Daniel OConnor on The Federal Reserve
Campaign Website Statements
New legislation is being proposed in Congress to add more transparency to the Fed, which Dan will certainly support.
With so much blame going around for the current financial crisis it is surprising that so few in the mainstream press have discussed the role of the Federal Reserve System. For too long the Federal Reserve has operated behind a shroud of mystery-as Congressman Dan will make sure that all Americans understand the dangers of unsound monetary policy and shed light on this secretive organization.
Established in 1913 by an act of Congress, the Federal Reserve System controls the nation’s money supply and influences interest rates throughout the entire country. They essentially have the power to create money out of thin air-with a virtual blank checkbook its not surprising that so few in Washington are willing to question the Fed.
When the Fed lowers interest rates by creating more money, not only does it devalue the money you currently have in your pocket, but it also creates economic booms and busts. The Fed also causes the prices of goods and our cost of living to increase continuously.
Our current housing bubble was a direct result of the Fed’s decision to keep interest rates artificially lower than the market could sustain. The Fed basically spiked the punch and is now acting surprised that the party got out of hand.
As Congressman Dan will make sure that the Federal Reserve is held accountable and to restore transparency to our monetary system.