Ron Paul: The Big Guns Have Lined Up Against H.R. 1207 (House Floor 7/30/09)

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minnesotachris
July 31, 2009

http://www.house.gov/paul http://CampaignForLiberty.com Mr. Speaker, the big guns have lined up against H.R. 1207, the bill to audit the Federal Reserve. What is it that they are so concerned abou...

http://www.house.gov/paul
http://CampaignForLiberty.com

Mr. Speaker, the big guns have lined up against H.R. 1207, the bill to audit the Federal Reserve. What is it that they are so concerned about? What information are they hiding from the American people? The screed is: ``Transparency is okay--except for those things they don't want to be transparent.''

Federal Reserve Chairman Ben Bernanke argues that H.R. 1207, the legislation to audit the Federal Reserve, would politicize monetary policy. He claims that monetary policy must remain ``independent,'' that is, secret. He ignores history, because chairmen of the Federal Reserve in the past, especially when up for reappointment, do their best to accommodate the President with politically driven low interest rates and a bubble economy.

Former Federal Reserve Board Chairman Arthur Burns, when asked about all the inflation he brought about in 1971, before Nixon's re-election, said that the Fed has to do what the President wants it to do, or it would ``lose its independence.'' That about tells you everything. Not by accident, Chairman Burns strongly supported Nixon's program of wage and price controls, the same year; but I guess that's not political. Is not making secret deals with the likes of Goldman Sachs, international financial institutions, foreign governments and foreign central banks, politicizing monetary policy? Bernanke argues that the knowledge that their discussions and decisions will one day be scrutinized will compromise the freedom of the Open Market Committee to pursue sound policy. If it is sound and honest, and serves no special interest, what's the problem?

He claims that H.R. 1207 would give power to Congress to affect monetary policy. He dreamt this up to instill fear, an old statist trick to justify government power. H.R. 1207 does nothing of the sort. He suggested that the day after an FOMC meeting, Congress could send in the GAO to demand an audit of everything said and done. This is hardly the case. The FOMC function, under 1207, would not change. The detailed transcripts of the FOMC meetings are released every 5 years, so why would this be so different, and what is it that they don't want the American people to know? Is there something about the transcripts that need to be kept secret, or are the transcripts actually not verbatim?

Fed sychophants argue that an audit would destroy the financial market's faith in the Fed. They say this in the midst of the greatest financial crisis in history, brought on by none other than the Federal Reserve. In fact, Chairman Bernanke stated on November 14, 2007, that ``a considerable amount of evidence indicates that central bank transparency increases the effectiveness of monetary policy and enhances economic and financial performance.''

They also argue that an audit would hurt the value of the U.S. dollar. In fact, the Fed, in less than 100 years of its existence, has reduced the value of the 1914 dollar by 96 percent. They claim H.R. 1207 would raise interest rates. How could it? The Fed sets interest rates and the bill doesn't interfere with monetary policy. Congress would have no say in the matter; and besides, Congress likes low interest rates. It is argued that the Fed wouldn't be free to raise interest rates if they thought it necessary. But Bernanke has already assured the Congress that rates are going to stay low for the foreseeable future, and, again, this bill does nothing to allow Congress to interfere with interest rate setting.

Fed supporters claim that they want to protect the public's interest with their secrecy. But the banks and Wall Street are the opponents of 1207, and the people are for it. Just who best represents the ``public's'' interest? The real question is, why are Wall Street and the Feds so hysterically opposed to 1207? Just what information are they so anxious to keep secret? Only an audit of the Federal Reserve will answer these questions.

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brainsells3000 (2 weeks ago) Show Hide

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To coin money, regulate the value thereof, and of foreign coin, and fix the standards of weights and measures. These are the congresses duties not some independent corporations. How do we expect to ever have a government we can trust if they forfeit their duties to self serving corporations?

der2c (2 weeks ago) Show Hide

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HOwdy

Evangelander (3 weeks ago) Show Hide

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Hang in there, Brother Ron. You are one of the greatest Oath Keeper's of which I am aware. Bravo!!!

IWashMyOwnBrain (3 weeks ago) Show Hide

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Audit the Fed now

TheRetiredtrucker (4 weeks ago) Show Hide

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Go gettem Ron

peacenotapartheid (1 month ago) Show Hide

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go Ron!

elitebanktyranny (1 month ago) Show Hide

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Woodrow Wilson, what have you done to us

annuity100 (1 month ago) Show Hide

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Fantastic Rin well said. Addressed all the Fed propaganda and fearmongering. There is not one valid reason to NOT audit the fed. This is the most important bill to hit the house floor in nearly 100 years. It effects all of us no matter which end of the political spectrum you are on. Also if America does not vote Ron Paul in as President in 2012 then you all deserve what you will get, which is no great nation left for any of you to be proud of.

evil1keke (1 month ago) Show Hide

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Agree with evrything you said. Ron Paul has to be clever. He knows "Whats up" Obama must not be re-elected!! Stop the Globalist Agenda! This man is talking about real American Values. Keep American soveriegnty!!!

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Ron Paul: The Big Guns Have Lined Up Against H.R. 1207 (House Floor 7/30/09)

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