Fed Secrecy Survives Again
July 12, 2010 by Bob Livingston
Democrats in Congress have managed to nail the lid back down on Federal Reserve transparency.
Writing in his weekly column Texas Straight Talk, Congressman Ron Paul (R-Texas) said that his Federal Reserve Transparency Act was left out of the Wall Street reform bill when House and Senate negotiators reconciled the different bills passed by both houses of Congress. An effort by House Republicans to re-insert the language failed, with more than 120 Democrats who had co-sponsored the bill voting against it.
The bill would have allowed the Government Accountability Office (GAO) to fully and completely audit the Federal Reserve and would have opened the Fed’s operations to Congressional oversight. Paul wrote:
“Any legitimate objections to the audit proposal were addressed in the language of the motion to recommit. Thus, it is clear that the real reasons for opposing it are unstated and indefensible. The real reasons are that politicians like to spend money far exceeding income and it is convenient to have an enabler of this in the Federal Reserve. The easier it is for the Fed to create money, hidden from public view and accountability, the easier it is for politicians to spend that money and make sure their friends and interests are taken care of through shady political processes.”
“The broader reasons for supporting this entire financial regulatory reform bill are just as sinister. This is not about cracking down on big banks as some claim. Rather, this is about not wasting a crisis. This is about using a traumatic event to increase government power and control over the economy. If it was really about addressing the causes of this recession, Fannie Mae and Freddie Mac would have been dealt with, or abolished. Failed companies would just fail, rather than being bailed out. Instead, a permanent bailout mechanism is being established. The Fed, and its ability to control interest rates and create cheap money, would be reformed or better yet, abolished. But instead its power is being increased and this Congress refuses to even fully audit it!”
As Paul points out the Federal Reserve has operated in the shadows since its inception in 1913. While its defenders claim it was designed to give stability to financial markets, what it has really done is preside over the near complete destruction of the dollar. Since the Fed’s inception the dollar has lost more than 95 percent of its purchasing power.
Its loose money policy is also the culprit behind current economic crisis. By artificially keeping interest rates low rather than allowing the free market to set rates, bubbles were created that eventually burst.
For some reason, Average Joe and Average Jane seem to have trouble understanding this concept. But here’s a concept they may understand.
When Congress passed the massive stimulus and bailout bills they used your money by authorizing the U.S. Treasury Department and its head Timothy Geithner (formerly president of the Federal Reserve of New York) and Fed Chairman Ben Bernanke to determine which financial institutions received bailout funds.
But they have decided that you, the American taxpayer, have no right to know who got money, how much the recipients received and what it was used for. They have rejected every inquiry by Congress to find out where YOUR money went.
We know that it went to their buddies at Goldman Sachs, where former Treasury Secretary—and Geithner buddy—Hank Paulson served as chief executive officer. We know that some went to AIG. We know that some went to overseas banks to bail them out. We know that some went to the automobile companies to bail them out, and to the autoworkers unions to support their pension plans. But that’s about all we know about that.
We know that the Federal Reserve, which is not a part of the Federal government and which holds no reserves, was formed by six conspirators who met in secret in 1910 and pushed its approval through Congress in 1913. We know the conspirators were foreign and American banksters and Big Oil men and their lackeys in the Senate.
We know that a secret cabal of banksters—both foreign and domestic—still own the Federal Reserve, and profit off it at the expense of the American people.
We know that the Federal Reserve destroys your savings through inflation. It steals your wealth without you knowing it by printing more and more currency, making each dollar worth less.
We know—and now the evidence is there for all to see—that the Federal Reserve is a powerful entity that was able to sway the votes of more than 120 Democrats and persuade them to vote against a bill they had co-sponsored. And we now know for sure—as if we didn’t already suspect—that there will be no end to the Federal Reserve while the current regime is in power.
There will be a time for reckoning in November. Will the banksters and corporate donors (corporatists) win out? Or, will the people rise up in sufficient numbers to take their country back?