In an unprecedented defeat for the Federal Reserve, an amendment to audit the multi-trillion dollar institution was approved by the House Finance Committee with an overwhelming and bipartisan 43-26 vote on Thursday afternoon despite harried last-minute lobbying from top Fed officials and the surprise opposition of Chairman Barney Frank (D-Mass.), who had previously been a supporter.

The measure, cosponsored by Reps. Ron Paul (R-Texas) and Alan Grayson (D-Fla.), authorizes the Government Accountability Office to conduct a wide-ranging audit of the Fed’s opaque deals with foreign central banks and major U.S. financial institutions. The Fed has never had a real audit in its history and little is known of what it does with the trillions of dollars at its disposal.

You may think Huffington Post is a liberal-wing-nut-newspaper-destroyer-blog, but sometimes they do a good job deconstructing the facts.




  1. Dallas says:

    ..By the way, according to a WSJ poll, 97% of americans support auditing the Fed…

    Oh please, at least 70% of Americans don’t know what the Fed is and 40% don’t know what audit means.

  2. g says:

    A couple of thoughts, business and individuals can be audited and TFR cannot? Wouldn’t it be funny if the liberals found out that it’s not the Bush admin after causing all those problems, and instead it’s THE FEDERAL RESERVE.

  3. Dallas says:

    Hola Pedro and happy friday. I never said I was opposed to a fed audit but would add that the opposing point of view had merit.

    That is either over your head or it may not be what your conservative sheep herders want you know. I think it’s both!

  4. LibertyLover says:

    #1, lol. I have to agree with you on the percentages 🙂

    That being said, there are more people informed now than just a few years ago. My entire family included and any of their friends.

  5. RTaylor says:

    Is it just me, or are you guys getting the feeling a great deal of shit is hurdling our way thanks to our government, it’s policies, and it’s agencies. Maybe I’m spooked, but I feel more like heading for a bunker than I did last year. Like tremors before the big quake.

  6. Dallas says:

    #5 I agree more and more people are aware of domestic issues. Glad you are being educated and benefiting from an administration that is domestically focused. Compare this to the Cheney presidency 🙂

    #6 See above comment. Also, I would add that you are seeing government in action. You feel spooked because you haven’t seen any real changes taking place for nearly a decade. This is what he people voted for. This is what the people are getting. Don’t be afraid, just watch leadership in action and learn.

  7. pedro's (very embarrassed) daddy says:

    Meester Dallas,

    pedro does not have sheeep herders. hee has goat herders. hee likes hees goats. hee has a pet goat named dick. pedro, hee likes dick. hees mother likes goats too.

    you shouldn’t make that meestake again. sheeep herders are nice peeople.

  8. SparkyOne says:

    Dr. Paul needs to calm down. It is not twenty years ago when the dollar had value and this crap was worth fight for.

  9. Mr. Fusion says:

    This won simply because there are enough people out there concerned about some transactions by the FED. While I agree that the Republicans are finally seeing the FED through new eyes now that they are out of power, this audit is still called for.

    I suspect Frank was against the bill after pressure from the White House. Look for Alan Grayson to become much more prominent in the Democrat Party in the near future.

  10. buildakicker says:

    I am stoked that this is going fwd! It’s about time. Way to go Ron Paul! I like Alan Grayson’s questions to the Fed. Good stuff. Now, I wonder if an uninterrupted audit will truly happen?

  11. Moi says:

    @Dallas #1

    “Oh please, at least 70% of Americans don’t know what the Fed is”

    So true! If most people knew what the Fed was, we would be in this mess.

    The sad part about this is, it shouldnt be this hard to Audit any Corp/gov entity. That it has been this much of a battle to get the legislation this far shows what a joke the system is.

    I have no doubt that if the audit does happen, it will be neutered so much as to be pointless.

  12. LHO says:

    “surprise opposition of Chairman Barney Frank (D-Mass.), who had previously been a supporter.”

    Will someone explain to me why that piece of shit pedophile bastard is not in prison?

  13. TwoToTheHead says:

    #7 “Don’t be afraid, just watch leadership in action and learn.”

    you frighten me

  14. FDC says:

    Why is it that every other post on here is a bash against a democrat or a republican or an insult hurdled towards someone, because they merely disagree. I assume the age group on here is a more mature one, but by the comments made it reads as if it is a bunch of four year olds in a sandbox. Throwing insults is probably the most common and lowest form of argument – called “emotional appeal”. If your criticizing someone, spend some time reading your post and think it over before posting. It saves the rest of us a few seconds of our lives that we can use on more constructive things. Cheers!

    Congratulations to Ron Paul; this has been many years of hard work for him and it is starting to pay off. I hope the pressure continues and we see some great results from this.

  15. Li says:

    Congratulations to Ron Paul and Alan Greyson for getting this passed despite stiff resistance from the FED. This is the sort of bipartisanship that I can really get behind.

    Greyson should be the new speaker of the house, he’s far better at articulating his vision and tearing down the opposition than anyone in the house leadership. And the Democrats need to start articulating what they believe must be done and soon, unless they want to see Palin/Beck 2012 in our future.

    And mushroom clouds shortly thereafter.

  16. brm says:

    #1:

    “Oh please, at least 70% of Americans don’t know what the Fed is and 40% don’t know what audit means.”

    They may have briefly explained these terms when asking the question.

  17. BigBoyBC says:

    #1 Dallas,

    What’s the precentage of those who don’t know what the WSJ is…

  18. Troublemaker says:

    Dallas said, on November 20th, 2009 at 9:19 am

    #6 See above comment. Also, I would add that you are seeing government in action. You feel spooked because you haven’t seen any real changes taking place for nearly a decade. This is what he people voted for. This is what the people are getting. Don’t be afraid, just watch leadership in action and learn.

    Really? The “people” voted for Ron Paul to draft and push through a bill to audit the Fed?

    Funny… I could have sworn the “people” rejected Ron Paul, whole cloth, last year and voted for some schmuck from Chicago.

    Silly me…

  19. Zybch says:

    #20 the ‘people’ didn’t make that decision, the corrupt GOP did.
    And after that decision was made the people had absolutely no choice in the matter and were stuck with a guy that was almost dead, and a woman that almost had a brain if they wanted to vote conservative.

  20. Dallas says:

    #20 get real. People didn’t “reject” Ron paul. In fact I endorsed him and sent him campaign money!

    The problem with Ron Paul is few know who he is and he’s effectively irrelevant. I wish that were not the case. Ron Paul is sorta like Ross Perot only not as funny looking.

    I would have voted for Ron Paul but feared my vote would go wasted. My vote went to fight the Christian Taliban and pond scum from the right.

  21. amodedoma says:

    It’s not enough, it’s a good first step though. What’s really necessary is for all politicians and public servants have their IRS history published on an easily searched well indexed database online.

  22. LibertyLover says:

    #7, Actually, it was the last admin that educated me on republicrats in general.

    #22, I would have voted for Ron Paul but feared my vote would go wasted.

    I hate it when I hear that. How can a vote be wasted if it is cast in good conscious?

  23. Loupe Garou says:

    #17 Li: “Greyson should be the new speaker of the house, he’s far better at articulating his vision and tearing down the opposition”

    Tearing down the opposition is right. Greyson is a loud demagogue, plain and simple.

  24. Mark T. says:

    Ron Paul is my hero! Go, Ron!

  25. chris says:

    The Fed makes the money, and they buy up a lot of government debt when it goes to auction(meaning that they set a floor in the bidding).

    I think that, by all measures, big finance is as unstable as when Lehman fell OR WORSE. Most of them are just too dumb to know it, or too smart to admit it.

    Wall St. people are easily characterized by an anecdote from, I think, Liars Poker by Micheal Lewis.

    Goes like this: A famous investment bank. There is a training session of the incoming recruiting class of the best and brightest. The class leader asks “Would you advise a client that buying equities right now is a good idea?”

    Recruit A replies with an amazingly erudite analysis of the the current dangers facing stocks, as well as several sectors which will benefit or at least hold during the coming storm.

    The leader looks disgusted and shouts, “WRONG! Anyone else?”

    Recruit B confidently states, “It is always a good time to buy equities, if you lock in your positions now your growth potential is unlimited.”

    Leader: “Exactly right, any questions?”

  26. Rick Cain says:

    The wealthy love secrecy, which is why we should audit.

  27. Uncle Patso says:

    I’ve never understood why Ron Paul is not more highly respected by the GOP. Much of what he says seems common sense, not just another talking points screed to whip up “the base.” Could that be it? Is he actually more highly regarded by the Dems than his own party? I disagree with a lot of his politics (surprise, surprise), but I don’t feel personally insulted or frightened by the things he says, unlike with so many on the Right.

    “Audit the Federal Reserve” he says, and I wonder “where’s the harm in that?” while the GOP and top financial people all but faint dead away — makes one wonder what are they hiding?

    And thanks # 16 FDC, we need to be reminded once in a while.

  28. Frank IBC says:

    # 14 LHO said, on November 20th, 2009 at 10:37 am

    “Will someone explain to me why that piece of shit pedophile bastard is not in prison?”

    Barney Frank is openly gay. Where do you get this “pedophile” bulls##t from? Maybe you’re the one with sexual problems.

  29. Frank IBC says:

    Liberty Lover –

    What is a “conscious”?

  30. LibertyLover says:

    #31, In this particular instance, it is something done with critical awareness or with good intentions.

    Voting for the lesser of two evils or voting against something is neither.


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