Senate Votes for Audit of Fed (96-0)

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201005111408dowjonesdjonline000510&title=2nd-updateus-senate-passes-amendment-for-one-time-audit-of-fed

by mojuba • 16 years ago

29 24 16 years ago

nasdaq.com

chaosmachine• 16 years ago

non-paywall source:

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?stor...

mojuba• 16 years ago

WSJ showed the full article when I opened it through Google News Search... didn't know even WSJ does the dirty tricks with referrers.

pyre• 16 years ago

WSJ isn't doing it. It's evidence that Google is 'stealing' from Rupert. Google is allowing people to read WSJ articles that are supposed to be behind a pay wall... </sarcasm>

barrkel• 16 years ago

FWIW, RefControl extension for Firefox can be used to force any referer (sic) header value for websites you specify. Useful for the Financial Times, Barrons, etc.

presidentender3• 16 years ago

Senate votes for toothless, meaningless lipservice. This one-time 'audit' isn't going to accomplish much, unfortunately. I'm glad that this step is being taken, but I'd much rather see the original language restored.

aaronbrethorst2• 16 years ago

Mind characterizing the differences between the original and the passed amendment?

aaronsw• 16 years ago

Surprised to see this on HN since I've actually been working on it. Basically, the original gave full, permanent audit authority to the Government Accountability Office. This one requires a one-time thorough audit of the bailout-type expenditures and not much else.

presidentender3• 16 years ago

aaronsw hits it on the head. Under the original, Congress gets to perform a complete audit of all the Fed's activities. Under the passed version, Congress will perform a one-time audit of TARP. I'm less concerned with the ongoing audits (although I'd prefer they remained) and more concerned with the depth of the investigation that will be undertaken.

philwelch3• 16 years ago

I think the one thing saving us from hyperinflation is the lack of political control and influence over the FED. You see hyperinflation in currencies where the ordinary government has control and influence over the central bank, because they just use the central bank's inflationary power to boost spending. The FED is independent from Congress for a reason, and an ongoing power to audit threatens that independence and, by extension, our currency.

A one-time audit for the bailout will accomplish the main objective people have been asking for--accounting for all the bailout--without threatening the operational independence of the FED.

presidentender3• 16 years ago

So why not have a one-time audit of the rest of the Fed's activities?

jacoblyles2• 16 years ago

The one thing separating us from hyperinflation is about 20 years.

jeffreyg• 16 years ago

"Senate votes for toothless, meaningless lipservice." ... "I'm glad that this step is being taken,..."

Can't say I agree with you at all there. Instead of addressing an issue, they voted 96-0 in favor of 'meaningless lipservice' so that they can say they voted in favor of something useful.

spoiledtechie2• 16 years ago

I question why they want to see where the FED spent the money. Is it actually because they care, or they want to get in on all the wheeling and dealing with the banks? I agree with transparency, but what is the true motive of the politicians? I think it will be to line their pockets.

borism2• 16 years ago

Ron Paul is known gold bugs' favorite, so undermining the Fed by any means is definitely going to score some points for him.

philwelch3• 16 years ago

For the longest time there was a theory called "starve the beast". The idea is that Republicans interested in reducing the scope of the federal government could cut taxes and actually increase spending, forcing a deficit crisis and a sudden paring-back of the government (similar to the now famous Greek "austerity measures") and creating a permanent distrust of big government.

I bring this up because it seems like a similar tactic could be applied to the FED. The FED doesn't hyperinflate because there's no oversight or control by Congress--if there was oversight, Congress would do all they could to get the FED to hyperinflate just to increase spending. Maybe goldbugs want to introduce permanent oversight and control over the FED just to cause that hyperinflation, just so they could turn around and say "Look! Central banks are untrustworthy!".

There are lots of similar examples on the left, whether deliberate or accidental--regulating certain industries within inches of their lives (healthcare) and then pointing to it as a market failure.

spoiledtechie2• 16 years ago

Whats the reasoning behind this down vote? I like many other Americans these days do not trust the politicians currently. I am just pointing this out. If they do see where the FED spends their money, they could look at a bank and say hey, give me money in my next campaign or I will close you down.

marr• 16 years ago

''' "This amendment begins the process of lifting the veil of secrecy of perhaps the most powerful federal agency," Mr. Sanders said at a news conference after the vote. '''

Am I mistaken in thinking that "the Fed" is not a federal agency? Or is "the Fed" as a whole generally considered one because of the Board?

noelchurchill• 16 years ago

You're right. The federal reserve is a quasi private/public entity. It's a private organization with the chairman appointed by the federal government.

andre• 16 years ago

about time

chaostheory• 16 years ago

It's just a dog and pony show with little meaning:

"Audits of the Federal Reserve Board and Federal reserve banks may not include—

transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

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;

transactions made under the direction of the Federal Open Market Committee; or 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."

Senate Votes for Audit of Fed (96-0)

Related Stories