"Audit The Fed" Bill Gains Momentum, Yellen Starts Damage Control

Tyler Durden's picture

After years of being blocked by Democratic leader Harry Reid, The Washington Times reports, the Senate will finally get a chance next year to vote on legislation to force a broad audit of the Federal Reserve's decision-making. Ron Paul's flagship legislative efforts have been picked up by his son and now has the backing of the leader of the new Republican majority, Sen. Mitch McConnell, whose office says the legislation will earn a floor vote. While the bill is not a sure thing, it appears to have The Fed worried as Reuters reports, Yellen and other Fed officials are lobbying Capitol Hill to drop the audit push.

 

As The Washington Times reports,

After years of being blocked by Democratic leader Harry Reid, the Senate will finally get a chance next year to vote on legislation to force a broad audit of the Federal Reserve's decision-making.

 

Once championed in Congress by former Rep. Ron Paul, the push to force the country's central bank to undergo a full audit has been picked up by his son, Sen. Rand Paul, and others, and has the backing of the leader of the new Republican majority, Sen. Mitch McConnell, Kentucky Republican, whose office says the legislation will earn a floor vote.

 

But despite overwhelming support in the House, where the legislation has twice passed, the bill is not a sure thing in the Senate, and the Fed itself is pushing back. Chairwoman Janet L. Yellen said earlier this month the Fed remains opposed to stricter oversight of its monetary policy decisions, and Reuters reported she and other Fed officials are lobbying Capitol Hill to drop the audit push.

 

"Back in 1978 Congress explicitly passed legislation to ensure that there would be no GAO audits of monetary policy decision-making, namely policy audits. I certainly hope that will continue, and I will try to forcefully make the case for why that's important," Ms. Yellen told reporters at a press conference two weeks ago.

 

For supporters in Congress, the fight is a matter of constitutional prerogatives and good governance. They argue that President Obama's 2009 Recovery Act, which totaled $800 billion in spending and tax cuts, was dwarfed by the trillions of dollars of stimulus the Federal Reserve oversaw.

And everything changed in the last election...

"[Harry Reid's] refusal to bring popular legislation like 'Audit the Fed' to the floor is a major reason why he's being demoted to minority leader," said Mr. Singleton, who spent years as Mr. Paul's legislative director in the House. "The change in Senate leadership does present us with the best opportunity yet to get a stand-alone vote on 'Audit the Fed.'"

 

Still, he said they aren't taking anything for granted, particularly after the report that Fed officials are quietly lobbying against more oversight.

 

"This is popular with 75 percent of the American people, but it's not popular among Wall Street; it's not popular among banks; it's not popular among foreign central banks," Mr. Singleton said. "These hold a fair amount of sway among both parties, so just to say that a change in party necessarily means we'll be able to move Audit the Fed it's better odds now than we've had before, but it's not a slam dunk."

 

The audit legislation would grant the Government Accountability Office, which is Congress's chief investigative arm, the power to retroactively review - though not actually reverse - the Fed's decision-making, particularly on monetary policy.

But the elites are worried...

Ms. Yellen and her defenders say giving the GAO audit powers could amount to having their decisions scrutinized almost in real time, which they say could influence the closed-door deliberations by the Fed.

 

"If board members know that their statements may become public, they may be inhibited from speaking candidly about the economic trends they are observing or the monetary policies they believe would best respond to current conditions," Rep. Elijah E. Cummings, Maryland Democrat, said in leading the fight against the bill in September.

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Accountability? Consequences? Not in the New Normal... it's for your own good after all...

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Arius's picture

We are very good at shooting ourselves in the foot.

 

Time to do anything was long time ago ... like 100 years ago perhaps ...

WillyGroper's picture

If thieving McConnell is backing it, you can betchur schweet ass awakening is about to hit critical mass & that maggot is afraid for his old wrinkled hide. 

Comte de Saint Germain's picture

Just another PSYOP to keep entertained and distracted the ignorant masses

Ahoy Polloi's picture

Might as well fucking audit Madoff... Might as well fucking audit the nuclear arsenal of Israel...

 

Might as well... Ok ~ NeverFUCKING mind (I'm sure I've already accreted my max 'down arrow' quota as is).

Looney's picture

...Mr. Yellen says giving the GAO audit powers could amount to having their decisions scrutinized almost in real time, which they say could influence the closed-door deliberations by the Fed.

And THAT is the whole point!

All your ivory-tower-deliberations should be televised on CSPAN. Live!

Looney

mvsjcl's picture

An audit of the Fed's decision-making policies? Fuck that! I want a full audit of where every penny the Fed has created has gone to.

 

Edit: And I want to know the real flesh-and-bones name of every fucking "owner."

Comte de Saint Germain's picture

Apparently gullible patriotic Americans and Constitution worshipers fail to understand the Federal Reserve is a Corporation immune to US laws.

Greenskeeper_Carl's picture

even a full audit of the fed isnt going to make a difference. When the controlled media refuses to talk about it, most people in the US won't even hear about it. Sure, WE will here all about it on here, but it isnt likely to tell us much we don't already suspect. Look at what happened with the partial audit. NOTHING. Even self proclaimed socialist bernie sanders had it posted to his webiste, that they made something like 14T in 'loans' to vulnerable banks all over the world. They created that ammount of money and 'loaned' it all over the world to mostly non american banks at 0% interest, and what were the consequences of this being revealed? nothing. business as usual. Most people in the US don't even know what the fed is, many, like those I work with, thought it was just part of the govt, like the treasury, tried explaining it to them, got the glassy eyed look in response. They already have a court order in their favor saying that since they are not a govt agency, they don't have to comply with freedom of information act requests. Congress can audit them and question them all day, it doesnt matter becuase they are impotent. It will just be another version of endless bengazi or IRS hearings. They might matter to you and I, but they don't matter one bit to most people, who will either only hear "Obama sucks" or "the republicans are just wasting time trying to hurt the great obama", and that will be as far as their thoughts go. I used to think even a partial audit would help wake people up to the grand scale of the theft being perpetuated by the fed and govt against them, but it didn't do a damn thing. The ONLY SOLUTION is to END THE FED

3.7.77's picture

If they are indeed a "Corporation" have the IRS audit them

MontgomeryScott's picture

Gee, you're kind of silly.

The IRS was created as the ENFORCMENT ARM to collect the interest on the debt that the Treasury incurred by BORROWING from the FED.

That would be like appointing Janet Reno to investigate the FBI's role in the Waco massacre, or Eric Holder to investigate the 'mis-steps' at Ruby Ridge, Idaho, or Monsanto and Bayer as the chief investigators of the mass die-off of bees.

IRS investigator: "Are you breaking any laws?"

FED chaiman: "NO."

IRS investigator: "Are you SURE?"

FED chairman: "How's your family?"

IRS investigator: "Well, I see nothing wrong here. Sorry to have troubled you."

MrBoompi's picture

Does anyone believe Congress has any power over the Central Bank system and the wealthiest people on the planet?  No fucking way.

wee-weed up's picture

Look for TPTB to force their puppet Obola to do an executive order saying a FED audit cannot be done for "national security reasons."

halfasleep's picture

may as well audit belgium

bob_stl's picture

I'm sure that after Americans learn that they've been slowly strangled and turned into debt slaves over the last 100 years they will be outraged as much as when they found out that their government is spying on them. Which is... nothing...

DeadFred's picture

Ending the Fed is certainly the goal but in my opinion if they allow a real audit it will mean the end to the Fed. If this thing passes with any sort of teeth you will know the Fed has just been made into the fall guy destined for a quick trip under the wheels of the bus.

bilejones's picture

Yup, I subscribe to the fall guy theory. Someone's gonna have to be the scapegoat for the upcoming cataclysm.

OpTwoMistic's picture

Roll the  guillotines and do not stop with the fed.

Carry it on live TV for the rest of the crooks.

Repudiate the debt since 1913 and roll on.

Debt-Is-Not-Money's picture

"Someone's gonna have to be the scapegoat for the upcoming cataclysm."

And, once again, the 'stupid party with no balls' will set themselves up to take the fall.

The only time to do the audit is after the cataclysm, at which time they should "discover" that it is unconstitutional for the Congress to assign to others what it is responsible to do under the Constitution (the principle of non-delegation).

Roll the clock back 101 years!

Make the Fed rebate our money (or have a close encounter with a rope)!

 

 

Milestones's picture

Simply cancel their corporate charter. Incidently, since the Supremes said that corporations are people simply arreast them all on theft charges. Milestones

NoDebt's picture

Fear not.  Obama will veto if it passes (which itself is unlikely).  He's been a banker boot-licking lackey for the last 6 years, what makes you think he's stop now?  Who's gone to jail under his watch?  Nobody.  Who's been stopped from repeating their pre-crash ways?  Nobody.  When was the last time you heard Obama comment on the Federal Reserve?  He never has, to my knowlege.

He rips every othre part of the country to shreds but somehow through all of it the banks and the Fed get a pass on all of it.  Sure, a few token wrist-slap fines that banks cough up out of petty cash, but nothing substantive.  And no, Dodd-Frank is not substantive.  Even if it was, it's implementation is so slow as to be worthless.

 

OpTwoMistic's picture

Yeah, see guillotines above.

Fun Facts's picture

When the employees of a private corporation can give themselves diplomatic immunity and exempt themselves from paying any taxes, that should tell the donkeys something right there.

The problem is that idiot america doesn't even know what the FED is, much less the criminal nature of the IMF, ECB, BIS zio syndicate. The reason they don't know is because the same money controls everything, including the media and education system.

Why should the FED agree to an audit? They are a member of the BIS masters of the universe club.

If you want to see the DJIA collapse, watch the FED fire a limit down warning shot should that idea gain any votes.

No one ever has, and no one ever will audit the FED because they own the politicians and everything else.

Implied Violins's picture

I believe that they WILL audit the FED, and end it...so that they can issue in the BRICS as our 'saviours', under the auspices of the BIS. SDR's will be used as the new currency to start, and once people are used to that, then we will be given a ONE WORLD CURRENCY, probably digital. Slavery by another name. As usual.

NotApplicable's picture

Another fun BIS fact: there is NO governing body on the planet with jurisdiction over them.

They rule.

J S Bach's picture

"Yellen and other Fed officials are lobbying Capitol Hill to drop the audit push."

 

As if anyone needed more proof as to the illegal workings of the Fed, their nervous reluctance to have themselves audited is it.  You can always tell when someone is guilty or wrong on something when they try to run away rather than face their accusers - or in this case, auditors.  How did we know without a shadow of doubt that OJ Simpson was guilty - even before any sham trial... HE RAN AWAY.  Innocent persons and entities with nothing to hide don't behave this way - ever.

 


DaddyO's picture

their nervous reluctance...

Don't put too much into that line of thinking. The FED has direct access to all things in the dark recesses of the politicians lives.

The chances of anything remotely resembling an audit are purely a ZH'ers wet dream...

DaddyO

MeMadMax's picture

In other news today, the fed reserve spent $200k on high speed paper shredders...

 

More at 10...

 

^.^

Baldrick's picture

nsa will feed them a virus first.

DaddyO's picture

More likely a hacking, which will be used as an excuse for woar of some kind...

Or at the very least some preemptive kinetic action of some sort.

DaddyO

Save_America1st's picture

Ron Paul wants more than to just audit those mother fuckers...

END THE FED

GO DUCKS!!!

thebigunit's picture

Comte:

Well, it fooled me.  I ALWAYS fall for their PSYOPs.

I rely on you to warn me about these things.

One World Mafia's picture

Uh, I don't know...the banker bailout...the SEC rule change for banks to charge a (minimum?) 2% money market redemption fee.  Either way, they're prepping to protect the banks for the day of economic reckoning.

Freddie's picture

Nothing will happen.  The GOP-e sold out the American people along with Obola and the Dems on amnesty before Christmas.  They are sell out liars.

These are the same people who gave Porky standing O's when he spoke in front of Congress.

EscapingProgress's picture

Auditing the Fed is like measuring the penis of your rapist.

The Wizard's picture

Mitch's biggest donors are Wall St. banks. I can't see this getting any legs with him involved.

booboo's picture

Oh for fucks sake people, the other team is just looking to put the squeeze on the money bags. Yellen doing damage control would amount to nothing more then cojoling the member bank stock holders to stuff some envelopes marked with a R.

Stop hoping for a political solution to a mad dog foaming at the mouth and just shoot the fucking thing where it stands.

Carpenter1's picture

We don't need to audit the FED, we need to hang the FED.

bilejones's picture

A banker for every lampost.

pachanguero's picture

Really sucks that I have to agree with you but I do. This monster that is the Fed really is the Wizard of OZ. Funny how that movie is really about banksters but we were never told that.

It's almost like they have to warn you before they fuck you.

Oh that would be a conspiricy theroy now would it not?

Now we all know they don't exist.....take the Red Pill.

Arius's picture

yeah well ... good points.

ZH Snob's picture

that's what I call closing the barn door after the horses have escaped.  does it really matter any more?

it's time to close them, not audit them.

JLee2027's picture

Even if the bill passes by a landslide and uncovers extreme scandalous financial doings, it will be covered up in the "interests of national security".

 

"Audit shows Obama ordered money printed".

"Audit shows Obama ordered attack on other currency".

"Audit shows Gold Market riggingy".

etc.

 

Do not expect the Washington Post to print it.

TheReplacement's picture

If it gets really bad there will be a Monetary Czar or somesuch.

JLee2027's picture

Yes. I've become so jaded, I think the music plays on until the Titanic slips completely under the waves. Which could take some time yet, damn it.

MontgomeryScott's picture

This will not change the fact that the Titanic was doomed from the outset (but the music DID play on).

A young, nubile Kate Winslet, thrusting her hands up against the windows of an automobile, begging to be 'touched', always gave me a thrill. So did the story of the guy who dropped down the rope and cut the falls with his pocketknife right before another lifeboat dropped on top of the one below; allowing the first one to survive.

If you plan for the worst, and it doesn't happen, you've got extra stuff to use.

If you DON'T plan, and the worst DOES happen, you're FUCKED.

On a long enough timeline, the survival rate for everyone drops to ZERO. That's a truism that everyone needs to understand (not that I want to, personally).

What do you think of my ZH avatar? i thought it fit rather well, myself.

 

HardAssets's picture

It . . . Will . . . NEVER . . . Happen.

They own the politicians in D.C. They own the media. They own the system.

Stop looking to that criminal system of theirs to offer any real, meaningful solutions.

 

Kindergarten is over boys & girls. The crooks in D.C. aren't your Mommy & Daddy, and they don't love you & look out for you.