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Clueless Federal Reserve Inspector General

I’m not typically a fan of The Huffington Post, but they offered a great article recently detailing an exchange between Rep. Alan Grayson (D-Fla.) and inspector general Elizabeth A. Coleman. (See video below)

Coleman could not tell Grayson what kind of losses the Fed has so far suffered on its $2 trillion portfolio, which has greatly expanded since September.

She appeared unaware that the Fed engages in trillions of dollars in off-balance-sheet exchanges.

She is not investigating the role of the Fed in allowing the collapse of Lehman Brothers.

She did not know where the Fed has invested its $2 trillion on the liability side of the balance sheet. “I do not know. We have not looked at that specific area at this particular point on,” she said.

This exchange highlights just how little anyone knows about what’s going on at the Federal Reserve. Since Congress delegated their Constitutional obligations to “coin Money, regulate the Value thereof, and of foreign Coin” to the Federal Reserve in 1913, the US dollar has been devalued 95%.

The Federal Reserve is immune from government audits, specifically, they are allowed to make make transactions between foreign governments and banks without any approval or oversight from the federal government. If the State Department did this, they would be considered a rogue agency and would be taken down by the Department of Justice. If a civilian did this, he would be tried for treason under the Logan Act. Yet, the Federal Reserve continues these policies without fear of either consequence.

There is a bill in the House that would allow for a full government audit into the practices of the Federal Reserve. H.R 1207 currently has 149 cosponsors and will most likely get a hearing within the House Financial Service Committee in the very near future.

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