Friday, January 2, 2015

Will Audit the Fed Pass with the new GOP Controlled Congress?

The Republicans will have a Senate majority when the new congress is sworn in within a few days, while also enjoying  a very strong House majority.  Staffers for new Senate Majority Leader Mitch McConnell have indicated that McConnell will definitely seek a floor vote for Audit the Fed, here.

In September 2014, the House passed Audit the Fed with a whopping 333-92, here.  227 Republicans and 106 Democrats voted YES on Audit the Fed. The NO votes included 91 Dems and 1 Republican (John Campbell, CA).

Before the 11/14 elections, the Dems has 54 Senate seats, the Republicans 44 and there were 2 independents (who typically caucus with the Dems).  After the 2014 elections, the Republicans will have 54 Senate seats.

While the Republicans clearly have a Senate majority, Senate cloture rules require 60 votes to advance to a full Senate floor vote.  The Republicans are short 6 votes and that's assuming that all Republican senators will support Audit the Fed (not likely).  However, it's entirely possible that some Dems will join with the Republicans on Audit the Fed.

If Audit the Fed manages to pass the House and Senate, there is the issue of a guaranteed presidential veto.  I'd be shocked if Obama didn't veto Audit the Fed.  Republicans will not have enough Senate seats to override a presidential veto.  Overriding a presidential veto requires a 2/3 majority in the House and Senate.

While Audit the Fed is advancing and is closer than it's ever been, it's still got some huge obstacles.   However, Audit the Fed is extremely popular with voters and according to a Rasmussen poll, 74% want to Audit the Fed, here.

With Audit the Fed being so popular and considering the bruising that the Dems suffered in the 2014 elections, there is no guarantee that the Dems will continue to oppose Audit the Fed.

What is important at this juncture is that Audit the Fed gets introduced in the House and Senate early. I see no problem in the House and not because Republicans actually support Audit the Fed.  They don't but they would they look awfully foolish voting against a bill that they previously vote for. Voting YES on Audit the Fed was an easy vote to appease its base knowing full well that Audit the Fed stood no chance in the Senate.  But now things have change and anything passed in the House automatically bumps up to McConnell's Senate where he supposedly supports a Senate vote.  Federal Reserving loving Republicans can no longer hide behind Harry Reid's skirts.

Frankly, the Republicans would love nothing better than a presidential veto of Audit the Fed.  They'd love to scream " Don't blame me, Obama did it".

Finally, Audit the Fed is going to be very interesting in 2015 and the Federal Reserve is bracing for it by already lobbying to kill it.
Chairwoman Janet L. Yellen said earlier this month the Fed remains opposed to stricter oversight of its monetary policy decisions, and Reuters reported she and other Fed officials are lobbying Capitol Hill to drop the audit push, here
Well, Yellen is lying through her teeth because Audit the Fed is about DISCLOSURE and has nothing whatsoever to do with stricter oversight of the Fed and its monetary policy decisions.

As the Audit the Fed drama plays out, the American people will clearly know which of their Congress Critters can be easily bought with a few shekels of fiat money.

Meanwhile, I look forward to the House and Senate Audit the Fed bills being filed and following the co-sponsors.  I wonder how many Republicans will run from it?

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