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Ron Paul: Don't Be Fooled By The Fed's Anti-Audit Propaganda

Tyler Durden's picture




 

Submitted by Ron Paul via The Ron Paul Institute for Peace and Prosperity,

In recent weeks, the Federal Reserve and its apologists in Congress and the media have launched numerous attacks on the Audit the Fed legislation. These attacks amount to nothing more than distortions about the effects and intent of the audit bill.

Fed apologists continue to claim that the Audit the Fed bill will somehow limit the Federal Reserve’s independence. Yet neither Federal Reserve Chair Janet Yellen nor any other opponent of the audit bill has ever been able to identify any provision of the bill giving Congress power to dictate monetary policy. The only way this argument makes sense is if the simple act of increasing transparency somehow infringes on the Fed’s independence.

This argument is also flawed since the Federal Reserve has never been independent from political pressure. As economists Daniel Smith and Peter Boettke put it in their paper “An Episodic History of Modern Fed Independence,” the Federal Reserve “regularly accommodates debt, succumbs to political pressures, and follows bureaucratic tendencies, compromising the Fed’s operational independence.”

The most infamous example of a Federal Reserve chair bowing to political pressure is the way Federal Reserve Chairman Arthur Burns tailored monetary policy to accommodate President Richard Nixon’s demands for low interest rates. Nixon and Burns were even recorded mocking the idea of Federal Reserve independence.

Nixon is not the only president to pressure a Federal Reserve chair to tailor monetary policy to the president’s political needs. In the fifties, President Dwight Eisenhower pressured Fed Chairman William Martin to either resign or increase the money supply. Martin eventually gave in to Ike’s wishes for cheap money. During the nineties, Alan Greenspan was accused by many political and financial experts — including then-Federal Reserve Board Member Alan Blinder — of tailoring Federal Reserve policies to help President Bill Clinton.

Some Federal Reserve apologists make the contradictory claim that the audit bill is not only dangerous, but it is also unnecessary since the Fed is already audited. It is true that the Federal Reserve is subject to some limited financial audits, but these audits only reveal the amount of assets on the Fed's balance sheets. The Audit the Fed bill will reveal what was purchased, when it was acquired, and why it was acquired.

Perhaps the real reason the Federal Reserve fears a full audit can be revealed by examining the one-time audit of the Federal Reserve’s response to the financial crisis authorized by the Dodd-Frank law. This audit found that between 2007 and 2010 the Federal Reserve committed over $16 trillion — more than four times the annual budget of the United States — to foreign central banks and politically influential private companies. Can anyone doubt a full audit would show similar instances of the Fed acting to benefit the political and economic elites?

Some fed apologists are claiming that the audit bill is part of a conspiracy to end the Fed. As the author of a book called End the Fed, I find it laughable to suggest that I, and other audit supporters, are hiding our true agenda. Besides, how could an audit advance efforts to end the Fed unless the audit would prove that the American people would be better off without the Fed? And don’t the people have a right to know if they are being harmed by the current monetary system?

For over a century, the Federal Reserve has operated in secrecy, to the benefit of the elites and the detriment of the people. It is time to finally bring transparency to monetary policy by auditing the Federal Reserve.

 

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Mon, 03/09/2015 - 22:45 | 5871942 in4mayshun
in4mayshun's picture

Sorry Ron- day late and a dollar short. We might of had a chance 25 years ago. This ship has sailed. (And is already sinking)

Mon, 03/09/2015 - 22:51 | 5871955 manofthenorth
manofthenorth's picture

Why audit what should be ABOLISHED ?

END THE FED NOW.

Artificial interest rates

Perpetual debt

Inflation

Market manipulation and distortion

'nuff said

Mon, 03/09/2015 - 23:37 | 5872062 Greenskeeper_Carl
Greenskeeper_Carl's picture

I agree. I have been asking why we think we would even get an honest audit. Who is going to audit them? Jack Lew's treasury? The GAO? Eric Holders "justice" dept? Some congressional office? A private Wall street firm? why people think this audit would even be remotly honestis beyond me. Just end the thing already. Declare it to be the unconstitutional entity that it is, and do away with it. And why does anyone think the people of this country would even care? As RP pointed out above, the partial audit revealed 16 T created out of thin air and loaned out at 0% and NO ONE cared except those of us who have been seeking the fed's demise all along.

Tue, 03/10/2015 - 02:10 | 5872325 Four chan
Four chan's picture

100 years

to enslave a free people to debt,

and confiscate all assets through boom and bust it creates with debt printed out of thin air.

Tue, 03/10/2015 - 04:12 | 5872410 Squid-puppets a...
Squid-puppets a-go-go's picture

in4mayshun, just be thankful someone gives a fuck enough to persist

Mon, 03/09/2015 - 22:57 | 5871946 One And Only
One And Only's picture

No one cares about the audit.

It's well known by now that the FED has bailed out banks that have funded and provided financial haven to drug cartels, war lords, terrorists, and countries that enslave/rape/torture/plunder their people. We also know that we paid for it as the FED just printed money and devalued our currency leading to low labor force particiaption, low homeownership, and an overall lower standard of living.

The FED should know we're a progessive society and we have not the time nor the inclination to hold them responsible for any of it. They shouldn't have shame. If Bruce Jenner can come out they should feel comfortable coming out too.

If Obama got a Nobel Peace Prize and proceeded to kill women and children by authorizing drone strikes and took away all of our rights to privacy I don't see why the FED isn't entitled to one too.

Mon, 03/09/2015 - 23:56 | 5872111 thinkmoretalkless
thinkmoretalkless's picture

No one cares until there is no toilet paper in the stall, then things move quickly and become unpredictable, just ask someone in Venezuela. At this point an audit won't tell us much that isn't already assumed, but maybe it extends a few moments lead time to mitigate the disaster. Either way when the public feels it you better have your alibi or bug out spot.

Mon, 03/09/2015 - 22:54 | 5871963 pods
pods's picture

So what if the audit showed that FRNs are actually made from dead puppies? Then what?  We'd hug our FRNs and stroke them at night.

Auditing gives an air of righteousness to a sick organization.

Just wait till the audit folks get their druthers and there is an audit and the FED comes out squeaky clean. Then what?

If I had MY druthers, I'd screw a chimpanzee.

https://www.youtube.com/watch?v=nWvU4lY7yKI

pods

Mon, 03/09/2015 - 23:40 | 5872069 Greenskeeper_Carl
Greenskeeper_Carl's picture

no. people won't care. Just like they didnt care with the partial audit before. Even socialist bernie sanders had this posted on his web page and has spoken about it before, so it isnt just a libertarian issue. No one on the left cares either, except dennis kucinich, the 'ron paul of the left', who is also ignored. As long as the bread and circuses continue, no one will care.

Mon, 03/09/2015 - 22:55 | 5871966 The Bell Rang
The Bell Rang's picture

Hang EM all :)

Mon, 03/09/2015 - 23:14 | 5872017 confederacy of ...
confederacy of the dunces's picture

Ron Paul is a freaking super hero. Whenever I start to feel like I am on heavy white blotter "L", and the bad trip is starting (meaning math does not matter, logic does not matter, puppet parade, Yellen and the 7 out of the other 9 tribesmen are creating fuzzy fake words like QE, when cramer is on a pogo stick bouncing around in my dream/nightmares) -- good old Ronnie shows up and makes me feel real again. I am Hunter S. Thompson and Ronnie Boy is my attorney. I am Batman and Ron is Robbin. I am Cheech  -- yep, RP is Chong. Keep it real Ron Paul. And Thank You.

Tue, 03/10/2015 - 10:19 | 5873072 Comte d'herblay
Comte d'herblay's picture

The only fans of Ron Paul are like rubberneckers driving slowly by an accident.

All you people who worship this 'mouth' have yet to point to one single thing he has actually accomplished, besides pointing out what anyone who has a nodding acquaintance with politics already knows about.

He's a whiner, having done nothing.

Mon, 03/09/2015 - 23:28 | 5872048 Stumpy4516
Stumpy4516's picture

Auditing the Fed will just be a psyopp type mission.  The audit would/will almost certainly coopted and worthless to the people.  It will however be used by the Fed owners and puppets to claim the Fed is clean, when it is not.  And then those who wanted a true audit will be drowned out and any further attempts painted as interference.

An improperly conducted audit will much more harm than no audit. 

I for one lost my trust in Ron Paul some time ago.  There are a few ex Fed people who have spoken out but are ignored, Paul should make their voices heard and talk corruption and the jewish connection.  Or better yet, Ron, talk 911, exposing 911 by you publicly to your followers will get more peoples attention that there is a big problem.

Tue, 03/10/2015 - 00:01 | 5872129 Heavy
Heavy's picture

It really is too bad that the younger isn't more like the elder.

Tue, 03/10/2015 - 00:14 | 5872159 Farqued Up
Farqued Up's picture

Yes. Junior is better than the rest only because he was raised right. Sadly though, he's classic regression to the norm, or regression TOWARD the norm.

Tue, 03/10/2015 - 10:29 | 5873125 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

I hope that Rand is just being a sheep in wolf's clothing...

Gets himself accepted into the fold by convincing them that he's one of them.  Becomes president.  And then, BAM!!!!......  out comes the man that was raised by a true patriot, Ron Paul.

A boy can dream...

Tue, 03/10/2015 - 00:08 | 5872142 Ginsengbull
Ginsengbull's picture

The Fed has been audited, and found to have all the proper documentation, and no wrongdoing.......

 

Said Arthur Anderson!!!

Tue, 03/10/2015 - 09:29 | 5872871 astroloungers
astroloungers's picture

finest accounting firm to ever sharpen a pencil and get to the meat of the numbers............what ever happened to them ?

Tue, 03/10/2015 - 00:32 | 5872202 robnume
robnume's picture

Screw auditing the Fed. Abolish the Fed!!

Tue, 03/10/2015 - 00:46 | 5872216 WTFUD
WTFUD's picture

Fed Up

Tue, 03/10/2015 - 08:19 | 5872659 fel.temp.reparatio
fel.temp.reparatio's picture

F'ed Up

Tue, 03/10/2015 - 01:17 | 5872269 thebigunit
thebigunit's picture

Why audit the Fed?

A. To show that it is not doing what it is supposed to be doing, or

B. To show that what is supposed to be doing is not necessary or useful.

Abolish the Fed?

Well, maybe.

Politics requires an explanation.

Abolish politics?

Hello dictatorship.

 

Tue, 03/10/2015 - 01:41 | 5872295 disabledvet
disabledvet's picture

This whole Fed thing is a distraction in my view.

 

Either your money is backed by gold or you pay.  By "you" meaning ALL of us.

 

We financed a far larger State from 1945-1973...but that was with GOLD MONEY.

Wed, 03/11/2015 - 12:36 | 5877930 thebigunit
thebigunit's picture

We financed a far larger State from 1945-1973...but that was with GOLD MONEY.

I'm not an expert at this, but I think the Keynesians would argue that since WW II, the State has been financed largely with debt.

And in the Keynesian view, debt is "money".

Tue, 03/10/2015 - 01:37 | 5872289 disabledvet
disabledvet's picture

"That'll be" (Congressman coughing while holding hand over microphone)"15 BILLION dollars for that ship Mr Navy Guy!"

 

What moar need be said Mr War dude?

 

You either gotz zee gold...or we all pay.

 

Whether its in the form of inflation, higher taxes or zero Navy.

 

Never had this problem under FDR now did we!

Tue, 03/10/2015 - 04:35 | 5872424 Sorch
Sorch's picture

All the discussion and arguement is to allow plenty of time for the inciminating files to be destroyed the emails deleted or lost and the people to coached as to what is the "right" thing to say to the auditors.

Now that an audit is a possibility, everyone at the Fed is quietly making their patch squeeky clean. Move along folks ...Nothing to see here.

Tue, 03/10/2015 - 05:17 | 5872452 bidaskspread
bidaskspread's picture

How about we audit the senators first...best market performers I have heard.  

Tue, 03/10/2015 - 08:28 | 5872665 jdtexas
jdtexas's picture

Have you not learned how corrupt ALL politicians at the national level are......Obama, Bush's, Clinton's......Left, Right

Ron Paul’s Endorsement For Pay Campaign Scheme

Hillary Fired For “Lying, Unethical Behavior” on Watergate Committee

Tue, 03/10/2015 - 09:43 | 5872939 Mike Honcho
Mike Honcho's picture

"$16 trillion!? I only heard about TARP." - average citizen. 

 

Over half those funds went to orgs outside of USA.corp.  And that figure is just what Berflunke admitted to.  Corporate oligarchy running the world, consipracy.

Tue, 03/10/2015 - 10:33 | 5873144 SMC
SMC's picture

Roaches afraid of the light.

Tue, 03/10/2015 - 11:34 | 5873401 Ghostdog
Ghostdog's picture

I hate the fed and it should be gone but dont think transparency wont change things. Lobbyists will pay off the spineless politicians if they see something they dont like and force the fed to do things they may not want to do. Its kind of like dumb and dumber, it will make it even worse which is kind of unfathomable. Just end this POS and be done with it

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