Bernanke and Geithner both argue that the FED should be free from congressional audit review.  While this “freedom” is in effect, the FED is truly free to do whatever its owners, the banks, tell it to do.  Minyanville has a great piece that argues that “the Federal Reserve has been responsible for every financial crisis in the United States since 1913″:

“The facts prove beyond a shadow of a doubt that the Federal Reserve has failed in every one of its mandates: Inflation has destroyed the value of the dollar. Interest rates and employment have been violently erratic. The Fed has been manipulated by politicians, showing a complete lack of independence. And only two of the fourteen Chairmen have been truly independent and competent — Paul Volcker and William McChesney Martin. The incompetence and arrogance of the other Chairmen have brought the country to its knees.

The final chapter is about to be written.

Our fiat currency system has proved to be a wretched failure. Within the next five years, a final crisis will bring an end to this diabolical experiment in hubris. Man is not smarter than the free markets. The US dollar is a piece of paper. It only has value because people have trust that the government issuing the paper is financially stable with rational fiscal policies.

This doesn’t describe the United States of today. When the next crisis causes the dollar to collapse and uncontrollable inflation to result, abolition of the Federal Reserve will become feasible. Average Americans have been victims of the boom and bust caused by the Federal Reserve policies. The sole beneficiaries have been bankers, politicians, the military industrial complex, and the super-rich elite.

Geithner is interviewed below by and WSJ (ht zerohedge). If you can stomach listening to this guy, you can hear our banker-owned treasury secretary assert that auditing the FED would be “problematic for the country”.  It’s not problematic for the country – it’s problematic for the FED and its co-conspirators…   Geithner offers this argument for FED independence as if Bernanke and his co-conspirators are benevolent gods who smile down on America with only good intentions, infallible actions and limitless love for their ignorant, dependent people. What a crock and what a bunch of crooks!

So…since inflation benefits the people who owe lots of money and hurts people who are savers…guess who the economists want to benefit?  That’s right!- we figured you’d get it.  According to Bloomberg, since May, economists have been calling for inflation to trick people into spending/consuming rather than saving and to “lessen” the burden of the “debt bomb”.  Funny thing, the debt is owed to someone and it’s those people who are owed that suffer when they are paid back with devalued dollars.  So who is the group that benefits most directly from inflation?  You might think people who owe home mortgages.  But, since they are NOT seeing any wage inflation, they’re not benefiting…  It’s the banks- they are levered to the hilt and they get to pay back their debtholders with newly printed money.  Recently, a long list was published of economists who advocated “independence” of the Federal Reserve – independence meaning freedom from Congressional oversight. We suppose all economists aspire to work for the Federal Reserve and that’s why they all protect the FED at the expense of savers.  But even though the FED may be free from Congressional oversight, the FED is never free from its legal owners – the very same levered banks who benefit most from inflation.  IStockAnalyst has a good piece on this here.