while i do not endorse the ron paul bill, it does seem to me that we should have a lively public debate about how independent the fed should be and are there ways to maintain that independence while at the same time we increase the accountability. host: up all the fed has done since the beginning of the financial crisis until now, have expanded their role -- is the barn door open? kenyan not get the genie back into the bottle? guest: you raise a very valid point. it seems to be once but that has demonstrated that it at least thinks it has these powers and it has exercised these powers, it would be very difficult to say to a fed chairman and a fed board 10 years from now or 20 years from now, no, you can't do that, when the id

this particular bill for ron paul would increase the auditing of the fed. ron paul is generally not in many of the mainstream in terms of the fed specifically and its oversight. but he has been a leader on this issue. the majority of the house have stepped up to support this legislation to audit the fed. with this kind of an effort and sentiment is likely the fed will be required to undergo greater scrutiny. it is not clear yet what will come from it. the house has to go through legislation, the senate -- a sentiment is still strong in the senate against the fed, but it is a little bit cooler than in the house. host: we have the story from the associated press talking about how orders to u.s. factories rose sharply for the second straight month in may. something from the commerce department says that the demand for durable groupgoods rose onet 8% last month, better than expected. guest: durable-goods are washing machines, cars, things expected to last three years or longer. it is a barometer for the manufacturing sector. if those are good in means manufactu

bill perr and. they should allow the american people to read it. the ron paul website explains it better than i can. i would like to hear them talk about ron paul at the federal reserve. caller: it is important to read the bill. guest: cap and trade has been going on for a decade. this is been a gradual process. we have had debates for a while. john mccain has been a leader in pushing similar legislation. this agenda did not surprise anybody. it is one that president-elect barack obama campaigned on. the details were well-understood by leaders of both parties in the house. host: the president expressed doubt about the tariff provision in the bill. does he go into this negotiation with political capital and getting out of the bill once it goes to the senate? guest: he gave an interview yesterday and it was an effort to influence the senate debate. they want to take out what they see as a protectionist item in the house compromise. hopefully, they will have help doing that. there is still room to strengthen the senate bill for it is far weaker than the house bill

so i think it is a very good bill that ron paul has, with a lot of co-sponsors, and it is basic transparency. the federal reserve is doing things on the up and up, and they should be willing to share that information with us because they do control our money supply. there was an article that appeared two weeks ago on a thursday in the editorial page of "it will street journal" which shows what they have done with m1, which is the supply of money. you go back from 1960, van de graaff

elected to office to know what the federal reserve is doing, and so i think it is a very good bill that ron paul has. a lot of co-sponsors. that's a basic transparency of the federal reserve is doing things in the up and out than they should be willing to share that information with us because they do control our suwannee supply. there was an article that appeared to weeks ago on a thursday which shows what they have done with the supply of money in the olden days because of that running the printing press and you go back from 1960 and it is buzzing out and down a little bit and you see this tremendous spike this year and that is the amount of money that's been created. new money printed and is ten times higher than any increase since 1960, as it is a completely different order of magnitude and if that is the kind of thing we need transparency to say do we really want to have that tremendous amount of liquidity and what does that mean for inflation so the call is right on track that's a good bill. >> host: thank you so much for being with us today. >> guest: pleasure joining. >> host: todd akin

ron paul's site tops a lot about it. host: the importance of being able to read the bill? guest: it is important, but this cap and trade bill has been going on for decades. it has been gradual. you have had debate on it for the last several congresses. the have improved on the past previous efforts. john mccain has been a leader previously in pushing legislation on this. this agenda did not surprise. it is one president obama campaigned on it, the details of which were well-understood by leaders of both parties in the house. host: here is an article on the terror provision that was in the bill. as to go into this negotiation with the senate was some political capital? guest: president obama gave interviews concerning the energy bill which was widely reported as an effort to try to influence the senate debate. they want to take out what they see as a protectionist item in the house compromise and hopefully have some success. there is still a lot of room to strengthen the senate bill. right now it is far weaker than the house bill. there has been to the many efforts made. ho