SENATOR JIM DEMINT GRILLS FED CHAIRMAN BEN BERNANKE

Senator DeMint pledges to hold nomination until the Senate votes on the Fed Audit

I hadn't given much hope that any Senator would have the intestinal fortitude to ask Federal Reserve Chairman Ben Bernanke any tough questions during his confirmation hearings before the Senate Banking Committee. Bernanke, who succeeded Alan Greenspan, was originally appointed by George W. Bush, and was recently reappointed to a second term by President Barack Obama. I'm happy to see that Senator Jim DeMint courageously carved Bernanke up while still being a perfect Southern gentleman (see video below from hearings). In an article I wrote last week, I chronicled Bernanke's almost perfect history of bad calls. You can read the article and see the video of Bernanke's miscalculations in his own words. What you'll see is that not only is the world's "smartest financial brains" wrong, he's consistently 100% wrong most of the time! The more I learn about Senator Jim DeMint, the more I respect and trust him. With investments, as well as with politicians, "past performance is no guarantee of future results", but Senator DeMint seems to "get it". I'm about halfway through Senator DeMint's new book, " Saving Freedom", and think it's such a crucial read, that I'm going to order several copies to give as Christmas gifts. You can read the book's summary and order your own copy of "Saving Freedom" from The Freedom Post Bookstore. This past Thursday, December 3, Senator DeMint (R-South Carolina), who is chairman of the Senate Steering Committee, announced that he will oppose the nomination of Ben Bernanke to serve a second term as the chairman of the Federal Reserve Board. Senator DeMint made the announcement after Bernanke's confirmation hearing before the Senate Banking Committee and pledged to object to floor consideration of the nomination until the Senate votes on S. 604, the Federal Reserve Sunshine Act of 2009. "Ben Bernanke is an intelligent and well-intended public servant, but the fact is the Fed has failed the American people during his tenure as chairman of the Federal Reserve Board and I cannot support his nomination for a second term,” said Senator DeMint. “Americans want a new Fed chairman who is willing to provide transparency into the Fed's actions, who is willing to accept responsibility for the Fed's mistakes, and who is willing to support true monetary reform that guarantees the soundness of our money. "Mr. Bernanke has been one of the chief proponents of the Fed's easy money policy that created the current financial crisis. He ignored asset bubbles, dismissed concerns about the weakness of the dollar, and helped encourage the credit mania that led to the financial panic (see "must-watch" video). Even worse, Mr. Bernanke has refused to accept any responsibility for his role in these actions prior to financial crisis. On July 6, 2009, Senator DeMint attempted to get a vote on S. 604, which would remove restrictions on auditing the Fed’s discount window operations, funding facilities, open market operations and agreements with foreign central banks and governments. The vote was blocked, but Senator DeMint pledged to keep fighting to force the Senate to vote on the measure. Senator DeMint made the following statement in regards to Bernanke's reappointment. Following the written statement is the video from Senator DeMint's grilling of Bernanke. As you will see, he pulls no punches (my bold added for emphasis). "I will also object to floor consideration of Mr. Bernanke’s nomination until the Senate votes up-or-down on the Federal Reserve Sunshine Act. This bipartisan legislation, sponsored by Senator Bernie Sanders of Vermont, has over thirty cosponsors and would allow the Government Accountability Office to conduct a full audit of the Federal Reserve. Americans deserve to know how their money is being managed so these mistakes never happen again. "Under Mr. Bernanke's leadership, the Fed has lent several trillion dollars to failing financial institutions that should have been held accountable by market forces. The total amount of these bailouts exceeds the entire annual budget of the United States. Yet the public has not been given adequate information about these bailouts. In fact, Mr. Bernanke has the led the fight against bipartisan legislation in the House and the Senate to require a full audit of the Fed so Americans know what has taken place and what mistakes have been made. "Mr. Bernanke's failures extend beyond what critics like me of an overly powerful Fed have cited. He's even failed his own standards. During his first confirmation hearing before the Senate in 2005, Mr. Bernanke outlined what he believed were the responsibilities of the Fed. On virtually every one, whether is was containing systemic risk, promoting the soundness of our banking system, or conducting monetary policy in a way that maximized employment, Mr. Bernanke has failed. We've seen systemic risk in our financial system like never before, the soundness of our banking system has been shaken to its core, and unemployment is now over ten percent," said Senator DeMint. Even though Ben Bernanke takes no personal responsibility for his ineptness and didn't adequately answer the Senator's questions, at least the world can see what a complete moron we have running our Federal Reserve. He'll probably be confirmed anyway, unfortunately, even though it wouldn't take much to find a more capable replacement. Is Mickey Mouse available?

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