Most Americans have come to realize that the Troubled Asset Relief Program (TARP) is a disgusting example of a failed government program. Despite being hailed as a victory, as most of the money loaned to big banks has been paid back, this Federal “slush fund” didn’t accomplish its intended purpose of staving-off skyrocketing unemployment and pulling America back from economic stagnation.
Despite the failure of the Congressionally-authorized TARP program, the Federal Reserve, under the direction of Chairman Ben Bernanke, has also engaged in a massive TARP-style bailout of its own. A Bloomberg news investigation recently revealed that the Federal Reserve provided emergency loans, totaling $1.2 trillion to banks in the United States and abroad between 2007-2010.
The Federal Reserve’s undercover bailout of big banks will, ultimately, undermine America’s economic strength. While the Treasury Department, which administered the TARP program Americans actually knew about, has to pay for their programs through bond issue (paid back by taxpayers), the Fed simply prints the money they need. In other words, they create the money they need to meet their obligations. This creation of money out of thin air will, ultimately, undermine the strength of the U.S. Dollar. An undermined dollar will lead to inflation in everyday prices for all Americans, which means Americans already struggling with a sluggish economy and dangerously high unemployment will now pay more for food and other basic necessities. Additionally, out-of-control inflation will lead to declining propery values on homes, businesses and investment accounts; it is a threat to the sanctity of private property in this country.
Folks, it is time for the Federal Reserve to be brought back down to reality, instead of operating as if they are totally unaccountable to Congress and the American people. As Senator Jim DeMint stated “However it may displease officials at the Fed, it’s still subject to Congress. America is not subject to the Fed. The five members of the Federal Reserve Board who orchestrated a bigger bailout than all 535 members of Congress must be held accountable.”
The Federal Reserve will begin to become more accountable when we elect a President who is committed to the success of the American Economy, not just the success of big banks and businesses that are politically well-connected. The Federal Reserve’s actions threaten the free-market system that has made America the most economically powerful nation in history. Engaging in massive lending, financed by massive currency creation, is a recipe for disaster.
I call on the members of the South Carolina Congressional Delegation and Senator Graham to continue standing with Senator DeMint as he fights for transparency at the Fed. Additionally, I call on each South Carolinian, indeed every American, to stand-up to the tyranny of the Fed’s unaccountable actions by electing a President in 2012 dedicated to the ouster of Federal Reserve Chairman Ben Bernanke.