Sunday March 8, 2015
Copyright © 2015 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.
In recent weeks, the Federal Reserve and its apologists in Congress and the media have launched numerous attacks on the Audit the Fed legislation. These attacks amount to nothing more than distortions about the effects and intent of the audit bill.
Fed apologists continue to claim that the Audit the Fed bill will somehow limit the Federal Reserve’s independence. Yet neither Federal Reserve Chair Janet Yellen nor any other opponent of the audit bill has ever been able to identify any provision of the bill giving Congress power to dictate monetary policy. The only way this argument makes sense is if the simple act of increasing transparency somehow infringes on the Fed’s independence.
This argument is also flawed since the Federal Reserve has never been independent from political pressure. As economists Daniel Smith and Peter Boettke put it in their paper “An Episodic History of Modern Fed Independence,” the Federal Reserve “regularly accommodates debt, succumbs to political pressures, and follows bureaucratic tendencies, compromising the Fed’s operational independence.”
The most infamous example of a Federal Reserve chair bowing to political pressure is the way Federal Reserve Chairman Arthur Burns tailored monetary policy to accommodate President Richard Nixon’s demands for low interest rates. Nixon and Burns were even recorded mocking the idea of Federal Reserve independence.
Nixon is not the only president to pressure a Federal Reserve chair to tailor monetary policy to the president’s political needs. In the fifties, President Dwight Eisenhower pressured Fed Chairman William Martin to either resign or increase the money supply. Martin eventually gave in to Ike’s wishes for cheap money. During the nineties, Alan Greenspan was accused by many political and financial experts — including then-Federal Reserve Board Member Alan Blinder — of tailoring Federal Reserve policies to help President Bill Clinton.
Some Federal Reserve apologists make the contradictory claim that the audit bill is not only dangerous, but it is also unnecessary since the Fed is already audited. It is true that the Federal Reserve is subject to some limited financial audits, but these audits only reveal the amount of assets on the Fed's balance sheets. The Audit the Fed bill will reveal what was purchased, when it was acquired, and why it was acquired.
Perhaps the real reason the Federal Reserve fears a full audit can be revealed by examining the one-time audit of the Federal Reserve’s response to the financial crisis authorized by the Dodd-Frank law. This audit found that between 2007 and 2010 the Federal Reserve committed over $16 trillion — more than four times the annual budget of the United States — to foreign central banks and politically influential private companies. Can anyone doubt a full audit would show similar instances of the Fed acting to benefit the political and economic elites?
Some fed apologists are claiming that the audit bill is part of a conspiracy to end the Fed. As the author of a book called End the Fed, I find it laughable to suggest that I, and other audit supporters, are hiding our true agenda. Besides, how could an audit advance efforts to end the Fed unless the audit would prove that the American people would be better off without the Fed? And don’t the people have a right to know if they are being harmed by the current monetary system?
For over a century, the Federal Reserve has operated in secrecy, to the benefit of the elites and the detriment of the people. It is time to finally bring transparency to monetary policy by auditing the Federal Reserve.
For a background on the Federal Reserve, The Corbett Report has transcript
as well as the accompanying video below.
In relation to that Banking Power that runs both the Federal Reserve and also founded the Council On Foreign Relations, James Perloff, in a dated or pre-trillion dollar a year (and worse) deficit economy, gives an excellent lecture on the Council on Foreign Relations degrading influences on this Republic of the United States of America.
The lecture reminds me of a little slower paced but informative one I had from a former United States Undersecretary of State in regard to the Soviet Union (that nearly same in length lecture now being over 30 years ago, if I recall correctly) in which, after that lecture by the former U.S. Undersecretary of State, I and about 5 or 6 others spoke with him at great length and had a great and consistently energetic discussion for 5 hours following the lecture, and finally had to close it down well after 3 am in the morning.
Instead of a Department of State or a Congress that really cares about what is right for the Republic of the United States in upholding and preserving the Constitution of the United States, we have one that is being usurped by alien interests. These financial powers are discussed as if they are exclusively American, but the data we daily see before us suggests that there are multi-national partners in the equation that include those of China as well as those of Saudi Arabia who are "partners" on the "Board of Directors" who have dictated America into the Communist-Socialist and Islamic Agendas that we are being put through. These powers placed a known unqualified person into the Presidency in order to delegitimize and destroy the Constitution of the United States, and indirectly can be considered to "own" the major Corporate Media and Central Intelligence Agency who they have de facto hired to wage a domestic propaganda and voice of the people suppression campaign. Anyone who speaks up intelligently against them is to be discredited or ignored, and their representation is to be removed or Algorithmically diverted away from in all Internet Search Engines, so that short of a direct hot link, over time, it is as if those pro-Constitution and anti-corruption voices were never there...especially if they can have their sites shut down and removed, or actively censored from feedback and debates when the truth in those discussions especially strike a chord of making headway with the censors.
At present, there is the alleged "not to be just a rumor" that the Internet will be further censored with the addition of foreign citizens who will be employed specifically on Internet sites and servers. Some 85,000 who are alleged to be primarily Chinese Communists and Muslims from various nations with an Obama servile agenda in order to have and keep lucrative paying jobs here and obtain Green Card status with varying types of ambiguous immunities (as I understand it) will be taking their places in the offices of Google, Facebook, and Microsoft. The closest article to vetting this allegation, which is very highly or very probably true, at this time appears to be:
Next up on the plate on his way to dictatorship, is "The Power To Tax By Executive Order" in which the White House Press Secretary happily Reports that "Obama Is Very Interested"
and the Media does not protest and advise him he is in clear violation of the Constitution. We do not hear the Media harshly rebuke Obama or his Press Secretary and say "Who the hell do yo think you are? The power to "tax" is exclusively...EXCLUSIVELY given to CONGRESS." Nope. They are afraid to be "impolite" and speak up and shout their dissent across the airwaves, in print, or through various digital mediums. So why do we have a corrupt Media who probably muse over what White House parties they might be invited to, and what imaginary benefits they might derive personally while the national Government is torn down and burns down around them, with their neglect and thereby their assistance? In regard to the Media -- (and perhaps a great many active members of Congress, as well) -- it may be that we need look no further than to their "secret society anti-U.S. Constitution loyalties" to the Council on Foreign Relations, which in turn is "loyal first and only" to what was once American Financial Institution "behind the scenes" interests, but now are growing into an international behind the scenes conglomerate of interests, all who would all be exposed if we fully audit the Federal Reserve, and make that audit fully public. Or so it seems.
For now, that's my input.