Tiffiniycheng has a diary speaking to breaking up the banks-which needs to be done and I’m ENTIRELY in support of and which Simon Johnson has made the economic case for BUT auditing the FED is as important and perhaps even more so.
"Why is the Fed so opposed to being audited, and what does it have to hide?" ;
"But since August 2008, these bank reserves held at the Fed have exploded to more than $1.2 trillion (as of March 2010), even though only $65.6 billion was required to be deposited by law.
This increase in excess reserves resulted directly from the Fed’s policy of dramatically increasing the quantity (and lowering the quality threshold) of assets it bought in the marketplace. During the past 20 months, the Fed has tripled the size of its balance sheet by acquiring more than $1.5 trillion of new assets, more than $1 trillion of which are mortgage-backed securities.
What is going on here? Why would commercial banks hold $1 trillion more than they legally had to in reserves at the Fed, earning only 0.25 percent interest per year, and why would the Fed buy more than $1 trillion of mortgage securities of undisclosed quality in the marketplace?"
After reading the article, it should be very apparent why the Obama Admin is deadset against such legislation. And why it is extremely important that such an audit be done if there ever is going to be the prosecutions for the fraud perpetuated upon the U.S. public.
Especially for those who care about our ‘children’s children’ as the cat food commission people are inclined to say.