What Would Be Involved in an Audit of the Federal Reserve? – Part Two

08-23-2009 • American Banking News

Last post we talked about Congress being granted the power by the Constitution to “coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.” So Congress obviously has the authority to do that, and by extension, to audit the Federal Reserve. I have went into some length on that because it’s one of the tools being used to prevent the audit from becoming a reality by Ben Bernanke and his allies. Now whether or not the Federal Reserve should even exist is a different question, and I won’t cloud the proposed audit of them with that. But because it does exist, and the Constitution places responsibility on Congress for monetary policy, they not only have the right, but the obligation to know and understand what is going on there, and communicating it to the American people. Don’t get me wrong, Congress has delegated authority to the Federal Reserve to operate, but with that delegation must come accountability, along with an ongoing an