Fed Vice Chairman Donald Kohn warns Congress on meddling in Fed's affairs

[GeezerMan]

link

The Fed does not want GAO audits. So, does the Fed have a point, or are they just preventing Congress from discovering dirty laundry?

"The Federal Reserve strongly believes that removing the statutory limits on GAO audits of monetary policy matters would be contrary to the public interest by tending to undermine the independence and efficacy of monetary policy," Kohn said


UPDATE:
I was provided this youtube link of a 8 minute video on the Fed. It's excellent.

link

 

[bamacre]

I think the Fed's hiring of a former Enron lobbyist pretty much says it all.

 

[brxndxn]

This is silly. Their own fierce defense against being audited should make us even more skeptical and more determined to audit the Fed. They want to remain behind the curtain - and they've been exposed. It's the Wizard of Oz.

 

[MotF Bane]

Just let us do whatever we want in absolute secrecy. You can trust us, of course. We had no part in the economic meltdown.

/Fed

 

[sandorski]

Might be afraid of Political ramifications, but thems the breaks. Someone needs to watch over them, risk or no risk.

 

[Jaskalas]

I want to see how well they can do their job behind bars.

 

[WHAMPOM]

:music:"Trust in me!":music::roll: Already heard that song from the snake in Mowgli, Jungle tales. I think we should go with "Trust, but verify". Make the boys sweat a little.

 

[bamacre]

There is no way in hell the powers that be will let this bill pass as is. Mark my words.

 

[miketheidiot]

i have no problem with the gao auditing the fed, just as long as its never ever released to the public. To do so would have the exact effect they say it would.

 

[Double Trouble]

Originally posted by: miketheidiot
i have no problem with the gao auditing the fed, just as long as its never ever released to the public. To do so would have the exact effect they say it would.

Agreed. There needs to be oversight, but the actions of the fed should not be part of typical political games, it needs to be at least somewhat independent.

 

[EXman]

Obama doesn't want to own the Fed!

<sic> seems I've heard something similar to that...



Anyhow Obama is a statist he wants to run everything that is his MO. He'll get his tenticles in there somehow. Actually I think the GAO should take a peek I bet you there are a handful of Madoffs in there.

 

[LegendKiller]

Originally posted by: Double Trouble

Originally posted by: miketheidiot
i have no problem with the gao auditing the fed, just as long as its never ever released to the public. To do so would have the exact effect they say it would.

Agreed. There needs to be oversight, but the actions of the fed should not be part of typical political games, it needs to be at least somewhat independent.

Agreed.

 

[soccerballtux]

Originally posted by: brxndxn
This is silly. Their own fierce defense against being audited should make us even more skeptical and more determined to audit the Fed. They want to remain behind the curtain - and they've been exposed. It's the Wizard of Oz.

Hardly-- putting electable politicians in charge of monetary policy would be the worst that could ever happen to us. The pressure on politicians to stimulate the economy would be enormous-- or perhaps you haven't noticed how a president's re-election lives and dies by the economy. With monetary policy, you can stimulate (inflate) 2 years before the election and not notice the effects of it until 3 years down the road, once you're already in for your second term.
No, the Fed is right on this one.

 

[BoberFett]

Audit = control?

And I hate to break it to you, but politicians already control monetary policy. Deficit spending is its own form of monetary policy.

 

[NaughtyGeek]

Originally posted by: soccerballtux
Hardly-- putting electable politicians in charge of monetary policy would be the worst that could ever happen to us.

That's different from what's going on now how? Rhetorical question, but the point is made. The Obama Spending bill that followed Bush's Wall St. Spending Bill are kinda politically motivated money manipulation yes?


There needs to be an audit. As far as secrecy goes, that's kinda gray for me. How do we know the people doing the auditing aren't in bed with The Fed should The Fed be up to no good? How do we protect our fiscal policies from becoming transparent to the rest of the world at the time time as they are open enough to be trusted?

 

[soccerballtux]

Originally posted by: NaughtyGeek

Originally posted by: soccerballtux
Hardly-- putting electable politicians in charge of monetary policy would be the worst that could ever happen to us.

That's different from what's going on now how? Rhetorical question, but the point is made. The Obama Spending bill that followed Bush's Wall St. Spending Bill are kinda politically motivated money manipulation yes?


There needs to be an audit. As far as secrecy goes, that's kinda gray for me. How do we know the people doing the auditing aren't in bed with The Fed should The Fed be up to no good? How do we protect our fiscal policies from becoming transparent to the rest of the world at the time time as they are open enough to be trusted?

Guys-- there's a HUGE difference between deficit spending and monetary policy and you shouldn't need me to tell you this.

Part of me wants the Fed to be more audited. The other part of me realizes that it would simply expose the weak pipes in the system and prophecies would fulfill themselves. If you learned your bank was making extensive use of the overnight lending offered by the Fed, everyone would immediately withdraw their funds, defeating the entire purpose of having the overnight lending options, and we'd go right back to where we were a century or more ago where even a hint of a bank having liquidity problems would ensure a run.

 

[BoberFett]

With FDIC insurance, why would people care?

 

[miniMUNCH]

I'll say it again... people need to read "The Creature from Jekyll Island". The FED is fucking evil.

It is a total eye opener wrt central banking, in general, and our beloved fed specifically.

People will call me a nut job, call the author a nut job... and yet I remain undaunted.

When asked to actually materially disprove important points and facts stated in the book, people can't. The best i've been given is links to some arbitrary website that states contrary facts without any proof. The author has hard evidence to back most of his assertions... paper trails, memoirs, etc.

 

[miniMUNCH]

Originally posted by: bamacre
There is no way in hell the powers that be will let this bill pass as is. Mark my words.

I totally agree... the FED has this country by the balls. Even if it does 'pass', the form in which it will pass will allow the FED to hide their important dealings yet again.

 

[JS80]

Audit of the Fed can only lead to bad things. I suspect they are insolvent and the entire system might melt down.

 

[smack Down]

Originally posted by: Double Trouble

Originally posted by: miketheidiot
i have no problem with the gao auditing the fed, just as long as its never ever released to the public. To do so would have the exact effect they say it would.

Agreed. There needs to be oversight, but the actions of the fed should not be part of typical political games, it needs to be at least somewhat independent.

When did doing the bidding of Goldman Sachs make the Fed independent?