Ron Paul and Jim DeMint take on the Fed

Ron Paul and Jim DeMint take on the Fed, by the Southern Avenger.

A year ago conservative Republicans were struggling to embrace their own presidential nominee, John McCain, still championing a disastrous GOP President, and were put in the uncomfortable position of having to defend both George Bush and McCain support for TARP spending.

In the midst of this tension much of the main stream right became visibly angry at the one man who just wouldn’t go away: Texas Congressman Ron Paul, who relentlessly trashed the Bush administration and refused to endorse McCain, claiming they weren’t real conservatives. And even while Bush and McCain were “abandoning free market principles to save the free market system” by signing off on an $800 billion Wall Street bailout, the Republican establishment still treated the truly free-market Paul as some sort of crazy irrelevant money crank.

It’s amazing the difference a year makes. As of this writing, every single Republican in the House and over 60 Democrats have co-sponsored Paul’s HR 1207 Federal Reserve Transparency Act which calls for an audit of the Federal Reserve.

Given the current economic crisis, it turns out that many legislators are eager to see just how the Fed is able to print new money out of thin air. In the 1980s Paul introduced similar legislation with virtually no help from his fellow Republicans. In 2009 the entire party has lined up behind Ron Paul.

And big kudos are in order for one Republican who has gone out of his way to help form that line. Senator Jim DeMint of South Carolina isn’t exactly of the same Libertarian stripe as Paul, and no doubt the two men don’t agree on everything. But on the one overwriting and glaring problem any conservative worth his salt should be concerned with (big government and massive spending), one would be hard pressed to find a more heroic Republican alley of Paul than DeMint.

Sponsored by self-described socialist Senator Bernie Sanders of Vermont, senate bill 604 or the Federal Reserve Sunshine Act, is the sister legislation of Paul’s house resolution. As the first Republican to step up and co-sponsor the legislation, DeMint said, “Ron Paul has the right idea on this. I am just hoping we can get a clear audit. We need to know what they’re up to”.

Like fellow South Carolinian governor Mark Sanford, DeMint was amongst the minority of Republicans willing to stand up to so-called stimulus spending early. DeMint opposed the TARP bailout when McCain was arguing for it. Now McCain and even liberal Democrats like Russ Feingold have signed on to the Senate legislation to audit the Federal Reserve, thanks in no small part to DeMint’s leadership.

In the never-ending debate over who leads the GOP, the media focus on personalities like Sarah Palin and Rush Limbaugh and ignores more important and significant political realignments. That staunch conservatives like Paul and DeMint can get moderate Republicans and even liberal Democrats to form a bi-partisan coalition to support legislation that was considered too radical just months ago, is quite amazing.

When you consider the fact that conservative talk radio hosts like Limbaugh, Sean Hannity, Mark Levin and others haven’t said squat about auditing the Fed, you realize that the grassroots right that supports such measures is perhaps stronger and healthier than the status of those who speak in its name.

In the aftermath of the 2008 election when asked to comment on former Republican senator Arlen Specter’s switch to the Democratic Party, DeMint said, “I would rather have 30 Republicans in the Senate who really believe in the principles of limited government, free markets and free people than to have 60 that don’t have a set of beliefs”.

DeMint was criticized by Senator Lindsey Graham and others for being too conservative and not practical about winning future elections. But DeMint is right. Paul has spent three decades in the House as the often lone voice of true free market limited government conservatism and has never changed his tune.

When it comes to auditing the Federal Reserve now his entire party in the house is singing along. DeMint’s efforts to strike up the band in the Senate continues to grow. Principled leadership first requires principle men willing to lead and if the Fed is finally audited and maybe ended, continuing criticism that the Republican Party is too conservative is a charge Ron Paul and Jim DeMint will be able to share a laugh about all the way to the bank.


  • sean

    ben bernanke hearing live on cspan

  • longshotlouie

    Bailouts could cost U.S. $23 trillion Says IG

    Twenty-Three Thousand Billion

    • Matt

      Funny. You ridicule every other internal auditor (Fed, GAO, etc…) and government-supplied number (CPI, unemployment, etc..) as being completely inaccurate, baseless, or the result of Fed scheming.

      Then a government-supplied number comes out that you ‘like’ and all of the sudden the government knows what they are talking about? What, the Rotchschilds/Bildeberg/Fed group couldn’t silence this guy?

      Wow, maybe the government does know what they are doing? Good work Louie!

      • longshotlouie

        Still having trouble with critical thinking?
        The CPI and employment figures are bogus, even you know this.

        A number that I like? Surely you jest (of course you do).
        I’ll assume that the $23,000,000,000,000.00 is the bottom since it came from a government office. History is on my side.

        Wow, is there pain involved when you attempt to pat yourself on the back?

        • Matt

          Ahahah, so the government can’t get something current and simple as unemployment correct, but they totally nailed something that is EXTREMELY complicated and requires complex forecasting?

          And I say ‘like’ because any number issued by the government that matches your ideological framework is accurate, and those that do not are shams. If only we all had that discretionary capability, or hypocrisy.

          • longshotlouie

            Who said they nailed it?

            Is whiffle ball your sport of choice?

      • longshotlouie

        What is that, Matt …. ’bout 80G per citizen?
        Hmmmm …. $360,000.00 for my household.

        Matt, what should I do?

        • Matt

          “Matt, what should I do?”

          Umm, well normally I also like to check things out for myself, but that’s just me. In addition, I don’t skip to the very last page, as you are wont to do:

          The first thing I notice is that the current exposure (gross) is $3 Trillion, not $23.7 Trillion. Certainly a big number but again this is a gross exposure and not a net expenditure. TARP will be paid back, the commercial paper facilities will revolve, and some of the obligations may even become profitable. Also included are items that could be an obligation but have not cost a dime yet – such as money market obligations, FDIC, FHFA, implied guarantees on FNM/FRE debt, etc…

          But hey, that’s just me I like to learn about this stuff on my own, but you can keep on with the one liners if you like!

          • longshotlouie

            Enjoy your leap of faith.

  • VR
    • VR

      OMG, that was vicious.
      Thought Paulson was going to have a stroke.

      (watched it a second time)

      • Christine

        He may yet have that and more…a trial for treason.

  • Geoff White

    You can see from the growing numbers of the anti-Fed protesters at the Tea Parties around the country, that those who are concerned about the Fed’s control over our country’s monetary policy aren’t just “conspiracy cooks” as the establishment would have you believe. The number of concerned citizens that are educating themselves about the dubious dealings of the Fed and its autocratic control of our money policy is growing daily. I like Ron Paul but I have two main concerns:

    1) There seemed to be a concerted effort to marginalize him in the primaries and the media didn’t seem to come to his rescue. Bottom line: Is he electable if he can not position his platform as an equal or superior set of ideals, when he is seemingly mocked by his counterparts?

    2) The Ignorance Gap: Paul has to overcome a shocking level of intellectual laziness that exists in the electorate. There are people that identify themselves as “this or that” politically and can’t tell you who there Congressmen are or who the VP or Speaker of the House is. Yet Paul needs their support if he is going to move beyond the margins that he has been relegated to. It’s like Mark Twain said: “A lie can cirle the globe before the truth has even had a chance to get it’s shoes on.”

    • Lindsey Brutus

      Gepff: You bring up extremely good points! Many politicians over the past few years have been marginalized (Look at Mike Huckabee who was marginalized as the “candidate of the religious right” even when he wasn’t endorsed by such groups as Focus on the Family or the 700 club). Look at all the candidates from third parties. I think it would do Ron and all of these other marginalized people to have debates televised on national television during these off-election years. That way people could become more informed about the real issues (and there are a lot of them). However, what Ron must do is to start forming some alliances with other politicians and quit being a “lone wolf”. A good starting point might be Jim DeMint or Sarah Palin. You don’t have to agree with someone on everything to form a political alliance and I think these two people in particular have proven to be true conservatives on most issues and it would do Ron a ton of good to at least attend an event where he could get into the same picture as someone like these two (especially Palin). If not then he may well continue to dwell in websites like this and brief two-minuite interviews about audditing the Fed.

  • Ron Paul is perhaps one of our last hopes to save the country as
    we all knew it when the constitution mattered. The full Fed audit, not a watered down one as in the past, must show many things ie, Goldman-Sachs communications, etc. AND not only information on fiat money, printed from nothing, but more importantly to me at least, WHO OWNS THE FIAT MONEY ? Though the Fed banks are quasi-government entities, the base money they print should just enter circulation and NOT become part of the national debt, which also has true debt. ie, to other nations like China, etal. Dr. Paul says that this fiat money is owned by private interests, as in ancient times; a very bad practice which should be made illegal in my book…they don’t work for it, they just print it when needed…counterfeiting ! BTW, almost 1/2 of the national debt is Fed fiat dollars, so this is not a minor concern.
    We must end this type of fractional banking once and for all !

  • Bill Moore


    • Christine

      Barney Frank is giving preferential treatment to a different bill to be discussed prior to HR 1207. HR 3126 involves creating a new agency (Consumer Protection Financial Agency) with FED employees + employees from several agencies. Restructuring.

      HR 1207 has 273 co-sponsors
      HR 3126 has 12 co-sponsors

  • Ross Johnson

    I think that this movement is unstoppable now even if Ron Paul decided to retire.Ron’s tenacity over all these decades is producing tangible results.

    Barack Obama is now becoming isolated by aligning himself with the Fed and giving it more power with no accountability.The audit will take some time to effect and the Fed will be using delaying tactics to stop it.Obama needs to be put on the spot and be made to justify his stance.