Ron Paul Introduces Bill to Audit the Fed

February 26, 2009

Madame Speaker,

I rise to introduce the Federal Reserve Transparency Act. Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95% of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy. How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation.

Serious discussion of proposals to oversee the Federal Reserve is long overdue. I have been a longtime proponent of more effective oversight and auditing of the Fed, but I was far from the first Congressman to advocate these types of proposals. Esteemed former members of the Banking Committee such as Chairmen Wright Patman and Henry B. Gonzales were outspoken critics of the Fed and its lack of transparency.

Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations. While the conventional excuse is that this is intended to reduce the Fed’s susceptibility to political pressures, the reality is that the Fed acts as a foil for the government. Whenever you question the Fed about the strength of the dollar, they will refer you to the Treasury, and vice versa. The Federal Reserve has, on the one hand, many of the privileges of government agencies, while retaining benefits of private organizations, such as being insulated from Freedom of Information Act requests.

The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight? Particularly when hundreds of billions of dollars of currency swaps have been announced and implemented, the Fed’s negotiations with the European Central Bank, the Bank of International Settlements, and other institutions should face increased scrutiny, most especially because of their significant effect on foreign policy. If the State Department were able to do this, it would be characterized as a rogue agency and brought to heel, and if a private individual did this he might face prosecution under the Logan Act, yet the Fed avoids both fates.

More importantly, the Fed’s funding facilities and its agreements with the Treasury should be reviewed. The Treasury’s supplementary financing accounts that fund Fed facilities allow the Treasury to funnel money to Wall Street without GAO or Congressional oversight. Additional funding facilities, such as the Primary Dealer Credit Facility and the Term Securities Lending Facility, allow the Fed to keep financial asset prices artificially inflated and subsidize poorly performing financial firms.

The Federal Reserve Transparency Act would eliminate restrictions on GAO audits of the Federal Reserve and open Fed operations to enhanced scrutiny. We hear officials constantly lauding the benefits of transparency and especially bemoaning the opacity of the Fed, its monetary policy, and its funding facilities. By opening all Fed operations to a GAO audit and calling for such an audit to be completed by the end of 2010, the Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve. I urge my colleagues to support this bill.

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.

1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

This Act may be cited as the “Federal Reserve Transparency Act of 2009”.


(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:


“(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 sub-committee 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.”.


Rep. Ronald Paul [R-TX]


The number of co-sponsors keeps growing! Check out the latest list here.

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  • LetFreedomRing

    WE Americans who still hold our Constitution dear to us, support you 100%! Even if this bill does not make it thru Congress, at least we will know where we as Americans stand with our government. Either way, you will have served us well. Thank you and God Bless you Dr. Paul!

  • Jerry Claunch

    Dr. Paul, this is my second posting to your website, and it’s apparent that the liberalists have managed to blind-side the American people, and make a mockery of our belovd Constitution. Socialism, Marxism, Fascism or whatever you wish to name it has no place in America. However, the criminals, bleeding hearts, and people looking for handouts have changed our country to the point of making ordinary American citizens nothing more than a manpower pool and unlimited bank account. Have we not called that slavery forever? Send me to the Roman games so I can win my FREEDOM! WE NEED YOU IN THE WHITE HOUSE!!!!!!!!

    God Bless You, Dr. Paul!

  • David Howard

    911 “Mastermind” George Bush Sr.

    google: Quadri-Track ZCT

  • Ben

    Hey Mr. Paul,

    Please don’t run for President. While you would be the obvious best candidate, you will surely be assassinated, as you would represent the biggest threat to the Federal Reserve that has yet existed. Even JFK was assassinated, and all he did was introduce notes issued by the treasury that were backed by silver. Pretty sneaky, but he still got assassinated. If you become president, I am afraid we will lose an important leader very quickly to assassination, when you can do so much relatively under the radar in congress, inspiring people! If you run for pres though, I will definitely vote for you.


  • johnnyboy

    Bravo to ron paul, the government will continue to lie, steal, and strip us of our rights and way of life untill we finally stand up as one nation under god, I am ready, are you?

  • zain syed

    Hello Dr.Paul,
    So nice and pleasing to see there are still beurocrats like you who are out there to preserve the constitutional rights of all the Americans. I bought your book “The Revolution A Manifesto”, thank you for educating the people on the true constitutional spirit. Hope more people folllow your concerns. Please come back in year 2012.


  • I am constantly disappointed as to the ignorance and general attitude of the american people

    • Mark

      What exactly do you mean by that Tamara?

      A) You are a supporter of the Constitution and what it stands for and it really does disappoint you to see this great country stand on the shaky ground that it is on now. If this is the case, you should really put more into your post. Or….

      B) You are not a supporter of the Constitution and really shouldn’t be posting on this site. If you do want to continue to post, at least come with something better than you can’t stand the attitudes of the American people because I am an American and although you probably don’t like my attitude, I have a feeling most people on this board like mine more than yours.

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  • Sue

    Thank you Dr. Paul for your Courage and your steadfast commitment to protecting the Constitution. You are our hero and we salute you!!!! Please run for President 2012, your country needs you!

  • Matt

    Dr. Paul, Thank you for your bravery and commitment to the United States. The Federal Reverse is a sham and deserves to be abolished like the the similar institutions before it. I am with you 100%!

  • YuvbinDuped

    The Banksters are running our Presidents and fully control Obama. Nothing has changed nor will it as long as they pull the puppetstrings of the President along with the CFR.

    It’s truly time for change, but as anyone can clearly see by now, there has been no change in America once again unless, of course you consider skin color.

  • Jack E

    Way to go Mr. Paul. I hope this works. Of course the best policy would be to desolve the Federal Reserve Bank all together; and even though the President has the power to do so, I doubt he has the nerve.

  • Ross Johnson

    If congress does not support this bill,then Americans will know that their entire political process is corrupted beyond redemption.

    Do not accept half baked audits that have parameters selected by the Fed.The entire process should be open and thorough.It won’t happen easily and the more resistance you encounter,the smellier will be the carcass of corruption and deception.

  • Jason

    Pay attention Congress, this is what a stateman does. He represents his state and looks after the citizens that sent him to Washington. He does not act as a representative of his party first.

    • matt

      Well said my friend…Well said!

  • Peter M

    I am not surprised that this Bill haven’t hit the front pages of the national news. Simply too controversial…

    Sad, cause this bill would be an eye-opener for the American people.

  • ronpaulfan

    Thankyou thankyou thankyou Ron Paul! Please run in 2012… despite the recent poll that placed you 3rd I think that the GOP is in such shambles right now and is looking for your kind of leadership to appeal to the youth of america and help rebuild a truly Constitutional Republican Party.

  • We The People! are behind you all the way!!! Ron Paul

  • EventHorizon

    Hope this makes it to the floor. Would LOVE to see who among Congress has the guts to support this bill. Sadly, I know it will get “tied up” in committee (would also love to know who ends up being responsible for that, as well).

  • Jerry Claunch

    Dr. Paul, I’m a former middle class American who supports you 100%, and hope, along with other Americans, that you will see success in your efforts to return America to Americans. I’m a former middle class American because of the IRS extortion, and racketeering practices they have made legal for their own benefit. I now must try to find work to support my wife, and home expenses. God speed, and good luck to you, sir.

    Jerry P. Claunch

    • william knight

      This is not Jerry Claunch from Phoenix that went to J.B.Sutton school is it? if so e mail me I went to school with you and Sharon.

      Anyway my response was, “THIS IS THE BIG ONE ELIZABETH”, Henry Gonzales has been trying for years to no avail, however if we could get this, at least started, we may be able to save this country before it is too late ! If you have a mind,go and read “Secrets of the Federal Reserve” (online), by Eustace Mullins, redone, the original writer was imprisoned in an insane asylum for 13 1/2 years and had all his writings burned etc.. You need to read the whole thing. If this can get done it will remove almost all the problems in this country. This is the writing that Jeckyl island and all the rest were taken from. MUST READ! Ezra Pound, who found all the dirt and documentation was the original…. They say conspiracy theory, but It’s not a “theory” when it’s happening, right before your very eyes,is it?

      • Jerry Claunch

        Hello, from Las Cruces, NM. I’m sorry, but I’m not the Jerry Claunch from Phoenix, AZ you mention in your post. Too bad, because my entire family thinks I’m a kook for supporting Ron Paul. Maybe the other Jerry has more support. Also, how do I access the online book “Secrets of the Federal Reserve”? I’m very in terested in how we’ve been duped for all these years.



        • william knight

          Well,thanks for answering, I went to school with some good people with the same name,I guess. Just google or whatever search engine you want, “secrets of the Federal reserve”, it’s about 250 pages, you can read it online or print it or whatever, if you take the time to read it all, you will know exactly what is going on, and it will make perfect sense. Thanks for responding, I am living in Heber,AZ. on the Mogollon Rim in the white mountains. Bill Knight. PS you’re no kook, I had to change my registration from independent to republican to vote for Paul in the primaries, but I think he’s one of the few that, “gets it”… later.