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Comment: Audit the Fed!!

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Audit the Fed!!

Is TargeT trying to be funny, sarcastic here or simply intellectually lazy? How can you spend so much time at DP and not be aware of the CAFR and what it does and does not show about the Fed. It has been addressed many times by Dr. Paul. Read his books. Most everyone here already knows about the CAFR reports and what they do and do not show. TargeT ought to be able to do his own homework and answer his own question. It is as simple as picking up Dr. Paul’s book.

Sure the CAFR shows how much money is spent on salaries, supplies, overhead, buildings desks, etc. It shows what income the Fed claims in aggregate from its assets on its balance sheet. Well whoop-de-do! It is meaningless for transparency in monetary policy and market manipulations. If it actually revealed anything useful why would The Bernanke and The Fed fight so vociferously against a full audit? They would welcome such as everything is already revealed right?

If you think the CAFR reports are so revealing about the Federal Reserve, then please give us the answers to the following from the CAFR:

• Currency agreements and transactions made with foreign governments and foreign central banks;
• Currency swaps with foreign government and foreign central banks;
• All agreements and transactions entered into with foreign governments and foreign central banks such as ECB, BOJ, BIS, BOE, etc. (interestingly the GAO is specifically forbidden by law from even seeing this treaty making power);
• Physical inventory audit of U.S. gold;
• Agreements and transactions with non-private international financing organizations;
• Gold Swaps with foreign governments and central banks;
• Whether any gold has been leased out, how much, and to who;
• Details of purchases, lending, swap and other transactions through the Fed’s Permanent Open Market Operations as well as any of the transactions made under the FOMC;
• What non-banks have been given access to the Fed’s discount lending window and for how much;
• Which specific banks and entities the Fed is lending to from the Fed’s discount window and for how much, when and the repayment rates;
• The specific derivatives, MBS and other non-performing assets the Fed has purchased and continues to purchase from Goldman Sachs, JP Morgue, Citibank and the rest of both the investment and holding banks and for how much and when (these are bailouts to banks buying their bad investments – talk about incentive for moral hazard);
• A complete itemization of the balance sheet (not simply broad category labels);
• An itemization of the Fed’s funding facilities and agreements with the U.S. Treasury, specifically funding the Treasury's supplementary financing accounts that fund Fed facilities allow the Treasury to funnel money to Wall Street without GAO or Congressional oversight;
• What lending and to whom, and what purchases are being made through whom, when and for what through the Fed’s Primary Dealer Credit Facility which allows the Fed to manipulate market prices and keep financial asset prices artificially inflated and subsidize poorly performing financial firms.
• What lending and to whom, and what purchases are being made through whom, when and for what through the Fed’s Term Securities Lending Facility, allow the Fed to keep financial asset prices artificially inflated and subsidize poorly performing financial firms.
• The reserve levels of member banks;
• Securities credits;

So if the CAFR is a full audit, please answer all those questions for us from its contents. Please tell us where that information is provided in the CAFR. When you can answer those questions I will believe the Fed has been audited. The CAFR audits and reveals NONE of these items. Talk about favoritism, market distortions, and cronyism. These powers are completely ripe for such abuse and they are all carried out in absolute secrecy.

So if you're happy simply knowing what the Fed spent on rent, salaries, electricity and the like and its claimed income from balance sheet assets then yes the CAFR gives you what you want. If you actually want anything that reveals market and monetary manipulations then CAFR reports give you almost no useful information.

You want answer? You want the truth? Then do some of your own homework and read this book:

Let it not be said that we did nothing.-Ron Paul
Stand up for what you believe in, even if you stand alone.-Sophia Magdalena Scholl