House Committee Passes Bill To "Audit The Fed"

Tyler Durden's picture

The Republican-controlled Committee on Oversight and Government Reform approved a bill earlier today to allow for a congressional audit of the Federal Reserve's monetary policy, a proposal Fed policymakers have opposed and likely faces a difficult path to final approval in the Senate.  Under the bill, the Fed’s monetary policy deliberations could be subject
to outside review by the Government Accountability Office. 

While similar bills have garnered some support from Democrats in the past, they uniformly spoke against the current proposal during a meeting of the House of Representatives suggesting the current iteration would face stronger resistance from an increasingly polarized environment in Washington D.C..

The House previously passed similar versions of this legislation twice before in 2012 and 2014, with dozens of Democrats joining nearly unanimous Republican support.  That said, those bills both died in the Senate and likely would have faced a Presidential veto from Obama had they survived anyway.

That said, Trump expressed interest in passing such legislation multiple times during the 2016 campaign cycle which means the 3rd time might just be the charm for Republicans. 

 

And while proponents of the bill argue that the Fed wields too much power over the U.S. economy with minimal oversight, opponents assert that Fed decisions should be informed purely by economic indicators and completely insulated from "political pressure"...and we presume those same opponents would argue that Yellen's decision to wait until just after the conclusion of the 2016 Presidential election to start hiking rates had absolutely nothing to do with politics.  Per Reuters:

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.

 

"We should not in any way hinder their independence," said Representative Carolyn Maloney, a New York Democrat, echoing the sentiment of Fed policymakers who say they could come under political pressure to avoid making unpopular decisions such as raising interest rates to slow growth and control inflation.

The next step for the bill would be a floor vote by the entire House, where Republicans hold a solid majority, followed by a Senate vote that would be much more difficult given Republcans' narrow lead.

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Tsunami Wave's picture

I'm happy it passed committee.. but let's be real. Will this pass the house and senate?

gatorengineer's picture

Not a fucking chance in Hell but if Trumpster uses this and reaches out to the Bernie crowd, could be an interesting bridge building project......  Perhaps hard left and hard right can unit temporarily to excise the cancer in between?

bowie28's picture

As usual they claim the concern is maintaining independence from "political pressure" using the false logic that secrecy somehow prevents this.

A much more convincing argument could be made that secrecy breeds corruption and full transparency would be the best protection from making politically motivated decisions. 

Which of our public servants in the house/senate are going to take this approach?

At the end of the day if a bill does pass to audit the fed it will be as effective and useful as the "living wills" the TBTF banks have created to ensure their derivative books don't collapse the entire economy.

They will issue an audit report full of half-truths and manipulated data that excludes anything damaging and makes the fed look wonderful and then all the politicians will pat themselves on the back for the big WIN they delivered to the people!

 

hangemhigh77's picture

If the fed allows the audit the books are already cooked.

gatorengineer's picture

The books are cooked 7 ways to Sunday, but perhaps there is a Fed Snowden who might use this as an opportunity

hotrod's picture

Why can we not????  It controls the currency of our Country.  Why are they above any Governmental oversight????? 

44magnum's picture

Why do the people who work for the imf and world bank do not pay income taxes? It keeps them honest?

Ricki13th's picture

Oops did the markets priced this in during their euphoria. Lets be honestly this bill will get buried by CONgress.

finametrics's picture

holy shit. if this thing passes, then you fine gentlemen know what happens next. no way this passes...

hangemhigh77's picture

Why do we have to ask? Just kick their front door in. They wouldn't ask you or me. Fuck these crooks.

khakuda's picture

Every branch of government is subject to checks and balances.  The Fed is arguably the 4th and most powerful branch and is arguing they should be above scrutiny.  Unreal.

44magnum's picture

It does not belong to the government , there are no federal employees .Its private bank, a cartel, a monopoly. They loan the USA its currency Federal Reserve Notes at interest.  Dude do some investigation please.

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours (government)that there will be no opposition from that class, while on the other hand, the great body of people(we the people), mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

-The Rothschild brothers of London writing to associates in New York, 1863.

khakuda's picture

Sorry, I've done plenty of investigation and I don't fully agree.  It has powers unlike any other private bank in existence.  Unlike other banks, it is the nation's central bank system.  Unlike other banks, it is a regulator of banks.  It can set interest rates for the entire economy.  It controls the level of short rates.  It can buy bonds with unlimited firepower to influence the level of long rates.  It has a special relationship with the US government unlike any other private bank.

The Fed can audit any bank in the country, yet no one can even audit the Fed?  They set the price of money, the most important price in an economy, yet they answer to no one?  Wrong.  They answer to the Congress - the branch of government that created them.  Congress (the US government) didn't create your local bank, they created the Fed.

Were Freddie Mac and Fannie Mae public companies?  Yes.  Did they have a relationship with the government unlike any other?  Yes.

44magnum's picture

"They answer to the Congress - the branch of government that created them.  Congress (the US government) didn't create your local bank, they created the Fed."

Right and the government also upholds the US Constitution and the Bill of Rights. Thats why we use coin only for currency(in the constitution) Thats why the police can take your cash, thats why we have the patriot act, the ndaa,why we pay more in taxes then we did before the first revolution, The no constitution zone 100 miles from the border, etc.

The government does NOT run the country. The government gave that up when they defaulted in the 30's. The FED will not be audited, the debt ceiling will always be raised . The FED will most likely never disappear unless there is a second revolution And every international bannkster is dead. It is not going to happen

Its the biggest CON job on the planet and its hard to admit your being fucked and theres nothing you can do about. But you can keep believing whatever makes you feel better.

Thomas Jefferson:

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”


 

khakuda's picture

My point is that they should be subject to audits and limits, not that they will be.  They won't be.  Justice will not be served.  If anything, the last 8 years should have made that clear.  Who thought it was a good idea to let a dozen unelected academics control the rate of interest and micromanage it based on unproven economic theories?  Why are the central banks in Japan and Switzerland allowed to create currency out of thin air and use it to buy stocks and bonds around the world, including in the U.S.?

The real reason the game can't stop is because it is too late.  There is too much debt in the system that can't be repaid.  More so than ever.  The powerful will never voluntarily give up power and will continue to try and gain more power.  That doesn't mean you give up and let central banks amass ever greater power, it means you seek to put limits on them and prevent them from gaining more.  You heard them this past year- they were pushing for negative interest rates, looking to ban cash, looking for authority to buy up stocks.  You have to push back.  The fact that they are fighting even an audit, which would do nothing to them, shows you how much they have to hide and how they will fight any encroachment on their power.  It is exactly why it should be done.

Omni Consumer Product's picture

I agree with the core of your argument.

However - nitpicking - your Jefferson quote is phony; he never said any such thing. The word "deflation" in an economic context didn't enter the language until the early 1900s.

44magnum's picture

Nitpicking your nit picking does it really matter. Because the quote that uses a word not supposedly used then. Niether one of us were there. Does the mis quote descibe what has happened?

Omni Consumer Product's picture

Frankly, it does. Because if you're going to invoke the wisdom of the Founding Fathers to support an argument, it had better be something that they actually said.

Otherwise, it's as fake as the fake news that the MSM peddles at us.

https://www.monticello.org/site/jefferson/private-banks-spurious-quotation

PirateOfBaltimore's picture

The fed is demonstrably not independent as made clear by leaks re policy to bankers. That premise is flawed, so no valid conclusions may be drawn from it. 

flacorps's picture

Defenestrate the Fed. Do NOT allow time to react.

_freedom_lover_'s picture

Fantastic if this gets approved. The Fed is engaged in all sorts of market manipulation tactics. We ought to know all the financial crimes they are committing. Next step is to put them all in jail and take back control of monetary pooicy. 

_freedom_lover_'s picture

Fantastic if this gets approved. The Fed is engaged in all sorts of market manipulation tactics. We ought to know all the financial crimes they are committing. Next step is to put them all in jail and take back control of monetary pooicy. 

SgtShaftoe's picture

Excellent. Hopefully this will move forward. Ted Cruz is the best evidence we have for reptilian people on our planet. He should be studied in a lab and dissected while conscious.

Aubiekong's picture

Why do we even allow a private bank owned by the elite bankers to issue our currency.

MagicHandPuppet's picture

Because they paid and continue to pay top dollar for our politicians.

flaminratzazz's picture

Auditor: "Where are these missing trillions"?

Fed: "wtf do you care, they sure as hell aren't yours."

LOL123's picture

That the bill is a constant, shows the knowledge and source of power behind our government and the lack of control from our government. 

Republicans like Ted Cruz who missed the vote, because he rode in on Bush Sr. Coat tails and Bush sr. Is Democrat in sheeps clothing.... There are still a hand full in the Republican henhouse laying rotten eggs with such a foul stench you would think it came from the crevices of the world below.

MuffDiver69's picture

Cruz is another fraud and his like used to tour the country holding Revivals to rip off the common folk...His father is that exact type of person and he has prayed on innocent women to explore his wildest sexual fantasies...Along with the fact he was a friend of Lee Harvey Oswald...some sick people out there roaming the quiet countryside

LOL123's picture

Don't know about any of that, but it sounds like you want to discredit him ( Ted Cruz) on the unsubstaniated rumors and inuendos of his father. Won't go there, but do know that he worked with Bush in Washinton before going to Austin so that he could qualify to go back to Washington...he's a political animal through and through. His moves are always with the Presidency in mind not necessairily for the country... Just an opinion.

 

MuffDiver69's picture

Need to get the Bernouts involved...The FED not being audited or put under a bi-partisan microscope is a crime against every American citizen....

Miskondukt's picture

The Bernouts hopeless as well as he. He sat on the pseduo-GAO audit back in the 2008 fiasco and didn't make a peep about the level of QE created on top of our statistically unimportant $700bn. 

Heavenly Entity's picture

Under the Fed we are slaves. Everyone of us. End the Fed means freedom. Before they give up there power they will collapse the whole system. I say we hang them on national TV for the whole world to see. Or we can just keep on being slaves. How we got in this mess is the question.

Conax's picture

Unlimited fiat buys unlimited favors and payola for 'regulators' and 'auditors'.

Just end it.  It has had its chance and has failed America.

Snípéir_Ag_Obair's picture

Who owns the fed banks?

http://www.counterpunch.org/2015/12/18/who-owns-the-federal-reserve-bank...

we cant find out, but is there any reason to doubt it is mostly European Jews?

Wont get out of the House.

Controlling nations currency is a fundamental pillar of the Jewish plot to conquer the world.

Thats hate? no such plot you say?

Well... its in the Torah. But why consider the evidence at all, right?

http://jewishracism.blogspot.com/2009/01/jewish-problem-part-3-jews-in-b...

"Not all Jews are international financiers and not all international financiers are Jews. However, the uniqueness of Jewry, its religious and racial integrity spread out over continents and generations and the endemic sense of racial superiority, has nurtured the skills, wherewithal and inclination to prevail over the goyim. Thus, the Modern Tribe of Jews has thrown up usurers of astonishing skill and invention.

The stratagems of the Two Dark Gods are ingenious, subtle and unfold over many generations. The skills and reputation of "the Jews" regarding finance have been gained from many centuries of effort. The Dark Gods required a means whereby humanity was continually in bondage and easily controlled by a cadre of evil whenever they required it. That is why the phenomenon of usury was nurtured such that the finances of the private individual and the purse of the king could be plundered at will. Moreover, the conspirators targeted the finances of kings, states and nations: for, they knew that they who controlled the credit of a nation controlled that nation.

Thus, the Jew moneylender developed the skills necessary that would make himself, or rather his bulging purse, useful to profligate princes and kings. Thus the phenomenon of the "court Jew" who had wheedled themselves into the noble houses and royal courts of Europe. However, it was not philanthropy or "self-preservation" that drove these men but another more long-term agenda: the eventual bondage of the nobleman and king and hence the holding in Jewish hands the mortgage of Gentile feudal lands. This, then, was the great prize.

But, the rise of the Power of the Jewish Purse brought with it, for "the Jews" anyway, an unintended consequence. That, as "the Jews" grew fat of the Gentile and the Gentile became both increasingly impoverished and alarmed at the exclusiveness of Jewry, Gentile resentment morphed into violent reaction. The sudden realisation that the enrichment and empowerment of "the Jews" was to the detriment of the gentile and his nation. The time when the indigenous people insisted that "the Jews" should be removed from their lands. Thus, the historical phenomenon of the mass expulsion of "the Jews" from Gentile lands.
..."
http://www.overlordsofchaos.com/html/jewish_conspiracy_43.html

OCnStiggs's picture

THIS, if passed, would trigger an outright rebellion by the Elites! They'd call all the loans and sell all their equities... JUST LIKE THEY DID IN 1929!!!!

We can dream but, man o man I hope this gains momentum!

Ricki13th's picture

Even though it wont pass I secretly hoping it will so they can get off her fat azz and starting cooking the books and burn the records Yellen could sure use the exercise.

Yars Revenge's picture

House passes Audit the Fed only for the Senate to shoot it down.

 

Honest Sam's picture

"It is not at all important, nor does matter, to govern once you win.

"It is however, a mandate given to you by the people to APPEAR to govern, because the people have become accustomed to little gestures that do nothing to help them."

TabakLover's picture

If there is an audit, lemme guess who conducts it:  Goldman

RighteousDude's picture

Good thought. JUST WHO WILL CONDUCT THE AUDIT ?

Just like Stalin said , its not who gets the most votes, but who gets the most counted votes(paraphrased)!!

TalkToLind's picture

This Bill is ANTI-SEMITIC!!

Ben A Drill's picture

Guess Yellen needs to retire. Out to pasture, with no replacement. Fine by me. Buddy at work doesn't understand interest rates. Thinks paying interest on loans and credit cards are a way of life. Told him to hire a CPA. Told him to withdraw from his 401K plan to get out of debt. Will he listen, probably not. Has to ask the wife first. She has not worked in twenty years. LOL!

Falconsixone's picture

Audit The Kwanza!

Omega_Man's picture

oh oh....we are all done for now....get some bags of rice 

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 28, 2017 4:01 PM

Great!  This would be a strike at the Jew Matrix's jugular.  Kind of like Neo striking at the heart of the movie Matrix computer program. The article said that this audit bill would have a hard time passing the Senate.  Would that have anything to do with the fact that so many of our Senators and the RNC get a sh*t-ton of campaign dollars from jew billionaire Sheldon Adelson?  The jews consider the Fed to be the Holy of Holies.  It is their pressure point that they have utilized to manipulate the entire U.S. since 1913.  The jews will be besides themselves.  Let us see if the jew press and Israel go after those committee members.  You know, they find out one is a homo or had financial irregularities or something embarrassing that just pops up out of nowhere.  

flaminratzazz's picture

DEATH TO THE MONEY CHANGERS