View Full Version : House Passes Ron Paulís ĎAudit the Fedí Bill

07-29-2012, 03:49 PM
Link (http://blogs.wsj.com/economics/2012/07/25/house-passes-ron-pauls-audit-the-fed-bill/)

The House voted Wednesday to open up the Federal ReserveĎs core monetary policy decisions to the scrutiny of the federal government.

The vote marks the latest clash between House Republicans, wary of the unprecedented moves the central bank has taken since the financial crisis to stabilize the economy, and Fed Chairman Ben Bernanke, who has warned the bill could expose the Fed to political pressures.

On Wednesday, the House on a 327-98 vote, passed a bill that would permit the government to review the policy deliberations that are at the heart of the central bankís mission.

A senior Democratic Senate leadership aide said there are no plans to bring the bill up in the Senate, but didnít rule out an attempt by Republicans to seek a vote on the measure as part of another piece of legislation. The Senate would be almost certain to defeat it given the Democratic majority in the chamber.

The Fed is already reviewed by an outside, independent audit firm, whose examination of all Fed financials is published in the bankís annual report. The Government Accountability Office also audits the Fedís financials, including those of its monetary-policy operations, but it doesnít evaluate the policy decisions behind them. The bill introduced by longtime Fed critic Rep. Ron Paul (R., Texas) would eliminate that exemption for the Fedís closed-door discussions of monetary policy.

ďItís really not an audit without this,Ē Mr. Paul said at a hearing with Mr. Bernanke last week.

House GOP lawmakers have argued the Fed should be more transparent as the size of its portfolio of assets has ballooned. The Fedís balance sheet has tripled since the financial crisis as it bought trillions of dollarsí worth of bonds as part of its efforts to make borrowing cheaper to spur lending and investment.

Republicans have warned that the Fedís easy-money policies could ignite inflation if the economic recovery accelerates, even though inflation this year is below the Fedís target level.

Mr. Bernanke has pushed back, arguing that exposing the Fedís internal deliberations over monetary policy could tempt lawmakers to meddle in the process. Central banks are more effective at supporting the economy and keeping prices stable if they make decisions based purely on economic reasons, he said last week at the House hearing.

While some Democrats support the bill, others have argued the measure could politicize the Fed at a time when it is unpopular with many Republicans.

ďThis is a way to shake your fist at the big bad Fed, and itís not a good way,Ē Rep. Barney Frank (D., Mass.), the top Democrat on the House Financial Services Committee, said on the House floor Tuesday.

The Fed already releases minutes of its policy meetings after three weeks and full transcripts after five years. The central bank has taken other steps to become more transparent recently: Mr. Bernanke now holds regular press conferences and Fed officials began this year releasing their estimates of where interest rates will be over three years.
Barney Frank is against it? It's got to be good.

07-29-2012, 04:18 PM
If Barney Frank is against it, then you know there is something sinister within the reserve. Or he is trying to save his skin because it was him and Dodd who started the whole mess. I am going to say that it is both.

07-29-2012, 04:59 PM
My fear is that this bill is just window dressing. I don't see it getting past the Senate and certainly Oblahblah won't sign it.

07-29-2012, 10:07 PM
My fear is that this bill is just window dressing. I don't see it getting past the Senate and certainly Oblahblah won't sign it.

They said today that it isn't even going to be brought up in the senate.

Benjamin Parish
07-29-2012, 10:39 PM
Yea. Dude's gonna be getting extensive (http://cnsnews.com/news/article/harry-reid-ive-sponsored-legislation-audit-federal-reserve) push (http://dailycaller.com/2012/07/26/flashback-harry-reid-wanted-to-audit-the-fed-in-1995-video/) back (http://dailycaller.com/2012/07/26/harry-reid-called-for-audit-of-federal-reserve-during-2010-campaign-video/).

Fu**er is safe through the next Presidential election, though.. so, its gonna be harder than it'd have been a few years ago.

As to why Frank got out, I've not read the bill in its entirety nor seen much review of this version of Paul's bill, but if Frank is out (as he's always been in - and he is retiring) then it must have something to do with uncovering corruption that he was involved in; as he was the one overseeing the beauty that was the 2000's.

Just speculation, but may be why Reid has... ...flipped his position... (http://www.youtube.com/watch?v=j8XLkXLwcjs&list=UUsHZxutsNTNZL9S3OedqZZg&index=1) ...so strongly on this issue, as well.