Fed Audit Bill: May Get Slightly Tougher on Fed Than Senate Version

The latest, from Reuters via MSNBC:

in a statement on Tuesday, House Democrats participating in negotiations over a final financial reform bill signaled a willingness to live with a narrower Senate audit provision that does not cover monetary policy….

The shift by House Democrats was not an unequivocal win for the Fed. Their counteroffer looks to broaden a proposal for a one-time Fed audit contained in the Senate bill that would focus narrowly on the Fed's emergency lending during the financial crisis.

House Democrats want to widen the audit to cover regular discount window lending and open market transactions, and require the Fed to publicly disclose details on these operations on an ongoing basis, albeit with a three-year lag.

Ron Paul's call to the House Conference Committee for reconciliation of the House and Senate bills to keep his strong version of the Fed audit proposal. My November 2009 Reason magazine feature on the anti-Fed movement that led to what small bits of Fed-hobbling may arise from the financial bill this year.

Comments

[juris imprudent]

slighter tougher

Don’t YOU have a preview button?

[Suki]

Like this one is going anywhere. Come on Reason, stop pretending and write real-eo.

[shrike]

The last link in the body of the story is broken. I would like to read about the “anti-Fed movement” of goldbug nutcases.

[.]

Why don’t you go read about how the Fed and other banks fuck people out of the purchasing power of their money by creating currency and credit out of thin air? Some of us “goldbug nutcases” out here know exactly what’s been going on for the last 100 years. If we can, we’d like to see all the American People catch on to the scam as well.

[shrike]

So commercial banks create money “out of thin air”?

You should have informed Washington Mutual (and many others) of that magical ability before they went kaput.

Quit making shit up.

[Some dude]

So commercial banks create money “out of thin air”?

Absolutely. They have what, 10% reserve requirements? 90% of loaned money can be created out of thin air.

[Silentz]

Not to mention the money they get from the Fed at (essentially) 0%. That may not be printing it themselves, but close enough as to make no difference.

[shrike]

Thus the beauty of the fractional reserve system.

Banks gain from an increased deposit base and reduced risk in loans.

High risk banks die. The system works when regulated properly.

[Some dude]

Banks gain…

If that is what you mean by “the system works,” then yeah. The system usually works. Even now.

[.]

Thus the beauty of the fractional reserve system.

More like the beauty of the government sanctioned and protected check-kiting system.

The system works when regulated properly.

Yeah, it works pretty well for the banksters and for government, but savers or anyone on a fixed income are kinda fucked. But they’re just the little people – they don’t count. Right?

[Luciano]

A terrible thing happened. I realized I’d joined the wrong mob

[The EU]

High risk banks die. The system works when regulated properly.

Can you tell us how that is done?

[FRACTIONAL RESERVE BANKING]

“High risk banks die.”

….they did. Now they are bailed out by taxpayers.
New rules of the game: small banks die. big banks zombie on.

[R C Dean]

The system works when regulated properly.

If you’ve got a system that doesn’t self-regulate, that only works when the government does a very good job of making it work, well,

You’ve got a system that will inevitably fail.

[FRACTIONAL RESERVE BANKING]

FRB, bitches!

[Gabe]

JP Morgan has about 100 trillion dollars(notional value) in derivatives. They purchase these securities with money borrowed from the Fed at a average of .08% interest.

If you think it is fair/optimal/good for JP Morgan to get this elite access to the money creation facilities of the Federal Reserve while we get our 5% 30 year mortgages from JP Morgan then I’d love to hear why.

I had my line of credit from JP Morgan shut down with no warning in May of 2008…three months before the meat of the crash. Never missed a payment, still had plenty of collateral etc…they did this to tens of thousands just for living in certain states. Yet, I had no choice in bailing them out? and I have no choice in giving them loans to gamble with at .08% interest? kinda messed up if you ask me.

[mark]

this.

[R C Dean]

This goldbug nutcase only regrets not being more of a nutcase.

Since I began investing in the gold sector, it has outperformed all other investments by around 300%. Yes, that is Three Hundred Percent.

[juris imprudent]

We’ll see if the link gets fixed as quickly and as quietly as the headline.

[Hugh Akston]

My November 2009 Reason magazine feature on the anti-Fed movement that led to what small bits of Fed-hobbling may arise from the financial bill this year.

There will be no hobbling. Even if the Fed is audited, there will be no substantive changes to the structure of that foulest of foul institutions.

The WSJ will feature a front page story with a headline screaming “Fed audit finds poor accounting practices, massive graft and corruption, policies set by trained chimps in suits, animal sacrifices, child rape and lights left on in empty rooms”

The NYT will run a three paragraph story in Arts & Leisure about designer mousepads the Fed purchased with misappropriated funds.

President Obama will deliver a strongly worded speech denouncing Wall Street greed and its sole responsibility for the recession, America’s poor performance in the World Cup, and poor childhood hygiene. He will struggle to maintain his composure during the speech, as Paul Krugman’s beard can really tickle his taint.

Congressional candidates will denounce economic policies that hurt middle-class Americans, and then the incumbents who voted for economic policies that hurt middle-class Americans will be roundly re-elected.

[shrike]

So much ignorance in one post.

1- The Fed is audited by Deloittle annually.

2- The Fed receives NO “funds” from the taxpayer to be misappropriated.

I’ll go ahead and correct other Bircher conspiracy theories — the Fed is not owned by the Rothschilds or nefarious “banker Jews”.

Despite what Ron Paul claimed in 2010 committee the Fed did not fund Saddam Hussein in the 80’s. That was Rummy and Reagan.

The Fed’s balance sheet is public info. Go read it.

[capitol l]

FEDPIG!!!1@!1@#$#$5!

?

?

?
FIATFUCKER!!#$%@^!3452!~

[capitol l]

Phone home, it’s raining commies!!!

[Hugh Akston]

I was wrong, screw the audit.

The bigger story is Ben Bernanke trolling Hit & Run during office hours.

[jj]

+1

I personally nominate shrike as fed chairman. Who knows? He may do a better job than bennyboy.

[shrike]

I pass.

Bernanke only makes $200,000 per year for the shit he takes.

[shrike]

Not worth the shit from Ron Paul AND Bernie Sanders who both hate him.

Talk about strange bedmates.

[capitol l]

WAAA!!

Sad music makes me cry…stop

Littlest violin plays for Benny…stop

Headline reads:

BERNANKE TAKES $200k SHIT, PLEBS REVOLT

The next day revolution happens when the savior is nowhere to be found. From the NY Post:

SHRIKE DECLINES FED CHAIRMANSHIP…”I EAT $200k SHITS FOR BREAKFAST”…WIPES CHIN

As America burns the populace turns to H&R…”Shrike come back”, they chant, typed in helpless, desperate unison.

Let us not forget the Alamo, shrike.

When the time is right me and you will hash things out, shriky.

[#]

kinda… its not monetary policy operations are audited and does nto include actions with fireign central banks.

[#]

and we know in aggraget what is on its balance sheet but not specifics.

[shrike]

“Kinda” is brief but fair.

An auditor in a public company (like Google) squares the books off (like for the Fed too.)

An auditor for Google does NOT make high-level strategic decisions.

But the idiot Congress-Folk like Ron Paul want the latter – executive review on monetary policy decisions.

Ron Paul, Maxine Waters, and Michelle Bachmann are too stupid for this role.

[FIAT]

If you are going to make the Google analogy… who are the shareholders here?

BTW.. Fed audits exclude all the important stuff: inter-CB swaps, OM ops, special credit facilities… even BS details of fed holdings.

[Kolohe]

The Fed is audited by Deloittle annually.

One of my bosses last year was a reservist who in the ‘real world’ is a partner in Deloittle.

I have very little faith in that company thanks to the experience.

[Bobby]

Has anything Shrike ever said here convinced you he is someone who has had to waste even a minute of his time in front of a ill prepared, slack jawed regulator?

My bet, Masters in English, instructs at a community college.

[TP]

The Fed’s balance sheet is public info. Go read it.

Really? So, who got the money? Tell me which fucking banks got the money.

[Ben Bernanke]

No, I am counterfeiting your money and loaning it out at zero interest to people who will pay me 200k per speach at some point in the future. If you don’t like it then you must be a anti-semite.

[Brian Sorgatz]

Threadjacking alert: This is the sequel to an earlier threadjacking of mine in which I announced that I was threatened with homelessness. I’m happy to report that I’ve miraculously found an apartment?under circumstances that are both good and bad for my karma as a libertarian. You can read about it at my new blog post, “I didn’t exactly learn rugged self-reliance, but at least I refused any more help from my mother.”

[????????????]

Threadjack: Commie conga!

[capitol l]

Now we’re gettin’ somewhere!

[capitol l]

?

Of course it ain’t english, you stoopid fucking squirrel. It’s a goddamn symbol.

[Resident Smartass]

I wonder if the Reason staff keep a “Greatest Hits” of the comments section.

[shrike]

OK – the link was fixed and the underlying article is certainly a fair representation of the debate today.

Doherty even quotes my favorite economist – Brad DeLong.

Worth reading no doubt. Thanks for the fix.

[Enyap]

Is Delong still disappearing people from his comment section.

http://distributedrepublic.net…..l-comments

[Paul's Colleagues]

“If my colleagues insist on expanding the power of the Fed, the very least they can do is require the Fed to be transparent rather than secretive in its actions,” stated Congressman Paul.

Requiring the Fed to be secretive is essential to expanding its power, duh!

[shrike]

Your a bunch of limbaugh fellating theocunts. Go read the goddamn balance sheet. I don’t know why I waist my time with you redneck morons.

[shrike]

“theocunt”

I hadn’t thought of that one.

[Force shits upon Reason's back]

I may be a moron, but I don’t get tripped up by homophones like “your” and “waist”

[shrike]

I obviously meant “wrist.”

[Anne Rice]

So Memnoch the Devil was boring as shit, and Satan and Lestat were all boo hoo weepy,’do you love me, God? do you love me, God? do you love me, God?’, it still doesn’t justify inventing a rude misogynistic word to describe me. Yes, all feminist are at heart fundies.

[shrike]

Wear my bollo, bitch!

[Astrid]

Is shrike so bad even Steve Smith won’t rape him?

[STEVE SMITH]

STEVE SMITH NO TOUCH SHRIEK!!!! SHRIEK HAVE IRON MAIDEN STYLE BUTT PLUG!!!! SHRIEK CRAZIER THAN TERRY MICHEAL!!!!! BETWEEN MONASTERY AND SHRIEK, STEVE SMITH CHOOSE CHRIST-FAGS!!!!

[juris imprudent]

Well played Astrid.

[thenino85]

Threadjack, but why isn’t anyone talking about the Lieberman bill to give the government the ability to shut down critical parts of the Internet, with litigation immunity thrown in to get the software companies to comply? It’s like a libertarian perfect storm: Lieberman, government overreach, cronyism, and worst of all, loss of lolcats and precious blogging time.

[Ken Shultz]

These jackasses voted themselves the right to subject my next home loan to Congressional approval–why do I care what Ron Paul finds in his audit?

Thanks for the extra government Ron Paul!

P.S. Up yours.

[Schultz]

I zee nothing!

[roy]

actually… Ron Paul voted NO, as ususal. Even though it included his audit.

[radu prisacaru - Uk internet m]

I love this article. There aren’t many posts that explain the subject matter.

[crazydaisy]

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