Outing The Fed (William Grieder,The Nation)

[chill_wind]

William Grieder's thoughts just a day prior to passage. His opinion on this, one I admire.

Outing the Fed
William Greider
May 10, 2010

The weirdness of this political system is reflected in the fact that it takes a Socialist senator from Vermont, Bernie Sanders, and a libertarian Republican from Texas, Rep. Ron Paul, to beat the banking lobby. The Democrats are making a show of "Wall Street reform" but choking on the tough issues. Republicans are in the tank, as expected, though nervous about the public fury.

Sanders and Paul, however, found an opening with their bill to force a GAO audit of the sacrosanct Federal Reserve. This is a big deal, much bigger than most imagine. Congress has sputtered for years about the Fed’s imperious secrecy but never found the nerve to do anything. The Sanders-Paul audit bill, if it passes, will only be a first breach in the wall, but it promises to keep alive popular demands for more fundamental reforms.

(see full article)

When Sanders had clearly developed majority support, Senator Chris Dodd, the banking chair, sued for compromise. Sanders gave up some ground (and was instantly denounced as a "sellout’ by rightwing blogger) but the limited compromise was not fatal (and might still be repaired in conference negotiations with the House). The most important thing Sanders gave up was authorization for ongoing audits every year. Now it will be one time only. But Sanders did get agreement the Federal Reserve would immediately post its "party favors" on the web for all to investigate.

This victory—if and when it’s complete—is a major marker on the road to much deeper reform of the central bank—its sheltered monetary policy, the concentrated power of the financial system and the cowardly habits of Congress. This year’s reform, in other words, is only the beginning. More facts will insure that the public does not lose its anger but instead raises its demands.

Update, May 11, 2010: The Senate adopted the Sanders amendment, 96-0, which does not indicate its meaningless. In these weird times, senators don't want to stand for the Fed if they can avoid it.

http://www.thenation.com/article/outing-fed

(bold emphasis mine)