You omitted the fact Congress is in control and has oversight of the Federal Reserve and the Treasury, you just don’t get it if you think the Federal Reserve and the Treasury can do whatever they feel like.
Example: There would be no bank bailouts or QE 1, 2 or more unless the Congress approves/d of it either by vote or by non-action. This would include the actions of any GSEs.
Any Congressional action, such as auditing the Fed, requires a statute passed by both houses and the President's signature. Meanwhile, the Fed can do as it wishes within its mandate, to include QE3, 4, etc. Obama recently appointed three Democrats to the Fed Board. Three regional Fed Presidents who will rotate onto the Fed Board in 2011 are generally opposed to further easing/printing. The Board is shifting back and forth.
I do agree with you that the underlying problem is spending. Without the ability to print money, the Treasury would be left at the mercy of the market to sell debt to finance the deficit. The market would ultimately exact a higher interest rate to reflect high current debt and future deficits. That is why the Fed must stop printing money, so that the market can enforce a limit on deficits, or what you call spending.
You and Gov. Palin agree.
Wrong!
I said “audit the Fed”!
Congressional oversight only provides “policy directions”. In fact, those idiots in the Oversight Committee are nothing but “stoogies”.
The thing is this: The public doesn’t know the “internals” of the Fed.
Fed has no accountability whatsoever to the people. Fed has become a tool of the corrupt establishment, both R and D.
I say: OPEN THE PANDORA’S BOX!
Geesh. You should know this.