Ron Paul: Audit the Fed Moves Forward!

Last week the House of Representatives overwhelmingly passed my legislation calling for a full and effective audit of the Federal Reserve. Well over 300 of my Congressional colleagues supported the bill, each casting a landmark vote that marks the culmination of decades of work. We have taken a big step toward bringing transparency to the most destructive financial institution in the world.

But in many ways our work is only beginning. Despite the Senate Majority Leader’s past support for similar legislation, no vote has been scheduled on my bill this year in the Senate. And only 29 Senators have cosponsored Senator Rand Paul’s version of my bill in the other body. If your Senator is not listed at the link above, please contact them and ask for their support. We need to push Senate leadership to hold a vote this year.

Understand that last week’s historic vote never would have taken place without the efforts of millions of Americans like you, ordinary citizens concerned about liberty and the integrity of our currency. Political elites respond to political pressure, pure and simple. They follow rather than lead. If all 100 Senators feel enough grassroots pressure, they will respond and force Senate leadership to hold what will be a very popular vote.

In fact, “Audit the Fed” is so popular that 75% of all Americans support it according to this Rasmussen poll. We are making progress.

Of course Fed apologists– including Mr. Bernanke– frequently insist that the Fed already is audited. But this is true only in the sense that it produces annual financial statements. It provides the public with its balance sheet as a fait accompli: we see only the net results of its financial transactions from the previous fiscal year in broad categories, and only after the fact.

We’re also told that the Dodd-Frank bill passed in 2010 mandates an audit. But it provides for only a limited audit of certain Fed credit facilities surrounding the crisis period of 2008. It is backward looking, which frankly is of limited benefit.

The Fed also claims it wants to be “independent” from Congress so that politics don’t interfere with monetary policy. This is absurd for two reasons.

First, the Fed already is inherently and unavoidably political. It made a political decision when it chose not to rescue Lehman Brothers in 2008, just as it made a political decision to provide liquidity for AIG in the same time period. These are just two obvious examples. Also Fed member banks and the Treasury Department are full of former– and future– Goldman Sachs officials. Are we really to believe that the interests of Goldman Sachs have absolutely no effect on Fed decisions? Clearly it’s naïve to think the Fed somehow is above political or financial influence.

Second, it’s important to remember that Congress created the Fed by statute. Congress therefore has the full, inherent authority to regulate the Fed in any way– up to and including abolishing it altogether.

My bill provides for an ongoing, thorough audit of what the Fed really does in secret, which is make decisions about the money supply, interest rates, and bailouts of favored banks, financial firms, and companies. In other words, I want the Government Accountability Office to examine the Fed’s actual monetary policy operations and make them public.

It is precisely this information that must be made public because it so profoundly affects everyone who holds, saves, or uses US dollars.


  • why vote if it doesnt make a difference.

  • Ik, imagine what he could do as president. Vote Ron Paul 2012!

  • There’s no danger in the audit itself. All it will do is show exactly what has been done with monetary policy. The dangerous part will come when we realize just how much money they’ve sent to their friends and banks overseas, and how much the dollar supply has been expanded over the years. We’ll have to do something about it. I doubt the central bankers will make it painless.

  • It has either condoned the system we have now, or been powerless to stop it. It didn’t give a fair shrift to women or minorities. There are however, many protections against the the expansion of governmental authority in the document. The most important of which is the responsibility of the Federal government to coin money and regulate the value thereof. Since we started ignoring that particular clause in 1913, the dollar has lost 98% of its value, and the private bankers now own Washington.

  • Ha, Yeah. Isn’t that something!!!

  • Jeremy, do I need to call my senators or should I email them. Which is the most effective? If I call them I will probably get put on hold for a long time and run up a phone bill and if I email them will the Government have control of my computer. I heard that if you click on a government site they will have control of you’re computer. I also have a Trojan virus in my email but I don’t think it’s in my computer because it runs fine.

  • Thank God for Ron Paul!!!

  • Is there any danger of doing this audit the fed without the rest of Ron Paul’s plan in place?

  • Harry Reid needs to resign.

  • Not very much because he would doggedly follow his own policy of Constitutional government which means a weak presidency. All he would accomplish is setting a good example, and we all know how good Washington goons are at following good examples.

  • That’s, of course, the point: the President isn’t SUPPOSED to be ABLE to do much of anything according to the Constitution. It is the Legislative branch that is supposed to have power because they are most directly accountable to individual constituents out of all of the federal representatives in Washington.

  • A flatulent warthog would do more good than the Usurper in Chief

  • Excellent victory, push the senate for the big win!

  • Ron Paul at his best. Hope someone like him reappears in the nearest future, cause hes leaving the politics soon. Ron Paul 2012!

  • Imagine what he could achieve as president. The possibilities are amazing.

  • its not perfect …but its dam close as man can get it imo…nothing in life is perfect..but we had good men that did they best they could!

  • We would be so lucky to have him be the next US President…I refuse to vote for MittBama!!!

  • Nothing cracks me up more than for someone to call the Constitution “racist”. Courts denying someone a right based on his personal “interpretation” does not the Constitution, racist make. Know this.

  • calm down buddy i was just messing around. I love the constitution, but you people make it sound perfect. im sure your smart enough to know that it used to not allow black people to vote or have equal rights as men. it also allowed slavery. im pleased to live in this country and am proud of the men and women that sacrificed their lives for my freedom

  • since you are to fucking stupid to realize america is as stong as it is cause of our constistution and gives you the freedoms you practice right here on youtube and everyday life…that you wouldnt have if not for it! its amazing how stupid people like you make it so long in life and are clueless and disrespectful for the men that died for a fucking ass fuck like you thats to stupid to know how you got your way of life and freedoms …you stupid piece of shit!