Ron Paul Rages "The Federal Reserve Is, and Always Has Been, Politicized"

Tyler Durden's picture

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

Audit the Fed recently took a step closer to becoming law, when it was favorably reported by the House Committee on Oversight and Government Reform. This means the House could vote on the bill at any time. The bill passed by voice vote without any objections, although Fed defenders did launch hysterical attacks on the bill during the debate as well as at a hearing on the bill the previous week.

One representative claimed that auditing the Fed would result in rising interest rates, a stock market crash, a decline in the dollar’s value, and a complete loss of confidence in the US economy. Those who understand economics know that all of this is actually what awaits America unless we change our monetary policy. Passing the audit bill is the vital first step in that process, since an audit can provide Congress a road map to changing the fiat currency system.

Another charge leveled by the Fed’s defenders is that subjecting the Fed to an audit would make the Fed subject to political pressure. There are two problems with this argument. First, nothing in the audit bill gives Congress or the president any new authority to interfere in the Federal Reserve’s operations. Second, and most importantly, the Federal Reserve has a long history of giving in to presidential pressure for an "accommodative" monetary policy.

The most notorious example of Fed chairmen tailoring monetary policy to fit the demands of a president is Nixon-era Federal Reserve Chair Arthur Burns. Burns and Nixon may be an extreme example — after all no other president was caught on tape joking with the Fed chair about Fed independence, but every president has tried to influence the Fed with varying degrees of success. For instance, Lyndon Johnson summoned the Fed chair to the White House to berate him for not tailoring monetary policy to support Johnson’s guns and butter policies.

Federal Reserve chairmen have also used their power to shape presidential economic policy. According to Maestro, Bob Woodward's biography of Alan Greenspan, Bill Clinton once told Al Gore that Greenspan was a “man we can deal with,” while Treasury Secretary Lloyd Bentsen claimed the Clinton administration and Greenspan’s Fed had a “gentleman’s agreement” regarding the Fed’s support for the administration’s economic policies.

The Federal Reserve has also worked to influence the legislative branch. In the 1970s, the Fed organized a campaign by major banks and financial institutions to defeat a prior audit bill. The banks and other institutions who worked to keep the Fed’s operations a secret are not only under the Fed’s regulatory jurisdiction, but are some of the major beneficiaries of the current monetary system.

There can be no doubt that, as the audit bill advances through the legislative process, the Fed and its allies will ramp up both public and behind-the-scenes efforts to kill the bill. Can anyone dismiss the possibility that Janet Yellen will attempt to "persuade" Donald Trump to drop his support for Audit the Fed in exchange for an “accommodative” monetary policy that supports the administration’s proposed spending on overseas militarism and domestic infrastructure?

While auditing the Fed is supported by the vast majority of Americans, it is opposed by powerful members of the financial elite and the deep state. Therefore, those of us seeking to change our national monetary policy must redouble our efforts to force Congress to put America on a path to liberty, peace, and prosperity by auditing, then ending, the Fed.

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bobdobolina's picture

It's a political institution. What do you expect?

Stan522's picture

You can say that again........

Croesus's picture

Fed = Jew Money Power

Of course, saying that, is "Anti-semitic", which springs from jealousy, according to the Juden...but it goes beyond that.

To sum up thousands of years of World History between Jews and Goyim, we can look at 1 simple analogy:

Picture a mean-spirited, spoiled, rotten little boy, and a full-grown dog.

The boy pokes, teases, and torments this dog. He pulls the dog's tail, kicks it when it's laying down, pulls its ears, and is rarely ever nice to it. He even pees in the dog's water dish sometimes.

One day, the little boy takes a stick, and starts hitting the dog. He repeatedly hits the dog, and won't stop.

Suddenly, the dog gets really angry, and attacks the little boy, biting him over and over again.

The little boy runs away crying, and bleeding. He thinks "I don't know WHY the dog bit me; I didn't do anything".

----

Boy = Jew

Dog = Goyim

Beating with a stick = What happens when the Jews come into power, in EVERY place they've ever gone.

Dog biting = What happens EVERY time the Goyim get sick of the Jews' and their evil ways.

---

JRobby's picture

Death is all around now.

Yellen, a totally owned tool of the elite will kill all portfolios eventually.

The elite plan, interrupted by the Trump win, but seemingly only for a moment? Have recovered and have somehow gotten us right to the brink of WW III which would have been the same result with Hitlery. Except Hitlary would have shut down alt-media and started collecting the guns by now.

WE ARE FUCKED!!!!!

grizfish's picture

They already admitted to continuous monitoring of Trump for at least a decade.  

Only the naive believe they will not destroy him if he tries to fulfill his election promises.

Radical Marijuana's picture

Croesus:

And EVERY time, the "Goyim" continue to believe in

grossly over-simplified views of who are the "Jews."

Wheresthesolutions's picture

No, it's a 'we own and control you' institution.

BullyBearish's picture

let's see how long it takes to get a downvote from a swamp-dwelling creature...

BullyBearish's picture

the private bank creates all money as debt out of thin air...they do NOT make any extra to pay the interest (to them) on that "money" so there is a certainty that people will have to borrow more "money" from them to pay the interest...again and again and again...are you finally getting this?  

 

THIS is the #1 supply for the swamp and it is the last thing they will allow to be tampered with...they control the money and will kill millions to maintain that control...

BigFatUglyBubble's picture

People argue over things but I try and remind people: The central bank subsidizes all the bullshits.  As long as there is the private central bank, there will always be the bullshits.

hxc's picture

Not how it works, bud... greenbackers oppose the fed for all the wrong reasons. You really want ZIRP 24/7/365? Look up the austrian school.

meditate_vigorously's picture

This article is not complete without discussing how limp wristed and limited this "audit" is. It is mostly theater for the peasants, rather than a meaningful and substantial audit that must be done.

BigFatUglyBubble's picture

I speculate that Dr. Paul understands that this is just a tiny step in the right direction.  The main point of this would be to raise awareness of what the FED is and what it does.  In this ZeroHedge ivory tower of raised financial intelligence it's easy to forget that the average american has no idea what the FED is.

American Psycho's picture

I have this conversation with a libertarin friend of mine.  We'll have lunch, chat about The Fed and politics, and then we sort of laugh by asking, "What percentage of Americans would recognize the name Janet Yellen?" 

I had a short debate with my research advisor the other day (academic) about inflation.  He said that inflation is a good thing to which I promptly asked, "how is it good for the average citizen to see their costs of living increase?  Their food bill, their rent, medical costs," Of course his response was that it devalues the .gov debt.  My comeback was "so the .gov can spead what they desire while sacrificing the strength of our currency?" 

 

bobdobolina's picture

It's a political institution. What do you expect?

Akzed's picture

The Creature from Jekyl Island rules the swamp.

Stan522's picture

Where's the audit.....!?

LetThemEatRand's picture

The audit the Fed bill will be killed this time around just like it was killed every other time it looked like it was gaining traction.  Congress is owned by the banksters and won't let it happen.   Ever.  

Beam Me Up Scotty's picture

Just like voting doesn't matter, if you control who counts the votes, I am surprised they don't let an audit happen, but just control who does the audit.  Um, Ya, Um, we like, audited the Fed, and we like, um found there was nothing wrong.  Audit over, case closed.  Let the lubeless anal fucking of the sheep continue!!

meditate_vigorously's picture

If you look at the bill, it's scope is a joke. This is a sham audit bill. Unless they wrote a new one the last few days, I am pretty sure it's the "audit in name only" bill that has been floating around a couple months.

Miskondukt's picture

To add to your comment, "since an audit can provide Congress a road map to changing the fiat currency system" they'll be asking each other (1) for directions and (2) 'are we there yet' while they yell at themselves to "shuddup and stop asking already!" Congress neither wants directions to this destination nor do they want to arrive there.

2018, don't vote:

  1. Incumbent
  2. Democrat
  3. And probably Republicans neither

We needs some BigData skillzors to weed out the funding for the lemmings to easily interpret. Anyone saavy in scraping know a good learning source?

BigFatUglyBubble's picture

The consitution is explicit about not debasing or counterfeiting the currency. That's all The Federal Reserve Bank does.  Constitution says the government coins the money, not a private bank cartel.

So you support the FED, or the consitution?  Can't have it both ways.

Mena Arkansas's picture

If you have nothing to hide, you have nothing to fear

Right, Janet?

Farqued Up's picture

Come on Ron, quit the gentlemanly treatment of this issue. Tell it like it is. They are a bunch of evil clapdoctors that have stolen the wealth of this country for over a hundred years. Now, it is beginning to catch up with them so they want to pull their usual ploy by starting the mother of all wars that will kill hundreds of millions of innocents. We can bet they won't be included in the carnage.

Let me speak for people like me. We need for those faggy pedophiles to put America first and get the audit underway. Once into the shenanigans laid open, the people will demand the Guillotines be rolled out. This is a sorry bunch of vermin that deserve isolation in the worst steamy prison in the mosquito ridden swamp. The upper crust need their heads rolled down the chute.

OCnStiggs's picture

HERE HERE!!! SHARPEN THE GUILLOTINES!!!

OCnStiggs's picture

This article was a waste of electricity.

Only when the Fed is audited will we find out that Uber was actually the financially stronger of the two institutions.

messystateofaffairs's picture

Tell us something we don't know. Its a Jewish weapon, always has been and will be till we get rid of it.

Pumpkin's picture
Politicized?   Don't candy coat it and call it what it is.  Satanic.
MEFOBILLS's picture

https://www.youtube.com/watch?v=vjOAO9bu_eQ&t=58s

In this video PCR laughs at libertarian Stefan Molyneaux.  He explains that Federal Reserve is a private entity.  PCR tells Stefan, "When I was assistant secretary of the treasury, I couldn't even get Volker to call me back."

Government only sanctions Federal Reserve Chairmen.  The Fed Chairmen are picked in advance for the "state" to chose from - so it is a charade.

Also, Federal Reserve elections are "out of cycle" with the political cycle, to then make Fed non-political.

The FED does have a foot in government, in that it needs government to sanction its federal reserve notes.   Ever since Wilson's Progressive Era, government is under control of private money power.

The 17'th made Senators populist, to then require lobbyist money to buy your vote.  The 16'th backstopped private banks.  The Federal Reserve Act linked all banks into a giant money trust.

Who creates the money gets to control things.  

 

hxc's picture

PCR is pathetic. Never had an original thought, nor a solid understanding of capitalism. He pretends to be a libertarian, conservative, etc. yet he assumes markets are inherently corporatist, even as he knows a zillion instances of state-induced corporatism (which is really all of it). Look up public choice theory, Austrian econ, behavioral economics, etc.

Without state power, corporatist BS can't exist, but this guy runs around sounding like some basic ass greenbacker with the intellectual depth of a hopscotch commentator screaming about a "private" Fed that would NEVER exist without a federal government enforcing the use of its currency via legal tender laws and taxes (and by extension the petrodollar and such).

PCR is like a VCR... and they don't make videotapes anymore. Liberals in libertarian clothing can fuck right off

Bret Bear's picture

This article here needs to go viral.  Ron Paul is sometimes a bit of a nutjob in my opinion, but this is true. The FED is a bunch of crock and will manipulate the best they can. 

 

Ron Paul is the only politician who recognizes this.   The analysts at Shepwave also realize this as they continue to call the markets every move despite the fact that the markets are rigged. Their call for the rally today after calling last week's sell off was nothing short of amazing. THANKS ZEROHEDGE!  You continue to supply the best of all.https://www.facebook.com/166578775325/photos/a.10153488951800326.1073741827.166578775325/10154415124400326/?type=3&theater 

Billy G's picture

Paul is a nutjob.  

 

But the analysts are goode.  They are the ONLY ONES getting it right in the markets. I have noticed very few real traders on ZH in the past few years. I think a lot of them have been washed out. 

BigFatUglyBubble's picture

I used shlepwave,com and lost everything!  Don't try it unless you want to lose your wife and live in a van down by the river!

Van G's picture

So I take it you lost everything being bearish for the last five years. I see a lot of you on ZH. I have to say that the real traders who used to be onhere are now broke. SW is probably best analyst covered by Zerohedge. 

mary mary's picture

I have never met a human being who wasn't a bit of a nut job.

Blankfuck's picture

But But what would we do without the fed fucker manipulatiors? Owners of the printing presses would deprive people of deep indebtness to them including the IRS. Ownership of american slave asses could diminish forever! The elete will not stand for this either! Bank mortgage holders, millionare apartment compex owners, Big car dealership owners, Banker billionares/millionares would suffer. They can let this be!

Sonny Brakes's picture

Everyone is sour on the Fed yet they'll enthusiastically sell their soul for a little of what the Fed produces. Often referred to as Stockholm syndrome. Then once they get theirs they buy a little gold and sit around hoping that the value of their gold rises yet again in the very product that is produced by the Fed. The very same Fed that they are so sour about.

hxc's picture

That's why I spend my money on shit. That does include silver but I make damn sure to convert my paper into assets

Reaper's picture

Fed with $4 trillion in assets is the ultimate moral hazard.  Auditors are bought.  Subpoena or seize Fed records of expenditures and give to Congress.  Citizen anger about foreign and domestic gifts and secret operations will sink the Fed.  The Fed prints our money.  The Fed's $4 trillion of our money can be seized to reduce our debt.  From $4 trillion, sundry insiders have helped themselves.  Yellin would never reveal insider corruption, because it would end the Fed.

VWAndy's picture

   Barter,,,

BigFatUglyBubble's picture

Money is ok, but it should make things easier, simpler, and more efficient.  Right now money is doing the antithesis of those adjectives, and it's because a certain (((group))) is parasitically profiting from it.