House Passes Bill to Audit the Fed. Will Democrats in the Senate Obstruct it?

September 17, 2014 By Greg Campbell

 

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Congressman Ron Paul may be gone from the House, but his legacy lives on as the Republican-controlled House of Representatives voted on Wednesday to audit the fed- a longtime goal championed by the former Congressman and two-time presidential candidate.

 

The Federal Reserve was formed over 100 years ago as a means to fight inflation and aid in the country’s economic growth. However, many fiscal conservatives have made entire careers out of combating the Federal Reserve and charging that the institution aids in economic instability. In recent years, fiscal conservatives have called for an auditing of the Fed, but efforts have stalled against Democrat opposition.

 

In 2012, the House passed H.R. 459 that would audit the Fed, but the Democrat-controlled Senate thwarted the effort. On Wednesday, the U.S. House of Representatives passed H.R. 24 by a vote of 333-92.

 

The current effort was proposed by Georgia Republican Paul Broun. Ron Paul offered his support, saying on Wednesday, September 17, 2014

 

“I am pleased to see the House of Representatives once again pass this historic legislation. The support ‘Audit the Fed’ has received over the past few years has been tremendous.  I urge Senate Majority Leader Harry Reid to listen to the American people and hold a vote on ‘Audit the Fed’ right away.”

 

Senate Majority Leader Harry Reid previously supported the measure in 2012 before reversing himself and killing the House-approved bill by refusing to let it come to the Senate floor.

 

Still, Sen. Reid and leading Democrats continue to charge Republicans as obstructionists at a time when the House passes bills that the Democrat-controlled Senate simply refuses to act on.

 

Rep. Broun highlighted the need for the bill, saying,

 

“Since the Federal Reserve’s establishment in 1913, the value of the U.S. dollar has fallen 95 percent. In other words, the value of today’s dollar is approximately worth one nickel of what a dollar was worth in 1913.”

 

“What this does is cause a dramatic decline in the value of the U.S. dollar, and it is driven by the easy money policies of the Federal Reserve,” he said. “What does this mean in practical terms for the American people?”

 

“The expansion in money supply under the Federal Reserve has led to an unstable environment of booms and busts that have wrecked the financial security and stability of average Americans,” he added. “This hurts poor people and senior citizens and the middle class the absolute most.”

 

All but one of the 92 votes against came from Democrats.

 

Though Democrat Rep. Elijah Cummings criticized the legislation for supposedly threatening the independence of the fed, several lawmakers insisted that the Fed, the creation of Congress, must be willing to be scrutinized.

 

“This is a vital piece of legislation that will help to usher in a new era of transparency in this nation’s monetary policy,” said Broun. “The Federal Reserve is a creation of Congress, and it must therefore be subject to the oversight and regulation of Congress.”

 

Kentucky Republican Rep. Thomas Massie stated,

 

“Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations.”

Tea Party Senator Rand Paul, the son of Ron Paul, has offered companion legislation in the Senate.
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