Rep. Ron Paul (R-TX) is really fun to watch. That's why I've included a clip below from Reuters for you to enjoy. He hates, hates the Federal Reserve. In the clip, he makes that quite clear. I don't hate the Fed, but I do agree that the government should be able to audit the Fed. First, here's the clip, then some discussion. (By the way, if you watch past about 3 1/2 minutes, you also get the treat of seeing him go off on the horrors of regulation.)
I think Paul's most significant charge is that the Fed could be engaging in "political shenanigans." For example, the Fed might keep interest rates too low for too long because it's politically attractive, but ultimately bad for the dollar. How do you solve this?
I don't think you can forbid the Fed from being under any political pressure, because that's completely impossible. But I think Paul's right that transparency would help. If we knew precisely how the Fed was altering money supply on a regular basis, we could better gauge its affect on the dollar. That way, even though we couldn't determine if politics were driving its decisions, we could determine if those decisions were devaluing the dollar.
Given the recently expressed desire to give the Federal Reserve greater power in regulating systemic risk, greater oversight is more important than ever. The more power any body has, the more likely it is to abuse that power. The Fed has become far more powerful than it ever has been, and that power is growing. So should our understanding of everything it does.
But does Paul's bill have a shot? Unfortunately, I'm not convinced it does. Unless average Americans suddenly become outraged that we aren't paying enough attention to the Fed, then most politicans probably won't pay much attention either. Paul supposedly has 250 members of Congress supporting his measure, 80 of which are democrats. Yet, without the Fed doing something flagrantly wrong, like allowing double-digit inflation, it seems like a stretch to think the American people will demand greater oversight.
"Paul supposedly has 250 members of Congress supporting his measure, 80 of which are democrats."
You really need to do some basic fact checking before you submit your article. HR1207 has 254 cosponsors. Yes, it has a shot and would pass the House today ... possibly even veto proof. The question still remains in the Senate.
Where did I get the facts wrong? I paraphrased Bloomberg's anchor, which Paul agreed with. If the use of the word "supposedly" was not precise enough, then I apologize. I'm always cynical about politicians saying they support a bill before actually voting for it, as special interests can sometimes get in the way at the last minute. That's why I said "supposedly," because until they actually cast a vote, I'm always skeptical. You can cosponsor a bill, but then decide not to vote for it. Unusual, sure. Impossible, no way.
With that said, if you watched the clip, you can see that Paul doesn't seem too optimistic about the bill's passage, because as you said, the Senate will be an uphill battle. And despite the votes that he has in the House, it has some pretty big opponents there as well (he implied Pelosi), so it might even have trouble coming to vote there. I hope you're right though, because as I mentioned, I'd support the bill.
Sometimes the "blinders" are on and they won't go away without some devine intervention. So here we are having experienced almost 100 years of a private banking system that one day will be regarded as the greatest ponzi scheme in the history of mankind (yes, mankind!). It's basically a private cartel that enriches a bunch of country club international bankers (some who are not American and rank among the richest in the world). They have, as they have confirmed, caused some of the largest financial calamities the world has ever known (including the great depression and the latest major economic bubble). Thomas Jefferson had it right when he warned us that a system run by private bankers is the greatest threat to liberty and our society. The reality is that these people serve themselves and the economy but only to the extent that it continues to support their interests. It's crime at it's most sophisticated level but in this case the criminals are above the law, the politicians and even themselves. Don't buy the Federal Reserve argument that their independence is good for all. It's nothing more than a mask covering up the real goal by these characters to control the economy and enrich themselves. They are doing an outstanding job at serving themselves but they are constitutionally illegal and they have to go.
Regardless of the hype driven by the fed's lobbyists and the people who own the media (who are connected to the people who ultimately drive the Federal Reserve), our society is becoming more aware of the Fed and their real role. Look at Obama's staff...it's filled with bankers and ex-Federal Reserve members.
Bankers are supposed to be at the bottom of the economic pyramid supporting the formation of capital and business while maintaining rational growth. We have evolved into a country controlled by bankers. Shame on all of us for letting it happen but these days are ultimately numbered. You (the media) must open your eyes...the party is over and it's time to create a sound monetary system that drives real economic growth and builds lasting prosperity. American's are waking up and the process will continue until there is resolution.
Please keep an open mind because without addressing this issue we stand to continue to repeat the same economic blunders and enrich a few undeserving and potentially criminal international bankers. Ron Paul is nothing less than remarkable because in the face of media censorship and putdowns, he has a clear agenda that will ultimately benefit America for decades to come. It's not about greater oversight...it's a fight for control of our economy.
Incredibly well stated but much more optimistic than I can ever imagine being myself. You mentioned the power in the Obama WH and say that it will be taken apart. The Fed OWNS us and the government is totally behind that. The only way that would go away would be us acting like the Iranians. Simply not something I can imagine. We all have TV's and American Idol.
I think you are missing the point of what Ron Paul is really trying to say and what the real issue is here. Ron Paul wants to free us from the Fed and this is a step in that direction. The sad part is that he doesn't have a chance to succeed but it is fantastic that someone in office really understands what the Fed is and why it should not exist. You should research the Fed and what it has been doing to make our "recession" disappear when in fact the Fed started the economic problems that we are in and is in fact making them worse.
What has been effectively created is an organiazation that plays god with the economy. How is money effecively worth nothing (holding interest rates near 0) when it is in high demand? Because the Fed says so. What everyone is missing here is that we don't really live in a capitalistic society at all, in that system the market would dictate interest rates, not an independent group of "enlightened men".
Another issue is the fact that money can be printed at will by the Fed with no control from anyone (government or otherwise) which is exactly what they have been doing to feed the debt we are racking up. Basic supply and demand dictates more money means money is worth less. I am simply amazed at how no one understands how our system works and if they did they would all be amazed at how the reality is far from their imagination.
The best example of this was last week when Alan Greenspan stated that everyone should invest in the stock market. Stocks are worth whatever we "believe them to be". Funny that "the" man that ran the Fed is telling that it is all in your mind. Shows how our system is run.
I can't wait to hear the opposing senators and Obama say why it is not a good idea to audit the private Federal Reserve Bank. They must be sweating right now trying to think of a single logical reason why they are against it...other than their selfish greed for money and power.
If the bill continues to gain suppport, the Powers That Be will likely engineer an event to divert attention away from Washington as they always do (attack Iran?).
The way I see it is at least SOMEONE up there is trying to help us. If we have the right to know what they are doing, then I say , SHOW US. How do we know what they have spent trillions of dollars on ? And how do we know just what they are planning on spending more of our money on? Money we have to pay back. The MAJORITY of the american people didn't want the bailouts. How many things has our money been spent on and just what were they? As people lose their homes, and their jobs here how does Nancy Pelosi's little Marsh Mouse project, (which is really one the things she put in for her state as one of those earmarks) take priority over people in her state who are living tent CITIES? What is wrong with these people up there? I would like to get rid of every damned last one them who we know do not work for us, but I don't suppose that will ever happen. They do one good thing and HEY! their back in the game. But that doesn't come close to all wrong things they have done to this country. We need a REAL change . The kind that helps AMERICA. Like auditing the federal reserve.
You can't audit that beast, it is too big and too powerful. Heck, where would you start?
Ron Paul and Robert Earl Keen, my two heroes. God Bless Texas!
One reason that the powers-that-be won't allow the Fed audit to go forward is because over the past year the Fed has taken almost $2 trillion worth of mortgage-backed securities and Fannie and Freddie paper onto its balance sheet.
This is illegal. The legislation that created the Federal Reserve specifically says that the Fed is ONLY allowed to acquire securities backed by the full faith and credit of the United States. MBS and Fannie and Freddie paper do not meet this standard. The Fed has committed and continues to commit a total, unambiguous violation of black-letter law.
Everyone knows this. But the White House and the leadership in Congress deliberately ignore the illegality, convinced that the Fed is acting in the interests of "stability", and of getting the bad debt out of the financial system. Total nonsense. All that has happened is that the debt has been shifted to the taxpayer, who is now indemnifying the Wall Street thieves against their bad decisions. It further erodes the already parlous state of the Federal budget, and because the real economy knows this toxic waste still exists, recovery will be much slower and more anemic.
Claudius:
With regards to your statement: "over the past year the Fed has taken almost $2 trillion worth of mortgage-backed securities and Fannie and Freddie paper onto its balance sheet."
I would like to point out that the Fed may have paid $2 trillion in exchange for some mortgage-backed securities but I doubt that those securities are in fact worth anything close to those $2 trillion. If anything the Fed has most certainly overpaid for these them and that can't be good when considering the effects of such a purchase on the value of our dollar. And as for the Fed's ability to ever "recoup" these amounts I find the probability highly unlikely given the current state of continuing unemployment and the forclosures and early terminations of many of the loans that back these securities. Their value was already below the price paid and it will be even less when it tries to sell them back to a market with no takers.
You're right. The junk is worth a small fraction of what the Fed paid for it, and will likely remain so. Personally, I don't think the Fed has any intention of selling much of it back at all. It will hold most of the junk until it expires. The Fed has become the "bad bank" that the TARP-sters were bleating about back in March. The taxpayer eats the loss--again.
Yes The Fed Reps are scared and they will say and do anythinhg to distract an avoid a good audit by highly trained professional auditors and accountants! Unfortunately, for Americans no matter what the Fed threatens we do not have a choice if we want our country and home back we need to make a stand and this is the best place for starters!
It is simple, really — the larger the debt, the richer and more powerful the international bankers become. The Federal Reserve is their front organization and it runs roughshod over Congress.
The passage of HR 1207 is not certain and it faces an even more strenuous uphill battle in the Senate. It is, at this point, our only practical hope of auditing the Fed, revealing its numerous crimes, exposing its mega-grand theft scams, and delivering Donald Kohn, his boss Bernanke, and the minions of the international banksters to justice.
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http://www.campaignforliberty.com/campaigns/hr1207home.php
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