Some background info: I asked Senator Hagen to support a full public audit of THE FED. Taxpayers have handed over trillions of dollars to THE FED, and I feel we have a right to know what they are doing and where our money is going. Some have proposed that we have a 180 day delay in releasing the information, and I am okay with a delay (but 60 days would be more appropriate, in my opinion). I do not know why she would address the letter as "Dear Friend" since I am not her friend by any means. But here it is:
Dear Friend,
Thank you for your message expressing support for the
Federal Reserve Sunshine Act. I appreciate hearing your
thoughts on this important issue.
The Federal Reserve Sunshine Act (S. 604 / H.R. 1207)
was introduced in the Senate on March 16, 2009, and in
the House of Representatives on February 26, 2009. The
Senate bill was referred to the Committee on Banking,
Housing, and Urban Affairs and the House bill was
referred to the Committee on Financial Services. Both
bills reform the manner in which the Board of Governors
of the Federal Reserve System is audited by the General
Accountability Office (GAO) and the manner in which
such audits are reported.
Under the Federal Banking Agency Audit Act (PL 95-320),
the GAO has the authority to conduct financial and
performance audits of the Board of Governors, and the
Federal Reserve banks and branches. However, such audits
are limited, as the law stipulates that monetary policy
operations, foreign transactions, and the Federal Open
Market Committee operations are excluded from the scope
of the GAO audits. The Federal Reserve Sunshine Act
seeks to expand the GAO's authority by removing these
limitations.
As the Federal Reserve Sunshine Act is currently written,
I am opposed to the legislation. Under common usage of
the term audit -- an examination of accounts and records –
there is already a 100 percent audit of the Federal Reserve.
Furthermore, Congress already reviews semi-annual
reports on monetary policy submitted by the Board of
Governors as required under the Full Employment and
Balanced Growth Act (PL 95-523).
When Congress passed the Federal Banking Agency
Audit Act in 1978, the legislation attempted to balance
the need for public accountability of the Federal Reserve
with the need to insulate the Reserve's monetary policy
function from political pressures. I believe this balance
must be maintained going forward.
The formulation of monetary policy is a decision-making
process that involves information gathering from a host
of foreign governments and central banks. The information
provided from those exchanges is critical and extremely
sensitive. The immediate and broad disclosure that S. 604
would require could disrupt the financial markets, and
jeopardize our country's international finance relationships.
Ultimately, it would be taxpayers who would bear the
brunt of any losses resulting from policies caused by
untimely disclosure of sensitive information. Because
of this, I do not believe the benefits of legislation like
the Federal Reserve Sunshine Act outweigh the costs.
Again, thank you for contacting my office. It is truly
an honor to represent North Carolina
States Senate, and I hope you will not hesitate to
contact me in the future should you have any further
questions or concerns.
Sincerely,
Kay R. Hagan
Please do not reply to this email. Instead, if you have
further questions, please visit www.hagan.senate.gov
and fill out my web form for your inquiry. Thank you.
Got that? We cannot have a public audit of THE FED because the poor taxpayers have to be protected. And we are protected by staying ignorant. Here is Senator Sanders speaking on this bill:
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AND, Senator Hagan also voted against the Brown/Kaufman amendment to break up the big banks. It failed because 27 Democrats voted against it. Guess we know what side she is on, and that all this talk of "financial reform" is just talk.
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