tagged w/ Audit the Federal Reserve
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Senate lawmakers unanimously approved an amendment to the financial regulation bill, calling for the Government Accountability Office to investigate the emergency lending the Federal Reserve has done since the financial crisis.
Lawmakers approved 96-0 the amendment by Sen. Bernie Sanders (I-VT) to the bill, forcing the Fed to put details of its emergency lending on its website and requiring the GAO, Congress' investigative arm, to look into any potential conflicts of interest in those deals.
The Fed has become a target of public anger in the aftermath of Wall Street's near meltdown in the fall of 2008, taking blame for not seeing the coming collapse and for having what some perceive as too cozy a relationship with the nation's largest institutions.
That, coupled with its closely guarded lending, has created a bipartisan move to get the Fed to open up.
"The Fed can no longer operate in the kind of secrecy that it has operated in forever," Sanders said.
Sanders' initial audit proposal — similar to one approved by the House last year — drew stiff opposition from the Treasury and the Fed, both of which feared that a broader examination would interfere with the Treasury's authority to set interest rates and determine monetary policy.
Sanders agreed to narrow his proposal to a single audit carried out by the GAO and covering a period beginning in December 2007. The GAO was specifically directed to examine potential conflicts of interest between the Fed and the banks receiving assistance.
Louisiana Republican David Vitter failed to get support for his provision allowing the GAO to conduct regular audits and delve into the central bank's monetary policy.
"We must look forward and not just one time back to ... [assure] the American people that we all know what our Federal Reserve is doing and exactly why it's doing it," Vitter said.
The House approved a similar provision. The conflicting amendments would have to be reconciled upon passage of the Senate bill.Senate lawmakers unanimously approved an amendment to the financial regulation bill,... more
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By Greg Hildreth
People generally trust the government and the Federal Reserve to run our monetary system. I submit that this trust is misplaced and that the Federal Reserve System is not compatible with a free society.
Private banking corporations own the Federal Reserve.
These corporations enjoy a government-granted monopoly on the creation of our money. These banks earn interest by lending the money they create.
Our currency, the Federal Reserve Note (commonly called the dollar), is a fiat currency and, as such, is not backed by gold, silver, or any other commodity.
The Federal Reserve System was legalized in 1913 with the passage of the Federal Reserve Act.
The act was sold to the public as a way to “break the grip of the money trust” but the details of the system and its functions were drafted and agreed upon by the financial elites of the day. History has shown the system to benefit the financial elite and the Federal Government at the expense of the middle class and the poor.
In 1933, under President Franklin Delano Roosevelt, gold was confiscated from the American public and a law passed forbidding citizens from owning gold bullion (Executive Order 6102 and the Gold Reserve Act of 1934).
Confiscated gold was redeemed at $20 an ounce. Afterword gold was “revalued” at $35 an ounce. This event makes clear that the Federal Government was not being honest with the American public about the value of the metal or, more importantly, the value of the Federal Reserve Note.
It can be argued that the Federal Reserve’s reckless expansion of credit (the Roaring Twenties) was the root cause of the Great Depression.
Instead of admitting the system’s insolvency the government bailed the system out at the expense of the liberty and treasure of the American Public. Sound familiar?
Today’s Federal Reserve Note is worth about 5 cents compared to the dollar that the Federal Reserve inherited in 1913. Gold is now selling around $1,000 an ounce. The actual value of the precious metal is not changing so much as the value of Federal Reserve Notes is depreciating.
The Federal Reserve prints money, not wealth. Newly created money gains its purchasing power by devaluing the existing stock of money. This is why prices go up.
The purchasing power that is lost from the existing money stock is transferred to the financial elites, the government, and, by extension, the politically connected. This process is immoral and causes untold harm to our economy and political process.
The Federal Reserve is protected by law from being audited in such important areas as: “transactions conducted on behalf of or with foreign central banks, foreign governments, and non-private international financing organizations … and open market operations …” and the list goes on.
Why aren’t we allowed to know? Who does the system really protect?
The history of central banking is quite dramatic and thought provoking. I encourage concerned citizens to investigate and scrutinize. As a nation we have great challenges on the horizon and there must be a vigorous intellectual debate on behalf of liberty and a free society.
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” — Thomas Jefferson.By Greg Hildreth
People generally trust the government and the Federal Reserve to... more
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Alex welcomes back to the show Texas Congressman and former Republican presidential candidate Ron Paul. Paul’s bill, H.R. 1207, the Federal Reserve Transparency Act of 2009, has gained tremendous momentum since it was introduced in the House last February.
Alex Jones Channel
Thursday, July 29, 2009Alex welcomes back to the show Texas Congressman and former Republican presidential... more
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Texas Congressman Ron Paul, the driving force behind HR 1207, legislation that would see an audit of the Federal Reserve, joined Alex Jones live on air yesterday to provide a short update on the progress of the bill.
“I think it’s rather amazing,” the Congressman told listeners, “a year or two ago I imagine very few people even thought about the Federal Reserve.”
“But I think because of the economic crisis, because of the blundering with TARP funds, when the American people said we need to know what you guys are doing with and how you’re wasting the money, we saw an opening that we could call attention to about what kind of shenanigans has been going on at the Federal Reserve.” Paul commented.
The Federal Reserve Transparency Act now has 279 co-sponsors in the House and 20 in the Senate, meaning that more than 64% of the House of Representatives is already co-sponsoring the bill.
“There’s a lot more yet to come.” Congressman Paul said. “We need to know what they are doing, that’s why our audit bill is so important, but eventually though we need a sound monetary system, and I think that if we continue with our progress, hopefully we’ll reach that point some day.
There is strong bipartisan support for the bill with both Republicans and Democrats getting behind the legislation.
In addition, recent polls conducted by Gallup and Rasmussen have found that a vast majority of the public are suspicious of the Federal Reserve, with 75% in favour of an audit.
“The new survey finds that an overwhelming majority of Americans in every demographic category – including age, gender, political affiliation, race and income – disagree with Bernanke and favor auditing the Fed to make its secretive deliberations public.” Rasmussen writes.
“The Fed feels so much on the defense that they send the Chairman of the Federal Reserve Board out to hold town hall meetings.” Congressman Paul told listeners, chuckling. “That is hilarious.”Texas Congressman Ron Paul, the driving force behind HR 1207, legislation that would... more
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Chairman’s nerves show through when challenged on H.R.1207
Federal Reserve chairman Ben Bernanke appeared incredibly nervous during an interview aired last night on PBS’ NewsHour, particularly during a question on the ongoing effort to pass legislation that would see the Fed’s books being opened up to a general audit.
In a display that will greatly encourage those who continue for push for greater transparency of the privately run Fed’s actions, Bernanke stammered and stuttered his way through the interview, his voice shaking as he attempted to rail against calls to audit the Fed, reciting now familiar and standard lines of propaganda.
“There’s an effort in Congress, and in the House in particular, to audit what the Federal Reserve does, particularly in monetary policy. How do you feel about that?” asked PBS’ Jim Lehrer.
“So that bill, people don’t fully understand what that bill is about. It sounds like, audit the Fed, it sounds like ‘Let’s look at the books.’ That’s what it sounds like.” Bernanke spluttered.
Clearly flustered and sounding very unconfident, Bernanke continued:
“What people don’t understand is that this bill would give the GAO, the GAO, the authority to audit monetary policy. And what does that mean? That means if the Federal Reserve decided a year from now that because of incipient inflation it was time to raise interest rates, that the Congress would say, ‘Ah, the GAO’s going to audit that decision. It’s going to subpoena your materials. It’s going to demand information from members of the FOMC. It’s going to evaluate your decision. It’s going to report to Congress.’ I don’t think that’s consistent with independence.” Bernanke said.
Watch Bernanke respond to the question regarding the bill:
http://www.pbs.org/newshour/video/share.html?s=news01pa98Chairman’s nerves show through when challenged on H.R.1207
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It looks like the Federal Reserve may finally have something to worry about now that HR 1207 is finally gaining serious steam. If enacted, HR 1207 will amend title 31 of the United States Code and reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States. In other words, for the first time since 1950, the criminals at the Federal Reserve will be forced by law to open their books.
HR 1207 was sponsored and introduced by Rep. Ron Paul. On February 26, 2009, it was referred to the House Committee on Financial Services. It now has 179 co-sponsors (see the list of sponsors below).
If passed, the bill will force the Fed to give a public accounting of the trillions of taxpayer “loans” handed over to the banksters. It will force Congress to audit the Fed and this will force out into the light of day the Fed practice of inflating the currency for the gain of a small number of international bankers. It will reveal the bankster practice of engineering financial crises and depressions — or scientifically created, as Congressman Charles A. Lindberg Sr. said after the Federal Reserve Act was passed in the dead of night — in order to consolidate illicit gains and eliminate competition (as the bankers are monopoly men).
On March 25, 2009, H.R. 1207 had 44 co-sponsors. “We’re making great progress because a lot of you have helped encourage your member of Congress to co-sponsor the bill,” Ron Paul said. “And to me, this is very, very important that we do this. The atmosphere in the Congress has definitely changed. It’s changed with their attitude about the Federal Reserve System, but overall there’s a tremendous push by the American people for the Congress to wake up and have more transparency… I have argued, of course, that we don’t need the Federal Reserve. It’s not part of our constitution and we should get rid of it, but it doesn’t happen that way. But if we get the audit and get the books open, make them answer the questions, I am convinced that the American people will be so outraged that then we will have reform of the monetary system.”
Imagine Ben Bernanke, shorn of his arrogance, dragged before Congress and compelled to answer questions. In the not too distant past, this prospect was a remote dream, but now, thanks to Ron Paul and all the people who have insisted their representatives support this bill, it may become law.It looks like the Federal Reserve may finally have something to worry about now that... more
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111th CONGRESS
1st Session
H. R. 1207
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 26, 2009
Mr. PAUL (for himself, Mr. KAGEN, Mrs. BACHMANN, Mr. BARTLETT, Mr. JONES, Mr. REHBERG, Mr. POSEY, Mr. BROUN of Georgia, Mr. POE of Texas, Mr. BURTON of Indiana, Mr. ABERCROMBIE, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.111th CONGRESS
1st Session
H. R. 1207
To amend title 31, United States Code,... more
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