On the Subject of the US Federal Reserve Bank in the USA

26 June 2009

Dear Editor,

During the recent economic crisis, the Fed has poured trillions of dollars into the economy with no oversight, made secret agreements with foreign banks and governments, and refused to tell Congress who is getting the money or to give it the details of what deals are being made. Never before has portfolio management been as opaque.

Just as a majority of Congressmen signed up to co-sponsor a bill (HR1207) that would begin to correct this situation by giving the US Congress the power to audit the Federal Reserve Bank for the first time in history, the President began pushing aggressively to give the Fed even more power, lobbying to put it in charge of overseeing all US companies including banks.

Economist Peter Schiff likened this to putting a drug addict in charge of the DEA. After all, many suspect that the Fed's secret actions may have contributed significantly to the global financial meltdown. Word on the street is that the Fed has done up to eight trillion dollars worth of off sheet transactions, and nobody else knows where the money went.

If the Fed is going to be the new watch dog, who will watch the watcher? We should consider the British example. Across the pond they have had the good sense to separate organizationally the group that sets monetary policy from the group that oversees banks.

Respectfully
John Schlichter
CEO, OPM Experts LLC
http://opmexperts.com