Why Congress is Furious at the Fed--Federal Reserve Audit Gaining Steam

My weekly Time Article.

This time about how the Fed is being attacked by Congress on an ever increasing scale.

Here's a tidbit:

The Federal Reserve system, that mysterious organization with the temple-like headquarters just off the Washington Mall and thick-walled outposts in cities across the land, is under assault. It's "the most serious attack that I have seen on the Federal Reserve in the many, many years that I've studied it as a scholar," says Columbia economist and former Fed governor Frederic Mishkin.

Texas libertarian-Republican-obstetrician-Congressman Ron Paul--a man not known for bipartisan consensus-building--has gotten 313 of his colleagues, more than 100 of them Democrats, to back a bill that would subject the Fed to audits by the Government Accountability Office, and the Financial Services Committee has approved a version of it. On the other side of Capitol Hill, Senate Banking Committee chairman Chris Dodd is pushing reforms that would strip the Fed of its power to regulate banks.

It has gotten so bad that Fed Chairman Ben Bernanke has resorted to the equivalent of heavy artillery, taking to the opinion pages of the Washington Post on Nov. 29 to express his concern that these measures "would significantly reduce the capacity of the Federal Reserve to perform its core functions." (For Fedspeak, this is seriously blunt language.)

The most core of the Fed's functions is running the country's monetary policy--that is, deciding how many dollars should be in circulation. Hardly anyone is calling for it to be stripped of this power. Yes, the good Dr. Paul does so in his best seller End the Fed, but this is not what you'd call a viable legislative proposal, which is why he's pushing his audit plan in Congress instead. But Bernanke and other Fed defenders argue that subjecting the organization to more outside scrutiny and taking away its side function of regulating banks would render it unable to manage monetary policy effectively.

Ron Paul's Audit The Fed bill is seems to be gaining some serious attention and movement these days and it could be very soon that we see this bill passed into law.

I am a little surprised that this is getting attention in the MSM. Time being part of the same company as CNN among others.

Perhaps we will see this go the way we want?

Thoughts anybody?

~Keeper

Well as I think this is a VERY important topic, I am going to bump the thread.

Is there really no interest in a story like this? This could very well change the banking system and the money system of the US for good if all goes well.

Mind you the possibilites are a bit dark, it's still better than doing nothing.

~Keeper

The fractional banking system must be dealt with right away. We need to get rid of that system, for it will bring us down a dark road that humans will not like seeing. They should prosecute Bernanke, and all the others that conspired with him. They should put them in jail, and throw away the key.

Originally posted by tothetenthpower

I am a little surprised that this is getting attention in the MSM. Time being part of the same company as CNN among others.

Perhaps we will see this go the way we want?

Thoughts anybody?

~Keeper

Perhaps they're allowing it to smokescreen the Copenhagen Meeting.
Would be nice if "we" could win both of these.

reply to post by Dogdish


I agree, how nice it would be eh?

But then again the only member to actually meet their Kyoto requirements are the EU, big surprise there.

None of the other countries, including Canada and the US have done squat. Hell Canada hasn't even a plan in place.

It's kind of disgracefull.

I hadn't thought about this being a Copenhagan smoke screen though, it wouln't surprise me.

Maybe they'll pick up ClimateGate during the same time?

~Keeper

reply to post by tothetenthpower


Little bump for the day.

Very important topic, especially with Copenhagen going on.

Thoughts?

~Keeper

reply to post by tothetenthpower


Great news, but Bernanke is saying bad things will happen if the Fed gets audited. HA!

Bernanke Under Fire in Senate

Corker came back, so we'll give him a pass for going on and on:
"My antenna right now makes me feel nervous about the hyperactivity and what could happen down the road," Corker says. "You responded aggressively during this last cycle. As has been said, you're being criticized for responding aggressively. If we allow the Fed's role in our financial system to become something far greater than it should be … we're going to set ourselves up to do some ultimate long-term damage to our country."

So maybe these guys in Congress are actually digging their heads out of the sand!

Or....maybe this is a smoke-screen. Hmm...


Great thread!

*S&F*

reply to post by havok


It could very well be just a smoke screen. I don't think they will take Bernanke's word for it this time though. He's messed up enough as it is.

~Keeper

Since it is the FED, I fear the backlash will be another country declaring war on us. We will have to pay for our insolence of questioning our lords. Perhaps Mexico? Feel sorry for the regular Mexican citizen if that happens... Don't we have a lot of Mexican gangs in the USA?

I'm gonna miss the yummy tomatoes (NOT).

Gwen

further: not Canada. I think they like their stability, and they're VERY dependent on the US economy, just as we are dependent on theirs. Where Mexico is already falling apart, and fast.

[edit on 6-12-2009 by jane_within]

I think its a scam. nothing gets to the eye balls of the nation unless it has been approved. its just a diversion or is part of the end game of the 100 year rule of the Federal Reserve. >>>? it was planned 100 years ago.

[edit on 7-12-2009 by Anti-Evil]

reply to post by Anti-Evil


I agree, but Ron Paul is pretty serious about taking these folk down.

And he might just get his wish.

~Keeper