Audit the Fed: House Decisively Approves Ron Paul Bill

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Wednesday, the 25th of July, 2012 will be remembered by monetary policy conservatives from sea to shining sea for its incredible significance.  While many could disagree with Ron Paul supporters, one cannot deny their ferocious commitment to the Constitution, personal liberty, non-intrusive foreign policy, and especially their desire to liberate the US Dollar from the control of a private banking interest, otherwise known as ‘The Fed’.

On the 25th, Ron Paul’s ‘Audit the Fed’ bill finally passed with massive approval from the US House of Representatives with 327-98.  This is no slight win by the margin; this was an incredibly decisive victory, showing the heart of many in the US government.  The representatives of the American people want to take a look inside the shadowy rooms and dust off the books of the Federal Reserve Fractional Banking System.  Stephen Dinan of the Washington Times reports:

But House passage already marks a high-water mark for those who for years have been pushing for an audit, led by Mr. Paul. The Texas Republican rode the issue to prominence in two different presidential campaigns, and said the bill is a chance for Congress to begin to reclaim the money and banking powers it is given in the Constitution, but had delegated to the Fed.

“It is up to us to reassert ourselves,” Mr. Paul said during floor debate Tuesday.”

It is widely known in the corridors of power how much influence the Federal Reserve actually wields.  Historically, control of monetary policy has been able to influence entire governments.  In the words of Mayer Amschel Rothschild in 1838, “Permit me to issue and control the money of a nation, and I care not who makes its laws.”  As I have mentioned in the past, when corporations and governments craft an unholy alliance, it is uncertain who is truly governing.

Simply put, all Ron Paul wishes to do is have a look at the inner workings and decision making of the Federal Reserve.  After all, don’t the American people deserve a right to understand how their own dollars are being manipulated?  Why is the Federal Reserve opposing oversight?  What have they to hide?

The ‘Audit the Fed’ bill is not short of a few enemies for various reasons.  For instance, Dinan reports:

It seems to me what we’re talking about is taking some fake punches at the Federal Reserve but not doing anything serious,” said Rep. Barney Frank, the ranking Democrat on the House Financial Services Committee.”

Also, as reported on The Hill:

This bill would instead jeopardize the Fed’s independence by subjecting its decisions on interest rates and monetary policy to GAO audit,” said House Minority Whip Steny Hoyer (D-Md.). “I agree with [Fed] Chairman [Ben] Bernanke that congressional review of the Fed’s monetary policy decisions would be a ‘nightmare scenario,’ especially judging by the track record of this Congress when it comes to governing effectively.”

Yes, Hoyer just claimed that it is better to keep secrets from the American people, rather than ‘politicizing’ something that deeply affects every man, woman, and child in the nation …in the name of keeping us from some ‘nightmare scenario’.  Those in power claim that there is some shadowy, existential threat out there, so don’t question their authority.  That’s got to be the oldest trick in the book.

It is curious how the IRS is always chomping at the bit, so that they can have a look at the private bank accounts of American citizens, but the Fed is somehow exempt from this treatment?  Why?  Even the Federal Reserve Board admits that it is a private central bank.  In other words, We the People have very little control over such an important institution.  As states:

The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. About 38 percent of the nation’s more than 8,000 banks are members of the system, and thus own the Fed banks.

The concept of “ownership” needs some explaining here, however. The member banks must by law invest 3 percent of their capital as stock in the Reserve Banks, and they cannot sell or trade their stock or even use that stock as collateral to borrow money. They do receive dividends of 6 percent per year from the Reserve Banks and get to elect each Reserve Bank’s board of directors.

The private banks also have a voice in regulating the nation’s money supply and setting targets for short-term interest rates, but it’s a minority voice. Those decisions are made by the Federal Open Market Committee, which has a dozen voting members, only five of whom come from the banks. The remaining seven, a voting majority, are the Fed’s Board of Governors who, as mentioned, are appointed by the president.”

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