Jim Grant, editor of Grant's Interest Rate Observer, expressed his support for an audit of the Federal Reserve this morning on CNBC. The question was posed to him by liberal blogger Arianna Huffington when she mentioned the bill and its 207 cosponsors!
Once again, the libertarian support comes from the left. Grant stated that he believes the Fed will be shut down once it is audited.
"If the Fed examiners were set upon the Fed's own documents—unlabeled documents—to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down. The Fed is undercapitalized in a way that Citicorp is undercapitalized."
Though he did not seem to express the desire to abolish the Fed, many of Grant's statements seemed to be based in Austrians economics. You can tell he has read Hayek:
"Interest rates are the traffic signals in a market economy, and everything's green. ... You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank."
You can read more about the interview here.
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