The “Audit the Fed” bill currently in Congress has the central bank scared

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By far the most secret and least accountable operation of the federal government is not, as one might expect, the CIA, DIA, or some other super-secret intelligence agency. The CIA and other intelligence operations are under control of the Congress. They are accountable: a Congressional committee supervises these operations, controls their budgets, and is informed of their covert activities. It is true that the committee hearings and activities are closed to the public; but at least the people’s representatives in Congress insure some accountability for these secret agencies.
It is little known, however, that there is a federal agency that tops the others in secrecy by a country mile. The Federal Reserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of, or can truly supervise, its operations. The Federal Reserve, virtually in total control of the nation’s vital monetary system, is accountable to nobody – and this strange situation, if acknowledged at all, is invariably trumpeted as a virtue. – Murray N. Rothbard from The Case Against the Fed

The Federal Reserve should be audited in a very open if not open sourced way. Then ideally the Fed will be taken apart bit by bit over a period of transition from the current regime to an honest money system.

But first we must audit.

(From The New York Sun)

It looks like the Federal Reserve is starting to worry about Senator Rand Paul’s plan to audit the central bank. The way the Hill newspaper, which covers Congress, puts it this week is that the Fed is “lashing out” at Mr. Paul’s plan, which, it said, could gain traction now that the Republicans are in control of the Senate as well as the House. It quotes the president of the Dallas Fed, Richard Fisher, as demanding, in an interview, “Who in their right mind would ask the Congress of the United States — who can’t cobble together a fiscal policy — to assume control of monetary policy?”

Who in their right mind? How about George Washington, James Madison, Alexander Hamilton, and the rest of the rest of the authors of the Constitution. The parchment creates the Congress in Article 1. In Section 8 of the same article, Congress is granted a list of powers. These are known as the enumerated powers. The first one is to levy taxes. The second one is to borrow money on the credit of the United States. And the fifth is to coin money and regulate the value thereof and of foreign coin. The monetary powers go to Congress, to exercise at its discretion. That is American bedrock.

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