Ron Paul's Latest "Audit the Fed" Bill Passes Committee Unanimously

This morning, the U.S. House of Representatives Oversight and Government Reform Committee unanimously passed Ron Paul's latest "Audit the Fed" bill, H.R. 459.

The bill would eliminate certain restrictions that now exist on any audits done on the Federal Reserve from 31 U.S.C. 714, such as:

Audits of the Board and Federal reserve banks may not include—

(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations; 

(3) transactions made under the direction of the Federal Open Market Committee; or

(4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.

Again, the above are the existing restrictions that H.R. 459, if it eventually passes the full House and then becomes law in unaltered or unamended form, will eliminate from Fed audits. By the time his last try at this got in some form into a final bill, even Ron Paul himself wouldn't vote for that whole bill.

The Hill explains what happened today:

The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced by the committee on a bipartisan voice vote with no vocal opposition.

The measure, which has garnered 257 co-sponsors from both parties, would require the Government Accountability Office (GAO) to conduct a full audit of the Fed's operations, including its monetary policy deliberations.

House GOP leaders have previously signaled that Paul's bill would garner floor attention sometime in July. A similar measure pushed by the End the Fed author was part of the Dodd-Frank financial reform law when it was passed by the House, but was later trimmed to require a GAO study of just the Fed's emergency lending operations during the financial crisis, and the potential for conflicts of interest on the boards of the regional Fed banks.

Before the bill was cleared by the committee, however, ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed's deliberations on monetary policy. Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) voiced opposition, saying it "essentially guts this bill."

For more on the bill's purpose, see this from the dedicated "Audit the Fed" web site.

There is a companion bill in the Senate, the “Federal Reserve Transparency Act of 2011” (S.202), introduced by Sen. Rand Paul, not yet out of committee. In an emailed press release this morning, Sen. Paul said:

“Today, I applaud the unanimous passage of Audit the Fed out of committee and commend House leadership for promising a vote on Audit the Fed next month,” Sen. Paul said. “It is important that we get our economy growing again through savings and investment, not more debt and deficit spending. But we can’t turn the economy around until we fix the root of the problem: an unaccountable Federal Reserve. A complete and thorough audit of the Fed will finally allow the American people to know exactly how their money is being spent by Washington.” 

“I have introduced similar legislation in the Senate and will continue to fight on the frontlines of this battle to get Audit the Fed passed through Congress,” he continued.

When Ron Paul is gone from Congress next year, who will be left who believes in not only auditing but eventually ending the Fed? Hopefully, Michigan Republican Justin Amash, who calls for such an end in this talk at an International Students for Liberty Conference:

My November 2009 Reason magazine feature on the anti-Federal Reserve movement. My new book Ron Paul's Revolution: The Man and the Movement He Inspired.

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  • Whiterun Guard||

    I don't know if this will pass or not, but it seems like Ron Paul just pulled a huge fast one on his co-workers on the way out the door.

    It's like the end of Spy Game or something.

  • Hyperion||

    When Ron Paul is gone from Congress next year, who will be left who believes in not only auditing but eventually ending the Fed? Hopefully, Michigan Republican Justin Amash, who calls for such an end in this talk at an International Students for Liberty Conference:

    I think that Rand Paul had better be joining Amash in that effort if he really wants to prove that he is still a champion of liberty and was just playing the necessary political game, after endorsing that... ( grits teeth ) ....

  • ||

    There is a companion bill in the Senate, the “Federal Reserve Transparency Act of 2011” (S.202), introduced by Sen. Rand Paul,
  • Pro Libertate||

    That's a better name. The Audit the Fed" business has allowed statists to retort, "But the Fed is audited." That's a bullshit argument, of course, because the whole issue is that much of the Fed's interworkings are not transparent, including to Congress.

    More transparency in government is a good thing.

  • Palin's Buttplug||

    It is not bullshit.

    Ron Paul can't read an audit. He simply wants Congress to control monetary policy.

    Bad idea.

  • BakedPenguin||

    M0.

  • Palin's Buttplug||

    What is secret about that?

    Now we are arguing monetary policy. What would Ron Paul have the target Fed Funds rate be? Why?

  • Scruffy Nerfherder||

    I think, in Ron Paul's perfect world, the Fed wouldn't be choosing a rate at all.

  • Pro Libertate||

    Or wouldn't have essentially unchecked power.

  • ||

    and the the FED would not have any Funds to rate in the first place.

    Anyway Shrike is simply being shrill. The Bill has the support of 257 co-sponsors, many of the democrats....

    Me thinks most of those sponsors only want the FED audited so they can see what the hell is going on and do not want to end it....

    Of course that is what the bill does. It does not end the fed or set rates or do anything that Shrike 'The Jesus-fag' is claiming it does.

    Lets see what the FED is doing. My guess is it is not good and shrike agrees with me...which is why he does not want anyone to know what the FED is doing.

  • Loki||

    Anyway Shrike is simply being shrill

    Also, the sky is blue (unless you're in Colorado Springs right now, then it's grey), grass is green, water is wet, etc.

  • Mr. FIFY||

    He's as fucking irritating as Max and Tony combined, with a sprinkle of Chad for garnish.

  • The Hammer||

    It's pretty grey in Denver too, we've got smoke drifting over from 3 directions.

  • ||

    Back when congress controlled monetary policy recessions were less severe.

    They may be horrible at it but they do a better job then the FED has done.

  • Tulpa the White||

    Keep in mind that was when the Senate represented the state legislatures, not random voters.

  • Tulpa the White||

    No, he wants the market to control monetary policy.

  • John C. Randolph||

    Ron Paul can't read an audit.

    That's a very peculiar claim to make about someone who's not only run a successful business, but has an investment portfolio that's outperformed pretty much all of the Wall Street fund managers for the last couple of decades.

    He simply wants Congress to control monetary policy.

    What's your next guess?

    Dr. Paul wants to eliminate "monetary policy" altogether, and restrict the government's role in the monetary system to the congress' constitutional authority to coin money.

    Now, got any more lies you want to pull out of your ass, or are we done here?

    -jcr

  • ||

    "But the Fed is audited."

    That is only Shrike making that claim. I have not heard that anywhere but from shrike.

    Plus the anti-audit FED forces sure haven't been very successful. The bill has 275 co-sponsors...many of them Democrats.

  • Palin's Buttplug||

    It is public. The entire audit.

    From Deloitte.

    I am tired of linking it.

  • Mr. FIFY||

    So?

  • ||

    It is public. The entire audit.

    it also does not contain this:

    (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

    (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;

    (3) transactions made under the direction of the Federal Open Market Committee; or

    (4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.

    We are all tired of you linking to an audit that is intentionally incomplete.

  • John C. Randolph||

    It's not a complete audit, pinhead. Didn't you read the exclusions in the article above?

    -jcr

  • Malto Dextrin||

    Yes I bet you are tired of linking it.

    Linking is *so* exhausting.

  • Tulpa the White||

    Plus the anti-audit FED forces sure haven't been very successful.

    No bill gets voted on in the Senate without Dingy Harry's approval. That's the only vote the anti-audit people need.

  • ||

    the point was that there is shit load of people saying the opposite of what Shrike is saying....and i have never heard the claim...other then from him, that the fed is audited.

    My guess the reason why is because everyone knows it is not fully audited and most of what the fed kept in the dark.

    Instead the pro-fed crowd makes the argument that FED activities need to be kept secret.

  • Hyperion||

    Ok, when this.. IF this ever passes a vote and makes it to the teleprompters desk ( who will then use his mighty veto pen for the first time, and then say 'see, I told you I would, uhhh, veto stuff' ), then we still have a long, long, way to go.

    Where is my damn bailout money, you crooks? My bailout money and lots of congress critters in jail. Then we are talking.

  • Bitter Taxpayer||

  • ant1sthenes||

    Maybe they will, maybe they won't. I think we've had way too much luck with them lately. Still have the champagne ready, though.

  • Palin's Buttplug||

    So they will now "audit" the deliberations of a roomful of economists.

    "Hey, did you hear what Hoenig said? What did he mean?"

    So why not pass this meaningless bill?

  • Mr. FIFY||

    It's only meaningless if one thinks Obama is The Second Coming of Barry Goldwater.

  • Tulpa the White||

    So it's meaningless AND allows Congress to destroy the monetary system?

  • ||

    Nice trap.

    Any normal human being would recognize they are caught.

    Sadly a week from now Shrike will repeat the same old Bullshit again.

  • Pip from the forge||

    Rep. Ron Paul (R-Texas)

    What? Ron Paul is a Republican?! And all this time I thought...never mind.

    OK, one more thing. If socialist Bernie Sanders can identify himself as an Independent (not a Democrat), why won't Ron Paul? Because he can "get more done" as a Republican? Please. Libertarians despise what Republicans are "getting done," don't they? Seems to me that Ron Paul is a Republican in Libertarian clothing, and by doing so, admitting to the world that libertarians cannot get anything done without masquerading as Republicans. Not that this strategy has been anything but a failure so far.

  • Scruffy Nerfherder||

    Although I agree with you generally, I can see Paul's point that until enough forces are marshaled within one of the 2 major parties to break their stranglehold on the electoral system, a third party doesn't stand a chance. Either that, or the whole system collapses and we can start anew.

  • ||

    Because he can "get more done" as a Republican? Please. Libertarians despise what Republicans are "getting done," don't they?

    I think we like the fact that Ron Paul just got an audit the FED bill onto the floor for a vote. Arguably he would not be the chair of the committee that did that if he was not a Republican...and he would never have gotten that done.

    Anyway if the Democrats had a Ron Paul in their party I would not care about the D beside his name...I don't see why I should care if he has an R next to it either.

  • Pip from the forge||

    if the Democrats had a Ron Paul in their party...

    A Ron Paul or the Ron Paul? Are you really saying that if Ron Paul identified as a Democrat, the locals here would treat him the same (i.e., as a Libertarian?) Please. Paul is a politician, one of the Hated Class. Libertarians conveniently forgive him because, despite his genuinely Republican Christianity and anti-abortion views, he isn't a Democrat.

  • The Hammer||

    Fuck off, idiot.

  • ||

    To answer your question Kucinich just rose like 10 levels in my mind after watching this:

    http://dailycaller.com/2012/06.....dit-video/

  • Eduard van Haalen||

    What an excellent opportunity for a nonpartisan body to give the Fed a clean bill of health and explain that it's been nothing but helpful to the economy!

    I mean, those who believe this about the Fed will presumably jump at the chance to have their assumptions proven in an impartial investigation.

    Assuming they're intellectually curious, of course, And open-minded. And willing to follow "evidence-based" policies.

    What do they have to fear? I'm amazed the Fed hasn't supported an audit of itself, just to clear the air and show what a wonderful job it's doing.

  • Loki||

    BWAHAHAHAHAHA!!!!

    Oh man that's the funniest shit I've read on here in a long time. Thanks.

  • jdgalt||

    The graphic you put in this article is quite ironic. Some of us remember that it was Jefferson who created the Bank of the US, and otherwise-bad-guy Andrew Jackson who disbanded it.

  • ||

  • John C. Randolph||

    ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed's deliberations on monetary policy.

    Take note: bankster minion tried and failed to protect the Fed from accountability.

    -jcr

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