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How independent do you want the Federal Reserve to be? (Video: Bernanke on Auditing the Federal Reserve) according to Ben Bernanke, the Chairman of the Federal Reserve, disclosing its secret monetary policy materials to Congress is not consistent with an “independent” Federal Reserve. HR 1207 would allow our elected representatives access to the secret materials used by the Federal Reserve Board members. The Board currently fixes the value of the dollar, sets interest rates, and determines the supply of money in the economy. The Federal Reserve has the power to affect the economic prosperity of America through manipulating monetary policy. Bernanke stated “We are willing to work with Congress to assure it gets the information it needs.” But Bernanke opposes H.R. 1207. His reason: ““I don’t think the people want Congress running monetary policy.” The Constitution vests in Congress the right to coin money and to determine economic policy. Some would argue that the existence of the Federal Reserve is unconstitutional. I submit that while Congress can delegate its authority, it must retain oversight to be Constitutional, but unfortunately that argument has been so watered down thought the years that it is no longer viable. Bernanke opposes H.R. 1207 because it would politicize monetary policy. The fact is that the Federal Reserve has in the past accommodated the party in power by driving interest rates lower before Election Day, which has had the effect of creating a bubble economy. The economy should not be used as an election tool in the hands of the Federal Reserve Board. Full disclosure to Congress would create a check and balance to assure that neither party can influence the secrete manipulation of the economy for political purpose. Making secret deals with Goldman Sachs, international financial institutions, foreign governments and foreign central banks is nothing less than politicizing monetary policy by the Federal Reserve. Wall Street is fighting to defeat any bill in Congress that gives the people their right to know. Former Fed Chairman Arthur Burns when asked about the inflation he brought about in 1971 before Nixon’s reelection said that the Board has to do what the president wants. The President appoints 7 of the 12 members of the Board of Governors of the Federal Reserve, including the Chairman. The President does not have Constitutional powers to control the coining of money, it is a right given to Congress in Article 1 Section 8 “Powers of Congress”: “To coin Money, regulate the Value thereof” Bernanke argues that disclosing their secrets would compromise the ability of the Fed’s to pursue sound policy. If the policy is sound then the people should know about it. Bernanke’s argument simply is irrational and disingenuous; furthermore, Bernanke’s argument is made in the face of the worst economic recession since the great depression of the 1930’s during the administration of Franklin Delano Roosevelt. If the Federal Reserve had performed its mission, the economy would not be in total collapse. If the secrete Fed policies were known, perhaps members of Congress might have been able to inform their constituents and averted the present economic disaster. Opponents of the bill argue that the disclosure required by H.R. 1207 would hurt the value of the U.S. dollar. Since Woodrow Wilson created the Federal Reserve in 1914 the dollar has lost 96% of its value. They argue that disclosure would raise interest rates, but H.R. 1207 does not change the power of the Federal Reserve, it simply requires the Board to tell the American people what they are up to. Georgia Supporters: Rep. Lynn Westmoreland [R-GA3]
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