To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have. They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability. Thus the loudest arguments against greater transparency are likely to come from those friends, and understandably so.
- Rep. Ron Paul
The twelve regional Federal Reserve Banks are private institutions operating collectively in a quasi-governmental capacity, and aiding and abetting Congress in the blatant act of burying you, your children and your grandchildren in debt ... they'll never be able to repay.
This is beyond politics ... "we the people" are literally being robbed blind!
Before we go over a few of the details, please take a few minutes to watch the following video. WARNING: Men, be careful. You may get mesmerized!
Now for some of the dirty details ...
Total federal government debt per household is currently $546,668! In other words, that's how much money YOU owe!
Now, let me ask you a question:
How are you going to pay for it? How many hours, days, weeks, years ... will it take you to payoff your $546,668 of debt?
Maybe I'm just hallucinating here, but my suspicion is ... that when you add the $546,668 on top of your mortage, auto loans, credit cards, etc., you won't be able to pay it off. Am I on to something? Okay, now what? Your children will have to go to work to pay down the debt, then your grandchildren, then your great-grandchildren ...
So much for the American Dream.
Wouldn't you like to know the truth about what's going on?
Representative Ron Paul introduced The Federal Reserve Transparency Act in the House, and Senator Jim DeMint introduced it's companion bill, S 604, in the Senate. Yes, there are a few good people in Washington trying to do the right thing!
Unfortunately, the Senate leadership blocked DeMint's attempt to audit The Federal Reserve! This isn't the first time they've done this either.
Earlier this year, Senator Charles Grassley, the top ranking Republican on the Finance Committee, wrote a piece of legislation to allow more oversight of the private Federal Reserve Bank. But through back-door negotiations with Senator Richard Shelby, ranking member on the Senate Committee on Banking and Currency, the bill was watered-down to render it ineffective.
Handwritten into the margins, however, is the amendment that watered it down: “with respect to a single and specific partnership or corporation.” With that qualification, the Senate severely limited the scope of the oversight.
On the Senate floor, Grassley named the top Republican on the banking committee, Richard Shelby of Alabama, as the man pouring the water.
“Although I would have preferred to include all of the Fed’s emergency actions under 13(3), in consultation with Senator Shelby I agreed to limit my amendment to actions aimed at specific companies,” said Grassley.
“This modified version of the amendment does not give GAO authority to look at all of that additional taxpayer risk ...
Then just this week, the Senate engaged in yet more shenanigans!
YOU are on the hook for $546,668, yet the Senate wants to keep secret how YOUR money was spent? Yes, this is your money. You have the right to know!
JUDGE ANDREW NAPOLITANO, GUEST HOST: Despite growing pressure from the House and ordinary people, the Senate decided not to increase scrutiny on the Federal Reserve. They actually blocked a bid on procedural grounds to have the Government Accountability Office audit the Federal Reserve and issue a report.
Why should the Federal Reserve be audited?
DEMINT: Well, the value of our dollar, our whole economic system, rides on these unelected, secret agency called the Federal Reserve. We're not sure what they're doing right now. And Ron Paul in the House with over half of the House signing up as cosponsors, and me and Bernie Sanders in the Senate are pushing the idea of a complete audit of the Federal Reserve, because frankly, a lot of us here in this country and around the world, are concerned that we're going to destroy the American dollar and the worldwide reserve currency.
NAPOLITANO: How is it that legislation that has more than half the members of the House behind it and is proposed by a staunch conservative Republican like you and then independent socialists like Bernie Sanders is stopped on the floor of the Senate cold before you can even formally introduce it, before you can make a speech in favor of it?
DEMINT: Well, if we could get the Federal Reserve under control, it would make it more difficult for the Obama administration, I think, to carry out the continued spending and growing of debt. Because one thing we're concerned about is the Federal Reserve what — will do what we call monetize the debt, basically print money, buy our own debt as a country, and devalue the dollar that way.
I think if we open the doors to the Federal Reserve, it might make it much more difficult for this administration to continue this reckless spending.
NAPOLITANO: You and I have discussed this before and I have argued that the job of the CIA is to steal and to keep secrets, and we know more about the CIA than we do about the Federal Reserve.
The Obama administration not only doesn't want the Federal Reserve audited, it now wants to put the power to regulate all financial institutions — banks, insurance companies, brokerage houses — into the hands of this super-secret bank.
What are they afraid we might see if we get a chance to look at their books?
DEMINT: Well, just as Art [Laffer] just said, the issue is not necessarily just the Federal Reserve or health care or whatever we are talking about. It is control. And the administration is increasingly expanding its control on the Federal Reserve, which is supposed to be independent.
If we start the audit process and Congress has more oversight on what's going on, then we get those checks and balances that are important here at the federal level. But there is too much secrecy to an agency that controls our whole economic destiny in this country.
And, Judge, they have a death grip on our banks right now. The Federal Reserve regulators are tightening the credit, making it difficult for these banks to lend. They're killing commercial real estate development and there's nothing Congress can do about it because we don't really have the authority to audit them.
Nancy Pelosi is going to keep this from coming up in the House, I think, no matter how many cosponsors they get, just because I think she is cooperating with the Obama administration to keep the secrets that the Federal Reserve doesn't want us to know about.
NAPOLITANO: I got to tell you, I am just sick and tired of secrecy in the government and the Federal Reserve is the worst and the government has to pass — the Congress has to pass this legislation.
The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Q: How can we be free, when a secret cabal is controlling our money?
A: We can't.
Contact Washington and demand to know where YOUR money went! Do it today!
The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC.
With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions ...
- Jim DeMint, “Audit the Fed” Senate Warrior Ally
- Fed Audit Blocked
- Ron Paul's thoughts on the Federal Reserve
- Senate Pwned by DeMint Over Blockage of Fed Audit
- Idiocracy in action: Congress blocks bill to audit the Fed
- DeMint Amendment to Audit Fed Reserve Blocked By Democrats.
- Audit the Fed Blocked by Senate Procedural Move
- The Fed: Still Secret
- Letters To Boxer & Feinstein To Support S.604 On Auditing The Fed