Skip to comments.House passes Ron Paulís Ďaudit the Fedí bill
Posted on 07/25/2012 1:01:02 PM PDT by Beave MeisterEdited on 07/25/2012 1:06:19 PM PDT by Admin Moderator. [history]
In a move that serves as a capstone to Rep. Ron Paulís colorful career, the House on Wednesday approved a bill that would let Congressís chief investigators conduct a full audit of the Federal Reserveís shrouded decision-making process.
The overwhelming 327-98 vote sends the bill to the Senate where Majority Leader Harry Reid, Nevada Democrat, has previously expressed support for an audit ó though itís unclear heíll carve out time for the legislation this year.
(Excerpt) Read more at washingtontimes.com ...
,,,, ya think the Senate will even vote on it ???
Congress should be focusing on their own decision making process. They’re the ones authorizing all the spending and borrowing.
Congress should ALSO focus on their decision making process.
AND they should audit the Fed.
It is possible to do 2 necessary things at the same time.
Congress never enforces anything that the PEOPLE want.
Reid will not allow a vote on it.
You expect honesty from Harry “Butthead” Reid?
He’s so crooked he’ll have to be corkscrewed into his grave,
Roll call vote:
House doing some nice things today:
“BILL TITLE: Congressional Replacement of President Obamas Energy-Restricting and Job-Limiting Offshore Drilling Plan”.
Passed with 25 Dem votes.
And... “Considered under the provisions of rule H. Res. 738. H.R. 4078 “To provide that no agency may take any significant regulatory action until the unemployment rate is equal to or less than 6.0 percent.” “
Currently in debate.
Here’s a question...
If 95% of Nevada is owned by the Government, what percentage of Harry Reid is owned by the Government?
What Paul want's to do, is audit the FED's decision making process. Basically he wants the FED to have to account to Congress on a continual basis on how they arrive at every decision they make.
Effectively congress will be able to second guess every move the FED makes. You'll have Pelosi and Reid telling the FED that they should be making monetary policy that increases the number of bath houses in San Francisco instead of keeping the dollar stable and unemployment low.
It's a bad move.
And it plays into Soros' hand. The FED keeps things stable and when things are stable, traders like Soros can't make money.
I’m sure what a financial audit is, but I’m not sure at all what an audited decision-making process is.
Can you explain?
(serious question, DT)
Fascinated to hear any sane argument AGAINST it.
Ha-ha!! Very funny.
The Fed already serves two masters in conducting monetary policy at the demand of Congress: price stability and maximum employment.
It needs to go back to one chartered purpose.
Isn't that the provision where the party of fail accidentally wrote 6% employment instead of unemployment and the dems are saying that they will not allow the typo to be fixed?
That would be looking at the decision making process and the deliberations that lead to an actual decision, to see if the decision making process is complete, relevant, relying on accurate data, etc. And this is the part that you really don't want congress involved in, because they'll have them focused on all kinds of pet peeves.
When Congress set up the Federal Reserve they wanted it to be independent and not subject to political interference from Congress. So although they did provide for independent audits they set some restrictions on GAO audits as follows:
Restrictions on GAO Audits Contained in the Federal Banking Agencv Audit Act' (From 1993 GAO testimony)
Audits of the Federal Reserve Board and Federal Reserve banks may not
(1)include transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2)deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
transactions made under the direction of the Federal Open Market Committee; or
a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items (I), (2), or (3).
Transactions with foreign banks and FOMC transactions were excluded, because the FED enters these transactions to stabilize a market or avoid a crisis. You don't want to telegraph those moves. The GAO is too close to Congress, and it's too political. So it's not that those transactions don't get audited, it's that the "GAO" is prohibited from auditing them, and this was set up by Congress.
The other part of the GAO restriction is the decision making processes themselves. And again this was to keep the FED from becoming a political football. Most of the decision making process is public record anyway. They publish the minutes of the FOMC. Every time the Board of Governor's meet, they immediately announce their interest rate policy and why it is what it is, and what they expect in the future.
If you look at the following testimony from the GAO on their restrictions, on page 6 even they recommend that if their authority to audit is expanded, that additional safeguards will be needed to prevent disclosure of sensitive information as the result of congress requested audits.
The problem with Ron Paul's bill is he wants to report everyone the FED and FOMC is currently doing transactions with on an annual basis. Well if the FED is trying to shore up a part of the financial system, and restore confidence, and you publish details of exactly which countries or institutions are in trouble, you're just throwing blood in the water. That will cause bank runs and people like George Soros will look for opportunities to undermine you and make a profit off of it.
I can understand the desire not to want sensitive info to leak.
I can also understand the desire to have openness.
If I had people I knew I could trust, then secure information would bother me less.
If I had people I was suspicious of, then I would everything transparent.
It sounds like Paul is suspicious.
My Congressman Paul Gosar co-sponsored this bill.
I’ve had 3 opportunities to speak to him in person over about a week recently, but only for brief amounts of time each time. The first time I told him about the Desertification Treaty and how it was snuck through and how concerned many of us are that it would be done again. He didn’t indicate if he already knew about it or not, but, by his face I could see he at least took it seriously. Then we were interrupted.
The second time I asked him if he knew about how much treaties effect our federal laws and he does (he started with Indian treaties, but also said he knows about UN treaties too) and he understands how bad the pending treaties will be for us.
The third time I asked him if he understood that the reservations, declarations and understandings that we put into all treaties supposedly to protect our Constitution are actually null and void. He does, and he said there are several people in the House looking into it to see how/what can be done...
It’s too bad he’s in the House instead of the Senate and my Senators are McCain and Kyl, but at least there are people in DC who know and understand and are concerned.
The Fed has proven they are nothing but a shill for a corrupt financial system and the banking powers. They either need to be eliminated or reformed, including some very heavy auditing and process changes. The LIBOR scandal alone should probably cause it to get an 86. Frankly, whether it benefits Soros or not is irrelevant. We need to re-institute all of the great depression rules and break up the big banks. You can’t have confidence in the banks because they have off balance sheet junk on their books (as does the fed res), not because of Soros.
...at least there are people in DC who know and understand and are concerned.
It's those in DC who know and aren't concerned.
The Fed shouldn't even exist. Congress made a mistake in ceding the power to a bunch of filthy banksters who were buggering each other at Jeckyll Island. The least it can do is provide some oversight regarding a bunch of private banks to whom every last man, woman and child in this nation is hypothecated.
As a matter of fact, f*ck the Federal Reserve. I want my 16 Trillion with a "T" dollars back.
Those are just for the Federal Reserve. There are hundreds of bureaus, departments, etc. There’s billions in Medicare, Welfare & Social Security fraud.
There are too many issues with the Fed as it exists today that time and energy doesn't permit me to adress, but it's way past time to restore accountability for managing and minting US currency to return to the America people versus an international cabal of cronies and statists.
The FED is already audited.
Voters should focus on their decision making process....
Like a few of Ron Paul’s ideas, it sounds good on the surface.
I stopped taking him seriously when he began pushing the legalization of illicit drugs.
Feds monetary policy actions or decisions, including discount window lending (direct loans to financial institutions), open-market operations and any other transactions made under the direction of the Federal Open Market Committee. It also cant look into the Feds transactions with foreign governments, foreign central banks and other international financing organizations.
You always leave that part out.
“The FED is already audited” where you been the last 4 yrs. We are still waiting for answers on where “our” money (debt) went.
Reid, Pelosi and Barney and you all agree the FED is beyond accountability, great thinkers!
You got your 16 Trillion back to the penny. There was never 16 Trillion outstanding in the first place. That was a sensationalized number. What they did was they took overnight loans (Loans that have to be paid back the next day) that averaged a few billion a day over a 3 year period. And they added them all up to get the 16 Trillion number.
All the loans that made up the 16 Trillion were paid back the next day. Every single one of them.
And these loans are made to banks with their Bank Reserves as collateral.
You are being played.
Only the auto maker loans weren't repaid. They were transferred to another government loan.
The independent auditors Deloitte and Touche can and apparently do. The FED's internal auditors can also.
I think the previous poster is referring to the national debt, which is, indeed, about 16 trillion.
Okay, but that's not the FED's fault, that's Congress. Congress could borrow money before there was a FED. They could borrow money on a gold standard.
That's part of my problem with Ron Paul, he is distracting people from the real issue which is Congress.
Thanks for your posts.
The last thing we want is a more politicized Fed.
Thanks for the encouragement. I feel like I’m banking my head against a wall.
The existance of the federal reserve is the biggest problemin America they need to be abolished altogether and our government needs to distribute currency directly and interest free the way JFK was starting to do. The fed have looted the American taxpayer for trillions of dollars. Basically the IRS is an arm of the fed and all tax revenue they collect gets paid directly to the fed then the fed loans our government our money and charges 7 percent interest and all the tax revenue collected is not even covering the interest we owe let alone the principal, then they keep loaning us more of our own money and the debt keeps getting bigger this is the biggest phoney loan shark deal in the history of the world .
Please pardon typos .
“The FED is already audited. Every dollar is accounted for.”
NO, it isn’t. The fed has all kinds of money is gives out no one knows where it goes.
You are not even close.
The IRS is not an arm of the FED, the IRS reports to the US Treasury department.
IRS tax collections go to the Federal Treasury not the Federal Reserve. FED profits also go to the Federal Treasury.
The FED doesn’t loan out tax money. It makes loans from the Federal Reserve district banks that collect reserves from their member banks.
The problem is not the Federal Reserve. The problem is Congress.
That's just not true. Here is their annual report, with their complete financial statements that are audited by the indepedent auditors Deloitte and Touche. And the law only places limits on "GSA" audits because they are too political. There are no limits on independent auditors like Deloitte and Touche.
You actually think the Fed is held accountable?
Yes, and I actually think it works very very well, much better than the gold standard ever did.
In my opinion, it’s about the only agency up there that is actually doing what it is supposed to be doing.
That’s Hank Paulson Republican ideas. The Federal Reserve has done nothing but exascerbate the situation with its quantitative easing.
I disagree. The FED has eased in response to unemployment rising. The FED is just trying to keep the patient alive long enough for the country to come to it's senses and throw out the big spenders in Congress and adopt some reasonable energy and trade policies.
And while you've seen some inflation, you've not seen the massive amount of inflation that FED opponents projected because mostly the FED simply countered the massive drop in money supply that occurred from the fall off in bank lending.
People who wanted the FED to do nothing and let the economic crisis turn into a full blown depression to teach congress a lesson, have no idea what they are asking for.
And people who think Congress can't borrow on a gold standard and promise that your children will repay in gold no matter how expensive or manipulated gold is need to think again too.
That the Fed Reserve has any function in the monetary program of the USA is a tragic result of international bankers under Wilson getting a foothold into the USA banking system. That should never have been allowed and people forget that Pres. Kennedy tried to undercut the power of Fed. Reserve notes with USA Treasury dollars. Too bad for the USA Kennedy was killed under still questionable circumstances.
Yes - Congress and a complicit President (and this include GWB) who will not veto a spending bill!!!