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CT Lawmakers Split on Auditing the Federal Reserve

The bipartisan bill might not be brought up for a vote in the Senate.

 

A bill requiring deeper audits of the U.S.’s central banking system passed the House of Representatives with by a 327-98 margin, but Connecticut’s representatives were split on whether to audit the Federal Reserve.

The bill, according to the Washington Post, allows government auditors to analyze the Fed's monetary policies. The Fed influences the nation’s money through several methods, such as purchasing U.S. securities and guiding the interest rate on money loaned by the Fed to banks.

Reps. Joe Courtney (D-2) and Chris Murphy (D-5) voted in favor of the bill. Reps. Rosa DeLauro (D-3), Jim Himes (D-4) and John Larson (D-1) were among the  98 people opposed to the bill.  All but one Republican voted for the bill, while Democrats were split with 89 voting yes and 97 no.

Last week, Fed chairman Ben Bernanke told Congress he was opposed to the bill because he believes it will politicize the central banking authority, which operates independently from Congress.

“It’s a mistake to eliminate the exemption for monetary policy and deliberations which would effectively, at least to some extent, create a political influence or a political dampening effect on the Federal Reserve’s policy decisions,” Bernanke said, according to MarketWatch.

He may get his wish, as some sources indicate the bill is unlikely to even be brought up for a vote in the Senate due to opposition from Democrats. The bill was championed by presidential candidate and outgoing Texas congressman Ron Paul.

Peter Palms July 26, 2012 at 11:38 PM
31,000,000 Americans became age 65 in 2011. That has added $310 billion dollars to the annual budget of the United States not including the cost of Medicare and Medicaid benefits, which young American will have to pay for. It took 198 years for the U.S. Government to borrow the first trillion dollars. Then, in just another 12 years, mostly under the Reagan ministration, it borrowed another three trillion. By the first year of the George W. Bush Administration, even before the attack on September 11, the federal debt had risen to over $5.8 trillion. By 2010 it had risen to $202 trillion, when all liabilities are included. It is difficult to comprehend such numbers. If you had a stack of $100 bills 40 inches high, you would be a millionaire. $202 trillion would rise over 127 thousand miles into space. By the time you read this, after the expenditures of subsequent administrations that stack has reached the moon.

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