06.30.2009 0

Audit the Fed is Not Dead!

  • On: 07/14/2009 11:15:07
  • In: Monetary Policy
  • By Justin Williams

    With the Democratic controlled Congress setting its high volume sights on cap and trade and health care, there is one potentially explosive free-market measure that is getting the short-shrift from the mainstream media – though not from the members of Congress: H.R. 1207. This bill forces one of the most secretive agencies in the government — the Federal Reserve — to open its books to Congress and the American people, for the first time in nearly a century.

    With the bailouts and extra-legal actions by the Federal Reserve exponentially increasing, the House Republicans have stepped up to the plate with their own “Republican Regulatory Reform Plan.” This plan includes “bring[ing] transparency and accountability by directing the Government Accountability Office to conduct extensive audits” of the Fed.

    Not so coincidentally, this is exactly what H.R. 1207 is proposing. Introduced by Ron Paul and cosponsored by 260 Congressmen, including 175 Republicans and 85 Democrats, the Paul bill has the potential to shed light on a cryptic operation that has operated in the shadows of Jekyll Island since 1913.

    In their Regulatory Reform Plan, the Republicans stand up against more bailouts, as one might expect. But even more importantly, with a second stimulus on the way, they place equal emphasis on making certain that the American people are protected from the Fed’s manipulation of the monetary supply. And, they say, the only way this can be done is by auditing the Fed.

    In a recent interview with Washington News Observer, Congressman Spencer Bachus (R-AL) stated “when [the Federal Reserve] start[s] using the American citizens’ money they are no longer independent.” Thus calling for an audit to force transparency.

    Currently, the Federal Reserve holds a monopoly on printing the money and with a flick of a switch could flood the American economy with a fiat currency. Lest anyone doubt the danger, they only need take a quick look at countries like Argentina and Zimbabwe, which have competed in the last half-decade to see who could destroy their economy faster.

    The Fed’s primary task according to Rep. Ed Royce (R-CA) in a WNO interview, “is to keep a stable monetary unit, [but] that is not what the Fed has been doing.” This is of deepening concern to Americans across the country, as their retirements, pensions, and college funds are held in dangerously volatile U.S. dollars.

    As the Democratic majority tries to seize one sector of the economy after another, some congressmen are declaring unequivocally that the secrecy the current central bankers hide behind simply, cannot continue. And that means the simmering battle over H.R. 1207 – though currently one of the least exposed – could well become one of the most explosive as momentum builds in the current session of Congress.

    Justin Williams is the Senior Commentary Editor of ALG News Bureau.

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