Sunlight needed for the Federal Reserve
[Editors Note: This is a post from one of our Sam Adams Alliance interns, Kasia Rada]
For the proponent of limited government, this year has been entirely baffling. The notion of expanding powers for the Federal Reserve is just the icing on the cake. Fortunately, alarm bells are going off for nearly 60% of House members as HR 1207, a bill enabling the GAO to audit the Federal Reserve, gains support on both sides of the aisle.
Fed Chairman Bernanke’s retort equates an honest and open audit with frivolously exposing the money supply to short-term political pressures. Really? I hadn’t noticed that it wasn’t already. Privileges granted the Federal Reserve in monetary policy resemble executive privileges in national defense, only there we have real enemies to combat. In that case, secrecy regarding the money supply may as well be taken as a war against the American public. If the Fed is going to be exposed to political pressures, I’d rather it be out in the daylight than behind closed doors.
As it is, the hope for HR 1207 is bleak. Even if by some miracle it passes through a legislature and executive approving of government-corporate paternalism, chances are efforts to shine some light on the Fed will be diluted to uselessness once again. Regardless, we need to keep public momentum for transparency going. Hold your representative accountable. In the end it is likely HR1207 will amount to no more than striking a match in a dark room, but on the bright side we still have until it that fire burns out to flick on the light switch.
