Sear Senator ______,
I urge you to support and co-sponsor S.202, Audit the Fed, before the Senate is out of session from Aug 6 through Sep 10. This is particularly important since you are on the Committee of Banking, Housing, and Urban Affairs. While Federal Reserve apologists claim that it must be “independent” from Congress so that politics don’t interfere with monetary policy, this is absurd for two reasons:
First, the Fed already is inherently and unavoidably political. It made a political decision when it chose not to rescue Lehman Brothers in 2008, just as it made a political decision to provide liquidity for AIG in the same time period. These are just two obvious examples. Also Fed member banks and the Treasury Department are full of former-- and future-- Goldman Sachs officials. Are we really to believe that the interests of Goldman Sachs have absolutely no effect on Fed decisions? Clearly it’s naïve to think the Fed somehow is above political or financial influence.
Second, it’s important to remember that Congress created the Fed by statute. Congress therefore has the full, inherent authority to regulate the Fed in any way-- up to and including abolishing it altogether.
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