Congress Votes To Audit Federal Reserve

by Doc Vega | July 31, 2012 at 11:18 am

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It took more than 30 years for Texas Republican Senator, Ron Paul has lobbied for the audit of the Federal Reserve. His efforts have been rejected by such officials as Alan Greenspan, former Fed Chairman, as well Ben Bernanke. In a rare bi-partisan cooperation in Congressional vote Democrats voted alongside Republicans to force the Federal Reserve to open its books and exercise transparency.

Unaccountable to Congress

California Republican, Duncan Hunter was interviewed about the momentous move by Congress to finally demand that Federal Reserve records be made public. Stressing transparency as the major reason, he pointed out that in the current crisis Congress should know who the Federal Reserve is lending money to and what they are doing with the trillions of dollars that are used to quantitatively ease the gigantic US deficit. Even though he conceded that the Federal Reserve does not necessarily answer to Congress.

Few Americans are aware of the fact that the Federal Reserve is not a part of or owned by the US government. The Federal Reserve is a privately owned entity that answers to a cartel of powerful banking families who control the majority of monetary policy in the world. They have no allegiance to the US government or any other international government. The implication here is that the Federal Reserve will be influenced by its own agenda, its own interests, not those of America.

Ron Paul was outraged to find out that divulged in the first audit of the Fed a few months ago that European Banks were receiving money from the Federal Reserve at zero interest. Prior to that it was revealed that 14 trillion dollars in secret loans had been made to a number of foreign banks and businesses overseas. At the time the US GDP was 14.8 trillion at the time. It now costs more than 15 trillion a year to run the bloated federal government. There certainly are legitimate concerns over the huge sums of money it takes to fund a central US government that cannot seem to balance its own budget.

How the monetary disease in America began

The Federal Reserve has continually argued in favor of their existence. It was the Revenue Act of 1913 that under President Woodrow Wilson resurrected the central bank as well as the IRS. Wilson would later publicly lament that he had been deceived into supporting such a vial entity. Arguing that we need a central bank, proponents think that a privately owned bank would add stability to US currency and markets, yet 16 years after the Revenue Act, the 1929 stock market crash occurred sparking the Great Depression. We have had numerous recessions since in a roller coaster economy that has never reflected a reliably predictable stability. Why? The world bankers who control the banks of the world make money through speculation and hedging when markets The world bankers who own the Federal Reserve even make money when war breaks out selling arms to both sides. This further demonstrates their lack of allegiance to any nation.

We did just fine without them

President Andrew Jackson abolished the central banks in 1844 due to the fact that he realized the European bankers would exert foreign influence over American monetary policy. He survived several attempts at assassination that were sponsored by these European world bankers. For the next 75 years America flourished establishing international trade and becoming a formidable world power. We did it without the Federal Reserve until 1913. Since then there has been a depression, two world wars, numerous civil wars, US supported police actions, and several recessions. The US dollar has significantly lost its buying power to the point that in order to be able to buy $20.00 in 1972 we would have to spend $122.00 with today’s dollar. That represents a significant loss in value. This was the very thing the Federal Reserve promised would not happen to our currency.

No trust earned

The events of history tell us that we should be very concerned over what the Federal Reserve is doing with the money supply. Congress should have had access to the banking records of the Fed a long time ago, but there has always been resistance to transparency up to the recent severe economic malaise we have been under here in America. The Federal Reserve is currently printing worthless paper that is fiat currency that is not backed by any precious metal or assets of value. Is this what our nation needs as a monetary system? Definitely not. Audit the Fed, then we will see the paper trail that tells us just how badly our interests are being compromised.

What about the Senate

Now we await the vote of the Democrat controlled Senate where Harry Reid has tabled almost every excellent fiscal proposal that has been presented by the Republicans simply for political reasons. In doing so he has propped up President Obama’s continued spending spree without a budget and without a balanced budget amendment.