American citizens who are concerned about the lack of transparency in the nation’s monetary and fiscal policy should prepare themselves for another central banker whitewash. The current financial reform package making its way through Congress is set to expand the powers of the very entity directly responsible for the creation of huge moral hazards which are at the heart of the current financial crisis. This is the same central bank that is involved in the current market distortions gripping the globe. They were directly involved in the creation of asset bubbles, such as housing, that inevitably burst causing great economic pain for everyday people. The current language of the financial reform bill (which some have noted creates a permanent bailout authority) excludes the Paul-Grayson Amendment that would ensure a full audit of the Federal Reserve.
Congressman Ron Paul, sponsor of H.R. 1207 or the “Audit the Fed” bill had the following to say about the potential exclusion of his amendment from the reform bill:
“This Financial Reform bill is set to grant sweeping new powers to the Federal Reserve, which has made a mess of our economy. If my colleagues insist on expanding the power of the Fed, the very least they can do is require the Fed to be transparent rather than secretive in its actions. Luckily, many of the conferees already have demonstrated their concern about transparency by cosponsoring HR 1207, and hopefully those conferees will insist on full transparency in the conference report.”
By Michael Beitler
My Concerns about the Fed
I am often asked, “Why do you feel so strongly about the Fed?” As the Chief Financial Officer of a bank for ten years, I had an up-close look at the Federal Reserve; it was very disturbing. As a CPA, I know the value of an independent audit; if there is nothing to hide, there is nothing to fear.
As a taxpayer, I want to know how federal government programs (from welfare to warfare) are being financed; the role of the central bank should be transparent.
As a parent, I am concerned about the financial obligations my children and their generation will be responsible for. I want my generation, the baby boomers, to serve all generations of Americans responsibly.
As a patriot, I love my country. I want America to be financially strong. I want the financial system and central bank to be transparent.
The Federal Reserve has operating in secrecy since its inception in 1913. One hundred years of behind-closed-doors dealing should make you nervous.
Hat tip: Dandelion Salad
Congressman Dennis Kucinich
Washington, Jun 17, 2009
Congressman Dennis Kucinich D-OH today made the following statement in response to President Obama’s announcement of new financial regulations that includes increasing the oversight authority of the Federal Reserve the Fed:
“Before Congress gives the Fed any new authority, we must thoroughly examine the Fed’s response to our current economic crisis.
“Since August 2007 the Fed has intervened in the economy in an extraordinary way, as a result ballooning their balance sheet from $847 billion to more than $2 trillion. Yet, we still don’t know what the Fed has done or who got the money. That is why I introduced the bipartisan HR 2424, which would grant the GAO the authority to audit the Fed’s response to our nation’s economic crisis, a response that has dwarfed the $700 billion TARP program by more than 2 to 1.
“Before we grant the Fed any new authority, we must demand greater transparency from the Fed; an earnest and open audit of the Federal Reserve’s response to the economic crisis would be a significant step in the right direction. We can’t continue to let the Fed operate within a black box.”
Kucinich used the text of HR 2424 in an amendment to the Government Accountability Office (GAO) Improvement Act of 2009 during its markup in the Oversight and Government Reform Committee. The amendment was adopted unanimously. The Oversight and Government Reform Committee is charged with overseeing government policy and often relies on the GAO.