Why Audit the Fed?

Secrecy may have relevance for national security for certain agencies, but why must the Fed and the Treasury be the most secretive?

As I understand, the Securities Act of 1934 permits the Treasury Exchange Stabilization Fund to intervene in markets legally. The only problem with this is that there is much collateral damage of innocent citizens, corporate interests and livelihoods. Beyond human suffering, there is secrecy, not to mention the information insiders have to trade from as evidenced by a recent leak by a Federal Reserve employee to a Goldman Sachs employee. I don’t think this is what our forefathers had in mind. I like the following quote from the other day from Chris Powell to introduce solutions presented by Bix Weir. “That is, the U.S. Treasury Department, its Exchange Stabilization Fund, and the Federal Reserve should be required to publicize simultaneously every financial transaction they make, directly or through intermediaries, including all trades executed through the trading room of the Federal Reserve Bank of New York. Fear of disclosure of its market interventions is what long has induced the Fed to oppose legislation for a comprehensive audit of its activities.” By the way, the Audit the Fed bill comes under vote on January 12th. http://www.gata.org/node/16061

Bix Weir: 17 requirements for a freely traded silver market structure | Gold…

http://www.gata.org/node/16061

 

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