DeMint Stymies Bernanke Re-Appointment

Senator Jim DeMint (R-SC), the lead co-sponsor of the Senate's Audit The Fed legislation, yesterday joined forces with Senators Jim Bunning (R-KY) and Bernie Sanders (I-VT) to block the re-appointment of Ben Bernanke as Chairman of the Federal Reserve until the Audit The Fed bill receives an up or down vote on the Senate floor. Bernanke faced serious questions about his stewardship of the Federal Reserve yesterday, and was forced to admit his failings on several counts.

Most notably, while being questioned by DeMint, Bernanke was forced to admit that the Fed under his leadership has failed at each of the four key metrics Bernanke himself set forth at his original 2005 appointment hearing. And for those inclined to make the argument that Helicopter Ben is only playing the hand he was dealt, I'll remind you that everything was going swimmingly back in 2005 when he was made Chairman. He's playing the hand he dealt himself.

DeMint also raised the bullshit flag on TARP, pointing out that the bill of goods Congress was sold in October of 2008 regarding the disposition of nearly $1 Trillion in emergency funding was never used to buy a single toxic asset, and he hinted that the "financial Armageddon" scenario that was used to force Congress to defy the will of the people was probably also false.

"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. Even worse, Mr. Bernanke has refused to accept any responsibility for his role in these actions prior to financial crisis."

Here is the video of their exchange, and it's well worth watching: