September 15, 2011
– Comments (9)
Please vote for this question here: http://yt-debates.appspot.com/question/5448726
Question to Ron Paul: How would your proposed audit differ from the multiple audits that are already being carried out?
About the only current external (i.e. objective) audit, to quote from your link: "However, GAO auditors are restricted by law from reviewing monetary policy operations and transactions carried out by the Federal Reserve on behalf of foreign central banks."
I think Ron Paul would change that. I know I would. Also, maybe someone more objective than GAO, because after all, bipartisan is still political. In fact, it's twice as political.
"In addition, a private CPA firm conducts an annual examination of each Reserve Bank and its branches on behalf of the Federal Reserve Board. External audits were instituted in recent years in place of annual examinations by the Board of Governors to ensure total independence in this process."
But that's a part of the internal audit ("on behalf of the Federal Reserve Board"), so it does us exactly zero good. They want independent verification of the data that they're collecting for their own benefit. Good for them. We want an audit for us.
"Internal audits are conducted by a permanent audit staff at each Reserve Bank. Each audit staff is headed by a general auditor who reports directly to the Bank's board of directors. In addition, a private CPA firm conducts an annual examination of each Reserve Bank and its branches on behalf of the Federal Reserve Board. External audits were instituted in recent years in place of annual examinations by the Board of Governors to ensure total independence in this process."
@TMFBullInBear - the current audits are not full audits. They don't allow for revealing information within the last six months.
I think they should get Arthur Anderson to do the audits. I think they did a pretty good job with Enron as I recall.
The GAO is prohibited from auditing the following items:
(1) transactions conducted on behalf of or with foreign central banks, foreign governments, and nonprivate international financing organizations;
(2) deliberations, decisions, and actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee including transactions of the Federal Reserve System Open Market Account; and
(4) those portions of oral, written, telegraphic, or telephonic discussions and communications among or between Members of the Board of Governors, and officers and employees of the Federal Reserve System which deal with topics listed in this Act.
That's where a Paul audit would differ, methinks.
Does the Federal Reserve ever get audited?
Board of Governors, Federal Reserve System, Wall Street Reform and Consumer Protection Act: Audit