Should the Fed be audited?

myp · Dec 1, 2009

With the Federal Reserve under a lot of fire recently (especially in light of the "back-door" bailout to AIG and a growing curiosity towards their secretive dealings), there has been a lot of debate over what the duties of the central bank should be and how much of their actions should be made public or open to Congress. The discussion has largely been fueled by Ron Paul's bill to fully audit the Fed, which is picking up a lot of steam.

Bernanke and those within the Fed have expressed discontent with the bill for obvious reasons. They claim the oversight would undermine and endanger the activity of the Fed by causing stability issues due to the Fed's transactions, but Paul's bill actually audits it on a 6 month lag, which would still allow the American people and at least Congress to see what the central bank is doing without the market panicking to Fed measures. Most economists and people outside of the Fed seem up for the audit with several polls showing over 70% of Americans support the measure.

How do all of you feel about this? Should the Fed be audited?

DodgeFB · Dec 2, 2009

myp said:
With the Federal Reserve under a lot of fire recently (especially in light of the "back-door" bailout to AIG and a growing curiosity towards their secretive dealings), there has been a lot of debate over what the duties of the central bank should be and how much of their actions should be made public or open to Congress. The discussion has largely been fueled by Ron Paul's bill to fully audit the Fed, which is picking up a lot of steam.

Bernanke and those within the Fed have expressed discontent with the bill for obvious reasons. They claim the oversight would undermine and endanger the activity of the Fed by causing stability issues due to the Fed's transactions, but Paul's bill actually audits it on a 6 month lag, which would still allow the American people and at least Congress to see what the central bank is doing without the market panicking to Fed measures. Most economists and people outside of the Fed seem up for the audit with several polls showing over 70% of Americans support the measure.

How do all of you feel about this? Should the Fed be audited?

Sure they should be audited. To much chance of sticky fingers with so much gravy.

Dirk · Dec 2, 2009

Why bother?

Just get rid of them!

On the other hand, you could probably use the findings as a basis for abolishing it. I suppose that's Ron Paul's point?

It's funny how, a a socialist, I agree with him so much. Then again, as a libertarian, i suppose it's not that odd. Hmm.

DodgeFB · Dec 2, 2009

Dirk said:
Why bother?

Just get rid of them!

On the other hand, you could probably use the findings as a basis for abolishing it. I suppose that's Ron Paul's point?

It's funny how, a a socialist, I agree with him so much. Then again, as a libertarian, i suppose it's not that odd. Hmm.

Ron Paul's son Rand is running is running for the senate from Kentucky. And had this to say......

FEDERAL RESERVE

With so much blame going around for the current financial crisis it is surprising that so few in the mainstream press have discussed the role of the Federal Reserve System. For too long the Federal Reserve has operated behind a shroud of mystery?as Senator I would make sure that all Americans understand the dangers of unsound monetary policy and shed light on this secretive organization.

http://www.randpaul2010.com/

myp · Dec 2, 2009

Ron Paul is for ending the Fed as am I. A lot of people, especially those who do not know much about the economic infrastructure of this nation, may not be up for that big of a change just yet, so the audit is really just a move to get more information out to the public. The American people like incrementalism and the audit is an incremental change towards that eventual goal.

As for Rand, I really hope he can win in Kentucky. He has surprised the state as he is polling higher and has more donation money than Greyson, his main GOP rival.

deanhills · Dec 2, 2009

myp said:
Bernanke and those within the Fed have expressed discontent with the bill for obvious reasons. They claim the oversight would undermine and endanger the activity of the Fed by causing stability issues due to the Fed's transactions, but Paul's bill actually audits it on a 6 month lag, which would still allow the American people and at least Congress to see what the central bank is doing without the market panicking to Fed measures. Most economists and people outside of the Fed seem up for the audit with several polls showing over 70% of Americans support the measure.

How do all of you feel about this? Should the Fed be audited?

Absolutely. And if Obama is really as sincere when he said that he wished Government accounting to be completely transparent, this would be an opportunity to show his sincerity. I'm all for auditing. Especially given the very irregular financing that must have happened with the bail-out of the Banks.

myp · Dec 5, 2009

Exactly- the American people deserve to know what is going on. Senator Demint has said he will put a hold on the Bernanke confirmation until a bill with the audit is voted on and the latest Rasmussen poll on the topic shows 79% of Americans want to audit the Fed. Things have been looking better and better on this front recently

Dirk · Dec 6, 2009

myp said:
Ron Paul is for ending the Fed as am I. A lot of people, especially those who do not know much about the economic infrastructure of this nation, may not be up for that big of a change just yet, so the audit is really just a move to get more information out to the public.

I think the sooner it's gotten rid of, the better!

But i suppose the politicians have to look out for their own interests.

myp · Dec 6, 2009

Dirk said:
I think the sooner it's gotten rid of, the better!

But i suppose the politicians have to look out for their own interests.

I agree- politics often gets in the way sadly. But, if the audit pulls out some shocking information, I think the American public is going to be very unhappy and if we pressure Congress (or just vote in a better one), it could eventually happen. Something really interesting I found in this regard recently is that the majority of economists who oppose a Fed audit either work for or are linked to the central bank in some way. Coincidence? Don't think so

DodgeFB · Dec 6, 2009

myp said:
I agree- politics often gets in the way sadly. But, if the audit pulls out some shocking information, I think the American public is going to be very unhappy and if we pressure Congress (or just vote in a better one), it could eventually happen. Something really interesting I found in this regard recently is that the majority of economists who oppose a Fed audit either work for or are linked to the central bank in some way. Coincidence? Don't think so

I think they are all in "Kahoots"!

Dirk · Dec 6, 2009

myp said:
Something really interesting I found in this regard recently is that the majority of economists who oppose a Fed audit either work for or are linked to the central bank in some way. Coincidence? Don't think so

Oho! A vested interest, perhaps? Looks like there be treasure beneath these sands!

David · Dec 8, 2009

Why does the Fed exist? Did we not learn our lesson with the Bank of the United States?

He may have been a genocidal, statist, capitalist asshole but he was also extremely democratic and had it right when he said, "Banks pose a far grater risk to democracy then any standing army."

myp · Dec 8, 2009

David said:
Why does the Fed exist? Did we not learn our lesson with the Bank of the United States?

It was created to increase "stability" and has just done the opposite.

David said:
He may have been a genocidal, statist, capitalist asshole but he was also extremely democratic and had it right when he said, "Banks pose a far grater risk to democracy then any standing army."

You realize that statist capitalist is an oxymoron right? Also, Jefferson was far from statist anyway and I don't know where you got genecidal from. The discussion is for another thread if you want to continue it- I just had to defend one of our greatest founding fathers.

David · Dec 8, 2009

myp said:
It was created to increase "stability" and has just done the opposite.

You realize that statist capitalist is an oxymoron right? Also, Jefferson was far from statist anyway and I don't know where you got genecidal from. The discussion is for another thread if you want to continue it- I just had to defend one of our greatest founding fathers.

As already stated, I'm a Floridian secessionists. Andrew conquered Florida, so I hold a grudge.

But yes, another thread would be better.

P.S. I actually like the man if you get past his "Union at all costs!" and genocidal tendencies with the natives.

el canadiano · Dec 12, 2009

I think every institution has to have some sort of check to see if they're doing their job properly. I think eventually, at least one American government must make a surplus if they want to keep the Superpower status.

Aristotle · Dec 19, 2009

It should definitely be audited. I think they are hiding something which is why they are against the audit in the first place, despite what they say.

deanhills · Dec 22, 2009

Aristotle said:
It should definitely be audited. I think they are hiding something which is why they are against the audit in the first place, despite what they say.

Maybe we need to rephrase that they are hiding it "legally", but yes, I would agree that that is definitely not transparent. They would obviously be seriously worried about the can of worms that would open up for the media to pick over.

Should the Fed be audited?

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