One nice thing about audits [in general] is that they can be used to ensure everything is on the up and up
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Now, certainly these can be abused (IRS Audits), but ensuring everything is as it seems would bolster the faith in the monetary system.
Therefore, we can conclude that if Bernake's statement is true, then for an audit to undermine confidence means that the Federal Reserve is not in an honest position.
Why? Are they hiding something? Or a few trillion things?
Yep, plus it would likely reveal a large conspiracy to defraud.
Well, yes.