Audit the Fed!

The Federal Reserve is arguably America’s most powerful institution. At least, it has been this past decade, with its loose money policies contributing to two bubble-crashes, the second of which the Fed responded to by showering TENS OF TRILLIONS OF DOLLARS on banks.

The Fed is controlled not by Congress or the President. It’s controlled by major banks… the very same major banks which became insolvent but were rescued — to the tune of TENS OF TRILLIONS OF DOLLARS — rather than allowed to fail and be restructured.

The Fed has refused to tell Congress or anyone who it has given its TENS OF TRILLIONS OF DOLLARS to and what it received in return.

It’s long past time Americans at least know how these TENS OF TRILLIONS OF DOLLARS have been handed out and to whom.

Republican Rep. Ron Paul of Texas and Democratic Rep. Alan Grayson of Florida have co-authored a bill calling for a Fed audit. It deserves every Congressman’s vote. A letter calling for a real audit of the Fed was recently signed by some superb pro-Main Street economists and top labor leaders:

  • SEIU President Andy Stern
  • AFL-CIO President Richard Trumka
  • James K. Galbraith (Lloyd M. Bentsen, Jr., Chair at the LBJ School of Public Affairs, University of Texas at Austin)
  • Author Naomi Klein
  • Blogger Yves Smith of Naked Capitalism
  • William Black (Associate Professor of Economics and Law at the University of Missouri–Kansas City)
  • Blogger Tyler Durden of Zero Hedge
  • Robert Johnson (former Chief Economist of the US Senate Banking Committee)
  • Randall Wray (Professor of Economics and Director of the Center for Full Employment and Price Stability at the University of Missouri–Kansas City)
  • Thomas Ferguson, Professor of Political Science, University of Massachusetts, Boston
  • Dean Baker, co-founder and co-director of the Center For Economic And Policy Research

Posted by James on Thursday, November 19, 2009