Audit the Fed — Time to Confront our Imperial Senate
By: BJ Lawson
Orwell would be proud of last week’s Federal Reserve Accountability Act (S 1803). Thanks to our success advancing the Federal Reserve Transparency Act (HR 1207, and its companion legislation S 604), the banking lobby felt compelled to offer S 1803 as its own “alternative”.
Needless to say, the Federal Reserve Accountability Act will help the Fed avoid accountability. It severely limits audit scopes, and sets unreasonable timeframes that will delay or postpone indefinitely certain audits. At some level, it’s tragic comedy — imagine authorizing an audit to be performed one year after a program is terminated. Of course, what happens if the program is never terminated?
The good news is that we’re making progress.
The banking lobby feels threatened enough by HR 1207/S 604 to convince Senators Jeff Merkley (D-OR) and Bob Corker (R-TN) to attempt this maneuver, and other Senators are being forced to take awkward positions against S 604 and true transparency.
For example, North Carolina Senator Kay Hagan announced in a constituent email last week that she does not support S 604. Her objection? Apparently transparency is dangerous:
The immediate and broad disclosure that S. 604 would require could disrupt the financial markets, and jeopardize our country’s international finance relationships. Ultimately, it would be taxpayers who would bear the brunt of any losses resulting from policies caused by untimely disclosure of sensitive information.
It is sad and ironic that a freshman Senator elected on the coattails of “change” has decided to serve the banking lobby instead of the millions of Americans who have been crushed by the Federal Reserve’s economic malpractice.It is time to stand up for real change, and march against increasingly imperial Senators lining up against S 604.
Please send your version of the following letter to Senator Hagan, or join me at DownsizeDC to contact your Senator if he or she has not yet cosponsored S 604.
Dear Senator Hagan,
I’m afraid your rationale for opposing the Federal Reserve Sunshine Act (S 604) is backwards. You stated:
The immediate and broad disclosure that S. 604 would require could disrupt the financial markets, and jeopardize our country’s international finance relationships. Ultimately, it would be taxpayers who would bear the brunt of any losses resulting from policies caused by untimely disclosure of sensitive information.
In fact, financial markets require honesty and transparency for efficient capital allocation, and systemic stability. The lack of transparency in our financial markets, which are increasingly dominated by the Federal Reserve, is causing ongoing disruption in our markets, and jeopardizing our international financial relationships.
In short, our financial system is still in critical condition. Lying and obfuscation are the disease. Honesty and transparency are the cure.
Senator Hagan, you were elected last November to bring change to Washington. Our banking lobby doesn’t need your help — they’re doing an excellent job privatizing profits while socializing losses. Please stand up for the millions of Americans who are suffering with the worst job losses of any postwar recession, and take this first step to restoring transparency and stability.
Sincerely,
William (B.J.) Lawson
Apex, North Carolina