Stop the Federal Reserve From Shredding Its Records
Published on 03-11-2010 Email To Friend Print Version
Source: Huffington Post - Robert Auerbach
Should the policymaking committee of the most powerful peacetime entity in the United States government be allowed to destroy their source records? The Federal Open Market Committee of the nation's central bank, an intricate part of the United States government may be continuing to destroy its source records, a policy it began in 1995 with an unrecorded vote -no fingerprints - conducted by then Chairman Alan Greenspan.
The FOMC committee is, when at full strength, composed of 12 unelected members. Five of these members are regional Fed Bank presidents who are internally appointed without having to go through a confirmation process where their views and credentials can be publically examined. The case now before the Supreme Courts [Free Enterprise Fund v. Public Accounting Oversight Board] should have direct application to their internal appointment. There should be presidential nomination and confirmation hearings for these unelected officials.
The FOMC controls the nation's money supply, targets short term interest rates and since 1962 took it upon themselves to bypass the Congressional appropriations process and loan money to foreign governments. I have described [in Deception and Abuse at the Fed] how the FOMC mislead the Congress in 1962 when they began this activity. In 1995 they voted a $5 billion loan to Mexico to keep the peso from falling when the Congress would not appropriate the money and the Treasury did not have sufficient funds. The then secret transcripts reveal that some Mexican Yucatan oil collateral was to be used. The full deliberations are not available because that is when the FOMC voted to start destroying the source transcripts. When the announcement of the loan was made public the peso stopped falling and the loan was never consummated.
I knew they had lied about their transcripts for 17 years after they were forced to show them to me around the corner from Chairman Greenspan's office in an investigation in which I assisted House Financial Services Chairman Henry B. Gonzalez. The Fed had said in 1976 they would stop making transcripts to avoid the Government in Sunshine laws. Although Governor Paul Volcker voted to end the transcripts, reportedly when he became chairman he stopped the staff from destroying them.