Friday, 09 May 2014 09:30

Bipartisan Majority of House Supports "Audit the Fed" Bill

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On Wednesday, May 7, Ron Paul’s Campaign for Liberty announced that the “Audit the Fed” bill originally proposed by the former congressman and recently reintroduced by Representative Paul Broun (R-Ga.) now enjoys the bipartisan support of a majority of the House of Representatives.

“I am pleased to see such wide support for Audit the Fed, and I hope the House moves quickly to pass this important piece of legislation,” said Paul, the Campaign for Liberty chairman.

Citing a Rasmussen poll conducted in November 2013, Campaign for Liberty reports that not only does the “Audit the Fed” measure have broad support in Congress, but “74 percent of the American people want to audit the Federal Reserve. This latest poll is consistent with previous polling showing a vast majority of Americans desire greater Federal Reserve transparency.”

The Campaign for Liberty statement provided a little legislative history of the effort to expose the Fed’s procedures:

Ron Paul’s “Audit the Fed” bill, H.R. 459, gained 274 cosponsors and passed the House of Representatives in the 112th Congress on July 25, 2012, by an overwhelming three-fourths majority of 327-98, after a nationwide grassroots mobilization effort led by Campaign for Liberty. The legislation calls for a “full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks by the Comptroller General of the United States.”

In February 2013, Ron Paul’s son, Senator Rand Paul (R-Ky.), offered the Federal Reserve Transparency Act of 2013, also known as "Audit the Fed.” The bill would eliminate restrictions on Government Accountability Office (GAO) audits of the Federal Reserve. 

Additionally, the bill would give Congress oversight of the Fed's credit facilities, securities purchases, and quantitative easing activities.

"The Fed's operations under a cloak of secrecy have gone on too long and the American people have a right to know what the Federal Reserve is doing with our nation's money supply," Paul said in a statement. "Audit the Fed has significant bipartisan support in Congress and across the country and the time to act on this is now.”

Senator Paul's bill, S. 209, has 29 co-sponsors in the Senate, including one Democrat, Mark Begich of Alaska.

In January 2013, Broun introduced the House version, the version that Campaign for Liberty reported on May 7 has 223 co-sponsors.

The Broun bill currently pending in the House is nearly identical to the bill originally offered by Ron Paul. In a statement, Broun said he was fighting the Fed in order to “pick up where Ron Paul left off.”

After Ron Paul’s last attempt to audit the Federal Reserve handily passed through the House in 2012, Senator Harry Reid (D-Nev.) blocked the legislation, saying he wouldn’t be comfortable bringing the matter to the Senate until he’d had a “real serious conversation” with Fed chairman Ben Bernanke.

While Reid’s opposition to a hearing on the Audit the Fed measure, not to mention a vote on it, can be counted on, the lassitude of Republican lawmakers could be the highest hurdle the bill would have to get over.

There’s evidence that conservative groups that would typically be counted on to join a fight against the Fed are losing their lust for battle.

As Roll Call reported on November 13, 2013:

The Club for Growth and Heritage Action for America, two prominent organizations that have not shied away from battles with the pro-business wing of the Republican party, appear ready to spend the Yellen fight on the sidelines.

“There’s no mystery and it’s not complicated. We just almost never take a position on monetary policy,” said Club for Growth spokesman Barney Keller in an email. “Thus, we probably won’t be involved in the Yellen nomination.”

And, true to their word, they were not. 

Janet Yellen was confirmed in January of this year by a vote of 56-26, despite efforts by Senator Paul and others to block the nomination pending consideration of the “Audit the Fed” bill.

The reaction to Yellen’s confirmation and the concomitant likelihood that the Fed would go on working in the shadows was reported by The New American:

Senator Rand Paul, who was stranded by weather, arrived after the vote, but delivered a scathing denunciation in the Senate of the Fed’s secrecy and money manipulation:

I rise today in opposition to secrecy — in opposition to the veil of secrecy that clothes the moneychanging that takes place in the temple of the Federal Reserve. While the money changes hands the moneyed class gets richer and the middle class gets shortchanged. It is more than time to part the curtain that hides the trillions of dollars that change hands.

There is a revolving door from Wall Street to the Treasury to the Fed and back again. We have former Secretaries of Treasury who go from government to Wall Street pocketing hundreds of millions of dollars.

I’ve called repeatedly for transparency at the Federal Reserve, so Americans can see what is being done with their money supply. Every time I call for transparency people from both sides have said “transparency would undermine Fed independence.”

This is, in a sense, laundering money from the American people to bail out big banks and Wall Street.

Many “conservative” organizations were nowhere to be found when the rubber hit the road.

It seems that someone should have a "real serious conversation" with congressional leaders and these so-called conservative groups about the damage the Federal Reserve and the shadowy coterie of global bankers who own it have done to the economic well-being of the United States.

First, the unelected governors of the unconstitutional central bank have an absolute stranglehold and monopoly over the flow of our nation’s money and credit. Not once since its inception in 1913 has there ever been a thorough audit or an accounting to Congress about its activities.

During its century-long reign over the financial well-being of our country, the Federal Reserve has manipulated our currency until it is nearly worthless. Meanwhile, Congress turns a blind eye and a deaf ear to the crisis and the calls to control it.

The fact is that since that day in 1913, the dollar has lost over 95 percent of its purchasing power. Most, if not all, of this precipitous decline was caused by the monetary policy of the Federal Reserve.

Adding insult to injury, during testimony to Congress in 2009, Ben Bernanke refused to reveal to committee members the names of the institutions that received trillions of dollars in bailout money from the Fed. Later, he told our elected representatives that he would not disclose the identity of the foreign banks that were parties to sweetheart deals with the Federal Reserve.

When it comes to the central bank and its machinations, the fix is in. The Fed — ostensibly a non-profit organization — owns the mint, the money, and sets the terms of the loans it makes to the federal treasury. What’s more, there is no product; there is nothing being loaned other than worthless paper that can never be traded in for anything of value because all that is used to secure the worth of the currency is now owned by the very bankers who control the Federal Reserve.

And the Fed will continue to accumulate power. There is no limit to the lengths global bankers will go to in order to enslave the population of the world. There is no hope of regulating restraint. Power of this magnitude operates beyond the reach of regulations.

As it has since 1958, The John Birch Society offers Americans a well-established, experienced, and influential way of organizing with like-minded constitutionalists who demand the Federal Reserve be not only audited but abolished. A statement from The John Birch Society declares the group's position:

The powers of Congress are described in Article I, Section 8 of the Constitution, and the creation of a central bank like the Federal Reserve is not listed as one of those powers. The Federal Reserve is charged with protecting the value of the dollar through managing our nation's monetary policy. However, since its inception in 1913, the dollar has lost 95 percent of its value under the Federal Reserve's monetary oversight. The John Birch Society advocates abolishing the Federal Reserve.

 

Photo of Federal Reserve headquarters in Washington, D.C.

 

Joe A. Wolverton, II, J.D. is a correspondent for The New American and travels nationwide speaking on nullification, the Second Amendment, the surveillance state, and other constitutional issues. Follow him on Twitter @TNAJoeWolverton and he can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

3 comments

  • Comment Link Terry Monday, 12 May 2014 19:39 posted by Terry

    Unfortunately while I agree to the need for this, I do not think it will ever see the full light of day.

    To me, this is just a dog and pony show for the "constituents" to make it appear like your elected representatives care about you. Fact is, by and large they do not!

    Additionally, do not expect them to bite the hand that feeds them their funding for campaigns and to buy votes with legislation that the Fed funds through loans of monopoly notes created out of thin air.

    Oh yeah, it will all be set up to pass but when the rubber comes to meet the road, it will somehow fail. The Fed owns the politicians for the most part as well as the media and more. They will remain in the shadows until economic collapse forces them out into the light of day. By then, it will be too late and people may be so desperate that they will accept any port in a storm to survive which means more insider manipulation from our "Shadow Government" as James Perloff puts it.

    Meanwhile, enjoy the show for what it is worth but I wouldn't get your expectations too high. After all, we are already $17.5 Trillion in debt and the velocity increases with each passing day. Eventually reality will catch up. It always does.

  • Comment Link Nora Saturday, 10 May 2014 15:51 posted by Nora

    While I agree that the Fed should be abolished, I don't think we're going to be able to do that until everyone, including congress, sees what the Fed has done with trillions in taxpayer money. Not only have they bailed out the Wall street criminals while Americans have been foreclosed on by the millions, but they have sent American dollars to foreign banks! American children go to bed hungry while the fat cats who own the Federal Reserve live in unbelievable luxury--wealth they have stolen from those who work and hammer out a subsistence through backbreaking labor at multiple low-wage jobs--and the depth of their deceit is unfathomable.

    When all the people are made aware of the fraud that has gone on all these years right under our noses, they'll insist that the Federal Reserve be abolished and the constitution amended to prohibition the formation of any central bank on American soil ever again. We need that Audit to wave in their faces so they'll see the truth, the Federal Reserve has nearly destroyed our country while amassing tremendous wealth, albeit it's vapor except for the real assets they claim they are entitled to, for which they lent nothing. The giant transfer of wealth has no force of law, and their fortunes are as fiat as their fake money. The moneychangers have repeated their egregious theft of all wealth around the globe. Time for newly minted, lawful money to be established in the U.S., and Federal Reserve Notes to be used to keep the house warm next winter. We should have it ready for the coming contrived collapse of their fiat dollar.

  • Comment Link Peter Palms Friday, 09 May 2014 13:27 posted by Peter Palms

    It's too late. an audit is irrelevant. On the surface, it would appear that there is nothing wrong with a Congressional investigation or an audit, but what is there to investigate? We must assume the Fed is doing exactly what it says and is in total compliance with the law. A few minor improprieties probably would be discovered involving personal abuse of funds or insider profiteering, but that would be minor compared to the gigantic fraud that already is out in the open for all to see. The Federal Reserve is the world's largest and most successful scam. Anyone who understands the nature of money can see that without a team of investigators and auditors.
    The danger in a proposal to audit the Fed is that it would delay serious action for years while the audit is going on. It would give the false impression that Congress is doing something. It also would give the monetary technicians an opportunity to lay down a smoke screen of verbiage and confusing statistics. The public would expect that all the answers will be forthcoming from the investigation, but the very groups and combines that need to be investigated would be conducting, or at least confounding, the investigation. By the time fourteen volumes of testimony, charts, tables, and exhibits finally appear, the public would be intimidated and fatigued. We do not need a bill to audit the Fed. We need one to abolish it. A PLAN FOR ELIMINATING THE FED

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