Despite overwhelming bi-partisan support, the Federal Reserve (FED) continues to fight an audit "tooth and nail".
For some background on the FED you can watch the latest episode of our YouTube series (http://www.youtube.com/markostaketv#p/u/0/JiGA8XeZbUo).
It's not too hard to speculate as to why... maybe they have something to hide? Maybe they've got a HELLUVA LOT to hide!
According to an article in the Huffington Post, which has been covering the ongoing battle to force an audit, the Treasury Department is vehemently opposed to a House-passed measure that would open the Federal Reserve (FED) to an audit by the Government Accountability Office (GAO), a senior Treasury official said yesterday. The House version has more than 300 co-sponsors.
Instead, the official said the Treasury prefers a preposterously watered-down substitute offered by Rep. Mel Watt and would like to see it enacted as part of the Senate bill.
Watt, a Democrat from North Carolina, has introduced an amendment intended as an alternative to the measure to audit the Federal Reserve introduced by Reps. Ron Paul (R-Texas) and Alan Grayson's (D-Fla.) . But instead of increasing transparency, as the amendment claims to do, Watt's measure would instead make the institution more opaque.
Under the "Watt Amendment, an auditor could not look at loans or liquidity arrangements the FED enters into, the terms of those arrangements, or the effect of those loans and other liquidity deals on "reserves, the balance sheet or financial condition of a Federal reserve bank or the Federal Reserve System."
I guess the FED, like Garth Brooks, has friends in LOW PLACES!
Asked whether he supports the House-passed measure to open the FED to an audit, which was co-sponsored by Reps. Grayson and Paul, a senior Treasury official stated he is intensely opposed to it.
The official said the measure would undermine the independence of monetary policy and could restrict the ability of the Fed to act in times of crisis. Ironically, the FED is much better at CREATING crises than solving them! He said that the GAO already has audit authority and that the chairman routinely testifies before Congress.
Love the FED? Hate the FED? TAKE ME ON!