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Ron Paul's Audit The Fed Bill COMING SOON

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jonjon Newbie

jonjon

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Perhaps the greatest deceit- be it purposeful or accidental- that Ron Paul and his Campaign For Liberty have imposed upon their followers is the promotion of the Federal Reserve as a separate and out of control independent entity that is somehow outside of the U.S. Government’s legal jurisdiction, and that it is not required to audit it’s financial statements…

In 1978 Congress passed the Federal Banking Agency Audit Act (31 USCA §714). It placed the Federal Reserve System back under the auditing authority of the GAO. The Act significantly increased the access of the GAO to the Federal Reserve Banks, the Board, and the Federal Open Market Committee (the FOMC). Since then, the GAO has conducted over 100 financial audits and performance audits of the three Federal Reserve bodies.

http://realitybloger.wordpress.com/2012/06/23/the-incontrovertible-conundrum-of-dr-ron-paul/

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thegente Newbie

thegente

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Yes, ther have been audits of SOME aspects of the Federal Reserve system, but not all. There are still areas where the GAO is not allowed access, and this bill would remove such restrictions, and require full disclosure of all monetary operations and policies.

http://www.auditthefed.com/about-the-audit/

Although the Fed is currently audited by outside agencies, these audits are not thorough and do not include monetary policy decisions or agreements with foreign central banks and governments.

The crucial issue of Federal Reserve transparency requires an analysis of 31 USC 714, the section of US Code which establishes that the Federal Reserve may be audited by the Government Accountability Office (GAO) but which simultaneously severely restricts what the GAO may in fact audit. Essentially, the GAO is only allowed to audit check-processing, currency storage and shipments, credit facilities (limited) and some regulatory and bank examination functions, etc. The most important matters, which directly affect the strength of the dollar and the health of the financial system, are immune from oversight.

Currently, the GAO is prohibited from auditing:

1. transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

2. deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations

3. transactions made under the direction of the Federal Open Market Committee; or

4. a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection of US Code.

The GAO is also prevented from conducting on-site examinations of banks or bank holding companies without the written consent of the appropriate regulatory agency.

HR 459 and S 202, The Federal Reserve Transparency Act, would eliminate these restrictions and mandate a thorough GAO audit of the Fed, finally delivering answers to the American people about how our money is being spent.

Yes, ther have been audits of SOME aspects of the Federal Reserve system, but not all. There are still areas where the GAO is not allowed access, and this bill would remove such restrictions, and require full disclosure of all monetary operations and policies.

http://www.auditthefed.com/about-the-audit/

Although the Fed is currently audited by outside agencies, these audits are not thorough and do not include monetary policy decisions or agreements with foreign central banks and governments.

The crucial issue of Federal Reserve transparency requires an analysis of 31 USC 714, the section of US Code which establishes that the Federal Reserve may be audited by the Government Accountability Office (GAO) but which simultaneously severely restricts what the GAO may in fact audit. Essentially, the GAO is only allowed to audit check-processing, currency storage and shipments, credit facilities (limited) and some regulatory and bank examination functions, etc. The most important matters, which directly affect the strength of the dollar and the health of the financial system, are immune from oversight.

Currently, the GAO is prohibited from auditing:

1. transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

2. deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations

3. transactions made under the direction of the Federal Open Market Committee; or

4. a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection of US Code.

The GAO is also prevented from conducting on-site examinations of banks or bank holding companies without the written consent of the appropriate regulatory agency.

HR 459 and S 202, The Federal Reserve Transparency Act, would eliminate these restrictions and mandate a thorough GAO audit of the Fed, finally delivering answers to the American people about how our money is being spent.

Here an old bill from the House, H.R. 28 from 1993 responding to a Congressional request for the GAQ to state the restrictions placed on it while auditing the Fed:

http://www.gao.gov/assets/110/105269.pdf

Edited by thegente
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jonjon Newbie

jonjon

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The deceived that don't want to look at the facts shall stay deceived.

The bill adds no transparency for the public and congress has always known about the Books of The Federal Reserve the new bill doesn't make any difference at all.

H.R. 459

A BILL

To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States before the end of 2012, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Federal Reserve Transparency Act of 2011'.

SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

(a) In General- Notwithstanding section 714 of title 31, United States Code, or any other provision of law, an audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (B) of such section 714 shall be completed before the end of 2012.

(B) Report-

(1) IN GENERAL- A report on the audit required under subsection (a) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.

(2) CONTENTS- The report under paragraph (1) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.

© Repeal of Certain Limitations- Subsection (B) of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.

(d) Technical and Conforming Amendment- Section 714 of title 31, United States Code, is amended by striking subsection (f).

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jonjon Newbie

jonjon

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thegente,

The pdf you linked says

The act does not require us to perform any particular type of

audit. This means, as is true with most of our work, that our

audits are determined largely by specific congressional requests,

or by our discretion under our basic legislative authority. As

appropriate, we coordinate our activities with the Federal Reserve's

Office of Inspector General.

I claim the congress has always been able to get what they want from the audits.

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thegente Newbie

thegente

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I see what you're saying here jonjon, and it does appear that the bill is "striking" the request on lifting the GAO restrictions that proponents of the bill say it will be lifting if passed...basically nothing will change, IF we're reading this correctly:

GAO restrictions on Fed audits:

http://us-code.vlex.com/vid/audit-examination-comptroller-currency-19219704

31 USC 714 - Sec. 714

Audits of the Federal Reserve Board and Federal reserve banks may not include - (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization; (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations; (3) transactions made under the direction of the Federal Open Market Committee; or (4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection. ©(1) Except as provided in this subsection, an officer or employee of the General Accounting Office may not disclose information identifying an open bank, an open bank holding company, or a customer of an open or closed bank or bank holding company.

Text from bill HR 459 stating they are "striking" or "removing" the request to have the restrictions lifted:

© Repeal of Certain Limitations- Subsection ( of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.

I'm not exactly sure what the above phrase means exactly, but I will call them 1st thing in the AM to find out exactly and get back to everyone...it certainly doesn't sound good.

Thanks jonjon for pointing this out, appreciate it bud.

Bedtime!

thegente,

The pdf you linked says

The act does not require us to perform any particular type of

audit. This means, as is true with most of our work, that our

audits are determined largely by specific congressional requests,

or by our discretion under our basic legislative authority. As

appropriate, we coordinate our activities with the Federal Reserve's

Office of Inspector General.

I claim the congress has always been able to get what they want from the audits.

I guess there in lies the rub...we're supposed to trust Congress??? I think we need an independent body outside all of the money and corruption to be fair. Thanks again, have a good nite, had an 18hr day, need to pass out....

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nstoolman1 Grand Master

nstoolman1

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Audits of the Federal Reserve Board and Federal reserve banks may not include - (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization; (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations; (3) transactions made under the direction of the Federal Open Market Committee; or (4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection. ©(1) Except as provided in this subsection, an officer or employee of the General Accounting Office may not disclose information identifying an open bank, an open bank holding company, or a customer of an open or closed bank or bank holding company.

Text from bill HR 459 stating they are "striking" or "removing" the request to have the restrictions lifted:

© Repeal of Certain Limitations- Subsection ( of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.

An audit is an audit. When you put restrictions on the audit you are trying to hide something.

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thegente Newbie

thegente

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Posted

The deceived that don't want to look at the facts shall stay deceived.

The bill adds no transparency for the public and congress has always known about the Books of The Federal Reserve the new bill doesn't make any difference at all.

H.R. 459

A BILL

To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States before the end of 2012, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Federal Reserve Transparency Act of 2011'.

SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

(a) In General- Notwithstanding section 714 of title 31, United States Code, or any other provision of law, an audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (B) of such section 714 shall be completed before the end of 2012.

(B) Report-

(1) IN GENERAL- A report on the audit required under subsection (a) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.

(2) CONTENTS- The report under paragraph (1) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.

© Repeal of Certain Limitations- Subsection (B) of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.(d) Technical and Conforming Amendment- Section 714 of title 31, United States Code, is amended by striking subsection (f).

Hi jojon...you almost had me last nite I was nearly falling asleep on my computer. The section above you claim (in bold) that states there will be no transparency is in fact, the exact wording stating it will...here it is again:

Repeal of Certain Limitations- Subsection (B) of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.[/

I thought exactly as you did when 1st read it, but after careful consideration, and reading the summary of the bill from the Library of Congress, I can conclude it does indeed mean these restrictions will be lifted.

Let's break that statement down, and look at the wording for a second:

1. Repeal of Certain Limitations--- that seems pretty straightforward in itself

2. Subsection (B) of section 714 of title 31--here is the text from section 714 of title 31-the parts that really need to be repealed are in bold:

(a) In this section, "agency" means the Financial Institutions Examination Council, the Federal Reserve Board, Federal reserve banks, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. (B) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing.

Audits of the Federal Reserve Board and Federal reserve banks may not include - (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization; (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations; (3) transactions made under the direction of the Federal Open Market Committee; or (4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection. ©(1) Except as provided in this subsection, an officer or employee of the General Accounting Office may not disclose information identifying an open bank, an open bank holding company, or a customer of an open or closed bank or bank holding company.

The Comptroller General may disclose information related to the affairs of a closed bank or closed bank holding company identifying a customer of the closed bank or closed bank holding company only if the Comptroller General believes the customer had a controlling influence in the management of the closed bank or closed bank holding company or was related to or affiliated with a person or group having a controlling influence. (2) An officer or employee of the Office may discuss a customer, bank, or bank holding company with an official of an agency and may report an apparent criminal violation to an appropriate law enforcement authority of the United States Government or a State. (3) This subsection does not authorize an officer or employee of an agency to withhold information from a committee of Congress authorized to have the information. (d)(1) To carry out this section, all records and property of or used by an agency, including samples of reports of examinations of a bank or bank holding company the Comptroller General considers statistically meaningful and workpapers and correspondence related to the reports shall be made available to the Comptroller General.

The Comptroller General shall give an agency a current list of officers and employees to whom, with proper identification, records and property may be made available, and who may make notes or copies necessary to carry out an audit. (2) The Comptroller General shall prevent unauthorized access to records or property of or used by an agency that the Comptroller General obtains during an audit.

http://us-code.vlex.com/vid/audit-examination-comptroller-currency-19219704

3. is amended by striking all

http://education.yahoo.com/reference/dictionary/entry/strike

"Strike", definition 15:

15.To eliminate or expunge: strike a statement from the court records.

http://education.yahoo.com/reference/dictionary/entry/strike

---------------------------

As I see it, they are not striking, or removing the request for transperency, but the bill is requesting the "striking" or removing of said restrictions in that are currently in effect within section 714 of title 31.

Lastly, here is the link from the Library of Congress that in their summary states this as well:

H.R.459

Latest Title: Federal Reserve Transparency Act of 2011

Sponsor: Rep Paul, Ron [TX-14] (introduced 1/26/2011) Cosponsors (263)

Related Bills: H.R.1496, S.202

Latest Major Action: 6/27/2012 House committee/subcommittee actions. Status: Ordered to be Reported (Amended) by Voice Vote.

--------------------------------------------------------------------------------

SUMMARY AS OF:

1/26/2011--Introduced.

Federal Reserve Transparency Act of 2011 - Directs the Comptroller General to complete, before the end of 2012, an audit of the Board of Governors of the Federal Reserve System and of the federal reserve banks, followed by a detailed report to Congress.

Repeals specified limitations on such an audit.

http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR00459:@@@D&summ2=m&

So it seems, "specified limitations" are the restrictions contained in section 714 of title 31, and are currently still in effect, which would be removed if H.R. 459 does pass.

****************************************************************

Looks like they are in fact campaigning for more transparency. Thanks for bringing it to my attention though jonjon, now everyone can see that it is a good thing for us all. Much appreciated bud!!

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40oz Newbie

40oz

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thegente,

I agree, I read over it again today and do see it removes the restrictions and will allow the audits to be through. My apology for the misunderstanding.

It feels good to read your post. Thank you for your honesty. +rep

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