View Full Version : Ron Paul Introduces Bill to Audit the Federal Reserve

02-28-2009, 11:15 PM

February 26, 2009

Madame Speaker,

I rise to introduce the Federal Reserve Transparency Act. Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95% of its purchasing power, aided and abetted by the Federal Reserveís loose monetary policy. How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation.

Serious discussion of proposals to oversee the Federal Reserve is long overdue. I have been a longtime proponent of more effective oversight and auditing of the Fed, but I was far from the first Congressman to advocate these types of proposals. Esteemed former members of the Banking Committee such as Chairmen Wright Patman and Henry B. Gonzales were outspoken critics of the Fed and its lack of transparency.

Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations. While the conventional excuse is that this is intended to reduce the Fedís susceptibility to political pressures, the reality is that the Fed acts as a foil for the government. Whenever you question the Fed about the strength of the dollar, they will refer you to the Treasury, and vice versa. The Federal Reserve has, on the one hand, many of the privileges of government agencies, while retaining benefits of private organizations, such as being insulated from Freedom of Information Act requests.

The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight? Particularly when hundreds of billions of dollars of currency swaps have been announced and implemented, the Fedís negotiations with the European Central Bank, the Bank of International Settlements, and other institutions should face increased scrutiny, most especially because of their significant effect on foreign policy. If the State Department were able to do this, it would be characterized as a rogue agency and brought to heel, and if a private individual did this he might face prosecution under the Logan Act, yet the Fed avoids both fates.

More importantly, the Fedís funding facilities and its agreements with the Treasury should be reviewed. The Treasuryís supplementary financing accounts that fund Fed facilities allow the Treasury to funnel money to Wall Street without GAO or Congressional oversight. Additional funding facilities, such as the Primary Dealer Credit Facility and the Term Securities Lending Facility, allow the Fed to keep financial asset prices artificially inflated and subsidize poorly performing financial firms.

The Federal Reserve Transparency Act would eliminate restrictions on GAO audits of the Federal Reserve and open Fed operations to enhanced scrutiny. We hear officials constantly lauding the benefits of transparency and especially bemoaning the opacity of the Fed, its monetary policy, and its funding facilities. By opening all Fed operations to a GAO audit and calling for such an audit to be completed by the end of 2010, the Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve. I urge my colleagues to support this bill.

111th Congress - 1st Session

02-28-2009, 11:31 PM

I agree a lot with what he says, but again, why in the world would I want to send a wolf to get the goat out of the herd of sheep?

And that... is our largest problem.

03-01-2009, 02:08 PM
There is so much to talk about here it makes my head spin.

This will NEVER pass...probably won't even make committee. The Fed is part of "the system"...and I mean system in the WORST way.

03-01-2009, 02:22 PM
I really wish this guy had his face and thoughts out there more for the republicans to get behind.

03-01-2009, 03:32 PM
Ron Paul is perhaps the only man in Washington I trust.

Dino 6 Rings
03-01-2009, 04:23 PM
Ron Paul is kind of crazy though. I started to follow him and read about him prior to last years primaries, the more I dug into him, the more I realized he draws the nut cases to his side.

Like the people who think 9/11 was an inside job, they back Ron Paul. That's the kind of crazy stuff I can't get behind.

Read up on Tom Tancredo out of Oklahoma, that guy is pretty Legit and Honest. And I live in Arkansas so it isn't like I can vote for the guy, but TT is pretty solid.

03-01-2009, 05:41 PM
I really wish this guy had his face and thoughts out there more for the republicans to get behind.

Agreed, it's unfortunate many of his views get swept under the carpet. He really wants the government to do better for the people and it's a shame not many recognize it.

Here's a good video I found from one of his interviews on the fed. reserve, banking and economy.

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03-02-2009, 09:17 AM
It's good that he had a voice, though. Running for President is waste of time, energy and resources, because he has NO chance.

This way makes more sense...he at least has a voice, which is good for Libertarianism...

03-02-2009, 09:30 AM
Read up on Tom Tancredo out of Oklahoma, that guy is pretty Legit and Honest. And I live in Arkansas so it isn't like I can vote for the guy, but TT is pretty solid.

I think you mean Tom Coburn. Tom Tancredo is a racist, America-hating POS.