Should the Federal Reserve be audited? (S264)

Summary of Congressional bill S. 264 (114th):

  • Regular audits of the Federal Reserve (“The Fed”) are already done, though with some restrictions.
  • This bill gets rid of those restrictions, including (31 US Code Sect 714):
    • discussions around monetary policy
    • transactions with foreign central banks, foreign governments, or international financial institutions.
  • This bill then requires an audit of the Fed to be submitted to Congress within one year.

In Depth:

  • The Fed is a private company (not a government entity).
  • The Fed is owned by the 12 regional Federal Reserve banks.
  • The regional Federal Reserve banks are private companies, so we do not know who owns them.
  • What does the Federal Reserve do?
    • It buys & sells Treasury bonds from the marketplace.
    • The Fed returns most of the interest paid by the government, back to the government.
  • The Fed controls the interest rates through this mechanism.
  • Congress & the people of the US have no power over their actions.

Vote Yes if you believe:

  • The Fed should be transparent and accountable to the public. #TheFed #Transparency #FinancialSystem
  • A private entity should not have control over our monetary policy without transparency. #TheFed #Transparency
  • If US taxpayers are bailing out companies, US taxpayers should know who they are bailing out. #TheFed #Transparency #Bailouts

Vote No if you believe:

  • The independence of the Fed frees it from political pressure. #TheFed
  • The independence of the Fed allows it to plan for the long-term. #TheFed
  • The Fed already go through multiple layers of audits. #TheFed #Transparency

Congress.gov link to S 264

(This is the 1st draft of the summary for a bill in Polinav. Summary & In-Depth is non-partisan & Vote yes/no reasons are fact-checked. if you think something is wrong, should be added or deleted, comment below!)


The problem with trying to talk about the Fed is…there isn’t good information out there. The Fed says that they’re operating a certain way, but it’s very difficult to track and verify it all. It may also be a problem of too much information. The fact that there are so many conspiracy theories surrounding the New World Order surrounding the Fed does not help this “good information” problem. So, with that said, I would want this bill passed, with the exception of keeping the “discussions around monetary policy” on a shorter delay.

The point is that the conspiracy theorists out there have all these claims that can’t be verified or debunked because good information just is not there. I would want some finality to the issue, so I would want transparency with that caveat of not allowing monetary policy to be discussed in real time. Currently, the Fed releases minutes 3 weeks after & verbatim transcriptions 5 years afterwards. I’d want the minutes to be released after a week, and verbatim transcriptions 6 months afterwards.

The Fed just scares me. It has so much influence over our economy, but we don’t really know how it works. Further, there’s just factual items that casts doubt on the legitimacy of the Fed: bill signed on Christmas Eve when many representatives weren’t in DC; income tax instituted the same year; the supposed men who drafted the bill (titans in Finance creating the entity that regulates Finance…); the unusual concentration of bank runs right before the Fed was suggested. If it walks & talks like a bear, is it a bear?

I am legitimately fearful of the power of money in the world. That’s why my goal is to create a self-sufficient company! So, even if the world comes crumbling down around us, the company could survive.

 

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