Auditing the Fed: Where’d Our Money Go?


    Hear Senator Bernie Sanders’ (VT-I) fiery speech on the floor of the US Senate in support of the Sanders-DeMint bipartisan amendment requring transparency at the Federal Reserve and mandating a GAO audit. Senator Sanders asks a simple question: Where did all the taxpayers’ money go? Who was involved, and were there conflicts of interest? He says at one point, the entire process looks like a scam to him, and he quotes chapter and verse. Example: the Fed gave billions at near-zero interest to big banks to restore liquidity and the flow of loans to small businesses, but it appears the banks used the money instead to buy US government Treasuries paying higher interest to them, and then used the money to pay themselves billions in bonuses—- the audit will find out for the American people. It is impressive, and frightening when you hear even this boiled-down history, and the most frightening thing is that apparently there is a rumor that President Obama will either veto the audit of the Fed, or present an alternative, watered-down version. My question: Do the banks really own our government? Listen to Bernie Sanders.

    • …I oppose it. Others supporting this include John McCain (R-Ariz.), Sam Brownback (R-Kansas), “Diaper” David Vitter (R-La.), Jim Risch (R-Idaho), Roger Wicker (R-Miss.), Lindsey Graham (R-S.C.), Orrin Hatch (R-Utah), and Mike Crapo (R-Idaho). No thanks.

    • is this: “The measure has already been backed by a number of conservative groups, from Citizens Against Government Waste to Freedomworks.

    • Teddy Goodson

      this measure is being backed by a huge number of progressive groups as well. Remember, the Fed is not, repeat not, a purely government regulatory agency. It is composed of (big) bankers and is operated by and for (big) bankers, not the public.

      I believe the conservatives intend to use this audit to try to abolish the Fed, and the progressives to rein in the Fed and make it do a proper job; besides, transparency in government is a progressive idea. Populists think about Andrew Jackson, who vetoed the very idea of a central bank (which function the Fed performs today).

      In other words, auditing the Fed can result in necessary reform, and we will never achieve control over these runaway banks without an audit, or something like it. I would not oppose the audit simply because some conservatives want it. Are we progressives afraid to go up against the conservatives once the audit report is in the public record? Are we so craven and devoid of political savvy? Not me—- make my day—- bring it on—- and so forth.