Posted by
Tonewah on Thursday, April 02, 2009 4:00:00 AM
A piece of legislation, HR1207, also known as the "Federal Reserve Transparency Act of 2009", has been introduced in Congress, currently with 55 co-sponsors, to require transparency from the Federal Reserve. Many people recognize that the FED is a quasi-governmental agency without complete oversight by Congress. Without this oversight, the people have no representation in this all-important agency. When the FED alters the interest rate, inflation occurs or money is lost in the form of decreased income from interest. This is known as the 'inflation tax'. Combined, this creates a situation of taxation without representation.
Although the FED is currently subject to audit, it is currently exempted by legislation from full disclosure. The bill HR1207 would remove the language from the current law regarding FED audits preventing onsite examinations of the FED or holding companies. It would also remove the following restriction on a FED audit found in Subsection (b) of
section 714 of title 31, United States Code:
Audits of the Federal Reserve Board and Federal reserve banks may not include -
(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of
the Federal Reserve System related to clauses (1)-(3) of this subsection.
It seems like a no-brainer that this bill should pass, especially with the shady dealings going on the financial markets and the downturn in the economy. The people have a right to at least have a representative know about all decisions and actions taken regarding the currency of their country.
Read the full text of the bill
here.