Back in May of last year, I wrote this:
The Federal Reserve System (FDS), created in 1913 via the Federal Reserve Act, is the United States’ central bank. It is a quasi-public, quasi-private banking system in that it is a government entity with private components. As America’s central bank, the FDS supervises and regulates the banking system, manages the country’s money supply through monetary policy, maintains the stability of the financial system, and attempts to prevent and contain banking panics.
The importance of the Federal Reserve and its public-private nature have provoked many a conspiracy theory, which is not helped by its Inspector General Elizabeth Coleman’s admission last May that the FDS could not account for $9 TRILLION in “off-balance sheet transactions.”
Coleman’s admission provoked outrage among the American people, who demanded Congress to audit the Federal Reserve. The Fed, in turn, resisted every effort. Its chairman, Ben Bernanke, at one time even used fear tactics, darkly warning that an audit by the General Accounting Office “would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
At long last, we have victory!
Yesterday, May 11, the Senate actually did something good and useful. By a unanimous and bipartisan vote of 96 to 0, the Senate passed an amendment by Sen. Bernie Sanders (I-Vermont) to audit the Fed.
Alas, my exclamation of “victory” was sadly premature and wildly optimisitc, for on January 27, 2011, I saw this Wall Street Journal headline, “Rand and Ron Paul Introduce Twin Fed-Audit Bills.” Here’s the article by Jamila Trindle:
Sen. Rand Paul (R., Ky.) introduced U.S. Senate legislation Wednesday to audit the Federal Reserve while his father, long-time Fed critic Rep. Ron Paul (R., Texas), re-introduced similar legislation in the U.S. House.
“We must take a critical look at the Fed’s monetary policy decisions, discount window operations, and a host of other things, with a real audit–and not just pay lip-service to the idea of an audit,” Sen. Paul said in a statement. “It is more crucial than ever that we have real transparency at our own central bank.”
Sen. Paul said the bill would eliminate the current audit restrictions placed on the Government Accountability Office and mandate a complete audit of the Federal Reserve by a deadline. Sen. Paul joined the Senate as a freshman lawmaker in January. His father, Rep. Paul, has been in the House since 1997 and previously was a member of Congress in the 1970s and 1980s.
Rep. Paul introduced legislation calling for the same audit of the Fed on the House side, which is similar to legislation that he has pushed for as a House lawmaker. As part of the financial regulatory overhaul, Rep. Paul wanted to give congress the power to audit the fed’s interest rate decisions. But the measure never made it in the final version of the bill.
“I was very pleased that so many of my colleagues were willing to stand up for transparency and accountability in government,” Rep. Paul said. “I am optimistic about our prospects for a full and complete audit in the 112th Congress.”
Clearly, the Federal Reserve has something to conceal. Concealment and deception are the hallmark of evil.
God bless Ron and Rand Paul — and the voters who put this determined father and son in Congress. Tell them you appreciate and support what they’re doing.
To send a message to Senator Ron Paul (Texas), CLICK HERE.
To send a message to Congressman Rand Paul (Kentucky), CLICK HERE.