A very important hurdle was cleared last week for the folks who want to end the Federal Reserve’s privilege of secrecy. By a bipartisan vote of 46-26, the House Finance Committee approved an amendment to audit the Fed. This did not get passed without a fight from the Fed and its backers. Democrat Mel Watt offered up a watered down amendment which was not voted on. Even Chairman Barney Frank, who had previously been a supporter, made a surprise turnaround and voted “no” on the amendment.
Here is Congressman Grayson speaking to his fellow House members on why only the Paul-Grayson Amendment should be passed. Listen closely as Grayson talks about the half trillion dollars that was given to foreign banks and more than 200 billion of toxic assets removed from Citibank. These bailouts and many more were done by the Fed which is fighting to keep all its actions secret.
This is just one big battle in a long war. A majority of Senators will have to get behind a bill that will force an audit of the Fed. Finally, the President will have to sign the legislation. Will Obama veto it? Keep in mind, Goldman Sachs is a big campaign contributor and a big beneficiary of Fed largeness.
There are many high profile opponents to a Fed audit. Warren Buffet is against a Fed audit because he thinks it will hurt its independence. Buffet recently said, “…there is nothing more important in the economic future of the country than to have an independent Fed.” Buffet went on to say, “…curbing the independence of the Fed could lead to a lot of mischief.” (Complete Video Below)
Buffet has profited from an “independent Fed,” and that may be the reason he doesn’t want the wall of secrecy around it torn down by legislation. Take for example Goldman Sachs, this is a company Buffet has heavily invested in. Goldman got a 13 billion dollar payout from the Fed through the AIG bailout. The Fed will not explain why it gave such good treatment to the former investment bank.
In all, Buffet has at least $26 billion invested in 9 banks that could be getting secret bailouts from the Fed. Two of his investments, Bank of America and Wells Fargo, have already gotten $70 billion in TARP money alone. Another Buffett bank bailout is something a Fed audit would surely reveal. If billionaire investor Warren Buffet got bailed out by the Fed, would that be “mischief” or just good business?
All the while this loud battle over the Federal Reserves secret money policies is going on, the mainstream media is silent. Please show me where this story is getting mentioned on nightly news broadcasts or is being printed on the front page of major publications. I can’t see where the mainstream media is even mentioning this most important issue. Instead, it is filling the airwaves and newspapers with superficial garbage like Oprah Winfrey quitting her show two years from now! Oprah might be interested in the Fed story because she has a couple billion Federal Reserve Notes that are being devalued everyday by the secret actions of the central bank.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.