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Ron Paul Supports Vitter Amendment That Is Endorsed By About 80% Of American Citizens

Tyler Durden's picture


Fed Audit Under Fire, by Ron Paul

It doesn’t come as too much of a surprise that the measure to audit the Federal Reserve is coming under continuous fire from the central bank and its cronies.  For the first time since the Federal Reserve was created nearly a century ago, they have hired an actual lobbyist to pound the pavement on Capitol Hill.  This is a desperate effort to hang on to the privilege of secrecy and lack of accountability they have enjoyed for so long.  Last week showed they are getting their money’s worth in the Senate.

At the very last minute on the floor of the Senate, supposed compromise language was agreed to and substituted in the Sanders Amendment to the Financial Reform Bill.  This language was acceptable to the administration, committee leadership, and to the Fed.  The trouble is, while it is better than no audit at all, it guts the spirit of a truly meaningful audit of the most crucial transactions of the Fed.  In fact, rather than still calling the Sanders Amendment an audit, maybe it should instead be called more of a disclosure at this point.

The new language of the Sanders Amendment requires a one-time disclosure from the Fed of 13(3) facilities, foreign currency swaps and mortgage-backed securities.  Basically, their sins of the past would be revealed and Americans would know more about who got bailed out by the Fed and under what terms.  This would be good, but its not nearly enough.

Taxpayers are sick and tired of bailing out privileged, dysfunctional institutions that should be allowed to fail in order to stop their ability to wreak havoc on our economy.  Perpetuating these corporations at taxpayer expense is not just wasteful, it is actively harmful.  It would be good to know what went on in the past, but what about accountability in the future?  A one-time disclosure now will not do us a lot of good down the road when the cycle repeats itself and friends of the Fed find themselves in trouble again.

More importantly, agreements with foreign central banks are not touched by the new Sanders Amendment language.  At a time when Greece, Portugal, Spain and other countries are experiencing dire financial crises and have their hands out to the international community, we need to know if our Federal Reserve is at all involved in bailing them out.  As weary as we are of bailing out companies, the American people would not stand for bailing out entire countries. Our government is wasteful enough in its own affairs without contributing to the waste of other countries.  Yet the Fed currently has the tools it needs to do just this, and to do it in secret.

If we cannot take away the Fed’s ability to waste trillions of taxpayer dollars on failing companies and failing countries, at the very least, we can take away their ability to do this with no transparency or accountability to the American people.  While the Sanders Amendment no longer contains a full audit, Senator David Vitter has introduced an amendment which contains the Audit the Fed language that passed the House last fall.  The Senate must pass the Vitter amendment for full disclosure and full accountability going forward.


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Mon, 05/10/2010 - 14:48 | 341831 LeBalance
LeBalance's picture

Well! Are we ready for more *messages* to be sent? Ron meet horse's head. Horse's head meet Ron.

And that is "c"itizen, not "C"itizen, a very important distinction.  One of the major points of the 14th Amendment.

Mon, 05/10/2010 - 16:24 | 342000 Cursive
Cursive's picture

Vitter is one of my senators.  I have been e-mailing and calling him religiously.  Maybe it worked, maybe it didn't, but you don't know unless you try.  I urge everyone to contact their senators and reps.

Mon, 05/10/2010 - 14:49 | 341840 MyFriendMises
MyFriendMises's picture

Got to give the man credit...he keeps fighting the fight.  Pretty sure most would have given up years ago. 

Mon, 05/10/2010 - 16:58 | 342070 faustian bargain
faustian bargain's picture

The fact that almost noone else is fighting is evidence supporting that. That, or most never fought it to begin with.

Mon, 05/10/2010 - 21:00 | 342535 pan-the-ist
pan-the-ist's picture

Most of them got the message when Wellstone got whacked.  Dr. Paul probably enjoys his horsehead with a fine chianti.

Mon, 05/10/2010 - 14:50 | 341842 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I am over audits.  I want to burn the building down, and tell the Fed "m"oney "m"akers they are out of a job. 

Mon, 05/10/2010 - 15:15 | 341904 BernankeFed
BernankeFed's picture

That was the best comment I read this week.  Seriously, I feel your pain.

Mon, 05/10/2010 - 15:41 | 341964 Sudden Debt
Sudden Debt's picture

Good luck with that one :)


I'll see you on CNN bro!

Mon, 05/10/2010 - 15:45 | 341977 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I think you will see me and thousands of others then, on that there tube ;)

Mon, 05/10/2010 - 18:30 | 342224 A Nanny Moose
A Nanny Moose's picture

Mr Hendrix, This is hotel Gitmo calling to confirm your reservation. How many keys will you be needing sir? Would you like the keep the Osama Bin Laden "waterbed" suite?

Mon, 05/10/2010 - 18:37 | 342238 ChevronSky
ChevronSky's picture

Now that's funny!

Mon, 05/10/2010 - 20:56 | 342530 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Does it come with kidney dialysis?  I will also need an internet connection and wet bar in my cave.

Mon, 05/10/2010 - 14:54 | 341850 Temporalist
Temporalist's picture

If U.S. Citizens had listend to Ron Paul over the past 30 years...well if Woody had gone to the police none of this would have ever happened.

Mon, 05/10/2010 - 14:55 | 341852 wang
wang's picture

Sept. 30 (Bloomberg) -- The Federal Reserve filed a notice it will appeal a judge’s order requiring the central bank to identify the companies that benefited from its emergency loans. The filing with the U.S. Court of Appeals in New York today was authorized by Solicitor General Elena Kagan

Mon, 05/10/2010 - 15:16 | 341907 WaterWings
WaterWings's picture

Hahaha! I have the same feeling in my stomach when Geithner was nom'd for TS. Unbelievable.

Mon, 05/10/2010 - 20:06 | 342431 futureb
futureb's picture

OMG this is SERIOUSLY the proof we've all been looking for!  Conspiracy!!


Grow up, that was her job as solicitor general.  She is the appellate lawyer for the US in Federal Court.  So what. 

Tue, 05/11/2010 - 10:23 | 343328 WaterWings
WaterWings's picture

Buy gold, or die.

Mon, 05/10/2010 - 15:22 | 341920 earnyermoney
earnyermoney's picture

No wonder Obama want's this Goldman Sachs escort on the Supreme Court.

Mon, 05/10/2010 - 15:33 | 341942 Cognitive Dissonance
Cognitive Dissonance's picture

She passed the deep throat test. Man or woman, it doesn't matter. Anyone who wished to play must pass the deep throat test.

Mon, 05/10/2010 - 15:47 | 341980 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Woodward was Scull and Bones. I hope everybody already knew that.

Mon, 05/10/2010 - 20:27 | 342194 Cognitive Dissonance
Cognitive Dissonance's picture

Deepthroat was a black ops program run by the FBI, concieved and coordinated by the CIA and promoted by the WaPo owner and Woodward.

Everyone doesn't know that because they made a movie about it, so what happened in the movie must be true, otherwise they wouldn't have made a movie about it. At least that's what my brother tells me.

Mon, 05/10/2010 - 15:28 | 341854 akak
akak's picture

The more I learn about the unaccountable, corrupt, manipulative, and literally sociopathic nature of the Federal Reserve, the more my mind reels from the sheer magnitude of the pernicious parasitical elitism and absolute evil inherent in its very existence.

Taken over the 97 years of its existence, I sincerely believe that there is no criminal enterprise in our nation's history that can even remotely compare to this rapacious tapeworm that continues to drain more and more of the economic lifeblood from the American economy. And to add insult to injury, most of the increasingly anemic hosts of this monstrosity have been brainwashed into believing that its presence is necessary for their very survival, when the truth is precisely the opposite.

Mon, 05/10/2010 - 16:37 | 342026 Duuude
Duuude's picture




Mon, 05/10/2010 - 21:43 | 342600 Rusty_Shackleford
Rusty_Shackleford's picture


Well said.


Mon, 05/10/2010 - 14:57 | 341855 greased up deaf guy
greased up deaf guy's picture

give 'em hell, dr. paul!

Mon, 05/10/2010 - 14:58 | 341859 crzyhun
crzyhun's picture

I like 1/2 of what Ron says and does. But big question is "Can you handle the truth?" Meaning the American public.

Mon, 05/10/2010 - 14:58 | 341860 Rick64
Rick64's picture

This is how congress works. Legislation that is lobbyed against by the elite but supported by the people needs to be watered down. Compromise the original objective. Replace any effective measures then pass it as a success. Citizens rarely follow the process.

Mon, 05/10/2010 - 14:59 | 341862 Crummy
Crummy's picture

Back and to the left, back and to the left...

Mon, 05/10/2010 - 15:00 | 341871 Leo Kolivakis
Leo Kolivakis's picture

Oh please, the rest of the world has been bailing out Uncle Sam for decades. it's pay back time!

Mon, 05/10/2010 - 15:04 | 341879 akak
akak's picture

You really mean that the USA has been thieving from the rest of the world for decades, via the status of the US dollar as the world's de facto reserve currency. Agreed, but two wrongs still do not make a right.

Mon, 05/10/2010 - 15:15 | 341900 Mitchman
Mitchman's picture

Leo,  I am generally happy to give you lots of poetic license but this stuff about others "bailing out" the US is pure bullshit.  I would love to have back the trillions of dollars we wasted on keeping our troops in Europe, for example, unwrapping candy wrappers while giving the Europeans  a free ride on their own military expenditures.  The same goes for the Japanese. Do you think the price of oil is where it is and all those corrupt Middle Eastern sheikdoms are safe because they are protected by the Greek air force?  Nothing would please me more than to pull out all of the US troops from the Continent and see just how good all of those wonderful European economies look then.

Mon, 05/10/2010 - 15:24 | 341928 Leo Kolivakis
Leo Kolivakis's picture

The only reason the US is in the Middle East is because it wants to control oil supplies. As for bailing out the US, ask the Chinese how they feel like after funding your massive trade deficit. Admittedly, they're doing it to support theri exports, but this talk of the US being the world's savior makes me wanna hurl!

Mon, 05/10/2010 - 15:38 | 341939 akak
akak's picture

" ...this talk of the US being the world's savior makes me wanna hurl!"

As does your explicit support for the monstrous and unsustainable crime of the worldwide, central bankster-controlled and benefitting, fiat currency monetary system make many of us want to hurl as well.

Until honesty, transparency and sustainability are restored to our monetary system(s), no real financial reform is meaningful, or possible.

Mon, 05/10/2010 - 15:48 | 341981 Mitchman
Mitchman's picture


I am not suggesting that the US is or even was the world's savior but I do ask you to consider that in the years after the second world war, the Western world's financial situation was not unlike that of the Club Med countries after entering the euro:  you had weaker economies who benefitted from interest rates probably lower than they should have been given the respective countries' fundamentals.  After WWII, Europe benefitted from the economic and military "umbrella" that the US provided.

The same is true of Japan.  Everybody won from that game.  Things begam to fall apart here with the deficit spending of a war and domestic programs of the '60s (sound familiar) and it took the Volcker Fed to try to get us back on track.  But I do think that saying that the US has had a free ride because we were the exchange currency is not only unfair, but also inaccurate. 

Somewhere in the dim recesses of my memory, I remember a communist takeover attempt in Greece that the US may have helped avert; until the communists decided it was easier to do it through the ballot box. 

Mon, 05/10/2010 - 16:48 | 342047 Leo Kolivakis
Leo Kolivakis's picture

My grandfather fought with the Americans in WWI. My father did his psychiatry residency in Chicago. The US was good to my family. The US Army paid my grandmother a pension after my grandfather passed away till her dying days. Believe me when I tell you that we owe a debt of gratitude to the United States of America.

But the US of those years is not the same United States now. Neither is Greece for that matter. The world has changed, and not always for the better.

Mon, 05/10/2010 - 17:07 | 342074 Mitchman
Mitchman's picture

Leo,  we are in complete agreement on the words and substance of your last paragraph.  Let us drink to better days.  And to more of your well chosen photos from Google images.

Mon, 05/10/2010 - 17:13 | 342109 Leo Kolivakis
Leo Kolivakis's picture

I often think about what the older generation achieved and think how spoiled we are. This culture of entitlement where everyone is looking to scam the system has destroyed us. Those values that come straight from Wall Street are destroying the fabric of our society. It truly is a shame. Yes, let's drink to better days. Cheers.

Mon, 05/10/2010 - 16:44 | 342040 A_MacLaren
A_MacLaren's picture

Countries (companies) that seeks to prosper via Mercantilist Customer Finance policies (programs) wherein the customer dilutes into oblivion (defaults on) the incurred debts, have made their own beds.  Sleep well.

Mon, 05/10/2010 - 15:09 | 341892 gamingthemarket
gamingthemarket's picture

Eurodollars plunged on Thursday creating a wave in the interest rate swaps market. The largest cash market in the world. These swaps are what most ETFs actually trade, not baskets of stocks. Is it a coincidence the majority of stocks NASDAQ froze were ETFs like FAZ? Stocks designed to profit off a market crash failed on Thursday.

How international banks manipulate markets to service the U.S. war debt:

Mon, 05/10/2010 - 23:23 | 342735 SNAFU
SNAFU's picture

GTM: Wow! Thank you for an excellent report- FinArmZombies.  You should

 write a textbook for 9th graders.  If we overcome now, your book will be in the schools in 3 years.

Mon, 05/10/2010 - 23:56 | 342780 Rick64
Rick64's picture

Really good article.

Mon, 05/10/2010 - 16:23 | 341898 earnyermoney
earnyermoney's picture

Called my Senators this morning urging them to vote no on Sander's sellout and to vote Yes on S. Vitter's amendment. Bet Sanders votes no on Vitter's amendment. Sellout


Senator Vitter's Amendment is S. 3760. This will replace the text of Senator Sander's ammendment, (S. 3738), with text consistent with S. 604


The vote on S. 3738 is scheduled for tomorrow according to Senator Vitter's office.

Mon, 05/10/2010 - 18:29 | 342222 Sisyphus
Sisyphus's picture

So, does that mean we have another "i don't know, it seems like a fat finger" crash tomorrow?

Mon, 05/10/2010 - 15:20 | 341916 nope-1004
nope-1004's picture

Don't give up, Ron.  I support you 100%.  These crooked crony capitalists posing in pictures as doing good for the American people need to be put in prison.



Mon, 05/10/2010 - 15:24 | 341926 Sudden Debt
Sudden Debt's picture

80% of all Americans... that's a heck of a lot of phone calls...

I even wonder if 2% actually knows about what Paul is talking...

Mon, 05/10/2010 - 15:36 | 341949 Rick64
Rick64's picture

80% of Americans support this. Why has it met this much resistance? Why are they trying to compromise it, for the other 20% behalf. This shows you that you have very little representation in D.C. . This is a golden opportunity when public sentiment is united, we the citizens will be to blame if we let this slip away.

Mon, 05/10/2010 - 15:40 | 341954 Young
Young's picture

Don't worry, Harry has already bought the gas to fuel the fire... Where the hell is Harry anyway?

Mon, 05/10/2010 - 20:52 | 342523 Marvin_M
Marvin_M's picture

a quick pop-up to gain a couple of percentage points in the NV primary then back into his hole... the man has no idea what he stands for... except elections

Mon, 05/10/2010 - 15:45 | 341973 Dr. Richard Head
Dr. Richard Head's picture

For an explanation on the watering down of the Audit the Fed Amendment coming directly from Sen. Sanders on the Thom Hartmann Program today, please refer to my questioning of him beginning at 2:35.

Mon, 05/10/2010 - 15:45 | 341976 AnAnonymous
AnAnonymous's picture

What do people expect from a FED audit?

I mean people who are so into that FED audit stuff.


What do they expect to find?

And another question is that if people want to terminate the FED thanks to an audit, what is it they think to cause the end of the FED? What has the FED so disturbing to hide that it could end it if revealed?

Mon, 05/10/2010 - 16:28 | 342009 earnyermoney
earnyermoney's picture

"What do they expect to find?"


Government sponsored securities fraud.

Mon, 05/10/2010 - 16:22 | 341998 toathis
toathis's picture

Ron Paul is an old fool. He wants to see the dollar destroyed, so he can usser in his murderous Austrian economics that wants to destroy people's economic rights. Take those away watch people drop like flies.

A FED audit will destroy the world! DO NOT ALLOW IT TO HAPPEN unless you want to see mushroom clouds over major US cities.

Secrets can be kept. The truth still hasn't come out on the Kennedy Assignation, The Moon Landing, 9/11, the CIAs role in foreign affairs, Obama's birth certificate and school records. I could go on and on. simple:

Keep the FED secret= Keep people alive. Don't give me BS about the truth always coming out. The market has already priced in a historical economic recovery! Do not destroy this progress! I want to live!

Mon, 05/10/2010 - 16:27 | 342008 Ripped Chunk
Ripped Chunk's picture

So how is your job at the NY Fed going? 

I hear they are hiring? I would love a job presiding over the downfall.

Mon, 05/10/2010 - 16:44 | 342041 Ragnarok
Ragnarok's picture

Please explain this, "Austrian economics that wants to destroy people's economic rights."


1. What is an "economic right"?

2. How does Austrian economic theory destroy them?

Mon, 05/10/2010 - 17:31 | 342121 GoodBanker
GoodBanker's picture

Now, now, let's not feed the trolls.

Mon, 05/10/2010 - 17:45 | 342144 Ragnarok
Ragnarok's picture

Fair enough.

Mon, 05/10/2010 - 17:54 | 342169 Alienated Serf
Alienated Serf's picture

Funny, I don't want YOU to live toathie.  I'm a afraid the truth will eventually come out; you should spare yourself all that suffering and just end it.  You don't seem like a gun guy to me, how about a couple handfulls of oxycontin and a pint or two of vodka.  nighty night.

Mon, 05/10/2010 - 20:17 | 342187 akak
akak's picture

Toathis stated:

"A FED audit will destroy the world! DO NOT ALLOW IT TO HAPPEN unless you want to see mushroom clouds over major US cities."

We don't need mushroom clouds over every major city in the US, Toathis --- just over yours.

Besides, I happen to like mushrooms.  And they are such a fitting symbol for most Americans, and you as well --- being kept in the dark and fed bullshit before being harvested by their cultivators, sitting in contentment and innocence and soaking up crap until their heads are lopped off.

Mon, 05/10/2010 - 18:18 | 342204 Rick64
Rick64's picture

Is this reverse psychology? It seems to be working.

Mon, 05/10/2010 - 18:38 | 342241 John Rowa
John Rowa's picture

So, wait... Your solution for all this is to just close your eyes and hope it goes away?


I don't want the Dollar to become worthless and I doubt Dr. Paul does, either... but, let's face the cold, hard facts... IT'S WORTHLESS!!! Just waiting for the collapse instead of doing something about it is the kind of apathetic attitude that has gotten us into this mess in the first place.

Mon, 05/10/2010 - 18:41 | 342249 Sespian
Sespian's picture

Is that you Harry?

Mon, 05/10/2010 - 18:50 | 342266 SilverIsKing
SilverIsKing's picture

How are you able to breath with your head so far up your ass?  Now that's a real talent.

I commend you!

Mon, 05/10/2010 - 20:58 | 342532 Marvin_M
Marvin_M's picture

gentlemen, please relax... Mr. Toathis is yanking our cranks ...sheesh!

Mon, 05/10/2010 - 21:26 | 342571 Iam_Silverman
Iam_Silverman's picture

OK, I can see where you are going here.  The FED is just like my little hometown bank.  They too have a vault filled with safe deposit boxes.  But inside those little boxes are all of our national conspiracies, instead of (U.S.) birth certificates, passports, car titles, PM's and other boring things?

The only thing that abolishing the FED system may disrupt is the orderly processing of our checks.  I have to admit, they are getting much better these days - a check clears almost overnight in most cases.  {But isn't credited to your account for weeks?}

Mon, 05/10/2010 - 16:25 | 342002 Ripped Chunk
Ripped Chunk's picture

Well if 80% of Americans are for it, it will pass with a couple of hundred million in earmarks and pork

 attached to it and everyone will get re-elected NOT!

Mon, 05/10/2010 - 16:48 | 342052 iLivedINhaitiOnce
iLivedINhaitiOnce's picture

I should change my name to 'Fecal Reserve Note'

Mon, 05/10/2010 - 18:59 | 342288 MaxFrost
MaxFrost's picture

That's especially appropriate since we're talking about "Vitter the Shitter".


Mon, 05/10/2010 - 17:41 | 342143 doggings
doggings's picture

Toathis, you sound like a random collection of propaganda cliches, if there is such a thing.

you are either very stupid, or a very poor troll. or both.

we definitely need to look at that math entry test to allow comments here.

Mon, 05/10/2010 - 19:01 | 342290 belogical
belogical's picture

I keep hoping that somehow someone will stand up and do the right thing but, I bigining to think revolution is the only thing left.

Mon, 05/10/2010 - 21:34 | 342588 Iam_Silverman
Iam_Silverman's picture

If we ever DO get an audit of the FED, who are they gonna hire to do it? I don't know if Arthur Anderson is able to take any new clients right now.  Do you suppose that Ernst & Young will?  Maybe David Friehling can take this one on in his spare time?  Bernie would probably offer to help.

Mon, 05/10/2010 - 21:50 | 342610 Rusty_Shackleford
Rusty_Shackleford's picture

I've also wondered about the practical aspects of a Fed "Audit".


"Gold swap agreements?  What gold swap agreements?  Hey Ben, you know anything about any gold swap agreements?  Sorry, can't help you there."

Mon, 05/10/2010 - 22:47 | 342698 3ringmike
3ringmike's picture


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