July 25, 2012
Wednesday the 25th of July is the day that libertarian Congressman Ron Paul’s political legacy will be written, as the House votes on his bill to audit the Federal Reserve.
In order to pass, the Federal Reserve Transparency Act, H.R. 459, needs two-thirds of the House to vote in favor. That equates to around 292 votes.
Last month, a bipartisan vote in the House Oversight Committee was almost completely unanimous in approving the bill, advancing it to the House floor.
The bill has 270 co-sponsors, including nearly four dozen Democrats, and insiders believe that every Republican representative will support the legislation, meaning that barring some major flip flopping, the bill will be successfully passed.
If it is successful, the bill would require the Government Accountability Office (GAO) to conduct a top to bottom audit of the Fed’s board of governors and 12 regional banks, and reveal details of its private monetary policy deliberations.
While House Minority Whip Steny Hoyer is leading a Democratic charge against the bill, claiming that it will overly politicize the Fed’s monetary policy and “jeopardize the Fed’s independence”.
Speaking in favor of the bill and addressing this very point, however, Ohio Democratic Rep. Dennis Kucinich urged that the Fed is already “political” in the decisions it makes.
“We have unemployment because of politics. We have people losing their homes because of politics. We have banks getting uncalculated amounts of money from the Federal Reserve and we don’t even know about it. Meanwhile people can’t get a loan to keep their home or keep their business.” Kucinich stated in an impassioned speech.
“Let’s look at some recent history here.” the Congressman continued.
“2008: subprime meltdown, collateralized debt obligation, go back for mortgage-backed securities, neighborhoods in Cleveland melting down, people losing their homes. The Fed looked the other way and we’re saying, ‘oh, don’t go into the Fed, it would be political.’ Yes, it’s political.”
“This is all about disclosure and accountability. You know, the Fed’s not some kind of hocus pocus, black box operation. The Fed essentially supplants the constitutional mandate in Article 1, Section 8, that belongs to the Congress of the United States,” Kucinich added.
“It’s time that Congress stood for its constitutional role: Article 1, Section 8, the power to coin or create money. It’s time we stood up for America’s 99 percent,” said Kucinich. “It’s time that we stood up to the Federal Reserve that right now acts like it’s some kind of high exalted priesthood, unaccountable in a democracy.”
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