IS THERE SOMETHING WRONG WITH AUDITING THE FED?
It’s truly astonishing that we can piece together a worthless and destructive housing tax credit bill and pass it in a few weeks, but we can’t piece together the no-brainer of all no-brainer bills in many months. Of course, the powers fighting the Fed audit bill are the mighty of the almighty. The Fed doesn’t want the public to understand that their boom/bust dollar destruction policies are entirely counterproductive (for the majority of U.S. citizens). The one thing we have learned over the last 20 years is that an economy that recklessly prints money at every downturn and relies on the ingenuity of its bankers, is destined for failure.
This bill is an absolute no-brainer. Auditing our government (even the arms of the government that claim to be independent) IS THE PRIMARY PURPOSE OF THE CITIZENRY. We are not a democracy (or a representative republic) if government actions go entirely unaudited & unpunished. The Federal Reserve has failed. Alan Greenspan admitted that his models were flawed. Why are they allowed to destroy our dollars and recklessly reflate asset prices as they please? This is the ultimate sign that the banks continue to stronghold the U.S. economy and hold back the true potential of American capitalism. The banks own you through their ability to create money, control your assets and regulate your bank accounts. I wish this was a conspiracy theory, but this is our reality:
Thanks to ZH for this must see video:
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GoingConcern had a good post on this the other day. http://www.jrdeputyaccountant.com/2009/10/via-going-concern-auditing-fed-good.html
I wrote that Going Concern post above and PragCap I thought you read me, I’ve done this a million times.
Maybe I am taking “Fed audit” too literally but it was always a stupid idea. The Fed has its own accounting manual. Who would perform this audit? KPMG? They audit Citigroup and THEY pass every year.
All regional banks are audited every year. Apparently so is the Board, I don’t know about that part. I read the statements.
http://www.jrdeputyaccountant.com/2009/07/you-want-to-audit-fed-but-why.html
http://www.google.com/url?sa=t&source=web&ct=res&cd=5&ved=0CBYQFjAE&url=http%3A%2F%2Fwww.mixx.com%2Fstories%2F8762476%2Fjr_deputy_accountant_fed_economic_rocket_scientists_on_auditing_the_fed_liquidity_crises&ei=IrHzSuCCOIGesgPmjMUT&usg=AFQjCNFiZW98sx2js9vw9WStkwBYMH-oLg&sig2=fOZ322lYEY8-lQkUnrXPtw
I have more.
My point has always been that they have had time to bury the bodies. “an audit”? that’s funny.
FT Alphaville also picked it up: http://ftalphaville.ft.com/blog/2009/09/30/74716/further-reading-368/
bwhahahahaha LOL
we can do better.
You make it sound like things are the way they are and therefore they will never change. That’s the ultimate defeatist attitude. An empire only becomes weak when the establishment goes unchallenged.
If absolutely nothing were going to come of an audit then why is the Fed fighting tooth and nail to destroy this audit? If they have nothing to hide then just let it happen. And if nothing comes of it then fine. It’s one more chink in the armor of this horrible banking based system that has come to corrupt the system. Piece by piece the public is growing more and more aware of what and who is corrupting capitalism. An audit might not accomplish much, but it’s a good start.
So who will perform this audit? That’s my biggest question and to date no one has been able to answer that for me. Deloitte? PwC? LOL! That’s precious.
You can’t just send in a team of auditors to dissect the Fed’s balance sheet, that’s not how it works.
I can’t imagine that the Fed engages in such sloppy accounting that auditors could even go in there in Hazmat suits and find a single bloody glove – surely they know better and surely they know the heat is on.
I would have to agree with you. The funny part is, most, if not all, auditors that do the majority of the substantive testing are young 20-somethings who don’t have the slightest clue because the firm doesn’t really take the time to develop those skill sets. Unfortunate.
And the GAO certainly couldn’t get it right if they tried.
“they have had time to bury the bodies”
Great, pass legilsation that makes themn worry abut burrying the bodies. That’s one more thing they would have to plan for and one more potential thing to F-up and one more potential layer of exposure. It may not be much but it’s simply one more step in the right direction.
Amen.
What do you expect? Do you really think community organizers, lawyers and bored home makers/trust fund babies really know or care what happens behind the marble doors of the Fed?