bobbyw24
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Bob Barr: ‘A Proposal to Make the Fed Truly Accountable’
November 28th, 2009 · 8 Comments
By Bob Barr
as published on The Conservatives.com
via BobBarr.org
Last week’s approval by the House Financial Services Committee of the Ron Paul-drafted legislation, the “Federal Reserve Transparency Act” (HR 1207) as part of Chairman Barney Frank’s financial services “reform” bill, has caused much consternation on the part of the Federal Reserve. Fed Chairman Ben Bernanke reportedly has been plying the Halls of Congress in an effort to convince lawmakers that opening the Fed to even the limited scrutiny HR 1207 mandates would cause the sky to fall. The reality is that bringing meaningful accountability to this powerful, 96-year old private bank than manages our public money supply, will require much heavier lifting by the Congress than a single piece of legislation opening the Fed’s actions to limited audit by the Government Accountability Office (GAO).
Since its creation in 1913, the Federal Reserve Bank and its seven Board members have enjoyed a degree of power and autonomy not shared by even the most secret of our foreign intelligence agencies. The president appoints all members of the Fed board, who are then subject to confirmation by the Senate. The chairman and vice-chairman are selected by the president from among the seven board members, and then subject to separate Senate confirmation. While not appointed to life tenure as are federal judges, the Fed board members serve lengthy, 14-year terms.
Although the chairman of the Fed testifies publicly before both House and Senate committees each year, Rep. Ron Paul is correct in noting that such hearings do not in any meaningful way constitute real oversight of the central bank. The “normal” manner in which such hearings are conducted by the huge, 70-member House Financial Services Committee, does not and cannot be structured to provide in-depth, long-term guidance or accountability.
While Ron Paul’s proposal would make a dent in the secrecy shield clothing the Federal Reserve Bank, even if it were eventually to pass both houses of Congress, there is no guarantee at this point that President Barack Obama would sign it into law. And even if the president was to do so, the limited degree of public transparency such a law would bring to the venerable Fed, would amount to far less scrutiny and accountability than is required of every other agency, office and department of the federal government.
A far better approach would be to tackle the problem of Fed accountability by
http://www.independentpoliticalreport.com/2009/11/bob-barr-a-proposal-to-make-the-fed-truly-accountable/
November 28th, 2009 · 8 Comments
By Bob Barr
as published on The Conservatives.com
via BobBarr.org
Last week’s approval by the House Financial Services Committee of the Ron Paul-drafted legislation, the “Federal Reserve Transparency Act” (HR 1207) as part of Chairman Barney Frank’s financial services “reform” bill, has caused much consternation on the part of the Federal Reserve. Fed Chairman Ben Bernanke reportedly has been plying the Halls of Congress in an effort to convince lawmakers that opening the Fed to even the limited scrutiny HR 1207 mandates would cause the sky to fall. The reality is that bringing meaningful accountability to this powerful, 96-year old private bank than manages our public money supply, will require much heavier lifting by the Congress than a single piece of legislation opening the Fed’s actions to limited audit by the Government Accountability Office (GAO).
Since its creation in 1913, the Federal Reserve Bank and its seven Board members have enjoyed a degree of power and autonomy not shared by even the most secret of our foreign intelligence agencies. The president appoints all members of the Fed board, who are then subject to confirmation by the Senate. The chairman and vice-chairman are selected by the president from among the seven board members, and then subject to separate Senate confirmation. While not appointed to life tenure as are federal judges, the Fed board members serve lengthy, 14-year terms.
Although the chairman of the Fed testifies publicly before both House and Senate committees each year, Rep. Ron Paul is correct in noting that such hearings do not in any meaningful way constitute real oversight of the central bank. The “normal” manner in which such hearings are conducted by the huge, 70-member House Financial Services Committee, does not and cannot be structured to provide in-depth, long-term guidance or accountability.
While Ron Paul’s proposal would make a dent in the secrecy shield clothing the Federal Reserve Bank, even if it were eventually to pass both houses of Congress, there is no guarantee at this point that President Barack Obama would sign it into law. And even if the president was to do so, the limited degree of public transparency such a law would bring to the venerable Fed, would amount to far less scrutiny and accountability than is required of every other agency, office and department of the federal government.
A far better approach would be to tackle the problem of Fed accountability by
http://www.independentpoliticalreport.com/2009/11/bob-barr-a-proposal-to-make-the-fed-truly-accountable/
