Bill To Audit Federal Reserve Now Has 207 Co-Sponsors

Discussion in 'News / Current Events' started by poncho, Jun 10, 2009.

  1. poncho

    poncho
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    At time of writing, a bill that would see the Federal Reserve bank audited for the first time in 59 years has 207 cosponsers in the House and is gaining traction with every single day.

    According to Ron Paul’s Campaign For Liberty, the latest to become cosponsors are, Rep. Ed Perlmutter (D-CO) and Rep. Chris Lee (R-NY), both House Financial Services Committee members, as well as Rep. John Boehner (R-OH), Minority Leader of the House.

    This means just 11 more cosponsors are needed for a majority to be reached in the House.​

    If enacted, HR 1207 will amend title 31 of the United States Code and reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States.​

    In other words, for the first time since 1950, the the independent financial powerhouse that creates and regulates all money in the US will be forced by law to open its books.​


    Fed Would Be Shut Down If It Were Audited, Expert Says

    The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC.​

    With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said in a live interview.​

    "If the Fed examiners were set upon the Fed's own documents—unlabeled documents—to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized."​

    Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed.

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