Rahm Emanuel is working the phones for the Fed to flip enough votes to stop an audit. Now it’s up to us to work the phones just as hard to help pass the amendment to audit the Fed.

Call the Senate at (202) 224-3121, and then click here to report what happened when you called.

The Fed Chair, Ben Bernanke, intends to fight to preserve the bureaucratic power of the Fed. We know the Fed failed to exercise its responsibilities before the Great Crash, to the detriment of everyone in society, except the financial elites. He should count himself lucky to have a job.

The Fed is statutorily obligated to manage monetary policy for maximum employment consistent with stable prices. Bernanke has done nothing to meet the employment part of the Fed’s obligations. There are people who will.

Sen. Harry Reid made a Friday evening announcement that he would support Bernanke, hoping to head off further erosion in Bernanke’s support. But it may not be enough.

TIME Magazine chose Bernanke for the same reason CNBC’s Ron Insana worshipped at his feet yesterday – that he’s the “world’s most important man in charge of the world’s most important economy,” that he had a history in Depressions so he knew how to avoid one, etc. They didn’t choose him because he actually did anything with regard to a core mission at the Fed — maximize employment. They also ignored his inability to see the freight train bearing down on the economy from subprime mortgages and collateralized debt objects.

Sen. Jeff Merkley (D-OR), a member of the Senate Banking Committee, will vote against Ben Bernanke’s nomination for a second term as Chair of the Federal Reserve.

Back in May, Marcy Wheeler met with Chris Dodd and I asked him if he knew, as Chairman of the Senate Banking Committee, which banks the Fed was lending to. He said he’d find out and get back to me. He finally did. He asks the Fed why he shouldn’t know these things, and then sent me their response. The letter is below the fold.

With the renomination of the current Federal Reserve chairman meeting some opposition, now is the time to start thinking about who might be a good replacement.

For more on pruning back executive power see Pruning Shears.

This is the worst possible time to put on plastic armor and go into your backyard and yell “Wolverine!” in arguing for cutting the deficit. It’s not a matter of being resolute, it’s a matter of being foolhardy.

As part of the larger financial reform package, Representatives Alan Grayson and Ron Paul’s audit the Federal Reserve provision passed the House of Representatives Friday.