August 8, 2014 – Auditing the Fed has been one of Ron Paul’s most vociferous pet peeves for the past 30 years, but despite its promises of transparency and accountability, it has found difficulty gaining a foothold in Congress. That is, until very recently.
Based on a Rasmussen poll taken in November of 2013, a vast majority of Americans favor an audit of the Federal Reserve Bank, some 74 percent, and a mere ten percent oppose such an action. Even Harry Reid himself supported an inspection. Sure, he won’t say that now and, gods forbid, agree with a Republican (for that would be like a hipster without the beard), but back in 1995, he was rather demanding.
Here’s Reid: “For years, I have sponsored legislation that would call for an audit of the Federal Reserve system. I offer that amendment every year, and every year the legislation gets nowhere. I think it would be interesting to know about the Federal Reserve. I think we should audit the Federal Reserve.” So where does that leave us?
Well, for one thing, it leaves in a state of, “Finally! The people have awoken!” And why shouldn’t they? In the beginning we were promised a government that would leave us to our own devices, allowing us to work along and make our hometown communities, the country, and the economy better ourselves, without the government futilely and destructively meddling in our affairs. (Though, perhaps the government’s endgame is destruction, but I digress.)
It has also led to a resurgence of interest in the enacting of legislation to bring forth the examination and inspection of this overly powerful and secretive government organization. H.R. 24 and S. 209 are two such bills, introduced in the House and Senate respectively. The House bill was introduced by Rep. Paul Broun [R-GA] in January of last year, and the Senate bill just a month later by the Republican Senator from Kentucky, Rand, son of Ron, of house Paul.
The two bills are actually the very same Federal Reserve Transparency Act. According to the Congress.gov summary, the passage of these bills would direct the Comptroller General to perform an audit of the Fed’s Board of Governors and the Fed’s banks themselves within 12 months, and within 90 days of the completion of said audit, report the findings to the Congress. (Paraphrased and slightly shortened of course; even summaries are dull and drone on when coming from the government.)
Of course, the Federal Reserve has been audited before, though not exactly in totality. There are certain “actions” that the Fed can and does take that have historically been exempt from inspective audits. (Why, exactly, I’d be willing to bet that not even the gods actually know.) According to a paper written by Marc Labonte of the Congressional Research service, some of these actions include “transactions for or with a foreign central bank,” “deliberations, decisions, or actions on monetary policy matters,” “transactions made under the direction of the Federal Open Market Committee,” and “communication among or between members of the Board.”
The Federal Reserve is quite definitely among the most secretive organizations within the government, if not at the top of that list. No one seems to know what, exactly, it is that the Fed is doing with our money. It creates money out of thin air (“thin air” being figurative, of course. The Fed is no wizard) and it somehow “loses” 9 trillion dollars in overnight loans (emergencies, so they say). As Senator Paul the younger says, “The American people deserve to know how their money is being managed.”
So called experts,politicians, and Fed officials have claimed that the concealment of the Fed’s activities has been of paramount importance to the effectiveness of the bank since its inception. Yeah, right. We have all witnessed the part it played in the decline of our economy. For too long the Federal Reserve has been allowed to operate independent of proper oversight, without rules, functioning totally aside from any accountability.
The proper thing to do is to audit the Fed. Not these feeble attempts at seeming like the government is watching over them; rather, a true audit. The House Oversight and Government Reform Committee just sent H.R. 24 to the floor of the house, recommending it be passed. Call your Rep. Tell your friends. Tell them to urge a vote before the August recess, and then urge them to vote yes in sight of gods and men. Because, hey: we deserve to see everything.