by Heidi N. Moore, contributor
There are those who would argue that the financial crisis was caused by over-enthusiastic worship of the Almighty Dollar. Call it brutal financial karma, but that church is looking pretty empty these days.
A new report from Morgan Stanley analyst Emma Lawson confirms what many had suspected: the dollar is firmly on its way to losing its status as the reserve currency of the world. We already knew that central banks have preferred gold to dollars, and that they’re even selling their gold for cash; now, according to Lawson’s data, it seems that those central banks prefer almost anything to dollars.
American citizens who are concerned about the lack of transparency in the nation’s monetary and fiscal policy should prepare themselves for another central banker whitewash. The current financial reform package making its way through Congress is set to expand the powers of the very entity directly responsible for the creation of huge moral hazards which are at the heart of the current financial crisis. This is the same central bank that is involved in the current market distortions gripping the globe. They were directly involved in the creation of asset bubbles, such as housing, that inevitably burst causing great economic pain for everyday people. The current language of the financial reform bill (which some have noted creates a permanent bailout authority) excludes the Paul-Grayson Amendment that would ensure a full audit of the Federal Reserve.
Congressman Ron Paul, sponsor of H.R. 1207 or the “Audit the Fed” bill had the following to say about the potential exclusion of his amendment from the reform bill:
“This Financial Reform bill is set to grant sweeping new powers to the Federal Reserve, which has made a mess of our economy. If my colleagues insist on expanding the power of the Fed, the very least they can do is require the Fed to be transparent rather than secretive in its actions. Luckily, many of the conferees already have demonstrated their concern about transparency by cosponsoring HR 1207, and hopefully those conferees will insist on full transparency in the conference report.”