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Ron Paul: Audit the Fed, Then End It!

by Ron Paul | Texas Straight Talk
May 19, 2009

I have been very pleased with the progress of my legislation, HR 1207, which calls for a complete audit of the Federal Reserve and removes many significant barriers towards transparency of our monetary system. This bill now has nearly 170 cosponsors, with support from both Republicans and Democrats. Senator Bernie Sanders has introduced a companion bill in the Senate S 604, which will hopefully begin to gain momentum as well. I am very encouraged to see so many of my colleagues in Congress stand with me for greater transparency in government.

Some have begun to push back against this bill, and I am very happy to address their concerns.

The main argument seems to be that Congressional oversight over the Fed is government interference in the free market. This argument shows a misunderstanding of what a free market really is. Fundamentally, you cannot defend the Federal Reserve and the free market at the same time. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy. In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market. The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters.

Instead, Congress has abdicated this responsibility to a cabal of elite, quasi-governmental banks who, instead of stabilizing the economy, have destabilized it. It took less than two decades for the Federal Reserve to bring on the Great Depression of the 1930’s. It has also inflated away the value of our currency by over 96 percent since its inception. It has invisibly stolen from the poor and given to the rich through this controlled inflation, and now openly stolen through recent bank bailouts. It has predictably exacerbated the very problems it was meant to solve.

Detractors have also argued that the Fed must remain immune from the political process, and that that more congressional oversight would distort their very important decisions. On the contrary, the Federal Reserve is already heavily entrenched in the political process, as the Fed chairman is a political appointee. High level officials routinely make the rounds between positions at the Fed, member banks, Treasury and back again, taking care of friends and each other along the way.

As far as the foolishness of placing complex monetary policy decisions in the hands of politicians – I couldn’t agree more. No politician or central banker, no matter how brilliant, is smart enough to know more than the market itself. The failure of central economic planning has been witnessed over and over. It is frankly beyond me why we ever agreed to try it again.

To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have. They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability. Thus the loudest arguments against greater transparency are likely to come from those friends, and understandably so.

However, it is the responsibility of every member of Congress to represent the interests of the people that sent them to Washington and find out what has been happening with our money. As the branch of government with the power of the purse, we really have no other reasonable choice when the economy is in the shape it is in.



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New Film

I made a new film series dealing with the Federal Reserve and the Global Elites. Its called "Sons Of Darkness, Sons Of Light". The first episode examines "Collectivism". Check it out here and let me know what you think:

http://neithercorp.us/media

Thanks.

I loved it

Great work! Check it out folks !
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IDEA to push the state govenors

I think Ron Paul should either invite all the governors of the united states to back this bill. By saying to protect the people of my state if washington does not pass bill HR1207 which is a simple audit of the federal reserve to see where we stand. MY state ______ will secede from the united states of America. ALL 50 states should want a governor that will secede why is this because its what a real check and balance is. If Washington thought they could lose power WOW we would not be in the boat we are today. How is it not protecting you to have a governor willing to secede. It puts the state in power and gives the people power if I think this would be a real test to see if your governor of your state cares about the people................... just a thought

NICK

Here's something to watch.

Here's something to watch. The director of the GAO, which does the audit, serves a 15 year term. But the last one selected by the prez and confirmed by the senate, left his post and appointed the current director, who is only an interim director. He will remain in that position until the President nominates and the Senate confirms a successor from a list of candidates chosen by the Congress.

Send a petition then send a donation in Honor of HR 1207

I also came up with another great idea after you send a petition to your US Senators on Audit the Fed. How about a donation to Dr. Rand Paul campaign in honor of HR 1207 and the US Senate Companion Bill.
Please view: http://www.randpaul2010.com/

Ok. We audit. Then we end it. But there does not seem

to be a distinct process and proposal into what it will become if we are to have 'sound' money.

I am concerned about this because a certain Lyndon LaRouche is proposing a 'Hamiltonian-style' National bank! http://books.google.com/books?id=vhsh1V-hcTUC&pg=PA30&lpg=PA...

I would like to know what Dr.Paul has in mind to replace the Federal Reserve assuming it is dismantled?

"The courage of one man is a majority" - Andrew Jackson

Federal Reserve Replacement-Donation in Honor of HR 1207

That is an easy answer, but a little hard to implement as policy, but you go back to a banking system prior to 1913, but with the safety net policies enacted during the past one hundred years. The dollar would be backed by gold, silver and whole host of precious metals that may also include coal or oil.
In honor of SB 607 and HR 1207 please make a donation of $12.07 or more to Dr. Rand Paul's US Senate Campaign. Please view: http://www.randpaul2010.com and pass the idea along on digg, face book, myspace, twitter, and your circle of peers.

Replacement is free-market money

I would like to know what Dr.Paul has in mind to replace the Federal Reserve assuming it is dismantled?

Just like there is a free-market in shoes + tennis racquets.

Regarding Larouche, that guy is a moron, but his idea of a "Hamiltonian" style bank would probably have a lot of support in Washington unfortunately..

Exactly! That is why I would like to hear from Dr. Paul

what his succinct proposal is exactly. I am talking about a 'construct' and the mechanism with with we make that 'transfer'.

Of course I know we need a 'free market'. But we cannot have a free market unless this monstrous monopoly is finally dismantled and replaced with a system that is transparent and designed to support a free market currency.

Its just that I have not yet heard or read of a proposal directly from Dr. Paul.

"The courage of one man is a majority" - Andrew Jackson

Question: Why has this taken so long?

I'm not complaining. This bill is historic and now enjoys huge support. To stop it at this point will take a huge concerted campaign of blackmail, bribery and extortion -- all the usual tools of day-to-day Washington power scheming, which those who rule us will surely deploy. Won't they?

Or, has this belated but very serious challenge to the Fed also been orchestrated and put into play at this point in time, in preparation for the the demise of the USD in favor of IMF 'special drawing right' or some such globalization blarney? That is my question.

Someday I would love to hear from Rep. Paul himself why he and others did not introduce this bill sooner. Surely Paul understood the Fed as a racket, decades ago. I would like to get his insight into why criticism of the Fed was taboo, even among fiscal conservatives, and why is the zeitgeist suddenly behind him now. Yes, the recent exposure of Wall Street's criminal mendacity is a big help. But consider this: the same Congress that is now jumping on Ron Paul's bandwagon today, was the same Congress that knuckled-under to the well-organized TARP and bailout racket that scammed taxpayers for a trillion bucks. Congress was powerless to resist. So, how is it that Congress now has found its starch and is able to stand up to the Fed at long last. Rep. Paul, if you can provide some insight, please do. Thank you for all your remarkable efforts.

1truegospel.org

Ron has been introducing

Ron has been introducing "abolish the Fed" bills every congressional session for years. He's been the"voice crying in the wilderness".

What has happened NOW is the economy tanked and the Fed's part in the disaster (and the disastrous inflation used to fund the "bailouts") is in the spotlight.

When the bailout money - to the tune of trillions - was given out, some congresscritters asked where it went. And the Fed said "We won't tell you!". And the congresscritters looked at the law and it said the fed didn't HAVE to tell them.

So now the congresscritters are bent, and their constituents (who were calling in at 95% AGAINST the bailout in the first place) are rattling their cages. So they're willing to sign on to a law change that will let them audit the fed and FIND OUT where the money went. And it might get the law through before the power brokers organize a way to head it off.

The congresscritters no doubt think the audit will give them breathing room while some of the anger maybe dies down. And if things keep getting worse it will no doubt let them make scapegoats of the Fed officials.

Which is just fine by me: It could give us the chance to dismantle the Fed itself in the process of (figuratively) putting its officials' heads on pikes on the walls of the capitol building. B-)

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

DR. PAUL GAVE SPEECH 2 HRS. AGO ON HOUSE FLOOR.

Marilyn in Lake Jackson

Thanks Dr. Paul, for your wisdom.
A COUPLE OF HOURS AGO Dr. Paul gave a knock-out speech on the House floor. I can't believe I caught it live. Hope it gets posted here on on campaignforliberty.com soon. It was awesome.

MarilynInLakeJackson

Mayrilyn in lake

I caught his speech live all so!! WOW I'v been watching DP post to see if it get's posted. It's a must see :o)

Not only should it be the

Not only should it be the responsibility of every member of the Congress to keep an eye on the Fed, it should also be their responsibility to learn more about economics and sound money. It's unconscionable that they have been ignorant for so long. The same goes for the average citizen, who should know enough to keep their elected officials in line.

The possibility of the Congress "micromanaging" the Fed is a real one...which is why the next step should be to abolish it. Things that don't exist cannot be managed at all...and that's good. Getting rid of the Fed is an important step to reestablishing a free market.

Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.
Thomas Jefferson

Malo periculosam libertatem quam quietam servitutem. ("I prefer the tumult of liberty to the quiet of servitude"). Thomas Jefferson to James Madison, 30 January 1787.

I want to have legal ability to create my own money

I'd term the legal tender.. Illusionairy notes. Then I'd create a fractional banking system and hold all souls in debt eternally.

Find out if you have a local militia - http://www.uaff.us/

Real Patriots for 9/11 truth -- http://patriotsquestion911.com/

If by some miracle

This bill is passed I believe it will be the eye-opener for the masses. Which is what the good Doctor intended. :)

Either way it's an eye opener

just like Ron's run for the Republican nomination. even though he didn't win the nomination, he won an army of like minded people & rattled the cages of those of us (me) that were asleep.
I wouldn't want to be the Congress member trying to explain to my constituents why I didn't want an audit of the Fed if this bill doesn't pass
So Either way it's an eye opener

eye opener indeed

if this passes, game over.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

Yep, just as I thought...

The Fed was created to give America's money to the power brokers both foreign and domestic. America is their personal piggy bank. Thanks to the Fed.

Wouldn't be at all surprised if our money wasn't being used to manipulate the markets, including oil.

To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have. They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability. Thus the loudest arguments against greater transparency are likely to come from those friends, and understandably so.

Get rid of the Fed now!

It's an illegal banking cartel that's ruining this country. Abolish the Fed.

Give me control of a nation's money and I care not who makes the laws - Mayer Amschel Rothschild

Despite Ron's intentions, is

Despite Ron's intentions, is it possible that the 'average Congressman/Congresswoman' would be emboldened to micro-manage the Fed, instead of the intended effect of auditing and ending the Fed?
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"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

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"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Conspiracy Theorists Are Extremely Valuable

Without them there is NO watchdog. Always challenging the STANDARD WHITEWASHING of every important event or issue, conspiracy theorists do thankless work of digging down deep, and deeper, providing healthy suspicion where vacillating armchair intellectuals fear to go with their 'Wait a minute, wait a minute' blinders on, and their secular-faith based semi-trusting whimper.

I admire the conspiracy theorist for doing the heavy lifting for the rest of us, feeding us ideas and investigative fervor.

Far, far from "being more comforting" as it is so easily said, these people have a thicker skin than the rest of us, are willing to take the abuse, and over the long run of history they have often been closer to the truth.

Actually, "conspiracies" are

Actually, "conspiracies" are the norm. They are part of how people act when they do things to protect themselves. The problem is proving intent or maliciousness.
..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Ya, if the FED loses its "independence"

that would mean that the Congresspeople would have more control over it.

IMHO

There isn't much difference who is in control. Both would use it to help themselves and there friends, but it is much better that they have to do it with everyone watching instead of behind closed doors...

We must start to chip away at it - take baby steps. Much like the government has chipped away our liberties over the past 200 years.

We won't get all our liberties back in one swoop, but we need to set small, realistic goals to start changing things.

I agree with your line of thinking

In fact I think it'd be probably worse if the congresspeople had direct control over it.

It's near impossible to

It's near impossible to extract a politician from a power position, barring a major scandal (maybe if they actually killed someone?). This is my biggest problem with getting a half-measure approved instead of the full measure (ending the Fed).
..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Ya... But keep in mind that ending the FED is

itself just another partial measure.

All taxes also need to be removed from potential replacement monies (ie. gold, silver, etc). And the legal tenders laws on FRN's need to be abolished.

Thanks, Michael

Was hoping that was the angle.
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Libera me, let the truth break, what my fears make--Leslie Phillips

There is no God who condones taking the life of an innocent human being. (but I want you to pay for it, like it or not!) --Barack Obama at the National Prayer Breakfast

"Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the office of a thoroughly nasty business concern." ~~C.S. Lewis
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15