July 12, 2017
Yellen opposes the people auditing the Fed, says Federal Reserve officials need safe spaces to make decisions
Audit the Fed and then end it.
Yellen and the Fed bankers think they’ve weathered the storm. That the shamans of the “Temple” will be able to shuffle around in the shadows of the financial Vatican hidden from the view of the people they impact for another generation. They believe that they are above the public, and that the Fed’s actions, which impact the world dramatically, don’t need the kind of scrutiny one might expect in a free society.
The truth is the Fed doesn’t want the everyday person to know how it backstops the big banks. The Fed doesn’t want the average person to understand the arbitrary nature of its deliberations. The Fed doesn’t want the people to see the crony banking system and how it enriches the connected.
Think about this.
The banks that were bailed out in 2008-2009 ran their books way worse than the average person who was foreclosed on. Many of the big banks were leveraged more than 50 to 1. Goldman it is said was over 100 to 1. But these banks when they collapsed were made whole. The banks recieved record bonuses in the wake of the bailout and in the heart of the Great Recession. What happened to homeowners? Homeowners who were barely under water? They were foreclosed on and put on the street. No new Maseratis for them. Just busted credit.
The Fed doesn’t want the people to see the FOMC for what it really is. You are not worthy of such information.
Now get back to work serf!
Federal Reserve Chair Janet Yellen’s appearance before the House Financial Services Committee allowed Republicans to promote one of their favorite goals — requiring the central bank to undergo audits by the Government Accountability Office, the oversight arm of Congress.
Republicans for years have pushed legislation that would impose audit requirements on all parts of the Fed’s operations, including its decisions on interest rates.
Yellen, however, did not budge in her strong opposition to allowing the GAO to audit the Fed’s monetary policy decisions. She noted that the GAO already has the power to audit other areas of Fed operations outside of interest rate decisions. But she said including monetary policy could seriously impinge on the Fed’s political independence.
Fed officials, who meet eight times a year behind closed doors to make decisions on interest rates, need “a space where it can have honest deliberations” without having the threat of political interference, Yellen said.
Copyright © 2017 Against Crony Capitalism.
Reprinted with permission from Against Crony Capitalism.