Diary

Audit the Fed Update

H.R. 1207

Directs the Comptroller General to complete, before the end of 2010, an audit of the Board of Governors of the Federal Reserve System and of the federal reserve banks, followed by a detailed report to Congress.

In no place is the hypocrisy of calls by Democrats for transparency more evident than in their efforts to block legislation to audit the central bank. Two weeks ago, their Senate leaders fabricated an excuse on phony procedural grounds to prevent the measure from even being introduced.

In contrast, every Republican member in the House has co-sponsored Congressman Paul’s bill to audit the Fed.

His bill to audit the Fed, just three pages long, has 274 co-sponsors — every House Republican and almost 100 Democrats — and counting. “People are upset,” he says. “People are demanding more transparency of the Fed, and they’re supporting me on this.”

…Mr. Paul sees transparency as a first step in making the public more aware of the Fed’s ability to electronically print money to support the banking system. The revelations from an audit will “expose to the American people exactly how the Federal Reserve operates,” he says. “Because when they fully understand how they operate, what they do, how they manipulate monetary policy and interest rates, they will finally figure out that it’s the Fed that has caused all the mischief.”

…Some lawmakers signed up as an expression of disapproval after learning more about the Fed’s decisions to lend money to firms such as AIG. Many others say greater scrutiny is critical before any discussion of expanding the Fed’s authority in other areas, as the Obama administration proposes. “Bringing transparency and accountability to the Federal Reserve through an audit will help ensure that tax dollars are not wasted,” said Rep. John Boehner of Ohio, the House’s top Republican.

If Democrats are not willing to even account for existing spending, how can they justify increasing their credit line?

Fed chairman Bernanke attempted to deflect questions by Congress this week regarding the bank’s monetary policies.

Rep. Paul (R) exposed Bernanke’s failure to understand the cause of inflation.

Rep. Posey (R) continued to press Bernanke on his reluctance to reveal the actions of the central bank.

Dr. Paul appeared in several interviews following Bernanke’s testimony to discuss his bill to audit the Fed.

The Kudlow Report

Bloomberg News

Neil Cavuto