12/23/10 Audit the Federal Reserve
The most secretive organization in America may not be CIA, NSA or any other intelligence agency. It’s the Federal Reserve. Discussion about the Fed would normally cause your eyes to glaze over. But fight the urge and listen to this. In almost 100 years, the FedÃ¢Â€Â™s record hasnÃ¢Â€Â™t been very good. It acknowledges it worsened the Great Depression by its lousy monetary policy.
In recent years, by keeping interest rates artificially low, the Fed contributed to the inflated stock market, the housing bubble, the public assuming too much cheap debt and it enticed Congress to run up huge deficits. This helped crash our current economy. Under new mandatory disclosure rules the Fed has finally admitted itÃ¢Â€Â™s extended as much as $6.5 trillion in credit –including to foreign banks.
A year ago, the FedÃ¢Â€Â™s Inspector General confessed she had no idea where the Fed spent a reported $9 trillion in off-balance sheet transactions. The Fed opposes an audit claiming it would restrict its independence. That’s hogwash. The Fed can be independent and transparent at the same time.
Nobody keeps good news secret. What is the Fed hiding? It is time to audit the Federal Reserve.