Ron Paul: Transparency and Accountability for the Federal Reserve!

Transparency and Accountability for the Federal Reserve

by Ron Paul

Last week, the 112th Congress was sworn in. I am pleased that I will be chairing the Monetary Policy Subcommittee of the Financial Services Committee which has oversight of the Federal Reserve. Obviously, this position will facilitate my efforts to ensure the Fed provides the American people with more information about what they have been doing with and to our money.

Not surprisingly, since my chairmanship was announced, apologists for the Fed have been recycling the old canard about how increased transparency threatens the Fed’s so-called political independence. By ‘independence’ they are referring to the Fed’s ability to greatly impact the economy with virtually no meaningful oversight. We only recently learned that the bankers at the Fed were able to use the latest financial crisis to bail out Wall Street cronies and foreign central banks with billions of dollars that were created and wasted instead of appropriated and voted on by representatives of the people. The Fed and its supporters in the Congress vehemently fought even this small bit of transparency and without this one-time provision in the Financial Reform Act forcing disclosure we would still not have this information.

Indeed, we are in the dark on so much of what the Fed has done. This is extremely dangerous for our country, yet this power and secrecy is defended as some kind of public good, which is patently ridiculous. Our government is based on a system of checks and balances. With no check on the Fed, it is no surprise it has thrown the economy wildly off-balance. The solution is not to reinflate the bubbles the Fed created or to continue to devalue the currency or to throw billions at failing banks and corporations. The solution is to return sanity and freedom to monetary policy. Forcing the entire country to use a medium of exchange that is subject to the whims of elite bankers and their cronies on Wall Street is not sanity. Hoping that an unchecked all-powerful behemoth banking cartel will solve any economic problem is not sanity.

The problems the Fed was originally created to solve now look minuscule compared to the problems it has created. If political independence erodes the purchasing power of the currency by 98%, destabilizes the economy with radical booms and busts, all while increasing unemployment and tipping us ever closer to hyperinflation, perhaps it is time to try a little transparency and accountability instead. Better still, we should try giving the people true economic freedom.

Make no mistake, the Fed is not truly independent of political pressure. Its chair is appointed by the president and it is a creature of Congress. Congress has a duty, albeit a neglected one, to exercise oversight of the Fed. However, even if it was politically independent, it is not independent of the influence of Wall Street. One only has to look at the revolving door between the Fed and the big banks to know that. Disclosure of TARP funds confirm this. It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing. It is high time Congress insists on getting complete information on what the Fed has been doing and for whom.

My hope is that exposing the truth will demonstrate the insanity of the status quo and more people will call for sensible changes, such as legalizing competing currencies.


  • fatboysporty1

    Throw out the Federal Reserve and Arrest all who are guilty of treason that will be a good start..

  • Jason K.

    We need our judges, at all levels to begin the task of seriously holding all parties including the FED. RESERVES feet to the holy indoctrinated fire of our beloved CONSTITUTION ! The judges have been kissing the feet of big banks and big corporations for to long. All the while us true honest Americans get steamrolled by all without a conscience or care. We are being torn asunder, left to fight for the scraps to wich we are being told we have to feed to our children ! THIS HAS TO END !

  • TRuthbrand

    Checkout the new book ‘Common Sense 2 – A Summary View’. It is a modern ode to both Thomas Jefferson and Thomas Paine.

    Help save America! Spread the word!

    theTRuthbrand (dot) com

    The TRuth brand

  • Gregory A

    Ron why can’t we file bankruptcy against the federal reserve and print our own money.

  • David Grothus

    As a Citizen in the United States, I find it great living and reaching for my dreams.

    I can not imagine any Nation or Country that compares to the Great United States of America.

    Integrity, honesty, responsibility, and self reliance are the virtues that built the Great United States of America.

    Any government employee who willing advised any person in an elected office to give American Tax revenue to for governments with out oversight committed a grave crime against the people who gave taxes through hard honest toil.

    The United States government in 1950 January 1st, gave money to foreign government to stop the sread of Communism.

    All money that is raised though American Labor needs to be accounted for with oversight and any money given with out the consent of the people and a direct vote for both the House Of Representatives and the Senate by a 2/3 vote needs to be accounted for!

    I can not understand the complete ignorance with the Administrations of the last 55 years.

    How can other governments maintain fiscal integrity with out the people they respresent earn an honest wage and then pay their elected leaders with the taxes derived from honest labor and honest toil?

    I think that the best way to solve todays economic condition is to get a list of every Senator and Representative who voted to give American Tax dollars to foreign governments without direct oversight be investigated and brought to court and a trial.

    How do citizens in other government think about their elected leaders taking money from China, and then given to foreign governments without any attempt to pay back the debt with honest hard toil?

    The Gold in Fort Knox, is worth billions?

    It would be great to evaluate the countries we have taken money from, and then evaluate where each dollar went, and who is overseeing the expenditure?

    Ron Paul could look up the countries that have taken money from the United States and then request and equal portion in Gold Bullion be deposited into the Federal Treasury.

    The Gold Bullion could then be accounted for and calculated with a few college graduates and with the help of Bill Gates and his inteligent friends.

    Then the Gold Bullion in both the Federal Treasury and Fort Knox could be calculated.

    Over the next 2o years or 25 years, each country that has loaned the United States money, could be paid back in Gold Bullion.

    Why is there such a thing as Unemployment money given to individuals who do not work by the sweat of their brow?
    Abraham Lincoln did not give the freed slaves who became citizens a dime, unless of course their was a benefit of honest labor and toil before the dime was earned!

    I can not imagine how angry Honest Abraham Lincoln thinks about the many ignorant and stupid decisions that have been made over the last 100 plus years?

    How can it be possible that 55 men who did not want to work by the sweat of their brow, chose to take a Federal Education and then think they were accomplishing something by contesting their manhood on their superiors?

    The civil war was not about anything other than it is never right to take from individual who are sweating for labor and not give them a wage they both agreed on before the labor commenced.

    If the labor is of a quality and nature that the employer can value, then the laborer will receive an honest pay check.

    If the quality and the labor is not to the employers liking, no where in the Constitution, the Decalaration of Independence, or the Bill of Rights does it require the employer to be forced by court order to give honest assests to ignorant, undereducated, and individuals unable to produce the quality the employer values, where the product can be sold to others for a profit.

    It is not discrimination, it is called rational good judgement by the employer concerning his product and the open market.

    Liberty of Contract is what is between individuals in a Democracy.

    Individual vote with their money and with their vote at the polls.

    If a product is not of quality that can be sold for a profit, then the owner looses a profit.

    Have a great 2011, Young Americans, Listen to your parents, and be on time to your classes, do not cheat!!!!

    David Grothus

  • The governed (We the People) are entitled to know all facets of government workings with little to no “secrecy”. National Security is an excuse to screw the unknowing masses in their own “interrests”. People here are waking up and speaking up!


  • This topic is governmental proceedure regarding the monitary system of the United States of America. The refrence in “the very word secrecy is repugnant ” is used regarging a “Democracy”. The United States is a Republic period. It is a democratic republic based on a loose amalgimation and interpretation of Roman, Greek and the Iroquois confederation governing elements/ philosophies. The U.S. Government should be clumbsy inefficient and slow. It should always be a compromise.

  • Well maybe you’re right about laws, in fact im not a US citizen.
    But neverthless, not any kind of government will be true, transparent and uncorrupted. We can only help minimizing the corruption and improve the public awareness by giving transparent and unfiltered broadcast of whay is really happening behind close doors. I just don’t understand the oxymoron of “confidentiality in public affairs”…
    A famous speech by JFK started with “the very word secrecy is repugnant “.

  • S S

    I signed it gladly. I owe this man so much for my intellectual re-awakening that I could never repay him, though I try every day by being politically aware, holding congress accountable, and through informing and educating others about the truth behind the lies, the dangerous Federal Reserve and the special interests who would have us be slaves in a totalitarian government. Each person we bring to the side of liberty and the constitution puts us one step closer to winning this battle.

  • veradinx

    I signed it gladly. I owe this man so much for my intellectual re-awakening that I could never repay him, though I try every day by being politically aware, holding congress accountable, and through informing and educating others about the truth behind the lies, the dangerous Federal Reserve and the special interests who would have us be slaves in a totalitarian government. Each person we bring to the side of liberty and the constitution puts us one step closer to winning this battle.

  • James

    There is so much information through the Internet to know how the Fed came into existence and that the Fed caused the Great Depression and a number of other things, so I ask why is it allowed to continue knowing that the same mind set is in those creatures that have been placed in charge of this cabal today? If president Obama says that he does not believe these things or has no knowledge of these things, then he does not need to be president because he is lying. The prerequisite for successful action is the courage and the will to be truthful. We have no gold in reserve to back up our monetary system and this has been known since the US went bankrupt in 1932. All the gold the public had at that time was confiscated on threat of prison and was given to those same creatures that profit from the Fed today as payment on a debt caused by the Fed and blamed on anyone else but those that caused it. The richest [trillionaires] in the world that were the cause of the Great Depression demanded the payment of the national debt to be paid in gold and they would not accept anything else. These people are the top masterminds and conspired for the creation of the illegal FEDERAL RESERVE BANK in 1913: Theodore Roosevelt, Paul Warburg – Representative of Rothschild, Woodrow Wilson – U.S. president signed FED into Act, Nelson W. Aldrich – Representative of Rockefeller, Benjamin Strong – Representative of Rockefeller, Frank A. Vanderlip – Representative of Rockefeller, John D. Rockefeller – Rockefeller himself, Henry Davison – Representative of J.P. Morgan, Charles Norton – Representative of J. P. Morgan. Since this knowledge is not hidden and is out there for anyone to find and understand, why does anyone think we should continue allowing these same thieves to run our country by printing money and causing inflation putting people out of work and also demanding interest payments on the money that we should print without debt or interest for the benefit of the people and not these low-lives, aka inbred’s? Thousands of people are in prison for crimes that pale in comparison to what these people have done and continue to do. Tell it like it is and let them do all they can to cover their tracks, but that is now to late.

  • Our government is based on law and the rights of the individual as described in the Constitution of the United States of America.

    The governmental body is a Constitutional Republic not a democracy. Please see the document for refrence.

    Best of luck.

  • Our government is based on law and the rights of the individual as described in the Constitution of the United States of America.

    The governmental body is a Constitutional Republic not a democracy. Please see the document for refrence.

    Best of luck.

  • calrenman

    Go Ron Paul.

    Ron Paul 2012

  • duane r. mazeska

    I believe Ron Paul has the right outlook on the Fed. It should be audited and quickly. QE2 won’t bring the unemployment down like they told us. Its just another way out of bailing out the big wall street banks. Sources inform me that the banks are holding bad paper and that is being covered up by the accounting change when Obama came into office. In order to get an accurate assesment of the big wall street banks solvency, I suggest going back to mark to market. This would provide a more accurate account of their holdings. When you mask conditions the ultimate result when disclosed can be dramatic. I was upset when I saw our Fed lending money to other countries. Is that part of their mandate? I don’t think so.Good luck Dr.Paul, America is counting on you to bring this country back to reality. God Bless You!

  • R. T. Greenwood

    Truer words never spoken. The Federal Reserve especially under Alan Greenspan has gone down a corrupt path even creating their own definitions of inflation. Dr. Paul has adequately explained the excess liquidity and bubbles created by the Fed. I can still see Greenspan explaining that you cannot stop a bubble once it has started. I’m wondering if the old fool understands that preventing them from starting is the key and HE was responsible. I wonder if he understands that HE destroyed the banking system when the security and stability of the bank system is one of the four prime goals of the Federal Reserve mission.

    Godspeed Dr. Paul and give them hell!