While Senator Rand Paul (R-KY) is definitely not his father, he is following in his father’s footsteps in several areas, and one of those is to seek to push his father’s agenda of auditing the Federal Reserve. In an attempt to push that idea forward, Senator Paul wrote a letter to Senate Majority Leader Harry Reid (D-NV) in which he stated that he will move to block Janet Yellen’s nomination as the next Federal Reserve Chair, unless the Senate is allowed to vote on auditing the Fed.
“I am writing to convey my objection to floor consideration of the nomination of Dr. Janet Yellen to Chair the Board of Governors of the Federal Reserve without also considering legislation to bring much-needed transparency to the Fed,” Paul said in a letter to Reid.
Paul requested that his bill, S. 209, the Federal Reserve Transparency Act, be scheduled for an up or down vote.
“I will object to any unanimous consent agreement or waiver of any rule with respect to the nomination of Dr. Yellen without a vote on S. 209,” Paul continued. “I know you have been a supporter of similar legislation in the past, and I hope that we can work together to pass this important legislation.”
The bill currently has 19 co-sponsors in the Senate, including members from both parties, and companion legislation introduced in the House of Representatives earlier this year currently has over 100 co-sponsors. It passed in the House with a vote of 327 to 98 on July 25, 2012.
This piece of legislation would allow the Government Accountability Office to audit the Federal Reserve.
Senator Paul said, “The American people have a right to know what this institution is doing with the nation’s money supply. The Federal Reserve does not need prolonged secrecy-it needs to be audited, and my bipartisan Federal Reserve Transparency Act will do just that.”
In an op-ed piece at Time, Paul wrote:
The Federal Reserve might be the most secretive institution in our history. For decades, Fed officials, politicians and various “experts” have insisted that such secrecy was integral to its independence, and therefore effectiveness. But during Bernanke’s two terms we have seen QE1 (quantitative easing), QE2 and QE3, and all were ineffective, if not destructive. An unprecedented amount of new dollars has been injected into the economy. In 2009, it was even reported that the Fed could not account for $9 trillion in off-sheet balance transactions. That amount is more than half our national debt.
When the economy doesn’t improve, what is the Fed’s eternal answer? Print even more money. In 2013, the Fed has been purchasing – and monetizing the government’s debt – at a rate of $85 billion a month. Just this year, they have added over $800 billion in government debt to their balance sheets.
Apparently President Obama’s choice for Fed chairman is just as much an advocate of this policy as her predecessor. This is madness.
The American people have a right to know what this institution is doing with the nation’s money supply. The Federal Reserve does not need prolonged secrecy—it needs to be audited.
The Kentucky senator went on to say that he would like to think that Dr. Yellen would bring some sobriety to the Federal Reserve, but her performance to date is that she will continue down the path of the same policies of her predecessor.
“More of the same simply will not do,” concludes Paul. “It cannot do. I encourage every member of Congress to join me in supporting a thorough audit of the Federal Reserve. It is time for more transparency in virtually every part of our government—and the Fed is the most logical place to start.”Don't forget to Like Freedom Outpost on Facebook and Twitter, and follow our friends at RepublicanLegion.com.