Apparently Congress no longer has to appropriate money for the federal government to spend it.
Under the Dodd-Frank Act, Congress put the new Consumer Financial Protection Bureau inside the Federal Reserve. This was a horrific violation of the Constitution. Why? Because under the Constitution, only Congress can appropriate funds to be spent. But inside the Federal Reserve, new money is printed to finance operations without Congressional appropriation, review, or audit.
The new Consumer Financial Protection Bureau has grown rapidly and already is believed to cost more than the rest of the Federal Reserve put together. If this precedent stands, what will happen next? Will the entire federal government be folded into the Federal Reserve so that Congress need no longer appropriate money for anything?
A federal court has ignored all this by finding that the bank which brought the suit has no standing to sue. In the judge’s opinion, the bank must show grievous financial harm to itself from this cozy arrangement in order to object. This is very radical indeed. If a bank, which is regulated by the Fed, has no standing to sue the Fed or the government for a violation of its constitutional rights, much less ours, then no one at all has this right, since it is well understood that citizens would not be allowed to sue on these grounds.
The Fed is already at the center of our crony capitalist system. The money it prints finances not only government, but Wall St, and ultimately most of the shady deals between government and the private sector. Stuffing more and more of the government into the Fed itself is the last thing we need.
Fortunately it appears that the Federal Court decision will be appealed. Let’s hope that some other federal judges have more respect for the Constitution.