Despite vocal opposition from Federal Reserve Chairman Ben Bernanke, the House of Representatives will on Tuesday take up Rep. Ron Paul’s proposed legislation to require a yearly audit of the nation’s central bank. This vote comes as the Federal Reserve is considering yet another round of debt monetization, known as “quanitative easing.”
While much of the “Audit the Fed” language was adopted as part of the Dodd-Frank financial reform bill in 2010, it was watered down since it excluded the Fed’s communication with central banks in other countries. As a result of what language was included, we have learned that the Federal Reserve did loan $16 trillion to financial institutions and corporations.
Rep. Paul’s legislation (H.R.459) would open up certain information to the Government Accountability Office currently excluded from audits in subsection (b) of 31 USC 714, including agreements and transactions with foreign central banks and discussions with the Treasury Department.
It’s certainly great news that the House is taking up the bill, but there is a catch. Because House leadership is “fast-tracking” the bill, it’ll take 290 votes (or 2/3) to move it forward. Currently, 274 members are listed as co-sponsors of the Audit the Fed legislation. So only a handful of other members are need to bring it forward. However, even if the Audit the Fed bill passes, which is likely, it faces a uncertain future in the Senate, where it was gutted in 2010.
The vote is being seen by many inside the Liberty Movement as somewhat of a “tribute” to Rep. Paul, who is not seeking re-election. So if you want to see him leave the House with a truly great accomplishment under his belt, you need to contact your representative and others in your state’s delegation now.