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.

Keeping Up With The Madigans

***EDITOR’S NOTE: Sam Adams Alliance interns have recently taken some immersion classes in blogging, and will be testing their skills here in the next few weeks. This post comes from our Judgepedia.org intern, Mark Szczuka.***

Of the many beneficiaries of roughly $9 billion in Illinois taxes is the Illinois Arts Council (IAC), which is set to receive approximately $18 million for its various projects intended for the public. While every state has some kind of artistic initiative, what’s curious in Illinois is that the chairman of the IAC is Shirley Madigan, the wife of House Speaker Michael Madigan, and mother of Attorney General Lisa Madigan.

The extent of power of this family is extraordinary. Michael Madigan has presided as House Speaker for more than thirty years. Shirley Madigan has presided as chairman of the IAC for more than twenty years. And Lisa has presided as Attorney General for over six years. Furthermore, Shirley Madigan sits on the board of directors for Loyola University Chicago, the alma matter of both Michael and Lisa.

Also, Michael Madigan is the principal attorney at his firm, Madigan & Getzendanner, whose clients are comprised mostly of construction, development, and housing corporations. His firm has nearly 100 big name clients, yet only six attorneys, one of which is often preoccupied with presiding over the Illinois House of Representatives.    

In 2006, Speaker Madigan authorized payment of $8 million to Loyola for various construction projects; a move that angered taxpayers whose public schools were simultaneously going broke.

Any speculation regarding self-dealing here is not surprising. In keeping up with the Madigans, I direct your attention to two websites. The first is Muckety, a database tracking the interconnections of the power players. The second is a list of all the clients represented by Michael Madigan’s half-dozen attorneys at Madigan & Getzendanner. Together, these two resources make connecting the dots much easier—and interesting.