Last Tuesday, an “Audit the Fed” bill has passed the House Committee on Oversight and Government Reform. The Federal Reserve Transparency Act of 2017, sponsored by Rep. Thomas Massie (R-KY), would give the Government Accountability Office (GAO) 12 months to complete an audit of the Federal Reserve board and Federal Reserve banks.
Now that the bill has passed committee, it will go to the House for vote, where it is expected to pass. Different versions of this same bill have previously passed the House on two separate occasions, but ran into a wall in the Senate both times.
In the past, influential Democrats have supported auditing the Federal Reserve, including Bernie Sanders, but currently House Democrats are lockstep with the Fed itself in fighting hard against the bill.
The most ironic statement of the day was made by Del. Eleanor Holmes Norton, a Democrat from the District of Columbia, who said, “This bill would open the floodgates to political interference in monetary-policy making.”
The idea that politics doesn’t already influence and interfere with the Fed’s monetary policy is ridiculous to say the least. What the bill would do is what any audit does: make sure the accounting practices of the bank are in agreement with industry wide generally accepted accounting principles and that their financial statements are free of material errors.
That the largest, most powerful bank in the world isn’t subject to a full audit, internal or external, is frankly unbelievable and can only be a result of the fact that those running the show prefer to operate in secret. How else could they inflate, devalue and debase the currency? How else could they print trillions of dollars to fund their unnecessary wars of aggression or bail out cronies that are “too big to fail”? How else could they monetize the federal debt by purchasing worthless assets?
Rep. Massie emphasizes the importance of auditing the Federal Reserve:
“We need to audit the Fed. It’s a creature of the swamp. It’s controlling the economy, and it’s still behind the veil, and people are demanding more transparency in their government in the internet age—and we should know what our government is doing.”