Ben Bernanke: Federal Reserve audit would constitute “takeover” by Congress, threaten the “financial system, dollar and economy”

When asked by Rep. John Duncan on Thursday about the fact that a majority of Congress is co-sponsoring Ron Paul’s HR 1207 bill to audit the Federal Reserve, Ben Bernanke responded:

Ben Bernanke: “My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”

While many viewers interpreted Bernanke’s statements as a “threat”, we would not rule out the possibility that he was merely stating an opinion that is indeed shared by many economists who grew up under the notion that the autonomy of the Federal Reserve and its mission to centrally manage the economy is sacrosanct and not open to debate.

Fortunately, times have changed and serious questions are being raised as to…

  • what the Federal Reserve has been up to in recent years,
  • its role in the current economic crisis and the creation of the housing bubble through artificially low interest rates,
  • its secret agreements with foreign powers and foreign banking institutions with no oversight whatsoever
  • its disastrous effect on the dollar, which lost 96% of its value since the Fed was established in 1913
  • whether the Fed should have as much unchecked power as it currently does, and
  • the safest way to abolish the Fed if it is established that it has in fact outlived its usefulness.

It’s interesting to consider what happened when President Andrew Jackson tried to abolish one of the Fed’s predecessor banks, the Second Bank of the United States, during his second term (1833 – 1837):

Jackson believed that his reelection was a mandate from the people to break the power of what he called “this hydra of corruption,” the Second Bank of the United States. To accomplish this, Jackson decided to withdraw government money from the bank to pay current expenses and to deposit future government revenues in selected state banks. These banks were called pet banks. Jackson appointed Roger B. Taney of Maryland as secretary of the treasury to carry out this policy after his two previous secretaries refused.

Bank President Biddle and his congressional supporters, led by Clay and Webster, were determined to save the bank. Biddle used the bank’s money to buy political favors. In 1834 the Senate passed a resolution of censure against Jackson and refused to confirm Taney’s appointment to the Cabinet. Biddle said, “This worthy President thinks that because he has scalped Indians and imprisoned Judges he is to have his way with the bank. He is mistaken.”

Biddle began to restrict credit and call in loans from state banks. Business leaders pleaded with Jackson to approve the bank and end the crisis. However, Jackson placed the blame for the panic on the doorsteps of Biddle’s bank and advised all callers to “Go to Nicholas Biddle.” Biddle’s reply was: “All the other banks and all the other merchants may break, but the Bank of the United States shall never break.”

In this struggle for power, Biddle was doomed to defeat. Jackson rallied public opinion behind him, and Biddle was pressured into restoring credit and loans. All he had proved was that Jackson was correct in his contention that a private monopolistic bank, independent of government regulation, should not be entrusted with public finances. Jackson won his greatest political victory, and the Second Bank of the United States passed out of existence when its charter expired in 1836.

Emphasis addedSource

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  • asdasdasdasd

    im the batard larry my pic

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    • longshotlouie

      Who got high for lunch?

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  • Michael

    Andrew Jackson and President John F. Kennedy tried to abolish the sinister Federal Reserve, it unchecked fiscal power and theft of legal taxpayer revenue. The Fed and its many members are all thiefs. Kennedy enacted an Executive Order granting the Treasury and Congress to print Silver Certificates towards the Governments debt (much like the gold Standard in some respects). It is believed that this E.O . is still valid an on the books and in my opinion should be reinstituted taking financial control away from the Fed, the Rothchilds and their many spider webbed banking partners who have ruined the wolrd financially.

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    • Lindsey

      Michael: There was no Federal Reserve during Jackson’s term of office. However he did refuse to re-charter the Second Bank of the United States which was in some ways similar to the present Federal Reserve. We need a modern day Andrew Jackson elected in this country for sure.

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  • sonofliberty

    Can anyone enlighten me on why, when we have provisions for a treasury, do we need a central bank? Didn’t the country operate quite well without any central bank after the second was abolished?

    Thank you.

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  • java

    and lastly you always boast about your degree, well in fact you are just in the almost passing mark. i really hate posers like you. i have a degree at harvard. nananana… asshole

    arrogant, you never proven yourself to any of your accomplishments at ALL…

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  • java

    what do you mean Larry?!!!

    are you insane or what?!!!

    you don’t make any sense at all nd on top of that ur no graduate of harvard ur a fake. dont claim somethin thats not true

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  • Fact Checker

    Uh the first video you have posted is the English Language version of Russian News (thats what the RT stands for). Didn’t know Ron Paul was a shill for Putin. That or Ron Paul got punked again.

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    • longshotlouie

      uh, is the local MSM your only source for global goings-on?

      Wouldn’t you have to be punked once to be punked ‘again’?

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  • Pingback: Ron Paul’s ‘Audit the Fed’ bill ‘gaining steam’ « Bussiness blog()

  • longshotlouie

    CIA recruiting bankers?
    http://www.reuters.com/article/topNews/idUSTRE55H6CH20090618?feedType=RSS&feedName=topNews

    CIA-funded company invests in image-search company PixLogic
    http://www.pixlogic.com/news/press_coverage/miami%20hearld.htm

    CIA and their drugster friends
    http://www.motherjones.com/politics/1998/08/total-coverage-cia-contras-and-drugs

    The BCCI-CIA Connection
    http://www.newsweek.com/id/126126

    With friends like that, who needs enemies?

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    • christine

      Rant…
      The last article starts with this …”BCCI [bank] was involved in some of the most sensitive intelligence operations of the Reagan-Bush years, including the secret sales of arms to Iran.”

      …and then I think of the current day talks of needing to curtail Iran, possibly war with Iran. We’re WITH other countries, then we’re AGAINST them. It seems these dangerous folks behind the curtain think of the earth as a giant game board, merely moving pieces (people, armies, convincingly with propaganda and lies) here and there, using whomever and whatever means to accomplish, what? A world where nobody thinks for themselves, a world with these type of folks in charge, an earth that will never know peace with them perverting everything good. When does it stop?

      Our own country, America is slipping further and further away and into the kind of destabilization our governemnt secretly uses to destroy other countries to institute democracy. I’m thinking democracy was not our original form of government. We had a government for a republic. This spreading of democracy seems to be the spreading of the cancer, a government run by the elite bankers. If a democracy is what we have been perverted into, then we see how well it is working for us now. Why would we want to go to war to impose this on anybody!?!

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    • christine

      …and as an aside from that last article, there are two title companies that collect all the data on foreclosed homes, then that data filters out to all other title companies. First American is one of the two lead companies. Hmm… someone’s working towards getting more and more consolidated control over the houses in America.

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  • Watt Thehey

    More damning evidence that the Nobel Prize racket is just another Leftist circle-jerk. http://abcnews.go.com/ThisWeek/Politics/Story?id=7966402&page=2

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  • longshotlouie

    “Beijing, which has floated the idea of an alternative to the dollar as world reserve currency, wants the matter — sensitive in financial markets wary of risks to U.S. asset values — broached at a July 8-10 summit in Italy, officials say.”
    http://finance.yahoo.com/news/Dollar-discomfort-thrust-rb-1788837588.html?x=0&.v=2

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  • SAUL EBSTINE

    YES BERNANKE, WE WANT OUR ELECTED CONGRESS TO TAKE OVER THE Fed.Reserve BEFORE IT DESTROYES OUR COUNTRY.AND I BELIVE BERNANKE IS A DOUBLE AGENT WORKING IN THE BEST INTRUST OF THE FED. RESERVE A PRIVTE BUSINESS OWNED BY THE ROTHSHILDS WHO SAID HIMSELF HE WANTS TO RUN THE WORLD.

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  • Christine

    The Declaration of Independence Hollywood Style (audio/video)

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  • Goldback

    “We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.”
    Daniel Webster,
    speech in the Senate, 1833

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  • Goldback

    “With the monetary system we have now, the careful saving of a lifetime can be wiped out in an eyeblink.”
    Larry Parks, Executive Director,
    FAME Foundation for the Advancement of Monetary Education

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