What follows is an article by Carolyn Austin (contact the author), which was first posted on the Wall St. Cheat Sheet and has been reprinted here with permission. The article discusses an interesting bill being proposed in the House (HR 1207) that calls for a third-party audit of the Fed. I have created a tracker on the right side of this page to follow the progress of this bill, which raises an important debate about whether the Fed should be subject to increased oversight, especially at a time when Congress is also debating giving the private institution more power to regulate banks.
[Editor’s Note: because the original link to Alan Grayson’s views on HR 1207 in Ms. Austin’s article appears to be broken, I have replaced it with a short clip of Grayson speaking about the bill on the floor of the House. Thanks to Damien Hoffman for submitting this article and for posting several articles from The Subprime Shakeout on Wall St. Cheat Sheet.]
Posted on October 14 2009.SHARETHIS.addEntry({ title: “The Federal Reserve’s Secret Lending of Public Money is Under Attack”, url: “http://wallstcheatsheet.com/breaking-news/the-federal-reserves-secret-lending-of-public-money-is-under-attack/?p=2568/” });
Massive amounts of taxpayer $$$ are flying out the door like monkeys from Oz. Americans simply want to know: Who got our money?
Rather than answer our question, personal enrichment schemes by public officials and bankers dominate the news. Until now Washington has continued the same rhetoric: Let the markets judge while the priests of high finance decide in secrecy.
However, Congressmen Ron Paul and Alan Grayson are leading a popular charge to pass a bill which will mandate a third-party audit of the Federal Reserve. The House is set to vote on H.R. 1207 in the near future — so start paying attention.
Call me crazy, but is it unreasonable to ask, “Why can’t (or won’t) the Federal Reserve account for secret loans equivalent to more than $1 Trillion?” We’re asking for only transparency, not lawmakers dictating interest rates. Isn’t transparent economic activity the hallmark of a democratic society? Let’s hear the experts’ opinions:
Congressman Alan Grayson thinks the Fed must be transparent:
