Big Government and the Fed: A Sinister Alliance

More Power for the Fed

by Ron Paul

Last week I was pleased to see my Republican colleagues take up the cause to fully and completely audit the Federal Reserve by including my language from the Federal Reserve Transparency Act in a Motion to Recommit the financial regulation reform bill. Although this effort was defeated by the Democrat majority, there were many good reasons to support it.

The Federal Reserve Transparency Act would eliminate restrictions on GAO audits of the Federal Reserve and open Fed operations to Congressional oversight. Additionally, audits could include discount window operations, open market operations, and agreements with foreign central banks, such as the ongoing dollar swap operations with European central banks.

Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight, while Congress has kept its hands off and its eyes closed. The Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95% its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy. The Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve System.

However, House and Senate negotiators failed to include the full language of my legislation in the conference report for the financial reform bill, and the full Congress missed yet another opportunity to demand accountability from the Federal Reserve by defeating the Republicans’ motion to recommit. Over 320 members of Congress from both parties cosponsored my original bill, which was incorporated into that motion to recommit. Almost 200 members of Congress who care about Federal Reserve transparency voted for this motion to recommit. Unfortunately, they found themselves in the minority.

Any legitimate objections to the audit proposal were addressed in the language of the motion to recommit. Thus, it is clear that the real reasons for opposing it are unstated and indefensible. The real reasons are that politicians like to spend money far exceeding income and it is convenient to have an enabler of this in the Federal Reserve. The easier it is for the Fed to create money, hidden from public view and accountability, the easier it is for politicians to spend that money and make sure their friends and interests are taken care of through shady political processes.

The broader reasons for supporting this entire financial regulatory reform bill are just as sinister. This is not about cracking down on big banks as some claim. Rather, this is about not wasting a crisis. This is about using a traumatic event to increase government power and control over the economy. If it was really about addressing the causes of this recession, Fannie Mae and Freddie Mac would have been dealt with, or abolished. Failed companies would just fail, rather than being bailed out. Instead, a permanent bailout mechanism is being established. The Fed, and its ability to control interest rates and create cheap money, would be reformed or better yet, abolished. But instead its power is being increased and this Congress refuses to even fully audit it!

So yet again in the midst of a crisis, government insists on acting, and in ways far outside the scope of the Constitution, hoping that the crisis gives them cover. The truth is that in crises is when we need Constitutional limitations the most.

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63 Comments:

  1. great talent .. very entertaining .. thanks

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  2. Respond to this video…

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  3. Dr Paul is being generous with his analysis of the FED…. its much worse than you can even imagine.

    Recent event of Greece are just the “tip of the iceberg” and this disease of Fractional Reserve Banking that permits big government manipulations of astronomical proportions is practiced by ALL of the G20 countries.

    Very Soon this global massive house of cards will collapse and no amount of Stimulus spending or Bank Bailouts are going to make a tinkers difference.

    Defend yourselves and divest of as many Federal Reserve Notes as you can, replace them with silver or gold ounces, anything but counterfeit paper FRNs.

    The US government has betrayed a sacred trust and is defrauding We the People of whom it is entrusted to serve.

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  4. Bull Shit, I’ve researched what Ron Paul says and have yet to catch him in a lie. I am the “eternal pessimist” and don’t take anyone or anything for granted or at their word.

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  5. I’ve seen your videos…they’re great, adds a little humor to the problems we face.

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  6. Ron Paul 2012!!

    [read Peter Schiff’s books to fully understand the lunacy of the fed!]

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  7. I am illustrating these RP audio broadcasts with my video archive. Come to my channel to see the “video versions” of his broadcasts, but bear in mind I’m just doing this on my own.

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  8. all people on earth need revolutions !!!! for freedom ! for child ! for man ! for natural food ! for god ! for gods law ! for TRUE !

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  9. all people on earth need revolutions !!!! for freedom ! for child ! for man ! for natural food ! for god ! for gods law ! for TRUE !

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  10. I disagree. There is always an exception to every rule. Moreover, it’s taken more than three decades for Ron Paul to get his message out, and the man makes sense. The system on the other hand is nonsense. AND evil. And it doesn’t take three decades for those in the system to get their message out. It takes minutes. Seconds actually.

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  11. I disagree. There is always an exception to every rule. Moreover, it’s taken more than three decades for Ron Paul to get his message out, and the man makes sense. The system on the other hand is nonsense. AND evil. And it doesn’t take three decades for those in the system to get their message out. It takes minutes. Seconds actually.

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  12. We seem to be stuck in a Republicrat hamster wheel. Both party’s fear the Tea party because they know what it represents. It frightens them! So naturally they going to demonize them as racist, or this or that. Nothing is further from the truth! Tea party folks are concerned citizens who are unhappy at the direction this country is headed. The more I listen to the Libertarian party platform. The more it appeals to me. Do America and yourself a favor…vote (“Constitutional Republicans”)

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  13. We seem to be stuck in a Republicrat hamster wheel. Both party’s fear the Tea party because they know what it represents. It frightens them! So naturally they going to demonize them as racist, or this or that. Nothing is further from the truth! Tea party folks are concerned citizens who are unhappy at the direction this country is headed. The more I listen to the Libertarian party platform. The more it appeals to me. Do America and yourself a favor…vote (“Constitutional Republicans”)

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    • Actually, only the Republican party and their recent track record, along with the splintering of their white, affluent, Republican power base is afraid. The Tea Party has always been just a Republican party in sheep’s clothing.

      Disagree? 95% have said they are Republican or Independent. A mere 5% say they are a Democrat.

      http://www.nytimes.com/interactive/2010/04/14/us/politics/20100414-tea-party-poll-graphic.html#tab=9

      Democrats are just waiting and watching the Palin/Angle/Rand Paul/Bachmann/Ron Paul train wreck with utter glee and just HOPING they keep opening their trap – which clearly they are learning given the lack of ‘Q&A’ that is allowed now.

      What? Chickens for Checkups! Sure!
      Underground Fences! You Betcha!
      Apologize to BP? Amen!
      Legalize discrimination? GREAT IDEA!
      Board-certify yourself? Fair!
      No same-sex marriage? Amen!

      No my friend, it is not Democrats that are afraid, given a mid-term election where Democrats swept into office during a horrible economic climate, the Tea Party is the best thing that could have happened.

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      • Sara Palin has nothing to do with the original tea party movement and everyone knows that except for some of the dems who still get their info from the tv instead of the internet. Soon listening to Fox or CNN will be akin to carrying around 8 track tapes.
        It so happens that while most democrats and liberals that I know do in fact loathe Sara Palin and what they perceive to be the tea party movement; they love, and I mean really love Ron Paul.

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  14. governments don’t want to help you. I’m beginning to realize this more and more.

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  15. ron paul/peter schiff 2012

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  16. No you wouldn’t love to believe there is a good guy that we can vote for punisher because you already have your mind made up that such a man is an impossibility and you said it yourself and I quote:

    “you don’t get to such positions without doing SOMETHING evil.”

    It sounds like you got your mind made up and not even Ron Paul would bother confusing you with the facts. Take Ron Paul with grain of salt? His actions ARE what back up his words. You are wrong about Ron Paul

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  17. No you wouldn’t love to believe there is a good guy that we can vote for punisher because you already have your mind made up that such a man is an impossibility and you said it yourself and I quote:

    “you don’t get to such positions without doing SOMETHING evil.”

    It sounds like you got your mind made up and not even Ron Paul would bother confusing you with the facts. Take Ron Paul with grain of salt? His actions ARE what back up his words. You are wrong about Ron Paul

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  18. No you wouldn’t love to believe there is a good guy that we can vote for punisher because you already have your mind made up that such a man is an impossibility and you said it yourself and I quote:

    “you don’t get to such positions without doing SOMETHING evil.”

    It sounds like you got your mind made up and not even Ron Paul would bother confusing you with the facts. Take Ron Paul with grain of salt? His actions ARE what back up his words. You are wrong about Ron Paul

    Report this comment

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  19. No you wouldn’t love to believe there is a good guy that we can vote for punisher because you already have your mind made up that such a man is an impossibility and you said it yourself and I quote:

    “you don’t get to such positions without doing SOMETHING evil.”

    It sounds like you got your mind made up and not even Ron Paul would bother confusing you with the facts. Take Ron Paul with grain of salt? His actions ARE what back up his words. You are wrong about Ron Paul

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  20. BLKMANH8TESOBAMA

    Ron you are always on the side of freedom!! God Bless You.

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