A Forbes article published on November 29 encourages readers to “Call Your Congressman In Favor Of Rand Paul's Fed Audit.”
In support of its call to arms, Forbes lists a few recent Fed-related events that deserve to be subjected to greater scrutiny.
First, there is the approval by the Senate Banking Committee of Janet Yellen’s nomination to chair the Federal Reserve.
Next, Forbes reminds readers of the Fed’s influence on the U.S. (and the world’s) economy through its manipulation of monetary policy. Writes Forbes, noting Yellen’s support for these abuses of assumed power:
The Fed has been engaged in an unprecedented policy, “quantitative easing” (QE), that’s been called “the greatest backdoor Wall Street bailout of all time.” This program has been conducted with virtually no oversight or transparency, so we don’t know all the exact details, but the Fed is purchasing about $480 billion a year in mortgage-backed securities directly from the big banks and putting the taxpayer on the hook for them. Excessive exposure to mortgage-backed securities is what had some banks in trouble in 2008, but given the Fed’s lack of transparency, it’s not clear how risky its purchases are. The perfect time to audit the Fed is during this leadership change to gain more insight into this controversial program that Yellen openly supports.
Furthermore, as regarding the success of QE in stabilizing the fiscal ship, Forbes reports:
There has been very little evidence that QE has been successful. The unemployment rate is still above 7.2%, and the U.S. dollar is losing credibility around the globe. There have also been countless claims from economists and even Federal Reserve whistle blowers that the Fed has given backdoor deals and special treatment to Wall Street.
And this is only the first half of QE. The other half consists of the Fed buying another $540 billion a year in U.S. treasuries. These bonds are sitting in the excess reserves at the Fed and Wall Street banks are profiting from the interest payments on them — again that the taxpayers pay for. QE was launched five years ago to help Americans that suffered from the 2008 financial collapse. Why is it that the biggest banks are even bigger than they were in 2008? We need an audit of the Fed that digs into the details of “quantitative easing” and other Federal Reserve polices to ensure they are being conducted appropriately and in the best interest of the U.S. taxpayer.
In the testimony she gave at her congressional hearing, Yellen committed to carrying on the QE program should she be confirmed as the next Fed chief.
Click here to read the entire article.
Photo of Senator Rand Paul (R-Ky.): AP Images