Ron Paul's bill to Audit the Federal Reserve was approved by the House Oversight Committee on Wednesday.
Next month the bill will go to the House floor. If it passes, the GAO (govt accountability office) will conduct a full audit which will be the first full audit of the Federal Reserve in history.
Ron Paul has made many attempts to audit the Federal Reserve, which is a private bank. There have been previous audits credited to Paul, but those had limitations imposed on them. Reportedly, these limited audits showed conflicts of interest of the Federal Reserve bank.
The name "Federal" is only a name; the bank itself is not part of the federal government. The Federal Reserve Act of 1913 gave the Federal Reserve, a private bank, the power to print money as well as to adjust the discount rate , and buy and sell US treasuries.
In other words, we gave a private bank the power to create monetary policy for the whole country, and in effect the economy world wide; and this entity has yet never been fully audited.
Two influential people off the top of my head that have ties to the Fed are Tim Geithner who was named president of Federal Reserve Bank of New York in 2003, and Herman Cain, chairman of the Federal Reserve Bank of Kansas City Omaha Branch from 1989 to 1991.
Imagine electing a president who had once worked for the privately owned bank our nation borrows money from, and pays back with interest! That is a complete conflict of interest, not to mention allowing a private bank to hold and manage our money being a conflict of interest to begin with.
Ron Paul largely blames the Federal Reserve for our current economic problems and says that the Fed needs transparency.
Both Obama and Romney have never attempted to audit the Fed and seem to instead, support it. When asked during debates if Romney would try to audit it, he basically said no. Obama, likewise has never suggested auditing the Fed.
Considering the power over our economy that the Federal Reserve bank has, it is interesting that no president has caused either by legislation or executive order, an audit of this institution, even in time of recession.
That this bill passed a House committee is one small victory for our economy that will hopefully keep snowballing.