In what I consider an astounding and clear admission from the General Counsel of the Federal Reserve, Scott Alvarez, he admitted if the ongoing push to audit the Federal Reserve becomes a reality, “Foreign central banks and governments likely would be less willing to engage in financial transactions with the Federal Reserve if these transactions were subject to policy review by the GAO.”
While this may sound like some general statement from the Alvarez, its’ extraordinary in that he’s basically admitting that the Federal Reserve is making all sorts of deals and transactions with foreign governments and central banks, and if the political leaders and citizens find out about it, their foreign allies wouldn’t engage in financial transactions with us? Why not? What would we find out about them that they don’t want us to know?
Alvarez doesn’t stop there though, he has a lot more to say in his prepared statement in talking to the House Financial Services Committee hearing, he added, “These concerns likely would increase inflation fears and market interest rates and, ultimately, damage economic stability and job creation.”
The same way they can use figures and assertions to confuse people who don’t know much about this, I think once the data is released to the public and the media, there will be so many questions generated from it, that the former lack of understanding would be changed, and a new empowered financial media and populace would probably be astonished and outraged over what is discovered.
Why would inflation fears and interest rates be effected from people knowing what the Federal Reserve is doing? Why would economic stability and job creation suffer if we get a look at how and why the Federal Reserve is making decisions? That speaks to what they are doing in secret far more than anything else, and confirms it needs to be reined in in the short term and eventually eliminated over the long term.
Alvarez added the tired and worn out idea that the Federal Reserve would suffer an erosion of confidence if they were audited, but that erosion has already happened; the reason Ron Paul and a larger number of lawmakers want the secretive organization audited in the first place.
The independence issue also brought up is a joke. No institution with the type of power delegated to it by lawmakers should ever be allowed to operate independently; very few human beings can wield power like this in a way that would be beneficial to all involved. It’s outrageous for them to continue to repeat that mantra in hopes it’ll gain ground in the minds of those listening.
Obviously Alvarez is hoping by repeating these same things over and over again that he’ll convince lawmakers to back down, but the commitment of over $11 trillion to bailout the economy and a variety of industries demands that something is done, and that it is done as soon as possible. We can’t afford to allow the secretive Federal Reserve to continue on doing business as usual unchecked.
