Tuesday, May 11, 2010

Audit the Fed becomes reality!

The US Senate agreed to a landmark provision on the Financial Reform Bill this Monday. In a step that returns power to the people, the Senate proposes a one time audit of the Federal Reserve which will include complete disclosure of who the $ 2 trillion rescue amount was lent to.

This just reinforces the belief that in a democracy, all government institutions have to be accountable to the people through their elected representatives. No government institution should be permitted to operate in secrecy unless disclosure is a threat to the state. No aspect of central bank functioning qualifies for secrecy.

If passed into law, this will usher in a paradigm shift in central bank functioning. For the better.

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