Over the past couple of months, Kentucky Senator and possible 2016 presidential candidate Rand Paul has been vehemently criticized for his re-introduction of the “Audit the Fed” legislation. From Democratic Senators to the United States central bank itself, opponents say it reduces the independence of the Federal Reserve, politicizes monetary policy and potentially ends the century-old institution.
Former Texas Republican Congressman and three-time presidential candidate Ron Paul isn’t buying into any of the criticisms, arguing that the elements and intent of the bill have been deeply “distorted.”
The bestselling author of “End the Fed” published an op-ed piece on CNBC on Monday entitled “Don’t be fooled by Fed’s anti-audit propaganda,” in which he accused Fed Chair Janet Yellen and her cohorts of being unable “to identify any provision of the bill giving Congress power to dictate monetary policy.”
In fact, says Paul, this argument would only have any credence is if enhancing transparency violates the central bank’s independence.
Paul added that monetary policy has always been politicized, citing Arthur Burns and Richard Nixon mocking the so-called independence of the Fed. The president inquired with Burns to have the Fed’s monetary policy be equipped to accommodate a low-interest environment. Moreover, President Dwight D. Eisenhower demanded that Fed Chair William Martin either submit his letter of resignation or increase the money supply. Of course, we can’t forget Alan Greenspan’s effect on the Clinton years.
He did concede that the Fed does experience a number of audits, but they only take a glimpse at the amount of assets on its balance sheets. However, the “Audit the Fed” legislation would allow the general public to discover what was purchased, why it was acquired and when it was bought.
Perhaps the Fed would be terrified of what exactly was behind the $16 trillion allocation to financial institutions and private companies. A generic audit would never accomplish this, says Paul.
“Don’t the people have a right to know if they are being harmed by the current monetary system?” wrote Paul. “For over a century, the Federal Reserve has operated in secrecy, to the benefit of the elites and the detriment of the people. It is time to finally bring transparency to monetary policy by auditing the Federal Reserve.”
Here are the contents of S. 209 and what its co-sponsors want:
(1) the guidance given by the Board of Governors of the Federal Reserve System to independent consultants retained by the supervised financial institutions regarding the procedures to be followed in conducting the file reviews;
(2) the factors considered by independent consultants when evaluating loan files;
(3) the results obtained by the independent consultants pursuant to those reviews;
(4) the determinations made by the independent consultants regarding the nature and extent of financial injury sustained by each homeowner as well as the level and type of remediation offered to each homeowner; and
(5) the specific measures taken by the independent consultants to verify, confirm, or rebut the assertions and representations made by supervised financial institutions regarding the contents of loan files and the extent of financial injury to homeowners.
It doesn’t say anywhere that Congress will have the power to dictate monetary policy nor does it say the central bank will cease to exist on such and such date.
It’s as plain as this: the Fed has something to hide and an audit revealed to the public would be a disaster for the central bank.
I would like to know who gets the profit from the FED assets when they are sold. And who pays if there is a loss.
The Elitist know that if the People were to ever discover the way they manipulate the false currency they produce, Washington Decit would be ashes in a couple of days.