Momentum Builds For Ron Paul’s “Fed Transparency” Act

424Paul_2008_sff_standalone_prod_affiliate_38Congressman Ron Paul’s “Audit the Fed” bill (H.R. 1207) made the digital pages of Clusterstock today:

For years, Ron Paul has been a lone voice in Congress, questioning the wisdom of the Federal Reserve — both its various chairmans and the institution itself. His dogged questioning of Alan Greenspan, and then Ben Bernanke, make for great TV (otherwise, those hearings are total snoozefests).But now, as America wakes up to its dire financial situation and average people talk about things like “fractional reserve lending”, the gold standard, and Zimbabwe-like inflation, he’s finally getting some momentum.

It’s baby steps, of course. Paul is the sponsor of the Federal Reserve Transparency act of 2009, which demands a GAO audit of the Fed, and a full report to Congress sometime next year. And it’s gaining steam. It already has 175 co-sponsors in the House, and now a major Democrat, Rep. Alan Grayson (ironically, the same one who’s proposing that stupid France vacation bill we mentioned this morning has joined on, and is urging his party colleagues to join them.

Zero Hedge has a copy of the letter he’s sent out, and if you’re so moved (which you should be), you can sign the petition here:

——-

Bring Some Accountability to the Federal Reserve

Dear Colleague,

I write to ask you to co-sponsor HR 1207, the Federal Reserve Transparency Act, which would give the Government Accountability Office the authority to audit the Federal Reserve and its member components and require a report to Congress by the end of 2010.

The Federal Reserve System operates as the central bank for the United States, managing the economy’s money supply and overseeing the banking system. Until recently, the Fed has not picked winners and losers when distributing money, nor has it brought credit risk onto its balance sheet. It has slowed or stimulated the economy by raising or lowering interest rates. Since March 2008, the Fed has resorted to using its emergency powers to pick winners and losers, and to take massive credit risk onto its books. Since last September, the Fed’s balance sheet has expanded from around $800 billion to over $2 trillion, not including off-balance sheet liabilities it has guaranteed for Citigroup, AIG, and Bank of America, among others. The bank is also ‘monetizing’ the debt of the United States Government by purchasing massive amounts of agency and Treasury bonds. An audit is the first step in bringing this unaccountable system under the control of the public, whose money it prints and disseminates at will.

Continue reading…

Be sure to click through to finish reading the article and the comments as well. They are overwhelmingly in favor of the FedRes audit which is a lovely thing to see.

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