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senate Bill S. 16

Audit the Fed: Does Congress Need a Review of the Federal Reserve's Operations?

Argument in favor

The Federal Reserve system is a mystery to the majority of Americans, but it plays an absolutely integral role in the U.S. economy. An audit would shed some light on a veiled part of our banking system.

01/11/2017
No other agency is exempt from congressional oversight and the agency that regulates our currency certainly should not be exempt either. We have a constitutional right to know.
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01/11/2017
Definitely audit the Fed! It is their explicit purpose to manage financial and economic stability by attending to inflation and unemployment. They try to steer the economy away from crashes by manipulating interest rates, either to speed up a lagging economy or slowing down a run-away economy. Have they succeeded? NOT AT ALL. What is their actual track record? Shall we take a look? We've exchanged frequent "crashes" that were small, confined to individual economic sectors, and quickly recovered from, for HUGE crashes that wipe out the entire economy and persist for years (go find the video of Paul Krugman in the early 2000s saying that in order to recover from the tech bubble bursting, the Fed would need to craft a real estate bubble - which they did and then that of course blew a hole in the economy in 2008). Meanwhile they're moving the interest rate in all sorts of directions that are usually 180 degrees the opposite direction of where it actually needs to go and where the free market would push it, because they're Keynesians and think that aggregate demand is the cause of, rather than an effect of, a healthy economy. And then while they're doing that they're the "lender of last resort" which means what? That the government has a guaranteed lender, a guaranteed source of money at all times. So when the government needs money (which is always) and they can't find anyone to buy their bonds, don't you worry! The Federal Reserve is there to make sure you have the money you need for whatever wars and tyrannical expansions of central authority you want to pursue! Never mind that when it does that it makes up the money out of thin air, which causes inflation and in turn makes everyone in the nation poorer. They're not concerned about that, though. In fact they're kind of excited about making your dollar worth less, because if they can make your money worth less tomorrow than it's worth today then maybe they can scare you into spending, spending, spending today instead of saving for tomorrow! Then the demand would increase and the economy would be healthy! But does that sound like a healthy economy to you? People not saving and instead spending their money wherever they can, out of fear that some mysterious agency is going to make their money worth less? And then when they spend that money instead of saving, that behavior naturally drives up prices (because of course you haven't actually made more things for people to buy, just more people who have been blackmailed into buying, so prices go up) to levels higher than they would normally be, which in turn falsely communicates to investors that some area of the economy is booming, and so an unnatural amount of investment flows there in order to meet that artificial demand and...oh look! Now we have a bubble! That the Fed created! Because it was operating entirely as designed! The Fed was doing exactly what it was meant to do and now there's a bubble! Of course the Fed should be audited. It should be audited so we know exactly the extent of the mess we have on our hands. And then it should be ended. The Fed offers minimal benefit while doing maximal damage. You wonder why your great grandparents could go grocery shopping with $1 and you need to bring your whole wallet stuffed thick with cash? That's the Fed. You wonder where the government gets these trillions of dollars to stay at war for year after year after year despite popular sentiment being against it? That's the Fed. You wonder why the run up to the tech bubble happened and then crashed and why that produced the run up to 2008 and then that crash and then the recovery has been super slow and there's an asset bubble in equities and bonds right now? That's the Fed. Audit it. Audit it and end it.
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chadvdw's Opinion
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01/11/2017
The Fed isn't even a governmental institution, yet it controls our entire monetary supply. It would be insane to not audit them.
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Argument opposed

The Federal Reserve system already goes through audits, and it's making strides towards being more transparent. An audit initiated by Congress will lead to increased political influence on the Fed's policies.

J's Opinion
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01/11/2017
What is the point of this issue/bill? Why isn't this about regulations of the Banks and Wall Street? If this congress/administration wants less regulations, why bring this up? The Fed wasn't responsible for the the recent recession or the bailout. Wall Street and the major banking industries are the ones that need regulatory actions. The Fed wasn't responsible for people losing their pensions, savings, and their livelihoods - Wall Street and the banking executives were (Fed regulates the monetary and credit laws that are passed). So, why is this being suggested? Especially, since we are going to have many in the current cabinet that are directly related to the crisis 2008 and 2009. Do we want to pay another "Wells Fargo fraudulent accounts", "Wall Street Bailout" or "Mortgage crisis" or is this an attempt to manipulate the markets by mandating interest rates and causing massive inflation? In my opinion, neither is good for anyone.
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Marian 's Opinion
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01/16/2017
The federal reserve is already audited. This appears to be an attempt for congress to extend politics into a place where politics should take a back seat. Anyone who wants to know how the process works should pick up a book on the subject.
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Hayden's Opinion
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01/12/2017
The federal reserve is already audited by an independent organization, the government accountability office. So the question is why Congress wants to personally audit the reserve, the purpose likely being as an excuse to get oversight and control over the reserve. As an executive agency it should fall under the direct authority of the president. Besides the majority of congress aren't economists and they suck at economics, especially taking into account their inability to balance the federal budget.
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    No other agency is exempt from congressional oversight and the agency that regulates our currency certainly should not be exempt either. We have a constitutional right to know.
    Like (159)
    Follow
    Share
    What is the point of this issue/bill? Why isn't this about regulations of the Banks and Wall Street? If this congress/administration wants less regulations, why bring this up? The Fed wasn't responsible for the the recent recession or the bailout. Wall Street and the major banking industries are the ones that need regulatory actions. The Fed wasn't responsible for people losing their pensions, savings, and their livelihoods - Wall Street and the banking executives were (Fed regulates the monetary and credit laws that are passed). So, why is this being suggested? Especially, since we are going to have many in the current cabinet that are directly related to the crisis 2008 and 2009. Do we want to pay another "Wells Fargo fraudulent accounts", "Wall Street Bailout" or "Mortgage crisis" or is this an attempt to manipulate the markets by mandating interest rates and causing massive inflation? In my opinion, neither is good for anyone.
    Like (121)
    Follow
    Share
    The federal reserve is already audited. This appears to be an attempt for congress to extend politics into a place where politics should take a back seat. Anyone who wants to know how the process works should pick up a book on the subject.
    Like (65)
    Follow
    Share
    Definitely audit the Fed! It is their explicit purpose to manage financial and economic stability by attending to inflation and unemployment. They try to steer the economy away from crashes by manipulating interest rates, either to speed up a lagging economy or slowing down a run-away economy. Have they succeeded? NOT AT ALL. What is their actual track record? Shall we take a look? We've exchanged frequent "crashes" that were small, confined to individual economic sectors, and quickly recovered from, for HUGE crashes that wipe out the entire economy and persist for years (go find the video of Paul Krugman in the early 2000s saying that in order to recover from the tech bubble bursting, the Fed would need to craft a real estate bubble - which they did and then that of course blew a hole in the economy in 2008). Meanwhile they're moving the interest rate in all sorts of directions that are usually 180 degrees the opposite direction of where it actually needs to go and where the free market would push it, because they're Keynesians and think that aggregate demand is the cause of, rather than an effect of, a healthy economy. And then while they're doing that they're the "lender of last resort" which means what? That the government has a guaranteed lender, a guaranteed source of money at all times. So when the government needs money (which is always) and they can't find anyone to buy their bonds, don't you worry! The Federal Reserve is there to make sure you have the money you need for whatever wars and tyrannical expansions of central authority you want to pursue! Never mind that when it does that it makes up the money out of thin air, which causes inflation and in turn makes everyone in the nation poorer. They're not concerned about that, though. In fact they're kind of excited about making your dollar worth less, because if they can make your money worth less tomorrow than it's worth today then maybe they can scare you into spending, spending, spending today instead of saving for tomorrow! Then the demand would increase and the economy would be healthy! But does that sound like a healthy economy to you? People not saving and instead spending their money wherever they can, out of fear that some mysterious agency is going to make their money worth less? And then when they spend that money instead of saving, that behavior naturally drives up prices (because of course you haven't actually made more things for people to buy, just more people who have been blackmailed into buying, so prices go up) to levels higher than they would normally be, which in turn falsely communicates to investors that some area of the economy is booming, and so an unnatural amount of investment flows there in order to meet that artificial demand and...oh look! Now we have a bubble! That the Fed created! Because it was operating entirely as designed! The Fed was doing exactly what it was meant to do and now there's a bubble! Of course the Fed should be audited. It should be audited so we know exactly the extent of the mess we have on our hands. And then it should be ended. The Fed offers minimal benefit while doing maximal damage. You wonder why your great grandparents could go grocery shopping with $1 and you need to bring your whole wallet stuffed thick with cash? That's the Fed. You wonder where the government gets these trillions of dollars to stay at war for year after year after year despite popular sentiment being against it? That's the Fed. You wonder why the run up to the tech bubble happened and then crashed and why that produced the run up to 2008 and then that crash and then the recovery has been super slow and there's an asset bubble in equities and bonds right now? That's the Fed. Audit it. Audit it and end it.
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    The Fed isn't even a governmental institution, yet it controls our entire monetary supply. It would be insane to not audit them.
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    Let's see now - very powerful and secretive group, whose actions/decisions have enormous, far-reaching consequences - why wouldn't you want greater transparency from the Fed?! They should be audited by an independent firm on a regular basis, with a report submitted to Congress (and the President, of course) and made public.
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    The criminal and unconstitutional Federal reserve banking system needs to be abolished. We need to return to the gold standard printing our own money. This country would become so much stronger our economy would boom and we would lead the world in destroying centralized world banking. Do some research on the federal reserve... your mind will be blown...
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    We should know what they doing what with whom and how much money their using.
    Like (23)
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    The fed is no mystery to me. It should never have been given the power that lawfully belongs to congress. Compound interest on our own money is criminal.
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    The federal reserve bank is an independent international owned by the international bankers. Ron Paul shinning a light on this group of elite international bankers that control the worlds economy was the main reason he was quickly toppled. The federal reserve is what some call the illuminate, the system within the system controlling and manipulating. Yes, justify Ron Paul for speaking the truth. Expose this entity that is a parasite to America. Not only audit but shut it down. We started our country without it let's start our new chapter in history without it.
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    The federal reserve is already audited by an independent organization, the government accountability office. So the question is why Congress wants to personally audit the reserve, the purpose likely being as an excuse to get oversight and control over the reserve. As an executive agency it should fall under the direct authority of the president. Besides the majority of congress aren't economists and they suck at economics, especially taking into account their inability to balance the federal budget.
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    Keep going and End The Fed!
    Like (13)
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    I do not think party politics should have greater influence on the Reserve.
    Like (11)
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    Yes, yes, yes, yes...and yes, yes, yes, yes
    Like (10)
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    It is important for Americans to know what's going on behind the curtain of THEIR economy greater transparency and frequent audits are vital to our economy and personal freedoms
    Like (9)
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    The fed has done a superior job, I do not trust Congress anywhere near the fed. Congress will politicize it and wreck the Feds power to act.
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    This oversight is absolutely crucial to ending corruption and manipulation in the Fed.
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    Once again I find myself reluctantly in agreement with Rand Paul, though I by no means self identify as a Libertarian. More extensive audits of the Fed will force the Fed to operate in a more publicly accountable way, and will provide lawmakers with more regular and publicly visible opportunities to intensely scrutinize the operations of the United States largest and most fiscally significant regulatory body. In addition, this will be an ongoing source for conversation and potential education regarding the nature of our economic and financial systems within the public at large. A lot of potential good could come from this - the potential is greater than the risk by far - as the public will have increasing opportunities to see the 'wizard behind the curtains'. And the questions and consequent targeted political activism can be even more effective in addressing the inefficacies of our extremely flawed politico-financial institutions.
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    Absolute power in the hands of too few, watch them like a hawk!
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    The fed must remain independent and non-partisan.
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