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Is Congress attacking the FED because they vote for transparency?

20 November, 2009

The Wall Street Journal thinks so according to its headline today. House Attacks Fed, Treasury According to the Journal,

The vote [by the House Financial Services Committee to audit the FED’s activities] was the latest blow to the central bank, which has been become a lightning rod for politicians responding to popular anger that Wall Street was bailed out while the public wasn’t. The Fed faces a stinging backlash from legislators from both parties who argue that has too much power and too little oversight. On Thursday, the Senate Banking Committee began debating legislation that would largely remove the Fed from bank supervision over the objections of the Fed and the Obama administration.    (bold emphases mine)

Imagine that – politicians actually aware of what the “popular anger” is about and responding to it. Assuming that the Journal means people outside of Wall Street when it uses the word “popular” like that, (you know those ignorant “populace” who don’t know enough to be angry about the FED’s handling of the economy), assuming that’s the implication I say that it is about time Congress paid attention to what we think. Of course, elections are just around the corner for many members of Congress, so it’s possible that they are just listening for the sake of knowing what will be popular when they have to seek reelection.

But I digress.

After discussing the Joint Economic Committee, which I mentioned in an earlier post today, the Journal continues

The Paul provision, and the legislation to which it is attached, would have to clear the full House and Senate before becoming law. Though many lawmakers insist they won’t do anything to compromise the Fed’s independence on monetary policy, the provision’s momentum is substantial. It could be diluted before any bill reaches the president.

While it is true that the bill of financial regulation might be diluted, the Journal ignores the fact that Paul’s amendment has significant support this year.

And from here on it’s in good shape. The bill has massive support in the House—the majority of the chamber has signed on as co-sponsors—and 30 co-sponsors in the Senate. It’s an epochal development in the relationship between the government and the country’s quasi-governmental central bank. here

Paul has already indicated that he will vote to pass any regulation in order to finally bring transparency to the FED.  Here is the full press release from his office:

For Immediate Release
November 19, 2009

Paul-Grayson Amendment Passes Committee

Washington, D.C. – Congressman Ron Paul (TX-14) is pleased to announce that his and Congressman Grayson’s amendment based on HR 1207 has passed in the Financial Services Committee by a vote of 43-26 and will be included in major banking reform legislation.

The Paul/Grayson amendment:
· Removes the blanket restrictions on GAO audits of the Fed
· Allows audit of every item on the Fed’s balance sheet, all credit facilities, all securities purchase programs, etc.
· Retains limited audit exemption on unreleased transcripts and minutes
· Sets 180-day time lag before details of Fed’s market actions may be released
· States that nothing in the amendment shall be construed as interference in or dictation of monetary policy by Congress or the GAO

“While HR 3996, if passed, will grant sweeping new powers to the Federal Reserve, at least with this amendment attached, it won’t be acting in secret anymore. This is a major victory for Federal Reserve transparency and government accountability. I am very grateful to Congressman Bachus and all the other Members who were so supportive and helpful in this effort,” stated Congressman Paul.

Is this an attack?    No, it’s a peaceful revolution. Spin it anyway you want; it just means that some of the populace have figured out that the government and the banks are so intertwined thGoldman Sachs may actually be running the country.  Well, not all of it.  J.P. Morgan Chase, CITI, Bank of America and certainly General Electric have a hand in it too, as do other financial institutions from around the world.  We the people just want to know who and what our government is spending our money on.  I suppose from a certain point of view that could be considered an attack.  The Declaration of Independence certainly was seen as an attack by Great Britain wasn’t it?

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