Paul-Grayson’s Audit the Fed Measure Added to Bill

November 20, 2009

(ChattahBox)– Rep. Ron Paul (R-TX) together with Rep. Alan Grayson (D-FL) were successful in securing approval for their audit the Fed amendment, which was tacked on to the bill to overhaul our nation’s financial-system. Since Paul first proposed the auditing of the secretive Federal Reserve in the wake of its controversial bailout decisions, the measure has gained momentum, drawing 300 co-sponsors to his original measure.

During the hearing of the House Financial Services Committee, the audit provision amendment passed 43-26. Paul’s measure would give the Government Accountability Office nearly full power to audit the operations of the Federal Reserve.

Paul believes the resulting transparency of a full audit would force reform of the country’s financial system. “If we get the audit and get the books open, make them answer the questions, I am convinced that the American people will be so outraged that then we will have reform of the monetary system,” Paul said.

The central bank has come under increasing criticism, as it refuses to disclose the identities of institutions receiving federal bailout funds and the terms of the loans. Fed Chairman Ben Bernanke will not disclose details of any loans made. And he strongly opposes Paul’s audit the Fed bill, claiming it would destroy the historically independent functions of the central bank and effectively put monetary policy in the hands of Congress.

Bernanke told Congress that Paul’s bill “would effectively be a takeover of policy by the Congress . . . [and] would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”

Reps. Paul and Grayson’s amendment still needs to survive through the House and the Senate.

Source


Comments

3 Responses to “Paul-Grayson’s Audit the Fed Measure Added to Bill”

  1. Bob on November 20th, 2009 11:39 am

    “Fed Chairman Ben Bernanke … strongly opposes Paul’s audit the Fed bill, claiming it would … effectively put monetary policy in the hands of Congress.”

    Interesting. I had to go back and double-check the Constitution, but it does say what I thought it does.

    Article I Section 8 gives Congress the power to “coin money and regulate the value thereof.” So, what I hear Bernanke saying is that he opposed the Paul-Grayson bill because it will effectively allow Congress to do the job assigned to it in the Constitution. For whom does he work?

  2. Mark on November 20th, 2009 11:58 am

    I applaud Mr grayson and Dr paul for what they are doing its about time we see just how corrupt this system is and i have a hunch everyone is going to be FLABBERGASTED about there shady dealings

  3. Justin on December 8th, 2009 2:51 pm

    http://globaleconomicanalysis.blogspot.com/2009/09/fed-offers-2-cents-on-audit-fed-dollar.html

    In the above post, it says “The Fed’s monetary-policy operations — such as interest-rate decisions and loans to banks through its discount window — are blocked by law from GAO review.”

    How is this possible if Article I Section 8 of the constitution gives Congress the power to regulate the value of our money? In some way isn’t the Fed the money- valuation arm of Congress & therefore shouldn’t it be able to be audited by the GAO? When did the Fed begin to be considered as the almighty decider of monetary policy & monetary valuation?

    I look forward to the upcoming happenings with this amendment & am very pleased it has even gotten this far.

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