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The Sane Case for Auditing the Fed

November 10, 2014

The Federal Reserve, which was just caught playing footsie with Goldman Sachs, is as shadowy as it is powerful. So why can’t Congress bring itself to actually audit the damn thing?

If you want to get a sense of just how incredibly powerful the Federal Reserve really is, forget about interest rates, reserve requirements, or even the ways in which a random nose-pick or burp by Janet Yellin during lunch at a Jackson Hole delicatessen might send markets soaring or crashing.

Instead, think about this: In an age utterly bereft of bipartisanship, auditing the nation’s central bank is one of the few issues on which Rand Paul and Elizabeth Warren agree. So does everyone else. Polls consistently show anywhere between 70 percent and 80 percent of Americans supporting an audit that would not just open the Fed’s ledger books but peer into exactly how monetary policy gets set.

Just a couple of weeks ago, the House of Representatives passed The Federal Reserve Transparency Act by an overwhelming vote of 333-92; a majority of House Democrats voted for an audit while just one Republican voted against the bill.

Yet despite overwhelming public and congressional support for an audit, it’s just not going to happen… (more)

One of the many reasons why Democrats lost the Senate in Washington, (and the super majority in California) is because people don’t trust them to fix anything. Low interest rates only help lenders, and the banks are only lending to each other and the biggest developers. Local governments are forced to sell bonds to pay their bills, which further enriches the banks.
The so-called sustainable growth plans hatched by Congress and sold in state capitals nation-wide by lobbyists as green, clean and anti-car, only benefit developers and the banks, and the young army of so-called urban designers who are hired to sell “the infill plan” to the public. This plan, displaces large numbers of low-income and elderly residents to make room for the next wave of wealthier citizens.
Nobody does displacement like Democrats. A few years ago, Congress created the EB-5 program which allows foreigners to obtain residency permits for themselves and their families in exchange for investments of $1 million — with the threshold for high unemployment areas, like the Shipyards, set at $500,000. Once here they can apply for green cards so they can compete with residents for both homes and jobs.

 

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