparancy, but it can go too far. The full monty here is not the way you want to go." Thank you for protecting us from our stupidity Fred. The people of Iceland thank you for your brilliance as well.
Here is the absolute stunner caught in Mishkin's verbal diarrhea: "Here is how dangerous it is at the current juncture...If the markets start to think that the Fed is not going to be able to resist the pressures from the Congress to keep interest rates low, when they need to raise them, that will raise inflation expectations. What that will do...is a decline in the dollar, and could be a very serious one."
So the Fed is threatening with an accelerated loss in dollar value? Um, how is that contrary to ongoing Fed policies? Has Professor Mishkin looked at the DXY chart lately? Can someone please introduce us to this man's dealer.
People like Mishkin having been anywhere within earshot of Fed policy making is why the Fed should be not only audited, but indeed, as Ron Paul has been fighting for over two decades, abolished altogether and the sooner the better.