Federal Reserve Chairman Ben Bernanke defends a half billion dollar transfer to 14 central banks around the world, including $9 billion to New Zealand. Congressman Alan Grayson of Florida does the grilling:

One of Grayson’s key points is that when the Federal Open Market Committee (FOMC) hands out a half trillion dollars to foreigners, it may not be in the spirit of the following statement in the Constitution:

“No money shall be drawn from the Treasury but in consequence of appropriations made by law.”

Bernanke’s response was that money wasn’t drawn from the Treasury, and the transfers were a part of the plan to combat the global financial crisis. In addition, he says it’s authority granted by the Congress through the Federal Reserve Act.

It might be about time to start sifting through the Federal Reserve Act and see what should still apply today. If nothing else, it’s clear the Federal Reserve needs a thorough audit.