What's going on behind closed doors?
|
| August 1, 2012 |
By Congressman Raul Labrador
 For
several years my colleagues in the House of
Representatives have introduced legislation that
would bring greater transparency to the Federal
Reserve. Most well-known are the tireless
efforts of Congressman Ron Paul and his call to
audit the Fed.
Since its beginning, the Federal Reserve has
never undergone a strategic audit and has never
been held accountable for its actions. It has
set monetary policy behind closed doors.
With the severe devaluation of our currency,
it’s time to ask what’s going on behind those
doors. While the Fed’s actions are not subject
to approval by the president or Congress, the
system itself is subject to congressional
oversight.
That’s why early in my term I cosponsored H.R.
459, the Federal Reserve Transparency Act of
2012.
On Wednesday, July 25 this bill passed the House
of Representatives with my full support.
This bill will require the Government
Accountability Office to complete a thorough
audit of the Federal Reserve’s activities and
submit a report to Congress within a year of the
legislation’s enactment. It gives teeth to the
GAO’s ability to perform an audit by lifting
restrictions placed upon that department.
The lack of transparency is a concern to both
parties and the bill was overwhelmingly approved
by a vote of 327 to 98.
Transparency and accountability are the bedrock
of our nation’s financial integrity.
When our government distances itself from these
principles, it becomes the responsibility of the
people’s elected representatives to step in and
reverse the trend.
From the day I took office, I consistently heard
from Idahoans about their frustrations with the
Federal Reserve system. Your calls and letters
helped me gauge with great clarity the impact
unmonitored decisions by a secretive agency will
have on our economy.
There is no reason why Congress should not have
more open access to the decision making patterns
of the Federal Reserve. The consequences of
these decisions are felt by all Americans—from a
family trip to the grocery store to a mother’s
ability to fill up her car at the gas station.
What may have bought school supplies for our
children one day will buy only half of their
lunch another. The Fed’s actions affect us when
we take out loans for college or buy homes. We
don’t stand for elected officials who take our
money through increased taxation and we
shouldn’t stand for bureaucrats who reduce our
buying power through monetary policy.
The time has come for a thorough investigation
into the decisions of the Federal Reserve. We
need some answers regarding our monetary policy
and the thinking behind the decisions made each
day by the Fed.
It is my duty to defend sound, financial
principles and I will continue to make every
effort to ensure that no institution takes
liberty with our economy without understanding
that it faces very real consequences.
The Federal Reserve Transparency Act of 2012 now
goes to the Senate where I urge its passage. |
|
|
|
|
