Rand Paul Reintroduces Legislation To "Audit The Fed"

Tyler Durden's picture

Having been pursued, unsuccessfully, many times by his father in previous years, today Senator Rand Paul, together with Rep. Thomas Massie re-introduced legislation to “Audit the Fed", after a similar effort stalled in the last Congress.

While in the past such a proposal, which has been vocally opposed by Janet Yellen and Wall Street for obvious reasons, was quietly shut down it may face its best odds ever of becoming law in the current Congress according to the Hill. With both chambers controlled by Republicans long critical of Fed’s policies, the legislation could end up being a test of Donald Trump stated resolve to putting the Fed to heel. In the past, the president elect has heaped scorn on the central bank, and demanded accountability from the "independent" Fed.

To that end, Paul specifically mentioned Trump in a statement about the bill Wednesday, making clear the measure’s proponents believe they have an ally in their cause coming to the White House.

“The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress,” said Paul.

Under the proposed bill, the Fed’s monetary policy deliberations could be subject to outside review by the Government Accountability Office. Proponents of the measure argue that the Fed is too powerful and lacks sufficient oversight for its interest rate decisions. But Fed officials from Yellen on down, as well as other critics, have warned that such a policy could subject the Fed to undue political pressure and discourage it from taking unpopular steps for the good of the overall economy.

While in the past, the proposal garnered bipartisan support and has passed the House several times in past Congresses, it usually stalled in the Senate. Senate Democrats refused to bring up the bill for consideration when they controlled the chamber, and senators rejected the bill in 2016 after it was brought up by the new GOP majority.

Two non-Republican senators — Bernie Sanders (I-Vt.) and Tammy Baldwin (D-Wis.) — voted for the measure then. Only one Republican, Sen. Bob Corker (Tenn.), opposed it. But the situation is different in 2017, as lawmakers who assumed President Obama would veto any “Audit the Fed” legislation in the past now are anticipating a White House with a vocal Fed critic at the helm. Furthermore, with Republicans controlling both chambers, any attempts to kill the bill will be more complicated.

During his presidential campaign, Trump frequently singled out the Fed, arguing during presidential debates that the institution was deliberately keeping interest rates low for Obama’s political benefit.

Fed officials are fiercely protective of their reputation as pursuing policies free of political motivation, and Yellen has shot down any notion of partisan intent in its policymaking. But lawmakers hoping to overhaul how the Fed does business see an opening in 2017.

“It is time to force the Federal Reserve to operate by the same standards of transparency and accountability to the taxpayers that we should demand of all government agencies,” said Massie.

Skeptics, however, note with Trump surrounding himself by numerous Wall Street scions in his new administration, and with the Fed an entity owned mostly by Wall Street (as Ben Bernanke's former advisor infamous suggested last year when he said  that "People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned") it remains unlikely that any true change to the operational nature of the Fed will be implemented, especially if it gives Congress an upper hand over Wall Street in what to many is the most important decision-making process in the nation: setting the price of the money in general, and the US dollar in particular.

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economessed's picture

Let's start by auditing it, and then let's end it.  It's the only way to make America great again.

InsaneBane's picture

It will never happen unless someone literally want's to sacrifice him or herself like JFK.

Skeptics, however, note with Trump surrounding himself by numerous Wall Street scions in his new administration, and with the Fed an entity owned mostly by Wall Street (as Ben Bernanke's former advisor infamous suggested last year when he said  that "People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned")

Il Dottore's picture
Il Dottore (not verified) Arnold Jan 4, 2017 2:52 PM

Yup. Unless Trump says on January 20th, I fooled all of you, and starts kicking out Mnuchin, Tillerson and others.. and I'm running out of pot.

The other and perhaps only realistic option would be to follow Putin's strategy, step by step, catching breaths here and there. 

Starting by military, cancelling debt, buying gold, blah blah blah

But again, fucking not happening

strannick's picture

Fed independent of Congress, not its private, secret shareholders.

''Independent Fed'' is an intentional diversion

ali_baba's picture

Yeah Trump will have the Fed audited. He'll get Goldman Sachs to do it. The Rabbis will charge the government $500billion to do it, go away for 4 years, chew THOUSANDS of baby foreskins, then come back and say "Hey it's ALLLLL KOSHER...."

Then you can shut up while they continue to rape you for the next 500 years!

InsaneBane's picture

The order that got JFK executed:

Executive Order 11110

This executive order amended Executive Order 10289 (dated September 17, 1951)[1] by delegating to the Secretary of the Treasury the president's authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act. The order allowed the Secretary to issue silver certificates, if any were needed, during the transition period under President Kennedy's plan to eliminate Silver Certificates and use Federal Reserve Notes.

InsaneBane's picture

Because I prefer to keep female models out of sight..

MJ4Vets's picture

I think JFK's speech on Secret Societies (aka The Speech that got Kennedy killed) might have had something to do with his assassination, as well.

InsaneBane's picture

As well the Dimona letter to Ben Gurion of ISraHell, it was a combination of factors.

JohnG's picture

"...could subject the Fed to undue political pressure and discourage it from taking unpopular steps for the good of the overall economy."

Fuck You Yellen.  You work for the banks and the banksters that own you, not for the people.  You should be in prison or executed.

overbet's picture

I agree never gonna happen. Nobody would willingly unleash that chaos. It is something that will never happen until it absolutely has to happen.

MiTasol's picture

"surrounding himself by numerous Wall Street scions"


Think about it.  If you were in that position what better than to take on the real rascals of the industry, grok the business and then deal to it as you see fit.

larz's picture

Keep this shiite coming.  Like I read elsewhere in ZH comments ' the sound of socialism unwinding'  socialism and progressive BS

bluez's picture

This has nothing to do with "socialism", idiot.

It's just the brutal reality that the Fed is too powerful to be touched.

The Boston Fed is actually quite nice. They have a magnificent garden behind the ugliest tall building in the city. When I would travel to Boston, I would actually sleep in plain view in their garden for hours after long trips. Nobody ever bothered me there. I frankly was astonished.

bluez's picture

That's because you are an idiot.

Dr. Richard Head's picture

The central banks have A LOT to do with socialism.  If the tax-paying public had to pay for all of the bullshit promises that the politicians make in the form of corporate or individual socialism (aka welfare, bailouts, discount window operations, etc), then there would be no money left available in anyone's paychecks.  The true costs of these "programs" can be deferred when a central bank can pay for these "programs" through creating debt out of thin air to fund the treasury. 


Mr. Schmilkies's picture

AUDIT AUDIT AUDIT.  Let's see if Trump sticks to his guns or whimpers out. 

The Fed is just afraid we may see who is really behind the curtain, who they really serve, and how weak they are at this point.  But since they have a yuge effect on everybody and everything, we have the right to know.

Arnold's picture

Not everything at once, please, I'm begging ya.

Think of the poor bandwidth out here in the sticks.

pitchforksanonymous's picture

QUICK! Someone start a war!!!!!

SomethingSomethingDarkSide's picture

Rand, you beautiful bastard

musimann's picture

I love it when Rand pretends to be libertarian.

Yes We Can. But Lets Not.'s picture

I hated it when he was induced to pretend not to be.

LawsofPhysics's picture

Power and control is never given up willingly...

Good luck Rand!

Salsa Verde's picture

The first true test of the Trump administration's nerve:  Lets see who blinks first.

Nunyadambizness's picture

END THE FED!!  Audit it, then throw the bastards in jail for felonious embezzelment and pull the charter.

E.F. Mutton's picture

Now let's see which Republicans come out against it.  That will speak volumes.

Stan522's picture

Does Congress have the balls to do it.....?

Nah...... Still pussies.....

Arnold's picture

Midterms are only an eye blink or a pizza order away.

chubakka's picture

this is a joke.  

gdpetti's picture

It's not really a joke, nor a waste of time... but rather a public 'test' to show the masses how little all the talking heads, politicians etc really believe in what they say.... and none of it will matter when the PTB the Fed, CBs, markets etc work for, 'pull out the rug' and collapse the markets... part of their regime change.... create chaos and utilize their control over the MSM to instil fear in the  masses, thus promoting their call for more state control, not less... a police state etc... for their version of the NWO.... one in which markets won't be needed anyway.

aliki's picture

wonder if ted cruz can make the time in his busy schedule to vote on it this time-around

musimann's picture

He's got some snot buggers to eat first.

buzzsaw99's picture

we need the fed because they protect the poor people. /SARCASM

Arnold's picture

Glad you put the /SARCASM signal out there.

The matinee crowd is tough, especially the cheap seats.

Slippery Slope's picture

Does that include melting the gold bars, or merely counting them?

musimann's picture

they are painted lead. Gold plated.

Yog Soggoth's picture
Ukraine Admits Its Gold Is Gone: "There Is Almost No Gold Left In ...

www.zerohedge.com/news/2014-11-18/ukraine-admits-its-...Proxy  Highlight   

In Ukraine's 'Klondike,' a Rush for Stolen Gems - Bloomberg


Chop Cup- Wheres the Ball- - Mighty Optical Illusions - YouTube

https://www.youtube.com/watch?v=-7nrK-aTzhIProxy  Highlight    I still can't believe they painted tungsten bars with gold paint. That sounds like something that would not fly 5000 years ago. Lead is not as good as Tungsten for painting.

Jayda1850's picture

Good luck Rand. Had the honor of shaking your father's hand once, but the views he espoused are long dead now. It's spend, spend, spend as usual. Not a fucking soul in congress gives a fuck about the debt we continue to take on. The new anthem is "what debt?" Let's put out 100yr bonds, yeah that's the ticket. You make alot of sense, but no matter repub or democrat,aint nobody is gonna do shit.

TheReplacement's picture

I've shaken Rand's hand.  He's a genuine guy.  I think he's really calling out Trump with this gambit.  If Trump steps up and supports the measure the Repugs will have to pass it or face the wrath of the people.  If Trump ignores or dumps on the idea they will not pass it and we will all know where he stands.

/Litmus test

thismarketisrigged's picture








Seasmoke's picture

End The Fed .........

Fixed it.

scoutshonor's picture

This will answer an important question about Trump.  Hope he is on board with a fed audit.

It would also be wicked sweet if when they can't find anything to audit we then find out that wikileaks has recently received all of it for 20K.

pocomotion's picture

At Christmas break of 1914, the creation of the Fed wasn't that much against the constitution and law, was it?

holgerdanske's picture

Rand Paul! You are the man!

And while you are at it, audit the gold hoard too.


Just be prepared for the skeletons falling out the closet, and be ready with a top team of lawyers to book the bastards and lying bankers (synonymous expressions!)

Pitchforks and lampposts might come in handy.