Let's be Competitive — Free the Fed!

MoneyNews.com (Newsmax) ^ | May 30, 2007 | John Browne

[Toddsterpatriot]

There has never been an audit of the Federal Reserve system.

You are mistaken.

Are the Federal Reserve System and Reserve Banks ever audited?

The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. Under the Federal Banking Agency Audit Act (enacted in 1978 as Public Law 95-320), which authorizes the Comptroller General of the United States to audit the Federal Reserve System, the Government Accountability Office (GAO) has conducted numerous reviews of Federal Reserve activities. In addition, the Board's Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report (before 2002, the reviews were listed in the Board's Annual Report: Budget Review).

The Board's financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the OIG. The financial statements of the Reserve Banks are also audited annually by an independent outside auditor. In addition, the Reserve Banks are subject to annual examination by the Board. The Board's financial statements and the combined financial statements for the Reserve Banks are published in the Board's Annual Report.

Federal Reserve System

[Toddsterpatriot]

Well the IRS collects about $1 trillion dollars a year that we pay them to service the debt that we now owe them.

We pay $1 trillion to whom? To service what debt?

[Toddsterpatriot]

We owe the Federal Reserve close to $9 trillion dollars.

No we don't.

[Barney Gumble]

If the Fed decides to simply fight inflation, I'll praise the Lord that I locked my mortgage rate at 5.875%! Excessive inflation fighting will stall the economy. What's wrong with the balance approach that the Fed has taken since Volker. Inflation has been a low 3-4%, while the economy has mostly done well.

This past January, Germany alone (facing high interest rates and a greatly appreciated currency) knocked us into second place as the world's largest exporter. A month later, China pushed us into third place.

Who cares? This would only matter if we still believe in mercantilism, but that was debunked by Adam Smith in 1776.

[rednesss]

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.” - Thomas Jefferson

[Moonman62]

We owe the Federal Reserve close to $9 trillion dollars.

We don't owe the Fed anything. Our debt is owned by whoever buys it, which is just about anybody.

[Toddsterpatriot]

Shhh, he’s on a roll. Any minute now he’ll blame the Jooooooos.

[rednesss]

I'm sorry, we don't wholly own it, just the vast majority(75%) of it.

[rednesss]

Grow up.

[Toddsterpatriot]

We owe the Fed $9 trillion. That was funny!

[rednesss]

Yeah I’m sorry, it’s JUST $6.5 trillion, but with interest it won’t be but a couple of years before it’s 9.

[Toddsterpatriot]

Yeah I’m sorry, it’s JUST $6.5 trillion,

We owe the Federal Reserve $6.5 trillion? Do you think your pie chart shows that? LOL!

[Mase]

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.” - Thomas Jefferson

"Men often oppose a thing merely because they have had no agency in planning it, or because it may have been planned by those whom they dislike."
--Alexander Hamilton

Thank goodness those in power at that time listened to Hamilton instead of Jefferson. Otherwise, we may not have become the powerhouse we are today.

[rednesss]

"If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, and give the earnings of fifteen of these to the government for their debts and daily expenses; And the sixteen being insufficient to afford us bread, we must live, as they do now, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account; But be glad to obtain subsistence by hiring ourselves to rivet their chains around the necks of our fellow sufferers; And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for a second, that second for a third, and so on 'til the bulk of society is reduced to mere automatons of misery, to have no sensibilities left but for sinning and suffering...and the forehorse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression." Good ol Tom again.

Kinda looks like the modern work week to me. Tax freedom day anyone???? Nevermind, oohhhh look over there, it's a pre-approved Chase-Manhattan Uber Platinum card with a credit line of $25,000.

[Toddsterpatriot]

Nevermind, oohhhh look over there, it's a pre-approved Chase-Manhattan Uber Platinum card with a credit line of $25,000.

If I get one, do I make my payment to the Federal Reserve?

[rednesss]

Ultimately. Especially since Chase is one of the major shareholders of the Federal Reserve. Funny though, all of my money says “Federal Reserve Note” on it.

[Toddsterpatriot]

Ultimately. Especially since Chase is one of the major shareholders of the Federal Reserve.

A major shareholder? How do you know? Did you ever find out how much profit they make from these shares every year?

Do the shareholders get to vote on interest rates at Fed meetings?

Funny though, all of my money says “Federal Reserve Note” on it.

Why is that funny?

[Moonman62]

So where is the Federal Reserve on your chart?

[rednesss]

You never did say whether it was a good idea that that information is more closely guarded than the nuclear launch codes.

[Toddsterpatriot]

You said the Fed was never audited, you were wrong about that too.