CNBC’s Regan Worries 'Freshman Congressmen from Timbuktu' to Have Too Much Policy Influence if Fed Audit Bill Passed

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It's an issue that libertarian Rep. Ron Paul, R-Texas, and Sen. Bernie Sanders (I-Vt.), a self-proclaimed socialist agree on: Congress should have the authority to call for the Federal Reserve to be audited.

But it is also something that some in the financial media are reluctant to support, especially judging from the tone of CNBC "The Call" co-host Trish Regan and comments CNBC senior economics reporter Steve Liesman. On the Nov. 20 broadcast of "The Call," CME Group reporter Rick Santelli made the case that Federal Reserve should be audited. He cited opposition to the Fed audit proposal from Sen. Judd Gregg, R-N.H., which was based on Congress' inability to be fiscally responsible.

"He said, ‘You know, there independence is important to protect the soundness of the dollar,'" Santelli said. "Has he read any papers lately or looked at any charts? Come on. Amen, amen that this process is happening. They're not taking away their independence to make a decision on interest rates. We need to know where the money is going. I remember when Ben Bernanke faced committees of elected officials and said, ‘We can't audit the Fed because then you might look unfavorably on some of the counterparties we deal with. That's like finding paraphernalia under your kids bed and then not asking where he got it."

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That prompted Regan to ask Santelli a question that contained a tinge of elitism.

"Do you really want one of these freshman congressmen from Timbuktu having a big say in Fed monetary policy?" Regan asked. "Do you think that's the right thing?"

Santelli reaffirmed his position and said he didn't believe an audit would impact monetary policy.

"I want them audited," Santelli said "The congressman you're talking about isn't going to impact whether they raise or lower rates. We're just going to get a better glimpse as to who's involved with the Fed and any clarity - if it's one-one-millionth it's better than nothing."

CNBC senior economics reporter Steve Liesman shared Regan's concern and warned of unintended consequences should Congress have the authority to call for an audit and proposed a "freshman congressman" could call for an audit days before a Federal Reserve meeting and create a "chilling effect" when rates were to be raised.

But "The Call" co-host and host of "The Kudlow Report" dismissed that concern and explained the audit wouldn't occur immediately.

"In fairness, whatever your view is on the bill, the bill has a six-month lag on the audit," Kudlow explained. "It would not affect current meetings."


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Enron

Requiring audited financial audits for stakeholders is proper.

 

Enron was audited by Anderson and run by Anderson consulting.  They audited themselves.  The CPA's did around 26 million in audit fees and their consulting unit did around the same.  They audited themselves.  How did that work out?

 

Anderson consulting was the enron data center IT department.

Let's see now....

Our govt has the printing presses...govt employees run the presses and print the money.....we "hire"? the fed reserve to print the money? that we are printing, then pay them interest to borrow the money we get from them that we printed......ok...sounds like a good socialist idea to me.........at least for the bankers of this world!    How do you spell  IDIOTS!!!!!  and they stall about auditing an outfit that should have absolutely NOTHING to do with our money or our govt in the first place!   Amazing!!

I seem to remember a freshman member of Congress

from Timbuk-cago running for president, and winning, and is now in charge of pouring money down the drain. Are you jiggy wi' dat, Trishie-poo?

These lap dogs will do

These lap dogs will do anything to protect their gods, the central bankers

Santelli SCORES again

Santelli is one of only a few rational voices on that network. OUR currency is being debased by actions and deals done by the FED and the country doesn't have the right to an audit? WHAT are they hiding?

 Excellent  point ,audit

 Excellent  point ,audit the FED then start in on the stimulus scam bullets or prison terms for all caught stealing!

Fear no Audit

 Any shortfall can be met with more gold plated tungsten bars.

http://www.marketoracle.co.uk/Article14996.html

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