Ron Paul: Audit the Fed, Now or Never

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Ron Paul: Audit the Fed, Now or Never

Ron Paul
Prisonplanet.com
July 2, 2012

Ron Paul is America’s leading voice for limited, constitutional government, low taxes, free markets, sound money, and a pro-America foreign policy.

http://www.prisonplanet.com/ron-paul-audit-the-fed-now-or-never.html

antikakistocrat's picture
antikakistocrat
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Apr. 18, 2012 2:41 pm

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I was on the moon this morning, checking the rumor about it being made of cheese.

Instead of cheese, I found WOLF!!!!!!!

WOLF!!!!!

I think this fact should prove to everyone how stupid anyone who listens to Ron Paul is.

anonymous green
Joined:
Jan. 5, 2012 10:47 am

Okay then keep being a slave to an evil central banking system.

The rest of you who actually understood banker history this is an astounding victory.

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

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 2:41 pm
Quote antikakistocrat:

Okay then keep being a slave to an evil central banking system.

The rest of you who actually understood banker history this is an astounding victory.

41 Facts .............

BLAH BLAH BLAH.....how many times are you going to post this crap?

delete jan in iowa
Joined:
Feb. 6, 2011 11:16 am

Strange. I think that auditing the Federal Reserve is a completely reasonable demand and I am shocked the American citizens of all political stripes haven't come together sooner to demand that transparency and government oversight be brought to this immensely powerful institution.

I understand, that a lot of this condescension is being directed at a poster who spams conspiracy nonsense from AJ websites, but this is a legitimate issue and serious discourse should be had.

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JoyceFinnigan
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Jan. 10, 2012 7:40 pm

This is where we separate the thinkers from the partisans.

The American Dream Film-Full Length

https://www.youtube.com/watch?v=tGk5ioEXlIM

The Money Masters.

http://video.google.com/videoplay?docid=-515319560256183936&q=The+money+changers&ei=Zd4QSMjvB47YqAKQtJmzBA

One should take a weekend and really watch the Money-Masters, a long film but very informative. The American Dream is only 30 minutes and is just enough to entice you to further....

antikakistocrat's picture
antikakistocrat
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Apr. 18, 2012 2:41 pm
Quote jan in iowa:

BLAH BLAH BLAH.....how many times are you going to post this crap?

When the FED gets nationalized of gets shut down.

Besides many are still waking up...

By getting rid of central banking Americans can live freer lives. How's that for positive thinking for you Jan in Iowa !!!!

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 2:41 pm

The American Dream is actually only 15 minutes long, Andy Warhol proved this already.

Anyone who tries to say it's really 30 minutes long is lying.

Anyone who uses Ron Paul as a reference is lying.

The agonal respirations of the Fourth Reich are covered by lies.

The Fifth Reich is waiting in the wings of an American Eagle, again.

anonymous green
Joined:
Jan. 5, 2012 10:47 am
Quote antikakistocrat:
Quote jan in iowa:

BLAH BLAH BLAH.....how many times are you going to post this crap?

When the FED gets nationalized of gets shut down.

Besides many are still waking up...

By getting rid of central banking Americans can live freer lives. How's that for positive thinking for you Jan in Iowa !!!!

The Fed was a product of the progressive era. Why would progressives want to end it? Be careful of the greenbackers who've infiltrated the anti-Fed movement. They want Congress to print money. Inflation is inflation.They think that the printing press can lead to prosperity.

LysanderSpooner's picture
LysanderSpooner
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Jul. 31, 2007 3:01 pm

Isn't the FED audited every year?

In any case, Bernie Sanders and Ron Paul passed audit legislation some time ago and found the FED loaned banks trillions at the discount window.

Whoa! There's a surprise.

Dr. Econ's picture
Dr. Econ
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.sanders.senate.gov/newsroom

douglaslee's picture
douglaslee
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Jul. 31, 2007 3:01 pm
Quote douglaslee:

.sanders.senate.gov/newsroom

I haven't read the whole thing, but it seems the worst of what they found was limited to the current crisis. Where is the smoking gun the anti-FED people were looking for when they were screaming for another audit?

Dr. Econ's picture
Dr. Econ
Joined:
Jul. 31, 2007 3:01 pm
Quote LysanderSpooner:
Quote antikakistocrat:
Quote jan in iowa:

BLAH BLAH BLAH.....how many times are you going to post this crap?

When the FED gets nationalized of gets shut down.

Besides many are still waking up...

By getting rid of central banking Americans can live freer lives. How's that for positive thinking for you Jan in Iowa !!!!

The Fed was a product of the progressive era. Why would progressives want to end it? Be careful of the greenbackers who've infiltrated the anti-Fed movement. They want Congress to print money. Inflation is inflation.They think that the printing press can lead to prosperity.

Hey Stoopid,

Do you even know what Greenbacks were?

Greenbacks were paper that Lincoln printed, and funded the Union Army with.

He didn't borrow them from a Fed.

He printed them on paper.

Real Americans used them, and accepted them as real money.

Fools today have been taught that printing money on paper will destroy us.

Fools today don't even know what a fool is.

anonymous green
Joined:
Jan. 5, 2012 10:47 am
Quote Dr. Econ:
Quote douglaslee:

.sanders.senate.gov/newsroom

I haven't read the whole thing, but it seems the worst of what they found was limited to the current crisis. Where is the smoking gun the anti-FED people were looking for when they were screaming for another audit?

A smoking gun isn't the point. As a matter of prudence, a full audit of the Fed should be done each year. This is one of the most powerful institutions in the world that we are talking about

I don't think a full audit has actually been performed, yet. As I understand it, the 2009 audit did not allow access to data related loans made to foreign central banks or discount window loans. Given the volatility of failing EU financial system, it may be interesting to see if the Fed is throwing pearls to swine. Currently, 31 USC 714 protects this data from audits as "monetary policy" questions. The new HB rule amends the statute to remove this protection.

JoyceFinnigan's picture
JoyceFinnigan
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Jan. 10, 2012 7:40 pm
Quote JoyceFinnigan:
Quote Dr. Econ:
Quote douglaslee:

.sanders.senate.gov/newsroom

I haven't read the whole thing, but it seems the worst of what they found was limited to the current crisis. Where is the smoking gun the anti-FED people were looking for when they were screaming for another audit?

A smoking gun isn't the point. As a matter of prudence, a full audit of the Fed should be done each year. This is one of the most powerful institutions in the world that we are talking about

I don't think a full audit has actually been performed, yet. As I understand it, the 2009 audit did not allow access to data related loans made to foreign central banks or discount window loans. Given the volatility of failing EU financial system, it may be interesting to see if the Fed is throwing pearls to swine. Currently, 31 USC 714 protects this data from audits as "monetary policy" questions. The new HB rule amends the statute to remove this protection.

I looked into this once and there all kinds of audits done througout the years. What are you expecting to find that the Chairman - who is appointed by the president - doesn't know?

Dr. Econ's picture
Dr. Econ
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Jul. 31, 2007 3:01 pm
Quote Dr. Econ:

I looked into this once and there all kinds of audits done througout the years. What are you expecting to find that the Chairman - who is appointed by the president - doesn't know?

Hopefully nothing.

The point of the legislation is to bring transparency to the Federal Reserve. Not becuase it is corrupt, but because there is the potential for unchecked corruption--especially over the last few years.

You seem to be looking for something. Speak direct, why shouldn't we audit the Federal Reserve?

JoyceFinnigan's picture
JoyceFinnigan
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Jan. 10, 2012 7:40 pm
Quote JoyceFinnigan:
Quote Dr. Econ:

I looked into this once and there all kinds of audits done througout the years. What are you expecting to find that the Chairman - who is appointed by the president - doesn't know?

Hopefully nothing.

The point of the legislation is to bring transparency to the Federal Reserve. Not becuase it is corrupt, but because there is the potential for unchecked corruption--especially over the last few years.

You seem to be looking for something. Speak direct, why shouldn't we audit the Federal Reserve?

Ok, I googled 'fed audited', and found that yes, the Fed is audited all the time. Case closed.

Dr. Econ's picture
Dr. Econ
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Quote The Law Governing Audits:31 USC § 714 - Audit of Financial Institutions Examination Council, Federal Reserve Board, Federal reserve banks, Federal Deposit Insurance Corporation, and Office of Comptroller of the Currency

(a) In this section, “agency” means the Financial Institutions Examination Council, the Board of Governors of the Federal Reserve System (in this section referred to as the “Board”), Federal reserve banks, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

(b) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing. 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.

Not all the time. It was fully audited once, in the Dodd-Frank Bill (and even here there is significant confusion over what that audit entailed). Dodd-Frak was a specific-one-time audit tied to TARP and the 2008 Panic.

By statute [see above], every other audit past and future has significant restrictions to what they are allowed to audit.

JoyceFinnigan's picture
JoyceFinnigan
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Jan. 10, 2012 7:40 pm
Quote JoyceFinnigan:... Not all the time. It was fully audited once, in the Dodd-Frank Bill By statute [see above], every other audit past and future has significant restrictions to what they are allowed to audit.

The OIG, GAO and indepedent auditors audit the FED regularly. I'm not sure why you mented the audit by the comptroller, since it is not mentioned on the FED site.

http://www.federalreserve.gov/faqs/about_12784.htm

Dr. Econ's picture
Dr. Econ
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Jul. 31, 2007 3:01 pm
Quote Dr. Econ:

The OIG, GAO and indepedent auditors audit the FED regularly. I'm not sure why you mented the audit by the comptroller, since it is not mentioned on the FED site.

http://www.federalreserve.gov/faqs/about_12784.htm

Because the Comptroller General is the director of the GAO? The ful title of the above statute is 31 USC Chapter 7-- Government Accountability Office. (it is easy to confuse the Comptroller General who works for the GAO with Comptroller of Currency who works for the treasury--especially since the definitions section (a) of the statute refers to the Comptroller of Currency.)

This statute governing how the GAO can conduct an audit mirrors the auditing procedures performed by the OIG at the Fed. Under the Federal Reserve Board of Governor's Financial Accounting Manual, any investments or transactions made in the Systems Open Market Account (SOMA) are accounted for as amortized costs rather that fair value.

Quote Section 40.01 of the Financial Accounting Manual for Federal Reserve Banks:

U.S. Treasury, Federal agency, and government sponsored enterprise (GSE) debt securities, Federal agency and GSE mortgage-backed securities (MBS), outstanding commitments under dollar roll and coupon swap transactions, and investments denominated in foreign currencies comprising the System Open Market Account (SOMA) are recorded at amortized cost, on a settlement-date basis. Rather than using the fair value presentation, amortized cost more appropriately reflects the Bank's securities holdings given the System's unique responsibility to conduct monetary policy. Differences between fair value and amortized cost have no direct effect on the ability of the Reserve Banks, as a central bank, to meet their financial obligations and responsibilities, the quantity of reserves available to the banking system, or on the prospects for future Bank earnings or capital.

Both the domestic and foreign components of the SOMA portfolio may involve transactions that result in gains or losses when holdings are sold prior to maturity. Decisions regarding securities and foreign currency transactions, including their purchase and sale, are motivated by monetary policy objectives rather than profit. Accordingly, market values, earnings, and any gains or losses resulting from the sale of such securities and currencies are incidental to the open market operations and do not motivate decisions related to policy or open market activities.

Similarly, as central bank, the Reserve Banks liquidity and cash position do not affect their ability to meet their financial obligations and responsibilities. Profit motivated entities provide a cash flow statement to disclose their ability to generate
future cash flows and thus the ability to meet their obligations. This does not represent a risk to the Reserve Banks.

Generally Accepted Accounting Principals would require such securities to be reported at Fair Market Value. This is because FMV's limit a company's ability to manipulate its net income because gains and losses on assets and liabilities are reported in the period they occur, not when they are realized as the result of a transaction.

However, the Federal Reserve is able to insulate themselves from poor/corrupt monetary decisions by reporting their foreign investments as amortized costs. How on earth can there be a complete accounting under these kinds of rules?

JoyceFinnigan's picture
JoyceFinnigan
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Quote JoyceFinnigan:
Quote Dr. Econ: The OIG, GAO and indepedent auditors audit the FED regularly. I'm not sure why you mented the audit by the comptroller, since it is not mentioned on the FED site.

Because the Comptroller General is the director of the GAO?

I think the idea was that the government could not investigate monetary policy matters to maintain the independence of the FED in the first place. There apparently is still private auditors. And, the FED can be audited by the GAP and OIG in all other matters. Your exception pointed out below seems hardly significant.

Quote JoyceFinnigan:...Generally Accepted Accounting Principals would require such securities to be reported at Fair Market Value. This is because FMV's limit a company's ability to manipulate its net income because gains and losses on assets and liabilities are reported in the period they occur, not when they are realized as the result of a transaction.

However, the Federal Reserve is able to insulate themselves from poor/corrupt monetary decisions by reporting their foreign investments as amortized costs. How on earth can there be a complete accounting under these kinds of rules?

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Dr. Econ
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