Q&A Thursday #105: Why Do People In DC Oppose Auditing The Federal Reserve?
Question: Why does the Federal Government oppose any independent auditing of the Federal Reserve? — TheDickNixon
Answer: A lot of people do support it. In fact, a bill to audit the Fed has 101 cosponsors in the House already.
I think there are two major interconnected fears about auditing the Fed.
1) The first is that behind the scenes, it may be a complete and utter disaster. If you find bad decisions and shady deals galore, it could hurt the Fed considerably and lead to what many people really fear…
2) Congress taking over the role of the Fed. The fear here, which I think is very realistic, is that Congress would end up doing incredibly stupid things with the money supply to increase their chances of reelection. Still, there are some very smart people, Thomas Sowell included, who wouldn’t be troubled by seeing the end of the Fed.
PS: It’s worth noting that the Fed is already audited. Ron Paul’s bill would just be more thorough and much more transparent than what’s already being done.