Senate-Passed Bill Would Bring Sunlight To Fed

A last-minute amendment to the bankruptcy reform bill passed in the Senate Wednesday opens the Federal Reserve to congressional scrutiny.

The amendment was pushed by Sen. Charles Grassley of Iowa, the highest ranking Republican on the finance committee, and quietly breezed through 95 to 1. Grassley said that his measure wasn't aimed at limiting the Fed's independence, but that Congress just wanted to know a little bit about what it's doing. [UPDATE: In response to the justifiably, curious, Sen. Lamar Alexander (R-Tenn.) was the lone no vote.]

The proposal is, said Grassley, "an important reform for holding the entities involved in the massive taxpayer-funded economic bailout accountable to the public."

The oversight power would only apply to Fed involvement with a specific private firm, such as its actions to assist J.P. Morgan Chase's purchase of Bear Stearns, provide financing for Bank of America and Citibank, and its various moves related to American International Group.

No similar measure is in the House version of the bill, so conference negotiators will determine whether it makes the final package headed to Obama's desk.

The Federal Reserve has created three opaque companies called Maiden Lane I, Maiden Lane II and Maiden Lane III. The companies are holding toxic assets purchased by the Fed, though there's no way of knowing how those assets are performing, because Congress has no oversight authority.

On Thursday, a coalition of 61 liberal and libertarian organization called for that to change. Liberal groups OMB Watch and Public Citizen joined FreedomWorks and Campaign for Liberty, among others, in drafting a letter published in the Washington Times, pressing the issue of Fed secrecy.

"The Federal Reserve has created and dispersed trillions of dollars in response to our current financial crisis. Americans across the nation, regardless of their opinion on the bailouts, want to know where that money has gone and exactly how much has been spent," it reads.

The movement to bring sunlight into the Fed is splaying in from the political corners, gradually closing in on the center. Sen. Bernie Sanders, a self-described socialist, is pushing the issue, as is Rep. Ron Paul (R-Texas), a libertarian. Paul's bill now has 134 cosponsors in the House, including, on the right, Rep. Tom Price (R-Ga.), head of the conservative Republican Study Committee and on the left, Rep. Lynn Woolsey (D-Calif.), former head of the liberal Progressive Caucus. Rep. Spencer Bachus (R-Ala.), ranking member of the Financial Services Committee and Stephanie Herseth Sandlin (D-S.D.), a leader of the 'centrist' Blue Dog Democrat coalition. The bill, H.R. 1207, has picked up 79 members since Congress returned from its recent recess.

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Comments

[PhilipTaylor]

President Obama’s top antitrust official this week plans to restore an aggressive enforcement policy against corporations that use their market dominance to elbow out competitors or to keep them from gaining market share.

Investigate the FED who helped Mega-Banks become SUPER Mega-Banks!

The FED must be STOPPED: It is near ruining America + #1 Debtor Nation=America (Graph)

http://static.seekingalpha.com/uploads/2009/5/8/saupload_purchasing_power.png

[Carolab]

On April 23, 2009, Stephen Zarlenga, director of the American Monetary Institute, delivered two briefings on Capitol Hill on the American Monetary Act that may be introduced as legislation during the current congressional session.

Act is here: http://mygodimhit.com/bill.pdf

This single measure has the potential of bringing together the tens of millions of people who have realized it"s our bank-run debt-based monetary system that lies at the center of the financial rot that is destroying our republic and its values.

Attending the briefings were congressional staffers and members of the public. Zarlenga was introduced by Congressman Dennis Kucinich (D-OH), who has spoken in favor of wholesale reform of the monetary system on the floor of the U.S. House of Representatives.

The main thrust of the act is to replace the bank-centered debt-based monetary system with the direct creation of money by the federal government which would spend it into circulation as was done with the Greenbacks of the latter part of the 19th century.

The money would be spent on all types of legislated government requirements but would focus on infrastructure improvements, including education and health care. The act not only would create a new monetary supply denominated in U.S. Treasury notes, but would rebuild our job base which has been outsourced to other nations by the globalist corporations and big financial interests.

http://www.pdamerica.org/articles/news/2009-05-09-12-15-56-news.php

[PhilipTaylor]

April 2009 Stephen Zarlenga defined American Monetary Act (AMI) in briefings on Capitol Hill

AMI=Complete reform of Our Monetary System
AMI=to be introduced as legislation during the current congressional session
AMI=replaces Bank-centered debt-based monetary system leading to US being #1 Debtor Nation
AMI=Creates New money by Gov to spend into circulatio­n=Greenbac­ks of 19th century
Measure=10's Millions realized Bank-run FED debt system=center of destroying our republic
Briefings=­Congressio­nal staffers+members of public+Rep. Kucinich who advocates Reform
Gov. Money=spent on all types of legislated government requirements
Gov. Money=focus on infrastructure improvemen­ts+educati­on+health care
New monetary supply=denominated in US Treasury notes
Rebuild our job base=Outsourced by Globalist Corporations and Big Banks

http://www.pdamerica.org/articles/news/2009-05-09-12-15-56-news.php
http://mygodimhit.com/bill.pdf

Research: CarolAB

[Carolab]

With the collapse of the financial system, the deep recession we are now suffering through, and the injustice of the government’s bank bailouts currently being administered by Secretary Geithner, millions of people in the U.S. and around the world have had enough of government policies that enrich the financial oligarchy and destroy the livelihood of everyone else. The world today is headed for a dark age of debt-slavery and ruinous poverty for much of the world’s population, including working people in the U.S.

The only way a catastrophe can be averted is for mankind to wake up and demand the creation of a new monetary system where money and credit are treated as a public utility.

It is counterproductive for people simply to complain about what is happening or support half-measures like the call to embrace a gold standard. Any attempt to impose a new gold standard would play into the hands of those who control the gold; i.e., the bankers. Creating a new gold standard appears to be the objective of movements like “End-the-F­ed.”

The key is not whether money is backed by gold or any other commodity but whether it serves the needs of real people, allows the trade and productivity of the nation to move, restores our job base, and supports consumer purchasing power. The American Monetary Act would meet these objectives. The time for Congress to act is now.

http://www.afterdowningstreet.org/node/42399

[CurtTX53]

If an audit were ever done I would be very interested in learning how much acreage the "Fed" has under its domain.

I know from personal knowledge that they hold mineral rights in a number of Southern States. It would be very interesting to see the extent of their power. Maybe even who all is connected to that "power"...­..

I have wondered about this stuff since 1976.....

Take care, Curt

[MESGAIN26]

YES the smartest move to date ! How has the Fed Chairman managed to avoid being the prime target of public anger? GIVEN that the Fed has a ( seat ) !! on the board of ( AIG ) Bernanke was there as the Federal Reserve presided over, and, I would argue encouraged, the inflation of the biggest Credit Bubble in history. In 2006 he was appointed by President Bush as Governor of the Federal Reserve Over this same period, and under the watch of the Federal Reserve, AIG accumulated massive, and historically unprecedented liabilities -- a truly incomprehensible $62 trillion of liabilities. As long as the fed is not truly FEDERAL but a private group of bankers, they will act in their own private interest vs. the public interest. Having a private central bank to which we pay interest seems like a stupid idea to me in the first place. They have complete control over the money supply and seem to be able to act on their own rules, rather than according to any laws in place. Just because the President appoints the Chairperson unfortunately carries no particular authority or enforcement, it seems! its unconstitutional Does it alarm anyone that the FED is not an American entity? The United States Constitution explicitly gives congress the full authority to coin and print money. NOT THE FEDS The Fed is a privately held bank THE ENTIRE TAX BRACKET IS A FRAUD , Federal Reserve Act IS A FRAUD

[dsws]

"The United States Constitution explicitly gives congress the full authority to coin and print money."

Well, it's only explicit about the coinage part. But I agree that printing comes with it. However, it also gives Congress the authority "To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers". That includes laws setting up agencies to carry out the laws -- such as the Fed. It would make no sense to suggest that members of Congress have to do it all personally.

[Carolab]

The Fed is not an "AGENCY" of the U.S. government. It is therefore outside the Constitution.

[HR1207]

The Federal Reserve's main functions - monetary policy, transactions with foreign central banks and foreign governments, transactions under the direction of the Federal Open Market Committee, and any communications among or between Federal Reserve employees, officers and Governors regarding said matters - ARE NOT SUBJECT TO AUDIT Under Title 31 Subchapter 713 of the United States Code. http://www.law.cornell.edu/uscode/html/uscode31/usc_sec_31_00000714----000-.htmll.)

The law, enacted in 1978 as the Federal Banking Audit Act, gave the appearance of transparency; as an employee of the Federal Reserve System, it is the duty of the Federal Reserve's Inspector General to feign incompetence so as not to disclose information to CONGRESS. (It's her job.)

Congressman Ron Paul is the only federally elected official with the economic prescience and courage to shed light on this insidious issue. His introduction of the Federal Reserve Transparency Act allows the Comptroller General to fully audit the Federal Reserve and report the results to Congress. Call your representatives and ask them to support HR 1207. (Note that Senator Sanders' bill introduced in the Senate afterwards is a disemboweled version similar to the 1978 legislatio­n.)

http://www.govtrack.us/congress/billtext.xpd?bill=h111-12077)

[ephoenix5]

They watered won the bill in the senate -- this is bullcrap.

[CherokeeGirl]

I bet Grassley and Shelby are sad that their little scheme to water down oversight of the fed is not going to work. And now they have been exposed for it and will be voted out!

http://www.huffingtonpost.com/2009/05/08/handwritten-notes-show-fe_n_200515.html

[dsws]

Wasn't the pre-water version Grassley's to begin with?

[dsws]

The amendment is S.AMDT.102­1, and it amends S.896. I wish people reporting on Congress would give the bill number or amendment number routinely, so that people could look it up on http://thomas.loc.gov.

[dsws]

The text is a bit hard to find. Instead of a direct link to the text, as with bills, all I see on the query page for the amendment is a link to another page where you have to scroll down. I don't see any way of getting permalinks on thomas.loc.gov, so pasted the text here:

http://dsws-was-here.blogspot.com/2009/05/should-we-support-senate-amendment-1021.html

[PaiaGirl]

For all we might put down the right-wingers, gotta say that they were onto the Fed scam DECADES ago. The left is just waking up to it.

[Bjarni]

To prove your point, when I saw your statement I remembered seeing a video of the War mongering, right wing ideolog Pastor Parsley giving a sermon in 2003, now I'm not religious and don't agree with the man on anything, but this intrigued me to watch and was actually interesting if you can watch a pastor speak for almost 50 minutes. Now in irony, he's speaking out against the FED, but didn't have a problem with all our wars being financed by the FED and with foreign loans.

http://video.google.com/videoplay?docid=3051024550497129264&ei=b2sESvuiHZGErQLHwP2RBg&q=pastor+parsley+2003&hl=en&emb=1

[MESGAIN26]

bravo ^5

[ReedYoung]

Why such indiscriminate credit to the entire "right-wing" for the ineffective protest of a tiny minority within it, which was never able to get the attention of the rabid, Reagan-worshiping, borrow-and-spend majority of the "right-wing"? It's a drastic exaggeration to "say that they were onto the Fed scam DECADES ago" as if it's true of _all_ "right-win­gers." I've met more "right-wingers" than I ever wanted to, and not one shared my concern with the Fed or even knew who Ron Paul is. It's important to give credit where credit is due, but the credit due to the right wing remains less than zero. Those few that have had valid insights about monetary policy and finance were ignored by their own, within the "right-wing" until the credit market and much of the financial system collapsed, meaning their good ideas were and are too good for the "right-win­g." A stopped (analog) clock is right twice a day, too. You wouldn't consider it therefore only partly broken, would you?

[jeremyemilio]

You're confusing the neo-cons with conservatives. The GOP is not conservative any more that the Dems are true liberals. Both parties are run by big business neo-con shills.

[dragonlady620]

Of COURSE they were onto the scam. They INVENTED it. They profit HEAVILY from it.

[MESGAIN26]

yeah but what did the right do about it they had 21 yrs ??????

[bosha]

If the right-wing was so onto the Fed scam "DECADES" ago why is the country is such disarray now? A GOP control congress during the Clinton Administration and a GOP control government the last recent 8 years?

So that's roughly 16 years of GOP control congress and you say the left is just waking up to it, this is a misnomer for sure.

[Bjarni]

To see one side of history about the Fed. Now people don't have to agree with everything in these documentaries, but they do have some good nuggets of information for people interested in monetary policies and the history of the Fed and discussions about it.

Money Masters - Documentary from 1995, 215 minutes
http://video.google.com/videoplay?docid=-515319560256183936

Money as Debt - Documentary from 2007, 47 minutes.
http://video.google.com/videoplay?docid=-2550156453790090544&ei=MGAESoz1LprAqgLWuMSvBQ&q=money+as+debt&hl=en

[ephoenix5]

Thanks dude... I have recently become more interested in what the FED is and I am more scared of it the more I learn about it -- but I guess it is my duty to be informed.

[MESGAIN26]

the banks] will
deprive the people of all property until their
children wake-up homeless on the continent their
fathers conquered. The issuing power should be taken
from the banks and restored to the people, to whom it
properly belongs." PRESIDENT JEFFERSON WARN US OF THIS , Woodrow Wilson signed the Federal Reserve Act into law in 1913... He later stated "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."

[Bjarni]

More historical notations of money throughout history, a BBC/CBS documentary made in 2008
The Ascent of money. (Pretty sure this is all of them, didn't watch each clip to confirm)

Episode 1
http://video.google.com/videoplay?docid=-545930454338776455&ei=cWQESs22AoHWrALM7eWOBg&q=The+Ascent+of+Money+1&hl=en&emb=1
Episode 2
http://video.google.com/videoplay?docid=-9071264308290415949&ei=fGMESsyJJpS4rQKkxOnUBQ&q=%22The+Ascent+of+Money+part%22&hl=en&emb=1
Episode 3
http://video.google.com/videoplay?docid=-2329733959986813272&ei=fGMESsyJJpS4rQKkxOnUBQ&q=%22The+Ascent+of+Money+part%22&hl=en&emb=1
Episode 4
http://video.google.com/videoplay?docid=-6158741613760398167&ei=fGMESsyJJpS4rQKkxOnUBQ&q=%22The+Ascent+of+Money+part%22&hl=en&emb=1
Episode 5
http://video.google.com/videoplay?docid=2696194771594185697&ei=fGMESsyJJpS4rQKkxOnUBQ&q=%22The+Ascent+of+Money+part%22&hl=en&emb=1
Episode 6
http://video.google.com/videoplay?docid=-635091739003581971&ei=fGMESsyJJpS4rQKkxOnUBQ&q=%22The+Ascent+of+Money+part%22&hl=en&emb=1

Then for fun there's Duck Tales on Inlation
http://www.youtube.com/watch?v=t_LWQQrpSc4

[cmugs]

finally!

[beaupritchard]

"Into the Abyss"

Obviously a well Ryan Grim is a well read man. I forget the exact quote ... hmmmm

"He who fights monsters must take care lest he become a monster. When you gaze long into an abyss, the abyss gazes into you."


Nietzsche ... (I think) thanks.

[ephoenix5]

Yeah -- which why a-many well meaning congressman and senators have tried to slay the monster before only to be slayed -- I mean it -- killed, or otherwise defeated out of office by the powers that be. And many who went in never came back and became part of the abyss.

[beaupritchard]

True

[suzc]

I've never been convinced the Fed is even Constitutional, ie legal. I find no authority for it there. But then between Congress and the Supreme Court and the W Years, there isn't much left of the Constitution anyway.

[ephoenix5]

The FED is even more powerful than the Supreme Court. At least, Congress can impeach the Justices and they have to issue public decisions and bear the brunt of the people if their decisions are not popular, but the FED just works secretly doing who knows what? For all we know, the banks that own the FED control all the news networks, papers and can play off topics to influence people's opinions. I heard they may even be in control of internet providers, which is one step closer to shutting down the internet at their whim to silence this explosion of knowledge and understanding that is occurring because of the internet. We are in real danger of pissing them off -- after all, they still hold the strings and many of our politicians are still in their pockets.

[dsws]

Less accountable is not the same as more powerful. SCOTUS has far-reaching authority to shape the law, and its authority comes straight from the Constitution. The Fed has authority over monetary policy, and it has only the authority that Congress has delegated to it.

[MESGAIN26]

you are correct its unconstitutional the fed is not an American entity The United States Constitution explicitly gives congress the full authority to coin and print money. not the feds, the are holding our goverment hostage they are more powefull then the president if congress printed money, it would be interest free ,But the FED, prints our money, then loans it to us, the US Government and its people, at an interest rate the Supreme Court declared that the FED has no right to print money Although governments have inherent authority to create their own money, they borrow it from central banks, with interest. A central bank fabricates paper money and credit by “lending” them into existence, in return for treasury bonds of the host government ~ taxpayer IOUs. This “money” has no pre-existing value in reality and is conjured up through accounting entries. It is literally created out of nothing

[ephoenix5]

A step in the right direction. Granting a private bank the right to print our money? Look at the dollars -- it says "Federal Reserve Note" might as well say "J.P. Morgan Bank Note." But, somehow I get the feeling bankers are not going to allow this -- here is something I found on previous attempts to reign-in the FED.

1952 Rep. Wright Patman of Texas ( House Banking Chairman)

"In fact there has never been an independent audit of either the twelve banks of the Federal Reserve Board that has been filed with the Congress ... For 40 years the system, while freely using the money of the government, has not made a proper accounting­."

Patman RE: Federal Open Market Committee "one of the most secret societies. These twelve men decide what happens in the economy ... In making decisions they check with no one -- not the President, not the Congress, not the people."

1971 Rep. John R. Rarick of Louisiana introduced H.R. 351: "To vest in the Government of the United States the full, absolute, complete, and unconditional ownership of the twelve Federal Reserve Banks." He said: "The Federal Reserve is not an agency of government. It is a private banking monopoly." He was later defeated for re-election.

1980's, Rep. Phil Crane of Illinois called for the repeal of the Federal Reserve Act. In 1980 congress passed the Monetary Control Act,it gave the Federal Reserve control of all banking institutions. "

[Bjarni]

In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.”

[Bjarni]

Senator Louis T. McFadden
On May 23, 1933 the Chairman of the House Banking and Finance Committee, Senator Louis T. McFadden spoke out against the Federal Reserve owners. The following is all a quote from him:

“Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed have cost enough money to pay the National debt several times over.

This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.

Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

[ephoenix5]

The worse part, is that this was back in 1933 -- The FED has been operating for over 75 years more since then. The "crime-familes" who own the banks that own the FED are incredibly rich and powerfull. Their control reaches everywhere -- honestly peeps -- taking on the FED is going to be drawn out -- painful -- but these SOBs needs to be taken down.

[freedom1st]

Absolutely spot on.
What is more interesting is that the Fed is owned by the Bank of England. Here is a
quote from Josiah Stamp (president of the Bank of England in the 1920's and the 2nd richest man in England at that time):-

"Banking was conceived in iniquity and was born in sin.
The Bankers own the earth. Take it away from them,
but leave them the power to create deposits,
and with the flick of the pen they will
create enough deposits to buy it back again.
However, take it away from them, and
all the great fortunes like mine
will disappear and they ought to disappear, for
this would be a happier and better world to live in.
But, if you wish to remain the slaves of Bankers
and pay the cost of your own slavery,
let them continue to create deposits."

What should have been done before and most certainly should be done now is quite simple. WE MUST TAKE BACK OUR MONEY SUPPLY FROM THE PRIVATE INTERNATIONAL BANKERS!! If we don't do this we will be forever doomed PLEASE PAY ATTENTION TO THIS, NOTHING IS MORE IMPORTANT!

[outnow]

The best argument to audit the Fed and limit its powers was Greenspan. The second best argument is Bernanke. How's that for an ad hominem argument, in fact, ad hominii. What are they hiding? They should be working for us. It's our currency and our monetary and credit policy. This was a democracy and these policies must be brought to light and under democratic control.; They had one-hundred years and just ran up more debt that can never be paid. This is a Ponzi scheme. It is the biggest fight in history to re-take our country and everyone knows this. Washhington is run by Wall Street and hedge funds. Campaign contributions and lobbyists cost the Money Industry over 5 billion in the past decade. The Money Industry has bought what it wants - power.

[Artos]

outnow,

" The Money Industry has bought what it wants - power."

I have to say that the irony of your last statement struck me as kind of funny. Funny because the Money industry in this country has always had power. They don't need to get it since they already have it. Why do you really think the colonists revolted? Read up on history sometime and you will find that the ordinary Joe Blow colonist really wasn't that upset with the King of England. The ones who were upset were the moneyed element in the Colonies. They didn't like having to ship any of their wealth to England and share it with the Crown. They wanted it all, it is as simple as that, and the only way they were going to get their way was to incite to riot their " ignorant" and "Subservient" fellow colonists who did the drudge work for them since most were beholden and debted serfs. This is the real story that you never heard from Paul Harvey.

[ephoenix5]

Yes you are right. It is often the rich who move the wheels of progress -- but after the revolution was won, many of them came together and did a self-less act -- they created our constitution and allowed for a representative government -- not perfect (granted) -- but it is what it is -- and for the longest time, our representatives kept the powerful at bay until they became powerful enough in the early part of the 20th centurty to pass the Federal Reserve Act -- the Federal Reserve Act is their master piece. With it they have come to power and, most of Americans have lived and died in the Banker's country and they never even knew it.

[dragonlady620]

You can add Cheney to the list-he had everything to do with it.