Ron Paul to Federal Reserve: Anything Less Than Full Disclosure Is Unacceptable!

Audit the Fed: Anything Less Than Full Disclosure Is Unacceptable!

by Ron Paul

Last week a new bill was introduced in the Senate to audit the Federal Reserve. Some backers of my bill HR 1207 and the existing Senate companion bill S 604 were a little miffed at this, but depending on how you think about it, this new legislation poses no great threat to our efforts.

With the economy in shambles, people are looking for answers – not just because of lost savings on Wall Street, but because of lost houses on Main Street. Because of the many problems we face, the Federal Reserve and its powers over the economy have come under scrutiny. This translates into a lot of political pressure on Congress. With all the House Republicans and over half of the Democrats signed on as co-sponsors, HR 1207 has enormous bipartisan support. It would be disingenuous for Washington not to embrace the principles behind this bill after all the promises for transparency. How can one credibly argue for more transparency in government in one breath and defend the secrecy of the Federal Reserve in the next?

However, there is still very powerful resistance to the disclosure that HR 1207 would require, and efforts to weaken it will continue to pop up before this issue is settled. The good news is that Washington is responding and the Federal Reserve has become the issue. Concerned Americans need to keep the pressure on by continuing to define what we want, and what we do not want.

One major concern is that HR 1207 constitutes some kind of power grab for Congress. Congress would not do a better job dictating interest rates or money supply growth than the Federal Reserve does for exactly the same reasons: Congress is not the free market. Any select group of people, no matter how wise and educated, simply cannot replace the wisdom of the market. HR 1207 does not seek to replace the wisdom of the Fed with the wisdom of Congress. That would be a giant step backwards. HR 1207 simply asks for full disclosure, and I am agreeable to allowing for a reasonable time lag to calm the fears that Congress intends to dictate monetary policy.

What we do want, what we insist upon, is that no longer will decisions that carry so much economic weight be made in absolute secrecy. We want to know what arrangements the Fed makes with other governments and central banks. We want to know who is benefiting from the actions of the Fed and what deals are being made. The Fed is already reacting to pressure by scaling back its liquidity facilities and returning to a more traditional monetary policy through direct asset purchases. With nearly $800 billion in mortgage-backed securities on its books already, $800 billion dollars in treasury securities, and no real limit to what the Fed can acquire, there is a tremendous opportunity for malfeasance.

We need to know who the Fed deals with, what they buy, how much they spend, and who benefits. As good as any step towards Fed transparency is, anything less than full disclosure at this point is unacceptable.

(If you’ve found a spelling or transcription error, please notify us anonymously by selecting the misspelled text and then pressing Ctrl+Enter. Thank you!)


  • Thank you a good deal for giving every person an extraordinarily particular possiblity to check guidelines from here. 74052

  • Hi there! Do you use Twitter? I

  • There is noticeably big dollars to recognize about this. I suppose you produced certain good points in attributes also. 24922

  • Spot up for this write-up, I seriously believe this web site needs a whole lot a lot more consideration. I

  • I was recommended this internet internet site by my cousin. I

  • I admire your piece of function, regards for all of the intriguing posts . 370483

  • Thank you for this. Thats all I can say. You most undoubtedly have created this into something thats eye opening and crucial. You clearly know so significantly about the topic, youve covered so several bases. Excellent stuff from this part with the internet. 224121

  • Enjoyed reading this, extremely great stuff, thankyou . 386397

  • I genuinely enjoyed your remarkable internet site. Be confident to maintain it up. Could god bless you !!!! 985039

  • As I web site possessor I think the articles here is extremely fantastic, regards for your efforts. 700632

  • Just a smiling visitor here to share the enjoy (:, btw outstanding layout. 427420

  • What a lovely weblog. I

  • Yay google is my king assisted me to locate this outstanding site ! . 732021

  • Directories such given that the Yellow Websites require not list them, so unlisted numbers strength sometimes be alive much more harm than financial assistance. 600406

  • It can be difficult to write about this topic. I feel you did an superb job though! Thanks for this! 844082

  • Pretty part of content. I just stumbled upon your weblog and in accession capital to assert that I get really loved account your weblog posts. Any way I

  • Thanks for some other wonderful post. Exactly where else could just anyone get that type of information in such an perfect indicates of writing? I

  • hey there i stumbled upon your internet site looking about the internet. I wanted to say I enjoy the appear of items about here. Maintain it up will save for confident. 391909

  • You seem to be very professional in the way you write.::