HR 1207 - Why Audit the Fed?

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The Federal Reserve works in secrecy without governmental oversight and having all the power to dictate the value of our money, and how it holds its value over time. HR 1207 is a step in the right direction to end the evils of the Federal Reserve. The Fed can create trillions of dollars and we don't even know where it is spent. Congress doesn't currently have the right to know. That's what HR1207 will provide--the right for Congress to audit the Fed in order to know what the Federal Reserve is doing with trillions of dollars, and to know what deals are being made with foreign countries with regards to our currency. Visit Campaign for Liberty to know more.

Currently, HR 1207 has enough sponsors to go to be discussed and voted on in Congress. Once it passes there, more effort will need to be made to get it through the Senate where Lobbyists are already (and always) hard at work.

Perspective is Priceless

Artificial controls of "compensation"

[warning: this post engages in a little cynicism and sarcasm]

Geithner and co. are trying to figure out ways to match long-term performance and compensation (article here) :

Geithner in his testimony also offered new details on the government’s plans for rules on executive pay for firms that have received taxpayer aid.

The administration plans in coming weeks to release guidelines on compensation limits. The new regulations will be effective immediately, while there also will be a 60-day comment period.

“We will engage in a thorough review of this issue,” Geithner said. “I anticipate that we will look for ways to orient compensation towards long-term performance.” (my emphasis)

I had this really novel idea: when a company goes bankrupt, the executives stop getting compensation. So, an executive/company that looks to the long-term (such as Wells-Fargo who didn't buy many get-rich quick toxic assets) doesn't go bankrupt and companies that engage in shady, short-term practices go bankrupt when the cows come home and times get difficult. So, executives that looked to long-term performance still have a company AND increasing opportunites to do business as short-termers go under. This plan very effectively matches compensation with long-term performance.

The only problem with this idea is that you sort of have to let companies go bankrupt for it to work.

I'm sure Geithner and co. can find a better way through piles of well thought-out regulation that will have no unintended consequences--the kind of ironclad regulation that even the personal lawyers of high-paid executives won't be able to find loopholes in.