House Committee Approves Ron Paul’s Audit The Fed Bill

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House Committee Approves Ron Paul’s Audit The Fed Bill

Full vote on transparency bill next month?

Steve Watson
Prisonplanet.com
June 28, 2012

The House Oversight Committee approved a bill Wednesday introduced by Congressman Ron Paul that would see a full audit of the Federal Reserve for the first time in its history.

The bipartisan vote was almost completely unanimous in it’s favor of Federal Reserve Transparency Act, with no vocal opposition and the legislation will now advance to the floor of the House of Representatives next month.

If it is successful, the bill would require the Government Accountability Office (GAO) to conduct a top to bottom audit of the Fed’s board of governors and 12 regional banks, and reveal details of its private monetary policy deliberations.

The only opposition came from the ranking Democrat on the committee, Elijah Cummings (D-Md.), who attempted to introduce an amendment that would prevent the GAO from auditing the Fed’s discussions on monetary policy. Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) noted that it “essentially guts this bill.”

Issa noted that “It is long past time for a real audit,” and was backed up by Rep. Justin Amash, who highlighted the deficiencies in the current system of monitoring the Federal Reserve’s secret actions:

Ron Paul has made an audit of the Fed a long term goal during his time in Congress.

After introducing his original audit the Fed bill in 2009, a watered down version was added to the Dodd-Frank financial reform law signed into law last year. However, much of Paul’s bill had been stripped away, and even the Congressman himself voted against the final bill.

However, the bill did allow for a rare one off audit of the Federal Reserve’s crisis-response emergency lending programs of 2008. In October of last year, in his role as chairman of the Domestic Monetary Policy subcommittee, Paul relished the glimmer of transparency and led the hearing into the GAO’s audit.

“More people now are starting to realize that the Fed isn’t independent of political independence because indirectly and some times more directly it is involved in political decisions or at least private decisions to serve some political interest.” Paul noted during the hearing last year.

Along with Paul, Republicans in attendance argued that the audit should pave the way for regular reviews of the Fed’s policies, as well as more complete disclosure of exactly who has received upwards of $27 trillion in bail out funds since 2008.

“Would it be much of a problem if we were doing this every year?” Paul asked.

Although the one time GAO audit was extremely limited in its scope, the report found several instances of conflicts of interest and questionable practices involving Fed officials. It was also revealed that the Fed made $16.1 trillion in secret loans to Wall Street firms at the height of the crisis.

The full audit the Fed bill would repeal specific limitations that were applicable to the previous one off audit of the Fed. Currently, any audits of the Board and Federal reserve banks may not include—

(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;

(3) transactions made under the direction of the Federal Open Market Committee; or

(4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.

In order for the legislation to be signed into law, it will have to pass both Chambers of Congress. The Senate version of the bill, introduced by Paul’s son Rand (R-KY), has yet to be marked-up for debate.

In an emailed press release this morning, Sen. Paul said:

“Today, I applaud the unanimous passage of Audit the Fed out of committee and commend House leadership for promising a vote on Audit the Fed next month.”

“It is important that we get our economy growing again through savings and investment, not more debt and deficit spending. But we can’t turn the economy around until we fix the root of the problem: an unaccountable Federal Reserve. A complete and thorough audit of the Fed will finally allow the American people to know exactly how their money is being spent by Washington.” Sen. Paul continued.

“I have introduced similar legislation in the Senate and will continue to fight on the frontlines of this battle to get Audit the Fed passed through Congress,” he added.

Ron Paul has previously highlighted the importance of bringing full Transparency to the Federal Reserve, noting that it would pave the way for a return to sound monetary policy and help mark an end to the practices that have plunged the economy into deep crisis.

“The Federal Reserve behind the scenes has the power to create money out of thin air, I mean it’s absolutely bizarre. Never in the history of the world has any one single bank been given the power to create the reserve currency of the world like we have had since 1971. So yes, they can bailout their friends and let the people they don’t like fail, and create a trillion dollars or more out of thin air in order to prop up some companies at the expense of others, it’s not viable, it makes no sense.” Paul urged in a 2010 interview with CNBC.

“When the history of this time is written, people will say ‘how in the world did they believe that a few people in a secret room can decide what interest rates should be, how much the money supply should be, who should fail, what bad assets, what worthless assets the tax payers have to buy?’ it’s absolutely bizarre, yet the American people right now I think are waking up to it.”

http://www.prisonplanet.com/house-committee-approves-ron-pauls-audit-the-fed-bill.html

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antikakistocrat
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41 Facts About The History Of Central Banks In The United States That Our Children Are No Longer Taught In School

The American Dream
Nov 12, 2010
Today, most American students don’t even understand what a central bank is, much less that the battle over central banks is one of the most important themes in U.S. history. The truth is that our nation was birthed in the midst of a conflict over taxation and the control of our money. Central banking has played a key role in nearly all of the wars that America has fought. Presidents that resisted the central bankers were shot, while others shamefully caved in to their demands. Our current central bank is called the Federal Reserve and it is about as “federal” as Federal Express is. The truth is that it is a privately-owned financial institution that is designed to ensnare the U.S. government in an endlessly expanding spiral of debt from which there is no escape. The Federal Reserve caused the Great Depression and the Federal Reserve is at the core of our current economic crisis. None of these things is taught to students in America’s schools today.
In 2010, young Americans are taught a sanitized version of American history that doesn’t even make any sense. As with so many things, if you want to know what really happened just follow the money.
The following are 41 facts about the history of central banks in the United States that every American should know….
#1 As a result of the Seven Years War with France, King George III of England was deeply in debt to the central bankers of England.
#2 In an attempt to raise revenue, King George tried to heavily tax the colonies in America.
#3 In 1763, Benjamin Franklin was asked by the Bank of England why the colonies were so prosperous, and this was his response….

“That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.
In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one.”

#4 The Currency Act of 1764 ordered the American Colonists to stop printing their own money. Colonial script (the money the colonists were using at the time) was to be exchanged at a two-to-one ratio for “notes” from the Bank of England.
#5 Later, in his autobiography, Benjamin Franklin explained the impact that this currency change had on the colonies….

“In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.”

#6 In fact, Benjamin Franklin stated unequivocally in his autobiography that the power to issue currency was the primary reason for the Revolutionary War….

“The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the prime reason for the Revolutionary War.”

#7 Gouverneur Morris, one of the authors of the U.S. Constitution, solemnly warned us in 1787 that we must not allow the bankers to enslave us….

“The rich will strive to establish their dominion and enslave the rest. They always did. They always will… They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres.”

#8 Unfortunately, those warning us about the dangers of a central bank did not prevail. After an aborted attempt to establish a central bank in the 1780s, the First Bank of the United States was established in 1791. Alexander Hamilton (who had close ties to the Rothschild banking family) cut a deal under which he would support the move of the nation’s capital to Washington D.C. in exchange for southern support for the establishment of a central bank.
#9 George Washington signed the bill creating the First Bank of the United States on April 25, 1791. It was given a 20 year charter.
#10 In the first five years of the First Bank of the United States, the U.S. government borrowed 8.2 million dollars and prices rose by 72 percent.

#11 The opponents of central banking were not pleased. In 1798, Thomas Jefferson said the following….

“I wish it were possible to obtain a single amendment to our Constitution – taking from the federal government their power of borrowing.”

#12 In 1811, the charter of the First Bank of the United States was not renewed.
#13 One year later, the War of 1812 erupted. The British and the Americans were at war once again.
#14 In 1814, the British captured and burned Washington D.C., but the Americans subsequently experienced key victories at New York and at New Orleans.
#15 The Treaty of Ghent, officially ending the war, was ratified by the U.S. Senate on February 16th, 1815 and was ratified by the British on February 18th, 1815.
#16 In 1816, another central bank was created. The Second Bank of the United States was established and was given a 20 year charter.
#17 Andrew Jackson, who became president in 1828, was determined to end the power of the central bankers over the United States.
#18 In fact, in 1832, Andrew Jackson’s re-election slogan was “JACKSON and NO BANK!”
#19 On July 10th, 1832 President Jackson said the following about the danger of a central bank….

“It is not our own citizens only who are to receive the bounty of our government. More than eight millions of the stock of this bank are held by foreigners… is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country? … Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence… would be more formidable and dangerous than a military power of the enemy.”

#20 In 1835, President Jackson completely paid off the U.S. national debt. He is the only U.S. president that has ever been able to accomplish this.
#21 President Jackson vetoed the attempt to renew the charter of the Second Bank of the United States in 1836.
#22 Richard Lawrence attempted to shoot Andrew Jackson, but he survived. It is alleged that Lawrence said that “wealthy people in Europe” had put him up to it.
#23 The Civil War was another opportunity for the central bankers of Europe to get their hooks into America. In fact, it is claimed that Abraham Lincoln actually contacted Rothschild banking interests in Europe in an attempt to finance the war effort. Reportedly, the Rothschilds were demanding very high interest rates and Lincoln balked at paying them.
#24 Instead, Lincoln pushed through the Legal Tender Act of 1862. Under that act, the U.S. government issued $449,338,902 of debt-free money.
#25 This debt-free money was known as “Greenbacks” because of the green ink that was used.
#26 The central bankers of Europe were not pleased. The following quote appeared in the London Times in 1865….

“If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”

#27 Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.
#28 After the Civil War, all money in the United States was created by bankers buying U.S. government bonds in exchange for bank notes.
#29 James A. Garfield became president in 1881, and he was a staunch opponent of the banking powers. In 1881 he said the following….

“Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

#30 President Garfield was shot about two weeks later by Charles J. Guiteau on July 2nd, 1881. He died from medical complications on September 19th, 1881.
#31 In 1906, the U.S. stock market was setting all kinds of records. However, in March 1907 the U.S. stock market absolutely crashed. It is alleged that elite New York bankers were responsible.
#32 In addition, in 1907 J.P. Morgan circulated rumors that a major New York bank had gone bankrupt. This caused a massive run on the banks. In turn, the banks started recalling all of their loans. The panic of 1907 resulted in a congressional investigation that ended up concluding that a central bank was “necessary” so that these kinds of panics would never happen again.
#33 It took a few years, but the international bankers finally got their central bank in 1913.
#34 Congress voted on the Federal Reserve Act on December 22nd, 1913 between the hours of 1:30 AM and 4:30 AM.
#35 A significant portion of Congress was either sleeping at the time or was already at home with their families celebrating the holidays.
#36 The president that signed the law that created the Federal Reserve, Woodrow Wilson, later sounded like he very much regretted the decision when he wrote the following….

“A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men … [W]e have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world–no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.”

#37 Between 1921 and 1929 the Federal Reserve increased the U.S. money supply by 62 percent. This was the time known as “The Roaring 20s”.
#38 In addition, highly leveraged “margin loans” became very common during this time period.
#39 In October 1929, the New York bankers started calling in these margin loans on a massive scale. This created the initial crash that launched the Great Depression.
#40 Rather than expand the money supply in response to this crisis, the Federal Reserve really tightened it up.
#41 In fact, it was reported the the U.S. money supply contracted by eight billion dollars between 1929 and 1933. That was an extraordinary amount of money in those days. Over one-third of all U.S. banks went bankrupt. The New York bankers were able to buy up other banks and all kinds of other assets for pennies on the dollar.
But are American students being taught any of this today?
Of course not.
In fact, it is a rare student that can even adequately explain what a central bank is.
We have lost so much of what is important about our history.
And you know what they say – those who forget history are doomed to repeat it.
It is absolutely critical that we educate as many Americans as possible about what is really going on in our financial system and about why we need to make some truly fundamental changes.

http://www.prisonplanet.com/41-facts-about-the-history-of-central-banks-in-the-united-states-that-our-children-are-no-longer-taught-in-school.html

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