7/13/09 Ron Paul: Fed Independence or Fed Secrecy?

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

Last week I was very pleased that hearings were held on the independence of the Federal Reserve system. My bill HR 1207, known as the Federal Reserve Transparency Act, was discussed at length, as well as the general question of whether or not the Federal Reserve should continue to operate independently.

The public is demanding transparency in government like never before. A majority of the House has cosponsored HR 1207. Yet, Senator Jim DeMints heroic efforts to attach it to another piece of legislation elicited intense opposition by the Senate leadership.

The hearings on Capitol Hill provided us with a great deal of information about the types of arguments that will be levied against meaningful transparency and how the secretive central bankers will defend the status quo that is so beneficial to them.

Claims are made that auditing the Fed would compromise its independence. However, by independence, they really mean secrecy. The Fed clearly cherishes its vast power to create and spend trillions of dollars, diluting the value of every other dollar in circulation, making deals with other central banks, and bailing out cronies, all to the detriment of the taxpayer, and to the enrichment of themselves. I am happy to challenge this type of independence.

They claim the Fed is endowed with special intellectual abilities with which to control the market and that central bankers magically know what the market needs. We should just trust them. This is patently ridiculous. The market is a complex and intricate thing. No one knows what the market needs other than the market itself. It sends signals, such as prices, that should be reacted to and respected, not thwarted and controlled. Bankers are not all-knowing and cannot ignore the rules of supply and demand. They might act as if they are, but their manipulation of the market just ends up throwing it wildly off balance, which gives us the boom and bust cycles.

They claim the Fed must remain apolitical. No organization is apolitical that relies on the President to appoint the Chairman. In fact, it is subject to the worst sort of politics power to create trillions of dollars and affect the value of every dollar in the country without the accountability of direct elections or meaningful oversight! The Fed typically enacts monetary policy that is favorable to particular administrations close to elections, to the detriment of long term considerations. They do this partly because of the political appointee process for the Chairmanship.

The only accountability the Federal Reserve has is ultimately to Congress, which granted its charter and can revoke it at any time. It is Congresss constitutional duty to protect the value of the money, and they have abdicated this responsibility for far too long. This was the issue that got me involved in politics 35 years ago. It is very encouraging to finally see the issue getting some needed exposure and traction. It is regrettable that it took a crisis of this magnitude to get a serious debate on this issue.

Category:

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[helpendthefed]

Ron Paul Rules!~

[OldBenFranklin]

Ron Paul and Jesse Ventura in 2012!

[NOTAdemocracy]

Please watch the None of the Above video response above.

Our voting system is unfair as ALL Consent requires the right to Withhold Consent. The 2 Party system is completely happy with only 45% voting turnouts as they need to get fewer votes to win and one of them gets in power regardless - 50/50 is not bad odds in politics.

Imagine if your voting Ballot Paper had None of the Above and your vote would count towards eliminating all candidate who lost to NOTA?

[spanishbronco]

Dear Mr. Paul,

I totally agree with you on this issue, but how can we the people voice our opinion to make an impact on this issue? I know we can write our congressmen, but how do we know that letter is even read my our local congressmen and not thrown away as junk mail. I noticed you sent out an online petition on the initial bailout so that people could voice their opinion. If you could send out an online petition we could get a lot of signatures on facebook with fast feedback.

[HR1207auditthefed]

Geithner says "YOUR" government. He is a TRAITOR. I clipped it out on this vid watch?v=NmUGoRCpt5Q

Geithner is soooooo busted. What Government does he REALLY work for?

[OldBenFranklin]

Time for some new parties in Washington!

[ryanshaunkelly]

No "Independence" with the VALUE of our money ~ DNC & RNC have BOTH sold out the country in order to enrich themselves. Independents agree on more than we disagree. Beware the divide and conquer. Nader Paul Kucinich Gravel McKinney Ventura too perotcharts com Five veterans The Fed AIPAC 9/11

[HR1207auditthefed]

back to the Judge and asks, well what is it? Mark says, Its the paperwork Judge says, Its the paperwork do you want the paperwork? and Sue is like No.. um no I dont want the paperwork, no no. At that point I was like what the hell was that and the Judge is giving Mark the look like dont ever do that again. It was really something to behold at the time.

[HR1207auditthefed]

dropped, [because they NEVER ask you that. That is something you have to wrangle out of them to get them to do because it is not in the prosecutions best interest to do that. Its in their worst interest to do that on a traffic ticket.] and Sue turned to Mark and then the Judge as she asked Well what kind of information do I need?. The Judge, still trying to gain his composure said, WellOUR definition of Information is different than YOUR definition of Information. Sue looks at Mark and

[HR1207auditthefed]

a much greater challenge in the long run for the prosecution with a good defense strat. As I walked into the court room Marks first case was just starting and the defendant (AKA,Sue) was already standing before the Judge and Mark was in a rush to get the paperwork organized and quickly turned to the judge and as he turned he spotted me coming in and acknowledged me with a smile. Then Mark turned to Sue and out of the blue asked Sue if she wanted an Information. My jaw dropped; the Judges jaw

[HR1207auditthefed]

The Fed calls it Independence and the people call it Secrecy. The Fed is entitled to it's definition of Independence; AS IS the People their definition. These differences in definitions of words remind me of a court case I was invited to attend by a Prosecuting Attorney named Mark. 30 Minutes before this invitation I was speaking to Mark about wanting to be prosecuted by Information and not by the traffic citation we had received. This Formal Information is much more detailed and makes for