Rep. Woodall: Audit the Fed: Let's hold government accountable.Submitted by DeBosco on Fri, 08/03/2012 - 15:24
I just received an e-mail letter from my representative, Rob Woodall. I should mention that when I wrote him encouraging his support of HR 459, I received an enthusiastic reply that mentioned Dr Paul several times.
The good news is his support of the audit. The bad news is his belief that the Fed has a legitimate role. I was hoping the misnamed Sound Dollar Act was going to be a bill supporting return to hard currency. But no, it's just a tweak in the Fed, "to promote the goal of long-term price stability." Yeesh! Here's the letter:
Federal Reserve (Fed) Chairman Ben Bernanke recently testified before Congress and presented the Federal Reserve's Monetary Policy Report to the Congress. The Fed is often cited as a source of confusion and uncertainty for the American people. With so much of our nation's economic well-being in the hands of a few Fed Governors, much more accountability to the American people is needed.
I am a proud cosponsor of Representative Ron Paul's (R-TX), H.R. 459, the "Federal Reserve Transparency Act of 2011." This legislation will require the Comptroller of the Currency to conduct a full audit of the Federal Reserve and its banks. Only through an audit will we have a complete understanding of the Fed's operations and how their decision making affects our nation's fiscal well-being. I was proud to support this bill last week when it passed by a vote of 327 to 98.
I am also a cosponsor of H.R. 4180, the "Sound Dollar Act of 2012," introduced by my colleague Representative Kevin Brady (R-TX). The Sound Dollar Act is a game changer for the Federal Reserve's operations and reforms its operations in an efficient and meaningful way.
The Sound Dollar Act contains three key provisions. First, it repeals the Fed's notorious "dual mandate" of price stability and full employment. It is very difficult for the Fed to adhere to both of these mandates at the same time, as often the temptation to achieve "full employment" encourages the Fed to lower interest rates or conduct baffling market activities such as its bond buying program. Invariably, by increasing the money supply to achieve full employment, the Fed increases inflation as well. The Sound Dollar Act will rightly leave the Fed to focus exclusively on "long-term price stability."
The Sound Dollar Act will also require the Fed to clearly state its policies as lender of last resort to our nation's financial system. During the financial crisis in 2008, the Fed acted as a bailout fund for some of America's largest financial institutions. Only through Congressional action should the United States Government have power of the purse. I am emphatically opposed to bailouts, and made certain that on my first day in office I introduced H.R. 189, a bill to repeal the remnants of the Troubled Asset Relief Program (TARP).
Finally, the Sound Dollar Act will provide more timely release of details surrounding the Fed's open market activities. Currently, it takes years to receive complete information surrounding much of the Fed's monetary policy decision making. Further, under this legislation, the Federal Reserve District Banks, such as the Atlanta branch, will have greater representation in the Fed's operations.
While it may be unnecessary to "End the Fed," we can start today to rein in the Fed's activities and end its unilateral operations. That said, I look forward to further discussing this issue, and many others, at my next Town Hall Meetings.
Member of Congress