Audit or Abolish the Federal Reserve

        There are various bills pending in Congress to allow the Comptroller General to audit the Federal Reserve. There is no such provision at the present time, so the Federal Reserve and member banks have no Congressional oversight.

1.    Senate Bill S. 604: 111th Congress: “Federal Reserve Sunshine Act of 2009”

Co-sponsors:

Sen. John Barrasso [R-WY]

Sen. Robert Bennett [R-UT]

Sen. Samuel Brownback [R-KS]

Sen. Richard Burr [R-NC]

Sen. Saxby Chambliss [R-GA]

Sen. Thomas Coburn [R-OK]

Sen. John Cornyn [R-TX]

Sen. Michael Crapo [R-ID]

Sen. Jim DeMint [R-SC]

Sen. Russell Feingold [D-WI]

Sen. Thomas Harkin [D-IA]

Sen. Kay Hutchison [R-TX]

Sen. James Inhofe [R-OK]

Sen. John Isakson [R-GA]

Sen. Blanche Lincoln [D-AR]

Sen. John McCain [R-AZ]

Sen. David Vitter [R-LA]

2.    H.R. 1348:”Federal Reserve Sunshine Act” Federal Reserve Sunshine Act - Directs the Board of Governors of the Federal Reserve System to publish on its website, with respect to all loans and other financial assistance it has provided since March 24, 2008: (1) the identity of each business, individual, or entity to which the Board has provided such assistance; (2) the type of financial assistance provided; (3) its value or amount; (4) the date on which it was provided; (5) the specific terms of any repayment expected, including the repayment time period, interest charges, collateral, limitations on executive compensation or dividends, and other material terms; and (6) the specific rationale for providing assistance in each instance.

Sponsor: Rep. Ronald Paul [R-TX14] no co-sponsors

3.    H.R. 833 “Federal Reserve Board Abolition Act” Federal Reserve Board Abolition Act - Abolishes the Board of Governors of the Federal Reserve System and each federal reserve bank

Sponsor: Rep. Ronald Paul [R-TX14] no co-sponsors

4.    H.R. 12087 “Federal Reserve Transparency Act of 2009
Sponsor Rep. Ronald Paul [R-TX14]

Co-sponsors:

Rep. Neil Abercrombie [D-HI1]

Rep. Robert Aderholt [R-AL4]

Rep. John Adler [D-NJ3]

Rep. Todd Akin [R-MO2]

Rep. Rodney Alexander [R-LA5]

Rep. Jason Altmire [D-PA4]

Rep. Steve Austria [R-OH7]

Rep. Michele Bachmann [R-MN6]

Rep. Spencer Bachus [R-AL6]

Rep. Brian Baird [D-WA3]

Rep. Tammy Baldwin [D-WI2]

Rep. James Barrett [R-SC3]

Rep. John Barrow [D-GA12]

Rep. Roscoe Bartlett [R-MD6]

Rep. Joe Barton [R-TX6]

Rep. Shelley Berkley [D-NV1]

Rep. Robert Berry [D-AR1]

Rep. Judy Biggert [R-IL13]

Rep. Brian Bilbray [R-CA50]

Rep. Gus Bilirakis [R-FL9]

Rep. Rob Bishop [R-UT1]

Rep. Timothy Bishop [D-NY1]

Rep. Marsha Blackburn [R-TN7]

Rep. Roy Blunt [R-MO7]

Rep. John Boehner [R-OH8]

Rep. Jo Bonner [R-AL1]

Rep. Mary Bono Mack [R-CA45]

Rep. John Boozman [R-AR3]

Rep. Leonard Boswell [D-IA3]

Rep. Frederick Boucher [D-VA9]

Rep. Charles Boustany [R-LA7]

Rep. Allen Boyd [D-FL2]

Rep. Kevin Brady [R-TX8]

Rep. Bruce Braley [D-IA1]

Rep. Bobby Bright [D-AL2]

Rep. Paul Broun [R-GA10]

Rep. Corrine Brown [D-FL3]

Rep. Henry Brown [R-SC1]

Rep. Virginia Brown-Waite [R-FL5]

Rep. Vern Buchanan [R-FL13]

Rep. Michael Burgess [R-TX26]

Rep. Dan Burton [R-IN5]

Rep. Stephen Buyer [R-IN4]

Rep. Ken Calvert [R-CA44]

Rep. David Camp [R-MI4]

Rep. John Campbell [R-CA48]

Rep. Eric Cantor [R-VA7]

Rep. Anh Cao [R-LA2]

Rep. Shelley Capito [R-WV2]

Rep. Christopher Carney [D-PA10]

Rep. John Carter [R-TX31]

Rep. Bill Cassidy [R-LA6]

Rep. Michael Castle [R-DE]

Rep. Jason Chaffetz [R-UT3]

Rep. Ben Chandler [D-KY6]

Rep. Travis Childers [D-MS1]

Rep. Howard Coble [R-NC6]

Rep. Mike Coffman [R-CO6]

Rep. Tom Cole [R-OK4]

Rep. Michael Conaway [R-TX11]

Rep. John Conyers [D-MI14]

Rep. Joe Courtney [D-CT2]

Rep. Ander Crenshaw [R-FL4]

Rep. John Culberson [R-TX7]

Rep. Danny Davis [D-IL7]

Rep. Geoff Davis [R-KY4]

Rep. Nathan Deal [R-GA9]

Rep. Peter DeFazio [D-OR4]

Rep. Charles Dent [R-PA15]

Rep. Lincoln Diaz-Balart [R-FL21]

Rep. Mario Diaz-Balart [R-FL25]

Rep. Lloyd Doggett [D-TX25]

Rep. David Dreier [R-CA26]

Rep. John Duncan [R-TN2]

Rep. Donna Edwards [D-MD4]

Rep. Thomas Edwards [D-TX17]

Rep. Vernon Ehlers [R-MI3]

Rep. Jo Ann Emerson [R-MO8]

Rep. Mary Fallin [R-OK5]

Rep. Sam Farr [D-CA17]

Rep. Jeff Flake [R-AZ6]

Rep. John Fleming [R-LA4]

Rep. James Forbes [R-VA4]

Rep. Jeffrey Fortenberry [R-NE1]

Rep. Virginia Foxx [R-NC5]

Rep. Trent Franks [R-AZ2]

Rep. Rodney Frelinghuysen [R-NJ11]

Rep. Marcia Fudge [D-OH11]

Rep. Elton Gallegly [R-CA24]

Rep. Scott Garrett [R-NJ5]

Rep. Jim Gerlach [R-PA6]

Rep. Gabrielle Giffords [D-AZ8]

Rep. John Gingrey [R-GA11]

Rep. Louis Gohmert [R-TX1]

Rep. Robert Goodlatte [R-VA6]

Rep. Kay Granger [R-TX12]

Rep. Samuel Graves [R-MO6]

Rep. Alan Grayson [D-FL8]

Rep. Parker Griffith [D-AL5]

Rep. Raul Grijalva [D-AZ7]

Rep. Brett Guthrie [R-KY2]

Rep. Ralph Hall [R-TX4]

Rep. Deborah Halvorson [D-IL11]

Rep. Phil Hare [D-IL17]

Rep. Jane Harman [D-CA36]

Rep. Gregg Harper [R-MS3]

Rep. Doc Hastings [R-WA4]

Rep. Dean Heller [R-NV2]

Rep. Jeb Hensarling [R-TX5]

Rep. Walter Herger [R-CA2]

Rep. Stephanie Herseth Sandlin [D-SD]

Rep. Maurice Hinchey [D-NY22]

Rep. Mazie Hirono [D-HI2]

Rep. Peter Hoekstra [R-MI2]

Rep. Tim Holden [D-PA17]

Rep. Duncan Hunter [R-CA52]

Rep. Bob Inglis [R-SC4]

Rep. Jay Inslee [D-WA1]

Rep. Darrell Issa [R-CA49]

Rep. Lynn Jenkins [R-KS2]

Rep. Henry Johnson [D-GA4]

Rep. Samuel Johnson [R-TX3]

Rep. Timothy Johnson [R-IL15]

Rep. Walter Jones [R-NC3]

Rep. Jim Jordan [R-OH4]

Rep. Steve Kagen [D-WI8]

Rep. Marcy Kaptur [D-OH9]

Rep. Peter King [R-NY3]

Rep. Steve King [R-IA5]

Rep. Jack Kingston [R-GA1]

Rep. Mark Kirk [R-IL10]

Rep. Ann Kirkpatrick [D-AZ1]

Rep. John Kline [R-MN2]

Rep. Suzanne Kosmas [D-FL24]

Rep. Frank Kratovil [D-MD1]

Rep. Dennis Kucinich [D-OH10]

Rep. Doug Lamborn [R-CO5]

Rep. Leonard Lance [R-NJ7]

Rep. Thomas Latham [R-IA4]

Rep. Steven LaTourette [R-OH14]

Rep. Robert Latta [R-OH5]

Rep. Christopher Lee [R-NY26]

Rep. Jerry Lewis [R-CA41]

Rep. John Linder [R-GA7]

Rep. Daniel Lipinski [D-IL3]

Rep. Frank LoBiondo [R-NJ2]

Rep. David Loebsack [D-IA2]

Rep. Zoe Lofgren [D-CA16]

Rep. Frank Lucas [R-OK3]

Rep. Blaine Luetkemeyer [R-MO9]

Rep. Cynthia Lummis [R-WY]

Rep. Daniel Lungren [R-CA3]

Rep. Connie Mack [R-FL14]

Rep. Daniel Maffei [D-NY25]

Rep. Donald Manzullo [R-IL16]

Rep. Kenny Marchant [R-TX24]

Rep. Betsy Markey [D-CO4]

Rep. Eric Massa [D-NY29]

Rep. Kevin McCarthy [R-CA22]

Rep. Michael McCaul [R-TX10]

Rep. Tom McClintock [R-CA4]

Rep. Thaddeus McCotter [R-MI11]

Rep. James McDermott [D-WA7]

Rep. James McGovern [D-MA3]

Rep. Patrick Mchenry [R-NC10]

Rep. John McHugh [R-NY23]

Rep. Mike McIntyre [D-NC7]

Rep. Howard McKeon [R-CA25]

Rep. Cathy McMorris Rodgers [R-WA5]

Rep. Charles Melancon [D-LA3]

Rep. John Mica [R-FL7]

Rep. Michael Michaud [D-ME2]

Rep. Candice Miller [R-MI10]

Rep. Gary Miller [R-CA42]

Rep. Jeff Miller [R-FL1]

Rep. Walter Minnick [D-ID1]

Rep. Harry Mitchell [D-AZ5]

Rep. Jerry Moran [R-KS1]

Rep. Christopher Murphy [D-CT5]

Rep. Patrick Murphy [D-PA8]

Rep. Scott Murphy [D-NY20]

Rep. Tim Murphy [R-PA18]

Rep. Sue Myrick [R-NC9]

Rep. Randy Neugebauer [R-TX19]

Rep. Devin Nunes [R-CA21]

Rep. Pete Olson [R-TX22]

Rep. Solomon Ortiz [D-TX27]

Rep. William Pascrell [D-NJ8]

Rep. Edward Pastor [D-AZ4]

Rep. Erik Paulsen [R-MN3]

Rep. Mike Pence [R-IN6]

Rep. Ed Perlmutter [D-CO7]

Rep. Thomas Perriello [D-VA5]

Rep. Collin Peterson [D-MN7]

Rep. Thomas Petri [R-WI6]

Rep. Joseph Pitts [R-PA16]

Rep. Todd Platts [R-PA19]

Rep. Ted Poe [R-TX2]

Rep. Jared Polis [D-CO2]

Rep. Bill Posey [R-FL15]

Rep. Tom Price [R-GA6]

Rep. Adam Putnam [R-FL12]

Rep. George Radanovich [R-CA19]

Rep. Dennis Rehberg [R-MT]

Rep. Dave Reichert [R-WA8]

Rep. Phil Roe [R-TN1]

Rep. Harold Rogers [R-KY5]

Rep. Michael Rogers [R-AL3]

Rep. Michael Rogers [R-MI8]

Rep. Dana Rohrabacher [R-CA46]

Rep. Thomas Rooney [R-FL16]

Rep. Peter Roskam [R-IL6]

Rep. Ileana Ros-Lehtinen [R-FL18]

Rep. Mike Ross [D-AR4]

Rep. Steven Rothman [D-NJ9]

Rep. Edward Royce [R-CA40]

Rep. Paul Ryan [R-WI1]

Rep. John Salazar [D-CO3]

Rep. John Sarbanes [D-MD3]

Rep. Steve Scalise [R-LA1]

Rep. Janice Schakowsky [D-IL9]

Rep. Mark Schauer [D-MI7]

Rep. Adam Schiff [D-CA29]

Rep. Jean Schmidt [R-OH2]

Rep. Aaron Schock [R-IL18]

Rep. David Scott [D-GA13]

Rep. James Sensenbrenner [R-WI5]

Rep. Peter Sessions [R-TX32]

Rep. John Shadegg [R-AZ3]

Rep. Carol Shea-Porter [D-NH1]

Rep. Brad Sherman [D-CA27]

Rep. John Shimkus [R-IL19]

Rep. Heath Shuler [D-NC11]

Rep. William Shuster [R-PA9]

Rep. Michael Simpson [R-ID2]

Rep. Louise Slaughter [D-NY28]

Rep. Adam Smith [D-WA9]

Rep. Adrian Smith [R-NE3]

Rep. Christopher Smith [R-NJ4]

Rep. Lamar Smith [R-TX21]

Rep. Victor Snyder [D-AR2]

Rep. Mark Souder [R-IN3]

Rep. Zachary Space [D-OH18]

Rep. Jackie Speier [D-CA12]

Rep. Fortney Stark [D-CA13]

Rep. Clifford Stearns [R-FL6]

Rep. John Sullivan [R-OK1]

Rep. Gene Taylor [D-MS4]

Rep. Harry Teague [D-NM2]

Rep. Lee Terry [R-NE2]

Rep. Bennie Thompson [D-MS2]

Rep. Glenn Thompson [R-PA5]

Rep. William Thornberry [R-TX13]

Rep. Todd Tiahrt [R-KS4]

Rep. Patrick Tiberi [R-OH12]

Rep. John Tierney [D-MA6]

Rep. Dina Titus [D-NV3]

Rep. Paul Tonko [D-NY21]

Rep. Michael Turner [R-OH3]

Rep. Frederick Upton [R-MI6]

Rep. Peter Visclosky [D-IN1]

Rep. Greg Walden [R-OR2]

Rep. Timothy Walz [D-MN1]

Rep. Zach Wamp [R-TN3]

Rep. Peter Welch [D-VT]

Rep. Lynn Westmoreland [R-GA3]

Rep. Edward Whitfield [R-KY1]

Rep. Addison Wilson [R-SC2]

Rep. Rob Wittman [R-VA1]

Rep. Frank Wolf [R-VA10]

Rep. Lynn Woolsey [D-CA6]

Rep. David Wu [D-OR1]

Rep. John Yarmuth [D-KY3]

Rep. Bill Young [R-FL10]

Rep. Donald Young [R-AK]

5.    Senate Bill S.513 “Federal Reserve Transparency Act”  Directs the Board of Governors of the Federal Reserve System to publish on its website all loans and other financial assistance it has provided since March 24, 2008: (1) the identity of each business, individual, or entity to which the Board has provided such assistance; (2) the type of financial assistance provided; (3) its value or amount; (4) the date on which it was provided; (5) the specific terms of any repayment expected, including the repayment time period, interest charges, collateral, limitations on executive compensation or dividends, and other material terms; and (6) the specific rationale for providing assistance in each instance. It also requires the Board to update such information at least once every 30 days

        Sponsor: Sen. Bernard Sanders [I-VT]

Co-sponsors:

Sen. Russell Feingold [D-WI]

Sen. Blanche Lincoln [D-AR]

        Senate bill 604 and H.R. 1207 call for a complete audit of the Federal Reserve and removes many significant barriers towards transparency of our monetary system. At the present time the Comptroller General has no authority to inspect the records of member banks without their consent. Both H.R. 1207 and S. 604 would remove the requirement of consent, and directs the Comptroller General to complete an audit of the Board of Governors of the Federal Reserve, and issue a report before 2010.

        H.R. 1207 as of 7/21/09 reportedly has 275 cosponsors, with support from both Republicans and Democrats. The last reported action on this bill was back in February 2009.  Senator Bernie Sanders introduced companion bill in the Senate S 604.

        Opponents argue that Congressional oversight over the Fed is government interference in the free market. The argument is fundamentally flawed. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy.  In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market.  The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters. 

        It took less than two decades for the Federal Reserve to bring on the Great Depression of the 1930’s.   It has also inflated away the value of our currency by over 96 percent since its inception.  It has invisibly stolen from the poor and given to the rich through this controlled inflation, and now openly stolen through recent bank bailouts.  It has predictably exacerbated the very problems it was meant to solve. 

        Opponents of the bill also argue that the Fed must remain immune from the political process, and that that more congressional oversight would distort their very important decisions.  This argument is also flawed because the Federal Reserve is already heavily entrenched in the political process, as the Fed chairman is a political appointee

        We are seeing the failure of central economic planning.  The Fed has the power to create money. Americans should know who is getting all those U.S. Dollars. It is the responsibility of every member of Congress to find out what is happening to our money, especially now when we are almost certain to buried under a mountain of debt and facing the greatest economic decline and weak dollar since the FDR depression of the 1930’s.