A small group
of unelected government officials in Washington have the power to bail out banks
and other financial institutions, free from budgetary constraints or democratic
accountability. Yet insiders don't think the public has any right to know what's going behind the curtain.
Sen. Rand Paul wants a vote on his “Federal Reserve Transparency
Act,” and to that end, he's delaying the nomination of Janet Yellen as
chairwoman of the Federal Reserve Board. Majority Leader Harry Reid, however,
has the power - and apparently the intention - to block a vote on this bill,
which Wall Street and the Fed both oppose. Paul’s
bill would order an “audit” of the Fed by the Comptroller General. This would
reveal the Fed’s actions and decision-making process on monetary policy (how
much money to create and what sort of financial assets to buy with that money)
and on the Fed’s lending to banks.
Congress created the Fed 100 years ago as an independent
entity, allowing it to set monetary policy free from political pressure. It
would be interesting to know in detail how the Fed sets monetary policy, but
the Fed's lending to banks is where added transparency is really needed…..ToRead More….
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