There is currently a proposal that would require Congress to audit the Federal Reserve. The bill has 282 co-sponsors, which means it would easily pass the House. Yet someone in the House has buried the bill. The Fed, of course, does not want audited.
Although the Fed gave hundreds-of-billions of money directly to Wall Street, the Fed has actually transfered trillions (nine trillion
, by conservative estimates) through many subterfuges. Here is a recent example
Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.
The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets. In some cases, such as the market for mortgage-backed securities, the Fed buys more bonds than any other party.
However, the Fed is not a typical market player. In the interests of transparency, it often announces its intention to buy particular securities in advance. A former Fed official said this strategy enables banks to sell these securities to the Fed at an inflated price.
In other words, the Fed gives Wall Street advanced notice of what to buy. The Fed tells Wall Street that it's willing to pay a sucker's price for bonds.
Would you walk into a car dealership announcing, "I am willing to pay $50,000 for a car"? Only if you're a chump. You never name the top price you are willing to pay. It's banal to even state that!
The Fed is not run by chumps. Rather, it is run by men who want to transfer wealth from taxpayers to Wall Street.
An audit of the Fed would not doubt reveal even more unscrupulous practices. It is therefore unsurprising that the Fed has resisted an audit.
Have you written your congressperson, supporting an audit of the Fed?
Political activism is generally futile. One cannot usually take on City Hall - or Wall Street. Yet there is massive populous outrage. There is time to channel the power of the mob.
The outrage has almost tipped. Although the public has a short attention span, there are enough Wall Street scandals to keep that public's attention. We must act now, or all is lost.
Write your congressperson here