Junction

Sounds like a good idea to me

“I have sponsored legislation that would call for an audit of the Federal Reserve System. I offer that amendment every year. Every year the legislation gets nowhere. I think it would be interesting to know about the Federal Reserve. I think we should audit the Federal Reserve,” Harry Reid January 25, 1995

Harry Reid, the Senate Majority Leader and Nevada Democrat, has vowed not to put it to a vote 2012

The FOMC meetings are not the meet and potatoes of Fed operation. Never have been. I read the occasional transcript, but really? Most of them are meaningless to learn what they are actually doing. The limited audit of the fed revealed trillions of dollars sent overseas and a sharp increase in some of the money supply indicators. The Fed will not release all of the money supply figures, however.

And you are correct, the fed doesn't print money every time it buys bonds. It doesn't have to print it anymore. I can make it up digitally. And yes, it can "lend" money off the reserves deposited with it. Often it can lend money many times on the same reserves, the same as other banks do, except the Fed does it on a grander scale.

And, if you go by their own definition of inflation, they haven't caused any of that at all. I'm so glad that they have such a stalwart champion in them as yourself and Mr. Reid.

I prefer to take my advice on what oversight should be granted from those with the most to hide too.

I don't think that sentence is a fabrication, but I also don't think it tells the whole story. The Fed is trying to drive down interest rates. It's set it's own overnight right at near zero and will keep it there for the foreseeable future. This not having enough impact on artificially lowering rates, the fed is buying up MBS and Bonds to drive rates down further.

You may support this, since you seem to like limiting the level of information the People of this country should have. However, I think it's fraud. You see, an interest rate is a price. It's the price of time with respect to money and risk. By artificially lowering those rates, the Fed is attempting to induce people to spend or borrow by sending a false price signal. This is getting away from the point.

I am not arguing for control of monetary policy, yet. I am arguing that before we can make a decision as to who has control over monetary policy, we need to know exactly what the Fed has been doing with their control. This is a representative democracy, a republic, if we can keep it that way. The people we elect and the people who do the electing, have a right to know what they are voting to continue or abolish. Maintaining secrecy undermines the democratic process.

8 out of 10 Americans support a full audit, it would be easier to bury my head in the sand, but I support a full audit and can deal with the results, like them or not, we deserve to know.