ron paul solutions to solve monetary system federal reserve problems in the usa
"The Federal Reserve Transparency Act of 2009 (H.R. 1207) is a bill introduced in the U.S. House of Representatives of the 111th United States Congress by Congressman Ron Paul (TX-14). It proposes a reformed audit of the Federal Reserve System (the "Fed") before the end of 2010. The bill has 319 cosponsors, and has been referred to the Committee on Financial Services. Its Senate version, introduced by Senator Bernie Sanders (Ind.-VT), is called the Federal Reserve Sunshine Act of 2009 (S. 604), and it has 32 cosponsors. A related bill uses the same two names in reverse order. An amendment with similar provisions was added to the Federal Stability Improvement Act (H.R. 3996) by the House Committee on Financial Services in November, 2009.
According to its short title, the Federal Reserve Transparency Act of 2009 (H.R. 1207) amends Title 31 of the United States Code "to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported." It strikes exceptions to the audit protocol in 31 U.S.C. § 714 for the Federal Reserve System, the central bank of the United States, and replaces an indefinite deadline with a deadline of December 2010. It also ensures the audit results are available to Congress. The audit would include the Fed's "discount window," its funding facilities, its open market operations, and its agreements with foreign bankers.
Proponents state that the Fed has never been audited by Congress since the Fed's creation in 1913. The Federal Reserve states that "the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor." The bill's sponsor, Congressman Ron Paul (R-TX), counters by stating that the present audit process exempts the Fed's "most crucial activities."
Glenn Beck of Fox News mentioned the Transparency Act while discussing ways for the average person to remind Congress, "Hey, you work for me." The Motley Fool group economics blog called the bill "the first attempt at a true audit of the Federal Reserve since its inception in 1913" and affirmed Paul's Congressionally published column describing his legislation.
The Centro Studi Monetari says a similar audit law is desired in Italy to publish the budgets of banks like Bankitalia.
GoldSeek.com commentator Jake Towne believes that Fed transparency in relation to credit derivatives will probably happen naturally, citing the Transparency Act cosponsorship of 58 legislators and the Fed's urging major members and funds to list their derivatives on a New York City exchange.
Senator Judd Gregg called the Paul-Grayson amendment "pandering [to] populism", saying the audit requirements would be detrimental to monetary policy. Gregg added that "It's great PR; you go home and beat up the Fed."
Support for the Federal Reserve Transparency Act of 2009 was one of the issues raised as part of the nationwide 2009 Tea Party protests. During an episode of the Glenn Beck program which broadcast April 15 from a rally at the Alamo in San Antonio, Pat Gray interviewed a local supporter of the Transparency Act, drawing cheers from the crowd.
Support for the bill has also come from those on the left outside of congress. In a letter to Chairman Barney Frank of the House Financial Services Committee, Ranking Member Spencer Bachus and its members, several progressives such as bloggers Jane Hamsher of Firedoglake, Yves Smith of Naked Capitalism, "Tyler Durden" of Zero Hedge, author Naomi Klein, labor leaders President Richard Trumka of the AFL-CIO, the SEIU's President Andy Stern, the United Steelworkers's President Leo Gerard, economists Dean Baker, James K. Galbraith, Rob Johnson, and professors William K. Black, Thomas Ferguson, and L. Randall Wray, pushed for passage of the bill and against the adoption of the amendment proposed by Rep. Watt."
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