Audit the Fed: Bernanke and the Bankers Are Running Scared

Kurt Nimmo
Infowars
November 28, 2009

Ben Bernanke, Federal Reserve mob boss, is running scared. He is deathly afraid an audit of his criminal organization.

“These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States,” Bernanke wrote in the CIA’s favorite newspaper, The Washington Post.

Bernanke penned his tribute to central banking and globalism prior to his scheduled testimony before a Senate panel on his renomination to serve a second four-year term as Fed mob boss.

Bankster tool Barney Frank, chairman of the House Financial Services Committee, tried to derail an effort to audit the Fed but failed. A proposal to audit the Fed’s monetary policy deliberations won a committee vote recently over Frank’s objections.

In his Mockingbird media editorial, Bernanke “conceded the Fed had missed some of the riskiest behavior in the lead up to the crisis. But he said the Fed had helped avoid an even more damaging economic meltdown and has stepped up its policing of the financial system.”

In fact, the Fed was specifically designed to create financial crises. It was all plotted in 1910 when minions of J.P. Morgan, John D. Rockefeller, the Rothschilds and Warburgs met on Jekyll Island off the coast of Georgia. In 1913, the U.S. Federal Reserve Bank was created as a direct result of that secret meeting. Said Congressman Charles Lindbergh on the midnight passage of the Federal Reserve Act: “From now on, depressions will be scientifically created.”

In order to scientifically create an economic depression, the Fed prompted irresponsible speculation by expanding the money supply sixty-two percent between 1923 and 1929. The so-called Great Depression followed. This depression “was not accidental. It was a carefully contrived occurrence,” declared Congressman Louis McFadden, Chairman of the House Banking Committee. “The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.”

In March of 1929, Paul Warburg issued a tip that the scientifically created crash was coming. Before it did, John D. Rockefeller, Bernard Baruch, Joseph P. Kennedy, and other banksters got out of the market.

A few years later, the banksters and their minions met in Bretton Woods, New Hampshire, and plotted the creation of the International Monetary Fund and the World Bank. The purpose of these two criminal organizations was to set-up a global Federal Reserve system and wage economic warfare on billions of people. The weapon they used was debt and the loss of sovereignty that follows.

In 1971, then president Nixon fit one of the last pieces into the puzzle — he signed an executive order declaring that the United States no longer had to redeem its paper dollars for gold. It was a great day for the banksters and the global elite. The gold standard ensured predictability and regularity in the economy and the banksters wanted to put an end to that. For the bankers, order and control is realized out of chaos and misery.

Fast-forward to the present day. Bernanke’s Fed has meticulously sabotaged the economy in order to create a crisis in classic Hegelian fashion. The corporate media tells us the crisis is the result of ineptitude and mismanagement at the Federal Reserve. Au contraire. Like the Great Depression, the even Greater Depression now on the horizon was scientifically created.

The Fed is the primary instrument the bankers are now using to destroy the middle class, hand over all public assets and resources to them, implement a crushing austerity, usher in a new era of global corporatist feudalism and build a sprawling planet-wide slave plantation based on China’s totalitarian model.

It is the ultimate dream of the banking cartel. It will be used as the foundation to build world government. Destroying the dollar as the world’s reserve currency is only the beginning.

Bernanke knows Ron Paul and the audit the Fed movement are extremely dangerous. That’s why he is pushing this facile “oops” theory. In order to fix things, the Fed will use its “knowledge of complex financial institutions” in order to supervise them, he writes in his Mockingbird editorial. Allowing audits of Federal Reserve monetary policy would increase the perceived influence of Congress on interest rate decisions, he says.

No, it would lay bare the criminality of the Federal Reserve. Maybe Bernanke is worried he will be obliged to wear an orange jumpsuit in the wake of an audit.

As for Congress, Bernanke needs to read Article 1, Section 8 of the U.S. Constitution. Congress shall have exclusive power to “coin Money, regulate the Value thereof,” not a criminal cartel of monopoly men who dream of a prison planet.

URL to article: http://www.infowars.com/audit-the-fed-bernanke-and-the-bankers-are-running-scared/

A Review of “End the Fed” by Ron Paul

Charles Scaliger
New American
September 14, 2009

“The entire federal government,” laments Congressman Ron Paul in his newest book, End the Fed, “is one giant toxic asset at the moment. It certainly has no business telling the private sector how to run its affairs. It is in worse financial shape than all the companies in the private sector put together.”

Hard words, but Congressman Paul knows whereof he speaks. It was Ron Paul, unique among congressmen for his understanding of how a free-market economy is supposed to work, who warned repeatedly of the coming economic calamity. It was Ron Paul, too, who warned both the Bush and Obama administrations that attempts by the government to bail out failing corporations with taxpayer dollars and passing massive stimulus packages would only make things worse. And it has been Ron Paul who has warned of disastrous long-term consequences of the inflationary activities of the Ben Bernanke-led Federal Reserve.

Congressman Paul’s concerns about the Federal Reserve are nothing new. The gynecologist-turned-eleven-term congressman from Texas has spent a long political career promoting liberty and limited constitutional government as the American Founders understood them and exposing the mischief at the Federal Reserve. With the unexpected success of his presidential campaign and his recent best-selling manifesto on liberty, Dr. Paul’s uncompromising, consistent, and thoroughly principled stances on limited, constitutionally legitimate government are well known around the world. Now, thanks to End the Fed, his views on paper money, fractional-reserve banking, and the Federal Reserve and its manipulation of the money supply are summarized for a mass readership. Under a single cover and on just 212 readable pages are assembled philosophical, economic, and constitutional arguments for abolishing the Federal Reserve, a succinct history of banking, and a number of fascinating recollections and snippets of telling dialogue between Dr. Paul and various chairmen of the Fed as far back as Paul Volcker.

Read entire article

URL to article: http://www.infowars.com/a-review-of-end-the-fed-by-ron-paul/

House of Representatives to Hold Audit the Fed Hearings

Reuters
September 10, 2009

Congressman Ron Paul informed Campaign for Liberty today that House Financial Services Committee Chairman Barney Frank will hold hearings on H.R. 1207, Congressman Paul`s bill to audit the Federal Reserve. The hearings are tentatively set to take place Friday, September 25th at 9:00 am.

“The Federal Reserve wields tremendous power and is at the center of our current economic storm of deficits, debt and bailouts.Congressman Barney Frank should be commended for his willingness to hold hearings on Fed transparency,” said Campaign for Liberty President John Tate.

“A full and thorough Audit of the Federal Reserve is now supported by over 75 percent of the American people, and nearly the same percent of U.S. Congressmen, and these hearing are a major step toward that critical goal. Campaign for Liberty will continue to push for a clean vote and ultimate passage of H.R. 1207,” continued Tate.

Read entire article

URL to article: http://www.infowars.com/house-of-representatives-to-hold-audit-the-fed-hearings/

HR 1207 Meets Panicked Resistance

Jurriaan Maessen
Infowars
August 4, 2009

As the campaign to audit the Fed is picking up momentum in the halls of Congress, reflective of the majority support by the people, several mainstream media outlets have taken their familiar positions to fulfil the role of compliant corporate lackeys they have become accustomed to. But it is to no avail. The campaign for liberty has clearly grown wings that spread far and wide, outflanking both the left and the right as it ascends to ever greater heights. Whatever happens next, the enemies of liberty will be hard put to it, trying to sprinkle sleeping dust into the eyes of the giant who stretches his arms to meet the dawn.

	James Pethokoukis.

In a recent attempt at discrediting Ron Paul’s bill HR 1207, Reuters columnist James Pethokoukis strings together ludicrous straw men arguments to convince the sheeple that everything is fine so go back to sleep.

“Most Americans”, Pethokoukis states, “surely don’t realize that the non-policy aspects of the Fed are already audited by the GAO, nor have they watched the Fed chairman’s twice-a-year testimony, (…), in front of House and Senate committees.”

This is a hilarious argument, for the incidental testimonies provided by the Fed boss usually raise more questions than they answer; and besides, the ones demanding a proper audit of the Fed are usually the same ones prone to dissecting its cryptic musings with their hands in their hair. The columnist goes on to claim that both the occasional congressional grilling as well as the minutes published by the Fed provides enough transparency to satisfy critical observers: “Bernanke”, he states, “is clearly not operating in the shadows from some undisclosed location.”

You have to love the logic behind his curious little trifle, far exceeding the usual allowance of stupidity. It is no different than claiming someone standing in a shadowy corner of a dark alley at noon is actually standing in the full light of day. As the author moves from fallacy to fallacy, he predictably arrives at his final and most ludicrous position: “The effect on the economy might not be beneficial, either. Even if the result of the Fed bill is only more aggressive congressional questioning and criticism, financial markets might well fear the bank would start taking congressional wishes into account when making policy.”

We can’t have that, now can we. According to James Pethokoukis, it will be absolutely detrimental if the people’s representatives in Congress would be able to influence the actions of a private central banking cartel. Telling enough, the author then quotes none other than JPMorgan’s house economist Michael Feroli who was heard to remark that an audit “could immediately push up borrowing costs even if the audits are only a symbolic increasing of congressional oversight of monetary policy.”

If the bill, God forbid, should evaporate in the senate, then a great victory will have been achieved nonetheless. A recent Rasmussen poll has showed a staggering 75 percent agreeing with Dr. Paul’s stance on the Federal Reserve. Never before has the pressure been building up against the secretive banking cartel in the current measure, so even the entire effort should fail to reach its conclusion, it will not have been in vain. With more and more light shining upon the Federal Reserve and its secretive operations, and an increasing amount of people realizing that all is not well, the push for liberty will be victorious any way you slice it.

URL to article: http://www.infowars.com/hr-1207-meets-panicked-resistance/

Bill to Audit the Fed Gains Momentum as Public Support Grows

C. Marlon Richardson
Infowars
July 30, 2009

In an article by Ryan McCarthy posted Thursday on the HuffingtonPost.com 75% of Americans are in favor of auditing the illusive and secretive Federal Reserve Bank. The House bill, sponsored by Ron Paul and others, has already gained support from over half of congress.

In the face of slumping favorability ratings and in a last ditch attempt at damage control, Fed Chairman Ben Bernanke has been on a public relations campaign to quell public interest and concern over Fed bank policies starting with a town hall meeting earlier this week. Bernanke, along with others, threaten that an audit of the Fed would result in a total collapse of world financial markets and limit the Fed’s independence. When asked by the News Hour’s Jim Lehr to define the Fed’s “independence”,  Bernanke was vague at best in describing who is responsible for setting monetary policy or who the Fed is controlled by.

Ben Bernanke Explaining the Fed’s “Independece”-at 3:48

Ben Bernanke on Auditing the Fed

Read article on huffingtonpost.com

http://www.huffingtonpost.com/2009/07/30/fed-audit-supported-by-75_n_247765.html

URL to article: http://www.infowars.com/bill-to-audit-the-fed-gains-momentum-as-public-support-grows/

Bernanke Stutters, Stammers And Shakes His Way Through Questions On Audit The Fed Bill

Steve Watson
Infowars.net
Wednesday, July 29, 2009

Federal Reserve chairman Ben Bernanke appeared incredibly nervous during an interview aired last night on PBS’ NewsHour, particularly during a question on the ongoing effort to pass legislation that would see the Fed’s books being opened up to a general audit.

In a display that will greatly encourage those who continue for push for greater transparency of the privately run Fed’s actions, Bernanke stammered and stuttered his way through the interview, his voice shaking as he attempted to rail against calls to audit the Fed, reciting now familiar and standard lines of propaganda.

“There’s an effort in Congress, and in the House in particular, to audit what the Federal Reserve does, particularly in monetary policy. How do you feel about that?” asked PBS’ Jim Lehrer.

“So that bill, people don’t fully understand what that bill is about. It sounds like, audit the Fed, it sounds like ‘Let’s look at the books.’ That’s what it sounds like.” Bernanke spluttered.

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Clearly flustered and sounding very unconfident, Bernanke continued:

“What people don’t understand is that this bill would give the GAO, the GAO, the authority to audit monetary policy. And what does that mean? That means if the Federal Reserve decided a year from now that because of incipient inflation it was time to raise interest rates, that the Congress would say, ‘Ah, the GAO’s going to audit that decision. It’s going to subpoena your materials. It’s going to demand information from members of the FOMC. It’s going to evaluate your decision. It’s going to report to Congress.’ I don’t think that’s consistent with independence.” Bernanke said.

Watch Bernanke respond to the question regarding the bill:

URL to article: http://www.infowars.com/bernanke-stutters-stammers-and-shakes-his-way-through-questions-on-audit-the-fed-bill/

U.S. Senator Slams Washington Post Defense Of Fed Secrecy

Steve Watson
Infowars.net
Tuesday, July 28, 2009

Senator Bernie Sanders (I-VT), sponsor of S 604, the Federal Reserve Sunshine Act of 2009, has slammed a recent Washington Post editorial that contends the Federal Reserve should not be subject to a general audit.

Sanders vented his opinions in a letter to the editor which was published in the Post today.

“We must not equate ‘independence’ with secrecy.” Sanders writes in response to the Post’s Friday editorial entitled “Focus on the Fed” which attacked his own and Congressman Ron Paul’s efforts to enact the Federal Reserve Transparency Act, a move that would allow the American people to find out for the first time where trillions in taxpayer funded bailout dollars have been used.

“No matter how intelligent or well-intentioned the Fed chairman and his staff may be, it isn’t appropriate to give a handful of people the power to lend an unlimited supply of money to anyone it wants without sufficient oversight.” Sanders writes.

“Absolute power corrupts absolutely. The American people have a right to know what is being done with their hard-earned taxpayer dollars. This money does not belong to the Fed; it belongs to the American people.” Sanders urges.

The Washington Post’s editorial angered many readers late last week by essentially advocating the continuation of non-accountability in government.

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“Though the bill has attracted 276 co-sponsors in the House and 17 in the Senate, it is wrongheaded in the extreme.” the Post’s anonymously written piece stated.

“By opening up the Fed’s most sensitive interest rate and credit policies to public second-guessing, the bill would create a risk — real and perceived — of monetary policy bent to suit congressional overseers. This would destroy financial markets’ faith in the Fed and, by extension, the value of the U.S. dollar, just as surely as a political ‘audit’ of the Supreme Court’s deliberations would undercut public faith in the justice system.” the piece claimed.

“This article makes comparisons that are utterly dissimilar.” Libertymage writer Robin Grammer succinctly points out.

“Not only does our justice system make available verdicts and vote counts the same day that the court votes on the issue, they also make public the dissenting parties with the articulated minority opinion. This is a a world of difference from the transparency policy of the Federal Reserve, who graciously offers us meeting transcripts five years after the meetings occur. The transparency policies of these two groups are in no way similar and making such a comparison is disingenuous at best.” he concludes.

Furthermore, as Ron Paul himself explained during the Financial Services Committee hearings last week, the bill would do nothing to further politicize the Fed’s decision making given that the Fed is already overtly politicized anyway.

“Just the fact that they can issue a lot of loans and special privileges to banks and corporations, that’s political. This idea that it would be political because we know what happened afterwards just doesn’t seem to add up.” Paul beseeched.

The bill would not give anyone in Congress or elsewhere the authority to sit in on Fed hearings, thus it would have no impact monetary policy. All it would do is provide answers to the American people as to where their hard earned money is being spent.

The Federal Transparency Act would also expose the fact that it is the Federal Reserve that is responsible for the artificial inflation of the debt bubble and the issuing of credit out of thin air, the driving force behind the financial crises.

The Truth is that the Washington establishment knows that an audit would set the stage for a return of honest money and fiscal policies, in which the privately run Federal Reserve can play no role.

It comes as little surprise therefore to see the establishment media in Washington advocating a continuation of unaccountability and blanket secrecy.

URL to article: http://www.infowars.com/u-s-senator-slams-washington-post-defense-of-fed-secrecy/

These Are The People Who Do Not Want The Fed’s Veil Lifted

Tyler Durden
Zero Hedge
July 15, 2009

	J. P. Morgan and the bankster elite want Federal Reserve opacity, not transparency.

The following individuals whose primary goal in life is getting tenure and publishing a textbook, yet believe they have a voice in deciding whether over 300 million American people should know just whose interests the Fed so staunchly protects, have issued an open letter to Congress and The Executive Branch, demanding that no one ever dare tinker or have audit powers over the private institution that is the Federal Reserve. Those who run hedge funds, operate semi-failed companies, work for an Investment Bank, especially taxpayer bailed out ones, or are otherwise conflicted, are highlighted in bold.

It makes sense to recall that the recent grassroots campaign to enforce the opposite – i.e., more transparency at the Fed, has been supported by over 5,000 individuals at this point. Zero Hedge recommends all who believe in transparency in this time when we have anything but, sign the petition to demonstrate their disagreement with the individuals below.

“Fed Independence” Petition Signatories:

Ricardo Caballero MIT

Kenneth French Dartmouth College

Robert Hall Stanford

Anil Kashyap Chicago Booth

Pete Klenow Stanford

Frederic Mishkin Columbia

Thomas Sargent NYU

Michael Woodford Columbia

Andrew Abel Wharton School,University of Pennsylvania

Daron Acemoglu MIT

Michael Adler Columiba University

Yacine Ait-Sahalia Princeton University

Fernando Alvarez University of Chicago

Scott Anderson Wells Fargo & Co.

Cliff Asness Managing and Founding Principal, AQR Capital Management LLC

Paul Asquith Massachusetts Institute of Technology

David Backus NYU

Dean Baim Pepperdine University/UCLA

Ravi Bansal Duke University

David Bates University of Iowa

Andrew Bernard Dartmouth College

Richard Berner Morgan Stanley

George Borts Brown University

Scott Brown Raymond James & Associates

Markus K. Brunnermeier Princeton University

Ralph C. Bryant Brookings Institution

Michael Carey Calyon Securities (USA) Inc. Credit Agricole Group

Christopher Carroll Johns Hopkins University

Martin Cherkes Columbia University

Diego Comin Harvard University

Jernej Copic UCLA

Dora Costa UCLA

Steven Davis University of Chicago Booth School of Business

Angus Deaton Princeton University

Davide Debortoli University of California, San Diego

Eddie Dekel Northwestern University

Harold Demsetz UCLA

Scott Desposato University of California, San Diego

Douglas Diamond University of Chicago Booth School of Business

Peter Diamond MIT

Francis X. Diebold University of Pennsylvania

Avinash Dixit Princeton University

Matthias Doepke Northwestern University

Darrell Duffie Stanford

Pierre Collin Dufresne Columbia

Martin Eichenbaum Northwestern University

Andrea Eisfeldt Northwestern UniversityKellogg School of Management

Jeffrey Ely Northwestern University

Eduardo Engel Yale University

Eugene Fama University of Chicago Booth School of Business

Henry Farber Princeton University

Roger Farmer UCLA

Jon Faust Center for Financial Economics, Johns Hopkins U.

Michael Feroli J.P.Morgan

Wayne Ferson U.S.C.

Kristin Forbes MIT-Sloan School of Management

Mark Gertler New York Univiersity

Marc Giannoni Columbia University

Simon Gilchrist Boston University

Robert J. Gordon Northwestern University

Roger Gordon UCSD

David Greenlaw Morgan Stanley

Gene Grossman Princeton University

Steffen Habermalz Northwestern University

James Hamilton University of California, San Diego

Gary Hansen UCLA

Robert Hansen Tuck School, Dartmouth College

Gordon Hanson UC San Diego

Milton Harris University of Chicago Booth School of Business

Tarek Hassan University of Chicago Booth School of Business

Zhiguo He Chicago Booth

John Heaton University of Chicago

D. Lee Heavner Analysis Group, Inc.

Christian Hellwig UCLA

Gailen Hite Columbia Business School

Yael Hochberg Kellogg School of Management, Northwestern University

Stuart Hoffman PNC Financial ServicesGroup

Bengt Holmstrom MIT

Bo Honore Princeton University

Peter Hooper Deutsche Bank

Takeo Hoshi University of California, San Diego

Christopher House University of Michigan

Peter Howitt Brown University

Chang-tai Hsieh University of Chicago

Ellen Hughes-Cromwick Chief Economist, Ford Motor Company

John Huizinga University of Chicago Booth School of Business

Erik Hurst University of Chicago Booth School of Business

Ravi Jagannathan Kellogg School of Management, Northwestern University

Dana Johnson Comerica Bank

Karen Johnson Federal Reserve Board of Governors (retired)

Charles I. Jones Stanford University, Graduate School of Business

Paul Joskow MIT

Matthew Kahn UCLA

Juno Kang The Bank of Korea

Steven Kaplan University of Chicago Booth School of Business

Bruce Kasman J.P. Morgan Chase

Peter Kenen Princeton Uniiversity

Ralph Koijen University of Chicago Booth School of Business

David Kotok Chariman, Central Banking Series, Global Interdependence Center, Philadelphia, PA.

Arvind Krishnamurthy Northwestern University

Rafael La Porta Dartmouth College

David Lake University of California, San Diego

Bruce Lehman UCSD

Nan Li Ohio State University

Hilarie Lieb Northwestern University

John Liew AQR Capital Management

Juhani Linnainmaa University of Chicago Booth School of Business

Andrew Lo MIT

Kevin Logan Dresdner Kleinwort

Guido Lorenzoni MIT

Hanno Lustig UCLA Anderson

Louis Maccini Johns Hopkins University

Burton Malkiel Princeton University

Eric Maskin The Institute for Advanced Study, Princeton University

Robert McDonald Kellogg School, Northwestern University

Daniel McFadden University of California, Berkeley

Doug McMillin Louisiana State University

Rajnish Mehra UC Santa Barbara

Robert Mellman J.P. Morgan

Robert Merton Harvard University

Laurence Meyer Macroeconomic Advisers, LLC

Atif Mian University of Chicago

Gregory Miller Suntrust Banks, Inc.

Robert Moffitt Johns Hopkins University

Stephen Morris Princeton University

Dale Mortensen Northwestern University

Giuseppe Moscarini Yale University

Tobias Moskowitz University of Chicago, Booth School of Business

Stefan Nagel Stanford

Maurice Obstfeld University of California,

Berkeley Lee Ohanian UCLA

Maureen O’Hara Cornell University

Stavros Panageas University of Chicago BoothSchool of Business

Dimitris Papanikolaou Northwestern University

Robert Parry President & CEO, Federal Reserve Bank of San Francisco, Retired

Lubos Pastor University of Chicago BoothSchool of Business

Lasse H. Pedersen NYU

Monika Piazzesi Stanford

Keith Poole University of California, San Diego

Giorgio Primiceri Northwestern University

Valerie Ramey University of California, San Diego

Enrichetta Ravina Columbia University

Esteban Rossi-Hansberg Princeton University

Michael Rothschild Princeton University

Tano Santos Columbia Business

School Ulrike Schaede University of California, San Diego

Richard Schmalensee MIT

Martin Schneider Stanford

Kermit Schoenholtz NYU Stern School of Business

Jay Shanken Emory

Robert Shiller Yale University

Hyun Shin Princeton University

Stephen Shore Johns Hopkins University

Costis Skiadas Northwestern University

Matthew Slaughter Dartmouth College

James F. Smith Kenan-Flagler Business School, UNC-Chapel Hill

Chester Spatt Carnegie Mellon University

James H. Stock Harvard

Rene Stulz The Ohio State University

Amir Sufi University of Chicago Booth School of Business

Joseph Swanson Northwestern University

Vefa Tarhan Loyola University Chicago

Edwin M. Truman Peterson Institute for International Economics

Harald Uhlig University of Chicago

Andrey Ukhov Northwestern University

Sergio Urzua Northwestern University

Chris Varvares Macroeconomic Advisers, LLC

Pietro Veronesi University of Chicago

Paul Wachtel New York University, Stern School of Business

Richard Walker Northwestern University

Mark Watson Princeton

Shang-jin Wei Columbia

David Weil Brown University

Pierre-Olivier Weill UCLA Economics

Burton Weisbrod Northwestern University

William Wheaton MIT

Michael Whinston Northwestern University

Mirko Wiederholt Northwestern University

Mark Witte Northwestern University

Tiemen Wouteren Johns Hopkins University

Jonathan Wright Johns Hopkins University

Wei Xiong Princeton University

Stanley Zin New York University

And here is the text of the endorsed letter:

Open Letter to Congress and the Executive Branch

Amidst the debate over systemic regulation, the independence of U.S. monetary policy is at risk. We urge Congress and the Executive Branch to reaffirm their support for and defend the independence of the Federal Reserve System as a foundation of U.S. economic stability. There are three specific risks that must be contained.

First, central bank independence has been shown to be essential for controlling inflation. Sooner or later, the Fed will have to scale back its current unprecedented monetary accommodation. When the Federal Reserve judges it time to begin tightening monetary conditions, it must be allowed to do so without interference. Second, lender of last resort decisions should not be politicized.

Finally, calls to alter the structure or personnel selection of the Federal Reserve System easily could backfire by raising inflation expectations and borrowing costs and dimming prospects for recovery. The democratic legitimacy of the Federal Reserve System is well established by its legal mandate and by the existing appointments process. Frequent communication with the public and testimony before Congress ensure Fed accountability.

If the Federal Reserve is given new responsibilities every effort must be made to avoid compromising its ability to manage monetary policy as it sees fit.

URL to article: http://www.infowars.com/these-are-the-people-who-do-not-want-the-feds-veil-lifted/

Federal Reserve Threatens Congress Over HR 1207

Kurt Nimmo
Infowars
July 12, 2009

On Thursday of last week, the Federal Reserve’s vice chairman, Donald Kohn, threatened to jack up interest rates if Congress continues to expose “some of the U.S. central bank’s most sensitive decisions to political scrutiny,” Reuters reported. “Any substantial erosion of the Federal Reserve’s monetary independence likely would lead to higher long-term interest rates as investors begin to fear future inflation,” Kohn told a House of Representatives Financial Services subcommittee.

Kohn’s threat came as Ron Paul’s bill to audit the Federal Reserve (HR 1207) has picked up 256 co-sponsors — more than 55% of the House of Representatives. HR 1207’s companion bill in the Senate, S 604, has already attracted 8 co-sponsors. Kohn and his boss Ben Bernanke are obviously very concerned over the prospect that the American people may soon have a look at their books.

Kohn went before Congress as debate rages over Obama’s plan for “regulatory reform,” in effect granting the Fed power to gobble up companies in national socialist fashion and consolidate banking and securities across the board. In order to quell outrage over this brazen power grab, Obama and his bankster advisers propose a token council of regulators advise the Fed.

On June 16, Goldman Sachs operative Timothy Geithner said: “When you have too many people involved, there’s an accountability problem.” In other words, Congress and the American people need to mind their own business. The Federal Reserve is an institution owned by the bankers, not the American people.

“Some people think the Federal Reserve Banks are the United States government’s institutions,” Louis T. McFadden, Chairman of the Committee on Banking and Currency in 1932 during the “Great Depression,” had entered into the Congressional Record. “They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers.”

McFadden’s international swindlers are running scared from HR 1207 and public anger over last year’s engineered financial crisis and Fed-orchestrated “bailouts” of investment bank Bear Stearns and insurer American International Group.

“The Federal Reserve strongly believes that removing the statutory limits on GAO audits of monetary policy matters would be contrary to the public interest by tending to undermine the independence and efficacy of monetary policy,” said Kohn. He said accountability to the people would “cast a chill” on monetary policy deliberations held in secret behind closed doors.

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Kohn then threatened to jack up interest rates. “The bond rating agencies view operational independence of a country’s central bank as an important factor in determining sovereign credit ratings, suggesting that a threat to the Federal Reserve’s independence could lower the Treasury’s debt rating and thus raise its cost of borrowing.”

Bernanke’s underling made no bones about the fact Paul’s bill is a direct threat to the “independence” of the Federal Reserve. “History provides numerous examples of non-independent central banks being forced to finance large government budget deficits. Such episodes invariably lead to high inflation,” he said. “Given the current outlook for large federal budget deficits in the United States, this consideration is especially important.”

Talk about doublespeak. In fact, the Federal Reserve is all about huge federal budget deficits and a mounting federal debt. The Federal Reserve was established in 1913 by the banksters for the purpose of creating debt-based money secured by thin air. The American people are seriously and terminally indebted to the bankers and currently owe over $400 billion a year in interest alone, with no hope of every paying off the principal, which is in the tens of trillions.

In 1910, before the passage of the Federal Reserve Act, the federal debt was a mere $1 billion, or $12.40 per citizen. Now the overall debt is over 80% of the annual output of the entire U.S. economy, as measured by the gross domestic product. When government “obligations” are considered, the debt balloons to an astronomical $56 trillion, or roughly $184,000 per American, according to the Peter G. Peterson Foundation.

It is simple, really — the larger the debt, the richer and more powerful the international bankers become. The Federal Reserve is their front organization and it runs roughshod over Congress.

The passage of HR 1207 is not certain and it faces an even more strenuous uphill battle in the Senate. It is, at this point, our only practical hope of auditing the Fed, revealing its numerous crimes, exposing its mega-grand theft scams, and delivering Donald Kohn, his boss Bernanke, and the minions of the international banksters to justice.

URL to article: http://www.infowars.com/federal-reserve-threatens-congress-over-hr-1207/

Ron Paul questions Metzger and Gailbrath on Fed Transparency

Marc Gallagher
Liberty Maven
July 9, 2009

An addendum the the previous video posted earlier where Ron Paul asked Fed Vice Chair questions during a Federal Reserve hearing here is the second set of questions from Dr. Paul for the 2nd panel.

He asks Dr. Allan Metzger about the difference between the term “independence” and “transparency”. He then expresses a bit of tongue and cheek shock that James Kenneth Galbraith (also on the panel) brought up the Constitution in his opening testimony, and a few other questions. Galbraith then agrees that he believes Paul’s HR1207 is proper, that members of Congress are entitled to the information an audit would provide.

You can view all the opening statements regarding this hearing at this House Finanacial Services Committee web page.

Watch this latest clip below and look for video of Ron Paul’s opening statement a bit later.

URL to article: http://www.infowars.com/ron-paul-questions-metzger-and-gailbrath-on-fed-transparency/