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Friday, May 15, 2009

Bernie Sanders joins Ron Paul in saying, "Audit the Fed!"

Scroll down for Update 1.

If we can't abolish the Fed, can't we at least audit it?

So there is a bill before Congress that calls for a full-scale audit of the Federal Reserve System -- the Federal Reserve Board based in Washington, and the 12 regional Federal Reserve Banks.

That bill, H.R. 1207, now has 149 cosponsors and counting. It was introduced by Texas Rep. Ron Paul, now nominally a Republican, but a former leader of the Libertarian Party who is still best known for his strong libertarian principles. Read more about the bill.

Paul, as his fans well know, would just as soon abolish the Fed as look at it, but this issue gives him a chance to come in from the political fringe and at least start a process the could result in changing accountability at the Fed.

Paul's bill directs the Government Accountability Office to audit the Federal Reserve Board and regional banks by the end of 2010 and present a detailed report to Congress. The audit would look at the Fed's actions during the crisis and its decision-making process.

The 149 cosponsors include all but three of the 29 Republican members of the House Financial Services Committee, starting with ranking member Spencer Bachus of Alabama. While the bulk of the bill's supporters are Republicans, 20 House Democrats have also signed on as cosponsors. The companion bill in the Senate, S. 604, introduced by independent Bernie Sanders of Vermont, has no cosponsors yet.

--from "Is it time to stress-test the Federal Reserve? / Commentary: Congressional critics ramp up efforts to corral central bank" By Darrell Delamaide at http://www.marketwatch.com/story/is-it-time-to-stress-test-the-federal-reserve. HT: http://www.lewrockwell.com.

As these bills are debated, will Americans finally realize that abolishing the Fed is a necessary step on the path to peace and on the road to recovery--an enduring, sustainable economic recovery? After all, it's the Fed's manipulation of the money supply and interest rates that makes war easy and--per the Austrian school of economics--causes the malinvestments that, in turn, cause the booms that inevitably lead to the busts.

As far as I know, Vermont's Representative Peter Welch has not yet signed on to Paul's bill.

Update 1
For information on the Austrian school of economics, see, e.g., http://lewrockwell.com and http://mises.org. Also recommended: "No, the Free Market Did Not Cause the Financial Crisis" by Thomas E. Woods, Jr. at http://www.lewrockwell.com/woods/woods111.html.


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