This is only the beginning. As our economy continues to decline – this will change from a battle over an audit of the Federal Reserve – to a battle for the system itself.
jg – November 18, 2009
Wednesday, November 18. 2009
Posted by Karl Denninger in Federal Reserve at 08:05
Watt's The Deal?
As I noted on Blogtalk a couple of weeks ago, Representative Watt is doing his level best to derail the "Audit the Fed" bill and amendments introduced by Representatives Grayson and Paul.
Representative Watt's "alternative", however, doesn't open The Fed's books - it further snaps them shut! It not only leaves all the existing restrictions against an audit in place and refuses to mandate audits it also places four new restrictions on any such audit activity.
The most outrageous new restriction is that an audit, under Watt's proposal, may not examine the loans or liquidity arrangements that The Fed enters into or the impact of those deals on the reserves, balance sheet or financial condition of either a Fed-regulated bank or The Federal Reserve itself.
It isn't hard to figure out why Watt would want such blanket secrecy. One need only look at his heavily-gerrymandered district, which happens to contain the corporate headquarters of Bank of America.
This gives new meaning to "kneel before Zod."
The Dishonorable Representative Watt must resign - there have been ridiculous and outrageous claims made in the past, but any representation that his amendment would somehow "open the books of The Fed" is an outrageous lie, and further, it appears to be intentionally designed to protect one of the very "too big to fail" banks that likely has caused The Fed to get in trouble in the first place - Bank of America.