Will an “Audit the Fed” bill pass the Senate next year when Republicans are in the majority?
in 2010 and 2012, this legislation, which would open the books of the U.S. private central bank, passed the House of Representatives handily, but died in the Senate.
Americans deserve to know what the Federal Reserve is doing to the money supply, as it directly affects how much each dollar in our pockets are worth. Perhaps last week’s actions by the Fed will result in Americans feeling a small pinch of what is to come as a result of repeated quantitative easing (QE), a smart-sounding but barely understandable term.
The Fed decided to discontinue its program to buy $85 billion in U.S. Treasury and mortgage bonds per month from other big banks in order to increase the U.S. money supply. This is based on the theory that buying bonds will spur economic growth, increase lending, and encourage riskier investments. But where does the Federal Reserve get the money to buy these bonds? They print the money (digitally).
While it is news that the Fed is going to stop purchasing bonds for now, as with QEs in the past, the real story is in the unbelievably huge amount of holdings the Fed have built up. $85 billion here, $85 billion there, and soon we’re talking about real money. Nearly $4.5 TRILLION, in fact.