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Transparency and the Federal Reserve: A Briefing

not sure if this has been posted... apologies if it has. i was pretty excited when i read it:


On Wednesday, March 25th Campaign for Liberty sponsored a briefing on transparency and oversight at the Federal Reserve. The briefing was attended by heads and representatives of various Washington-based organizations, all of whom were very concerned about the direction in which our country is headed. The meeting opens the gateway to partnerships with over 140 groups across the political spectrum. Of particular importance was OpentheGovernment.org, who represents 40 groups on the Left.

The meeting was opened with an introduction by Campaign for Liberty's own Michael D. Ostrolenk, the primary organizer of the meeting, followed by a discourse on the Federal Reserve and HR 1207 by Paul-Martin Foss, Legislative Assistant to Congressman Ron Paul.

Mr. Foss explained that the crucial issue of Federal Reserve transparency requires an analysis of 31 USC 714, the section of US Code which establishes that the Federal Reserve may be audited by the General Accounting Office (GAO), but which establishes severe restrictions on just what the GAO may in fact audit. Essentially the only thing the GAO is allowed to audit are check-processing, currency storage and shipments, and some regulatory and bank examination functions, etc. The most important matters, which directly affect the strength of the dollar and the health of the financial system, are immune from oversight.

The four major areas to which GAO may not have access are:

(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection.

HR 1207, The Federal Reserve Transparency Act, would eliminate these restrictions and mandate a GAO audit of the Fed to be completed by the end of 2010....

click on the link above for the full story!

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