I was recently catching up on my correspondence and realized I had not yet responded to your message. Thank you for contacting me about the Federal Reserve Transparency Act (HR 1207). I appreciate hearing from you and apologize for the delay in my response.
As you may know, HR 1207 would repeal the restrictions on Federal Reserve audits and require the Government Accountability Office (GAO) to conduct an audit of the Federal Reserve immediately and make its findings available to Congress. HR 1207 has been referred to the House Committee on Financial Services where it awaits further review.
I do not support HR 1207 and will not be signing on as a cosponsor to this legislation. I would like to take this opportunity to explain my position to you.
The Federal Reserve is already subject to independent audits. The GAO has audited the Federal Reserve over 100 times since it was created in 1913. The Federal Reserve has also been audited dozens of times by independent accounting firms.
The GAO is not allowed to audit the Federal Reserve’s decisions on monetary policy or its transactions with foreign governments and central banks for very good reason. Opening up the Federal Reserve’s day-to-day decisions on monetary policy exposes our monetary policy to politics. The Federal Reserve is an independent agency for a reason. If the financial markets think that the Fed’s actions are politicized, investors will lose confidence in the Federal Reserve and our markets will decline.
The Federal Reserve and Congress have recently taken steps to increase the transparency of the Federal Reserve. The Federal Reserve has begun publishing their balance sheet on their website, This report gives information about the Federal Reserve’s balance sheet and lending programs and provides considerable new information about the number of borrowers at their various facilities, and the collateral pledged.
I believe the Federal Reserve should continue to be subject to public scrutiny. The Federal Reserve does not always make the right decisions. Both Federal Reserve Chairman Ben Bernanke and former Federal Reserve Chairman Alan Greenspan have admitted that the Federal Reserve has made mistakes in the past. Congress is learning from these mistakes and I am working with my colleagues to fix them through reforming the regulation of our financial markets to prevent a crisis from reoccurring. As the 111th Congress progresses I will be sure to keep your thoughts in mind.
Thank you again for taking the time to contact me. Although we disagree on this issue I am sure there are many more issues on which we agree. Please do not hesitate to contact me in the future about this or other issues of concern for you.
United States Representative
Washington State, 2nd District
I have been following the brave and tireless efforts by Congressman Ron Paul, in his fight for transparency and a full audit of The Federal Reserve(FED), and when reading the above letter from Mr. Larsen, addressed to the signature “Kimberly”, I could not resist the posting of a few comments to him on what his representative writes.
Hi there Kimberly,
Bearing in mind that the FED is a privately owned entity with the right to produce and distribute the US fiat money, the answer from your "representative", Mr. Larsen, reveals that he is totally corrupted and/or plain stupid. In any case, he is, in my opinion, totally incompetent for a position as a United States Representative. (However, having said that, may I hastily add the sad fact, that people mostly get the representatives they deserve. ;-)
The paragraph from Mr. Larsen’s letter, quoted below, reveals that as a sad and disturbing fact, and on which I would like to present a few comments. (I have split the paragraph into four elements, A, B, C and D):
(A) The GAO is not allowed to audit the Federal Reserve’s decisions on monetary policy or its transactions with foreign governments and central banks for very good reason.
(B) Opening up the Federal Reserve’s day-to-day decisions on monetary policy exposes our monetary policy to politics.
(C) The Federal Reserve is an independent agency for a reason.
(D) If the financial markets think that the Fed’s actions are politicized, investors will lose confidence in the Federal Reserve and our markets will decline.
First, let me open with a question raised by the brilliant German sociologist and political economist, Max Weber, in his speech "Politics as a Vocation" : -"What do we understand by politics?"
-politic: Marked by artful prudence, expedience, and shrewdness
-politics: Social relations involving intrigue to gain authority or power.
-policy: A plan of action adopted by an individual or social group
-politician: A schemer who tries to gain advantage in an organization in sly or underhanded ways.
-political: Involving or characteristic of politics or parties or politicians.
(A) The sole reason why the FED desperately hang on to secrecy about their decisions on monetary policy and its transactions with foreign governments and central banks secret, is to avoid insight in the nature of their policy. A policy which of course is that of their private owners. Power and personal profit are their sole motives.
(B) Opening up the FED’s day-to-day decisions on monetary policy, does not expose "our" policy, but the FE D's monetary policy and politics. Mr. Larsen seems to have a problem with the distinction between "ours" and "theirs". (And, should Mr. Larsen be uncorrupted, it is in any case quite evident that he has not been able to comprehend the text written in HR 1207.)
(C) The Federal Reserve is an independent agency for a reason, Mr. Larsen states. Yes, indeed there is a reason! A reason which was spelled out very blunt and clearly years back, by the "capo di tutti capi" among the bankster families: -"Give me control of a nation's money and I care not who makes the laws."
(D) Hmmm... here Mr. Larsen offers a mind-boggling display of political gibber. Why? Well, those in the financial market who might think that the FED is a federal entity believe that the policy of the FED is that of the US of A. Those who know that the FED is a privately owned entity know that the policy of the FED is that of the owners. And, the Fed’s actions are of course always politicized, i.e. their actions have the political character of the FED owners. (Is that hard to understand?)
The reason why "investors" are loosing confidence in the USD is that they slowly realize that the FED is not a federal entity. And unless the control of the USA legal tender is given back to the Senate, all confidence will indeed, eventually be lost. That would mean that not only the US markets would decline, but the whole world financial system would collapse.
However, it might all be too late. The owners of The European Central Bank (ECB) and the FED are the same. They both enjoy the same incredible privileges, given them by corrupt and/or plain stupid politicians.The present financial crisis in the Europe Union and the actions taken demonstrate this, as well as the truth i the old words of wisdom: "Money rules the world."
And, since Mayer Amschel Bauer, the Godfather of the world wide Rothschild Banking Cartel, got it his way, their "New World Government" dictatorship seems frightening close.
-"The home of the brave and the land of the free"... hmmm.
The FED and the ECB are both like cancer... killing their victim slowly over time... without apparent symptoms nor pain... until the very end... when no pain killer can give relief of the unendurable pain the victim is suffering.