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.


  • gollyanamegame

    This is a real american, dont always agree but agree that he should be President. Now,how to get this man into office before our country tanks

  • oldwarhorse1865

    I want it noted that Rep. Walz, Oberstar, Ellison, and Paulson om MN co-sponsored and then renigged!!!

  • Ron Paul BABY!!! 2012!!!

  • Ron Paul BABY!!! 2012!!!

  • LesiureBoy

    Ron Paul BABY!!! 2012!!!

  • Maziyar

    Wow. 435 Videos of Ron Paul were posted Today on Youtube. He has more TOTAL Videos on Youtube than The President! We Are Here. This is the Time. The Internet is Operated by THE PEOPLE. You need very little money to access this place. You know what that means!?!? We Will Elect A PRESIDENT with Very Little Money…..
    I’m Ready.

  • Bob

    The only reason Ron Paul is doing the partisan BS is because he wants full Republican support when he runs in 2012. Support him in this endeavour.

  • Firebirrd85

    “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning”.

    -Henry Ford

  • Firebirrd85

    “You are a den of vipers and thieves. I intend to rout you out, and by the eternal God I will rout you out.” (bankers)

    -Andrew Jackson

  • Firebirrd85

    “The Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution. I am an enemy to all banks, discounting bills or notes for anything but coin.”


  • Firebirrd85

    “If the American people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered.”

  • Firebirrd85

    The fed is a blood sucking beast in disguise. Zionist Jews control the money in our country. End of story. The plan is to have main banks all over the world with a universal currency. It all began in 1913 on jekyll island. Andrew Jackson tried to fight them.

  • I am my own man(not remotely a shill or in league with anyone) You sir need to put back on your pointy tin foil hat, so you can keep hearing your paranoid voices

  • haskellfilmz

    Ron Paul …my president! Check out the “Ron Paul” of Arizona, Brian Miller!

  • desade1776

    You Speak the voice of truth and good sense

  • hergs

    This is such partisan Republican-line bullshit. I thought Ron Paul was better than this. A motion to recommit would have sent the reform bill back to committee and would not have guaranteed Paul’s audit language would be included. The special interests already run these committee hearings. We need to change the system with real campaign finance reform, not obstructionism. And in the mean time, Americans need SOMETHING to get done. It won’t be perfect, but obstructionism is not the answer.


    Bank Currency
    Switch to Labor Tokens
    Thats the IDEA IM Proposing!!

  • continuityofliberty

    As long as we’re forced to be responsible for Government debt (and the FED continues to supply endless mountains of “money” to fund that debt) the only activities our Government will be engaged in will be to create reasons to spend.

    Default and end the FED.

  • terr547

    Dr. Paul, the damn congressman are still so absorbed by an illusion of DEMOCRAT REPUBLICAN separation! They just don’t see that this is a NONPARTISAN ISSUE! They’re fools! They’re only dooming their own political futures. We’ll vote them out, sir.

  • anyusmoon1

    What ARE we to DO? We’ve repeatedly told them we WANT the FULL audit, we’ve written, called faxed etc to say so. I cannot understand our voices being ignored. What are we going to do?