The Federal Reserve is clamoring to shut down legislation that would allow the American people to take a look at its books.
Last month Kentucky Senator Rand Paul introduced his Federal Reserve Transparency Act of 2015. It has a number of co-sponsors, including Sens. Ted Cruz of Texas and Marco Rubio of Florida.
If passed, the legislation would direct the Comptroller General of the United States to conduct a full audit of the Fed.
The Fed, naturally, hates the bill. It says if enacted, it will damage the economy.
How would it damage the economy? Paul’s plan would empower Congress “to audit and question monetary policy decisions in real time,” laments Philadelphia Fed President Charles Plosser.
“This runs the risk of monetary policy decisions being based on short-term political considerations instead of the longer-term health of the economy,” he added.
For the Fed, the “health of the economy” consists “of flooding the economy with easy money, leading to a misallocation of resources and an artificial ‘boom’ followed by a recession or depression when the Fed-created bubble bursts,” according to Rand Paul’s father, former Congressman Ron Paul who, incidentally, worked unsuccessfully to abolish the Federal Reserve, not merely audit it.
“Who in their right mind would ask the Congress of the United States — who can’t cobble together a fiscal policy — to assume control of monetary policy?” the president of the Federal Reserve Bank of Dallas, Richard Fisher, asked The Hill.
Apparently, according to Fisher and the Fed, the founders of the republic and authors of the Constitution were out of their minds.
Article I, Section 8, Clause 5 of the Constitution states: Congress has the duty to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.”
“A largely politicized Federal Reserve System now has created a critical emergency in monetary policy,” Harrison Schmitt wrote prior to the appointment of Janet Yellen.
Led by Chairman Ben Bernanke, the Federal Reserve plans to again violate the Founder’s intention of having a stable currency by further monetization of the still rising national debt through printing another $600 billion out of thin air, euphemistically called “quantitative easing” or QEII. The Fed’s monetary policies, created at the behest of the Obama Administration, have created the potential for rampant future inflation, once some semblance of sustained economic recovery appears. Whatever its domestic political intent, QEII also has seriously threatened the economic growth of our trading partners. One must wonder if the 1792 Coinage Act’s penalty for debasement of the currency still applies.
The 1792 Coinage Act was enacted to prevent officials of the United States Mint from engaging in fraud, embezzlement, or debasement of the currency. This crime was considered so serious, Congress mandated the death penalty for those found guilty.
The Federal Reserve specializes in currency debasement and inflation, but Yellen and the Board of Governors are not facing the death penalty.