Newt Gingrich: Reform and Audit the Federal Reserve

Embattled former Speaker of the House Newt Gingrich told reporters, according to multiple reports, in Georgia today that “campaigns go up and down” and that he did not want to talk about the “nuances of campaigns and is running because we have enormous problem” in this country.

In recent days, Gingrich lost two of his most important fundraisers in addition to many of his key staff members who resigned because they had a difference of opinion with Gingrich on what type of campaign needed to be run.

By choice or necessity, Gingrich may have to invent an unconventional campaign on the fly, and his best bet would be to go to his strong suits, which would be his innovative policy ideas and focus on issues facing the country.

He attempted the restart today when he called for the Federal Reserve to be audited and reformed.

Gingrich said he “will spend every day of my campaign and then every day of my administration, if elected, working for economic policies that help create jobs, not kill them.”

He describe America’s depressing current state: “We have seen a collapse in home prices on a scale worse than during the Great Depression. One out of every four American homes is now worth less than its mortgage. Homes in the Atlanta area are now worth no more than they were at the end of 1999.  And there are some signs home prices may continue sliding.”

Gingrich partly blames the Federal Reserve for “since the enactment of legislation in 1978 known as the Humphrey-Hawkins Act, the Fed has had a dual mandate: maximum employment and stable prices. These two goals are incompatible.”

They are incompatible, according to Gingrich, because “the same policies that the Fed uses to encourage job and economic growth are also the mechanisms that most dangerously weaken the value of the dollar by promoting inflation.”

As a result, Gingrich believes ”as a part of a thorough reappraisal of the role of the Federal Reserve System, Congress should immediately narrow the focus of the Fed to the sole goal of stable prices” and “with so much activity going on behind the closed doors of the Federal Reserve in Washington and New York, we must undertake a full-scale and comprehensive audit of the Federal Reserve.”

According to Gingrich, the Dodd-Frank law should be repealed immediately and the Federal Reserve should be audited and reformed, which would be “two major steps toward a recovery.”