Friday, November 20, 2009
Ron Paul-Alan Grayson Federal Reserve Amendment Audit Approved
A key house panel approved the Paul-Grayson Amendment by an overwhelming 43-26 margin Thursday afternoon, which will give watchdogs new authority to audit the federal reserve. The amendment removes restriction on GAO audits of the federal reserve a HR 1207 does, make a few changes to take into a account some of the concerns that the Fed has made known in public testimony. The Paul/Grayson amendment open up the entire 2 trillion Federal Reserve balance sheet to a GAO audit. The FED'S recent purchase of 800 million in mortgage backed securities have occurred under the Mortgage Backed Securities Program, authorized under section 14(b) of the Federal Reserve Act. This program is expected to reach the size 1.25 trillion, which would remain exempt even if the all the current 13(3) audit proposals were to go into effect. More importantly, the Paul/Grayson Amendment does not create any additional burden. some competing proposals while making a number of of 13(3) open to audit, take a step backwards by imposing new restrictions on the GAO are more burdensome than the restrictions currently written into law. We as Americans cannot expect these new restrictions. Unlike competing proposals this amendment existing restrictions on GAO audit authority, a necessary precondition for a complete audit. Competing proposals leave these restrictions in place, and even add new ones. Finally, Americans should also, reject the false dichotomy between transparency and independence. The Paul/Grayson amendment would achieve the necessary transparency of trillions of dollars interventions while keeping Congress from directing intervening in the decision making process. Independence should not be synonymous with secrecy. Americans should support the Paul Grayson amendment. Let's make it simple to the average American this amendment would give the GAO the authority to audit the entire Federal Reserve balance sheet, credit facilities and all securities programs.