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View Full Version : U.S. Issues Barney Frank: "We will subject [The Fed] to a complete audit."


Taco John
09-01-2009, 01:20 AM
This is great news. There's still a battle to be won, but right now, it's looking like the road is practically paving itself:


AUGUST 31, 2009
Frank Said to Back Broader Fed Audits

Rep. Ron Paul said he has a commitment from the chairman of the House Financial Services Committee, Barney Frank, to advance the Texas Republican's legislation opening the Federal Reserve to broader federal audits.

In an interview Friday, Mr. Paul said Mr. Frank agreed to allow a vote on the bill and to work on language that would allow the Government Accountability Office, the investigative arm of Congress, to audit the Fed's monetary-policy operations. While details are unresolved, the discussions increase the likelihood that some version of Mr. Paul's bill will pass the House.

"Barney told me, 'It's going to come. You're going to get what you want,' " Mr. Paul said. "We're going to have some hearings and we'll get a vote."

A spokesman for Mr. Frank said the Massachusetts Democrat shares the goal of increasing transparency at the Fed. But he hasn't inked specific language and "wants to be sure that some parts of the Fed are adequately protected," the spokesman said.

In recent months, the Fed has released more information about its lending, though not the identities of individual banks borrowing through its discount window. Mr. Paul said he wants the audits to find out more about the Fed's dealings with foreign central banks, foreign governments and individual firms. "I want to know who they're loaning the money to," he said.

The key unresolved issue is how to avoid the perception that Congress is interfering with Fed independence in making monetary policy. Under current law, the GAO can audit some Fed operations -- such as bank regulation and consumer protection -- but not its core monetary-policy decisions.

Mr. Frank told a town-hall meeting this month that the measure to audit the Fed would be incorporated into broader financial regulation and "probably" pass the House in October.

"We will subject them to a complete audit," Mr. Frank said at that meeting. He also said Mr. Paul "agrees that we don't want to have the audit appear as if it is influencing monetary policy."

Nearly two-thirds of the House has co-sponsored Mr. Paul's bill. Fed Chairman Ben Bernanke opposes the bill as written, saying it would compromise the Fed's ability to set interest rates free of political interference. "A perceived loss of monetary-policy independence could raise fears about future inflation, leading to higher long-term interest rates and reduced economic and financial stability," Mr. Bernanke testified last month.

Mr. Frank has said any audit would release details of Fed transactions with financial institutions only after a lag. "If that was made instantly, you would have a lot people trading off of that and it would have too much impact on the market," he said earlier this month. "So we will probably have that data released after a time period of several months, enough time so it wouldn't be market sensitive."

The Fed currently releases minutes of its Federal Open Market Committee meetings, at which interest rates are set, with a three-week lag and transcripts after five years. In recent months, the Fed has released more information about its lending, though not the identities of individual banks borrowing through its discount window.

In the interview, Mr. Paul -- whose book, "End the Fed," will be published next month -- said he doesn't want the audits to interfere with monetary policy.

But he said he wants to know more about the Fed's dealings with foreign central banks, foreign governments and individual firms. "I want to know who they're loaning the money to," he said. "Youcan't have an audit and ignore the fact that somebody got billions of dollars. That doesn't mean we're going to be looking over the shoulders of the Federal Open Market Committee."

That could be done by setting audits to lag major decisions, or setting a regular schedule -- annual audits, for instance -- that's not tied to specific decisions, Mr. Paul said. "This is something to have the books open at an appropriate length of time," he said.

http://online.wsj.com/article/SB125167261849670795.html?mod=googlenews_wsj

Direckshun
09-01-2009, 01:21 AM
Was this Paul's baby from the beginning? Who started the audit-the-Fed chants?

Taco John
09-01-2009, 01:23 AM
On the other side of the coin, it looks like the best argument that the opposition can muster is a scare tactic that auditing the Fed is Economic Suicide. The argument basically takes on a tone similar to the idea that balancing your checkbook is economic suicide - since you'll know the facts about whether or not you actually have the money that you're spending.

http://seekingalpha.com/article/158778-auditing-the-fed-is-economic-suicide

Taco John
09-01-2009, 01:24 AM
Was this Paul's baby from the beginning? Who started the audit-the-Fed chants?

Yes. This is Ron Paul's bill. It currently has 282 sponsors in the house (needs 290 votes for a veto proof majority), and 23 sponsors in the senate (needs 66 votes for a veto proof majority).

KILLER_CLOWN
09-01-2009, 01:35 AM
"wants to be sure that some parts of the Fed are adequately protected,"

What exactly does that mean? Protected? does that mean above scrutiny?

Chocolate Hog
09-01-2009, 01:41 AM
I read on Ron Pauls website a few days ago that Frank never said HR1207 would be voted on.

Direckshun
09-01-2009, 01:46 AM
Yes. This is Ron Paul's bill. It currently has 282 sponsors in the house (needs 290 votes for a veto proof majority), and 23 sponsors in the senate (needs 66 votes for a veto proof majority).

Huge win for his 2012 ambitions if he can get Frank on board.

Chocolate Hog
09-01-2009, 02:08 AM
Huge win for his 2012 ambitions if he can get Frank on board.

Nah the establishment is aginst him. It'll either be Romney or that idiot Sarah Palin.

BucEyedPea
09-01-2009, 07:15 AM
I read on Ron Pauls website a few days ago that Frank never said HR1207 would be voted on.

He was holding it up earlier and it looked that way. Frank claimed that his hold up would ensure it would happen; that he wasn't gutting it. He's now on board.
Unanimous GOP support for Paul's Bill in the House too.

But Obama could veto it.

I think the O Administration may implode soon though.

KC native
09-01-2009, 10:43 AM
Frank jumped on board on this but I think for very different reasons. I think Frank is trying to stop the Fed's power grab to be the one regulator to rule them all.

KC Dan
09-01-2009, 10:47 AM
He was holding it up earlier and it looked that way. Frank claimed that his hold up would ensure it would happen; that he wasn't gutting it. He's now on board.
Unanimous GOP support for Paul's Bill in the House too.

But Obama could veto it.

I think the O Administration may implode soon though.m vetoing the bill and Congress overriding the veto could actually save his Presidency in a wierd way. It would force him to move more to the center and listen to the calls for transparancy that he espoused but has turned his back on since his election.

BucEyedPea
09-01-2009, 12:40 PM
Here's a link for you KC Dan on Frank.

Frank to back broader Fed audits (http://www.lewrockwell.com/spl/frank-fed-audit.html)

Simplex3
09-01-2009, 12:47 PM
There are now two things Frank has done which I know about and agree with.

1. Auditing the Fed (though I would prefer it be abolished again)

2. Removing himself from the gene pool

BucEyedPea
09-01-2009, 12:48 PM
There are now two things Frank has done which I know about and agree with.

1. Auditing the Fed (though I would prefer it be abolished again)

2. Removing himself from the gene pool

If you read that link, there appears to be some wiggle room for him on certain aspects of the audit. Where he could appear to be for it but restrict some areas. At least I see it that way.
I read that happened in the 70's.

wild1
09-01-2009, 12:57 PM
As if these wolves will do an honest and complete audit

Taco John
09-01-2009, 02:24 PM
As if these wolves will do an honest and complete audit


Any audit is going to be problematic for The Fed because it will have to account for the stimulus money spent. They could cover up the entire 100 years of Fed existence and will still have to account for the stimulus money. Once the American people get even the faintest whiff of that, fireworks will fly.

KC Dan
09-01-2009, 02:32 PM
Any audit is going to be problematic for The Fed because it will have to account for the stimulus money spent. They could cover up the entire 100 years of Fed existence and will still have to account for the stimulus money. Once the American people get even the faintest whiff of that, fireworks will fly.If the truth of what is happening with the Stimulus dollars ever really comes out - the 57% number of people that want a complete changeout of Congress would skyrocket to >80% ---overnight. Oh, and of course the fraud trials would commence.

BucEyedPea
09-01-2009, 02:32 PM
What the Feds don't want intrusion on is how they make monetary policy which threatens their alleged independence. ( They've been letting presidents tell them what to do anyway, particularly over the past 16 years. Volcker didn't with Reagan at least) Anyhow, that was Frank's hold up. Even if we just get to who got the bail out money, particularly the foreign banks that would be a start. Maybe it could lead to more.

Taco John
09-01-2009, 02:37 PM
If the truth of what is happening with the Stimulus dollars ever really comes out - the 57% number of people that want a complete changeout of Congress would skyrocket to >80% ---overnight. Oh, and of course the fraud trials would commence.



You can see why I'm worried about the potential for a False Flag event between now and this vote...

Taco John
09-01-2009, 02:38 PM
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Inspector
09-01-2009, 02:48 PM
balancing your checkbook is economic suicide - since you'll know the facts about whether or not you actually have the money that you're spending.

Wait...what?

I'm supposed to balance my checkbook??

Not sure I really want to know just how broke I am.......

KC Dan
09-01-2009, 02:50 PM
You can see why I'm worried about the potential for a False Flag event between now and this vote...that makes two of us

BucEyedPea
09-01-2009, 03:03 PM
I hope the audit finds fraud, the leads to a widening mandate where the key players go to jail. Then it gets abolished. o:-)

KC native
09-01-2009, 03:06 PM
I hope the audit finds fraud, the leads to a widening mandate where the key players go to jail. Then it gets abolished. o:-)

LMAO Back to life, back to reality.

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BucEyedPea
09-01-2009, 03:18 PM
was there a noise?

KC native
09-01-2009, 04:41 PM
was there a noise?

AWESOME!!!!! I'm back on fake ignore! LMAO

kcfanXIII
09-01-2009, 06:41 PM
"wants to be sure that some parts of the Fed are adequately protected,"

What exactly does that mean? Protected? does that mean above scrutiny?

doesn't surprise me at all. frank is owned by the IMF. he's a piece of garbage that needs to go the way of teddy. only a longer, more drawn out and more painful death. the only reason he's budging is because its becoming painfully clear to the bankers, that the american people are not going to turn their back on this issue. the big purple dinosaur will try to pass a dumbed down version to get people looking the other way.

Taco John
09-01-2009, 06:52 PM
doesn't surprise me at all. frank is owned by the IMF. he's a piece of garbage that needs to go the way of teddy. only a longer, more drawn out and more painful death. the only reason he's budging is because its becoming painfully clear to the bankers, that the american people are not going to turn their back on this issue. the big purple dinosaur will try to pass a dumbed down version to get people looking the other way.

Even still... They're going to have to come clean on where the stimulus money went.