(NationalSentinel) Monetary Policy:Â The House Government Reform and Oversight Committee has approved legislation that would require a compete audit of the Federal Reserve because, as one GOP lawmaker said, it’s not really clear that Democrats’ assertions the Fed is “independent” are true.
“They say that the Fed needs to remain independent and frankly we have no idea if the Fed is independent between Wall Street and the Treasury. The Federal Reserve was set up to be a second treasury. Is the motivation for the Fed good monetary policy or is it to make Wall Street money? We simply donâ€™t know that itâ€™s independent,” Rep. Thomas Massie, R-Ky., sponsor of theÂ Federal Reserve Transparency Act of 2017, toldÂ Breitbart News.
For years Democrats who, ironically enough, have often criticized Wall Street and accused the financial industry of colluding against the interests of the American people, have opposed any Fed audit, claiming that would ruin the institution’s alleged independence.
â€œWe should not in any way hinder their independence,” Rep. Carolyn Maloney, D-N.Y., said recently
But Massie disagrees, saying the Fed has a bad record of managing monetary policy.
â€œThe Fed has not done well managing the value of the dollar. The power to coin money and regulate the value thereof exists with Congress. The dollar lost more than 95 percent of its value since weâ€™ve created the Federal Reserve in 1913,” he toldÂ Breitbart.
Critics note that the Government Accountability Office conducts regular audits of the Fed, but Massie said that’s disingenuous.
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“The problem is that it isnâ€™t a full audit. The GAO cannot audit Federal ReserveÂ transactions with foreign governments and foreign banks. Sixteen trillion dollars flowed to foreign banks and foreign governments in the financial crisis without any oversight,” he said.
“The GAO cannot examine any Fed actions on monetary policy matters, it cannot audit transactions made at the discretion of the Federal Open Market Committee, and the GAO cannot audit communications of the Federal Reserve for any of the three previous areas. They do not want us second guessing their decisions,” he added.
We’ll see where the legislation goes. The House has passed Fed audit legislation in 2012 and 2014, but both bills died in the Senate.