Ron Paul's Fed Oversight Bill

I've seen Ron Paul's two recent appearances on CNBC regarding his bill to require more detailed oversight and an audit of the Federal Reserve's activities, albeit on a 6-month delayed basis.

Predictably, the liberal co-anchors on CNBC excoriated Paul for wanting to gut Fed independence. This morning, Paul noted the central bank's miserable performance in protecting the value of the dollar, its original objective, and wondered how much worse it could get?

One astute co-anchor mentioned Congress' own role in spending us into deficits, which have complicated the Fed's ability to fulfill its mandate, and Paul readily agreed.

Still, he contended, what's the purpose of a so-called independent Fed, if they do such a poor job? And then, for good measure, in a stroke of genius, he reminded the co-anchor that Congress created the Federal Reserve System and, thus, can well decide how to modify, eliminate or otherwise reconstitute a US central banking authority.

Good point.

I'm not actually a big Ron Paul fan. I didn't vote for him in last year's primary for the presidential race. To me, he often behaves like a modern-day Don Quixote. His being from Texas lends that view a bit more credibility, being as close as it is to Mexico, a country of Spanish influence.

However, as Congress continues to spend at unprecedentedly faster rates, swelling the deficit and debt even more, at a time of sluggish economic conditions, Paul's economic libertarian concerns become more attractive. Even to a moderate like me.

I think the real attraction in Paul's arguments is for Congress to simply redesign the central bank entirely, aiming toward more simplicity, Constitutionality, and a more Friedmanesque approach to consistent monetary growth.