All he’s wanting is a vote on the Audit the Fed bill that passed the House last year, but has stalled in the Senate for the past 3 years. He’s using Yellen’s confirmation hearing as an opportunity and a chance for the American people to see what the Fed has been up to.
Obama should be perfectly fine with an audit of the Fed, since he’s all about transparency. If the Fed hasn’t done anything wrong, they should have nothing to hide, right? Isn’t that what we hear from government types all the time to justify the erosion of the 4th Amendment? So, they shouldn’t be nervous about opening up their books and letting everyone see what they’ve been up to.
Exactly how much money have they created this year? To whom have they loaned that money? Their buddies in the banking industry or other big corporations? To which countries have they loaned newly created money? Which third world dictators got a bail out? This gives the statement, “We need to pass the bill to find out what’s in it” a whole new meaning.
In his letter to the Majority Leader Harry Reid, Rand Paul wrote:
As the Senate debates the nomination of the next head of the Federal Reserve, there is no more appropriate time to provide Congress with additional oversight and scrutiny of the actions and decisions of the central bank. Therefore, I request that my bipartisan legislation, S. 209, the Federal Reserve Transparency Act, be scheduled for an up or down vote concurrently with the Yellen nomination. Similar legislation passed 327-98, with bipartisan support, in the House of Representatives on July 25, 2012. This same bill has been stalled in the Senate for nearly three years.
Accordingly, I will object to any unanimous consent agreement or the waiver of any rule with respect to the nomination of Dr. Yellen without a vote on S. 209. I know you have been a supporter of similar legislation in the past, and I hope that we can work together to pass this important legislation.
Some would argue that we don’t need to audit the Fed, that we need to just end it. I sympathize with that. But conducting a full audit of their books can’t hurt anything. And it might have the added benefit of showing America what the central bank is really up to.
The corruption might renew calls to transform our monetary system. How about legalizing competing currencies for starters and finding out which currencies Americans prefer? Does anyone really think that most people would prefer worthless paper over gold and silver, if given the choice? The only reason we use paper dollars backed by nothing but debt is that we’re forced to. We have no choice. Those paper dollars have (artificial) value, only because our government declared them to have value and has decreed by fiat that they are legal tender. The government will call you a domestic terrorist if you try to barter with gold and silver. Just ask Bernard von NotHaus, the founder of the Liberty Dollar. The government hates competition.
If you asked people ten years ago about a competing currency, most probably wouldn’t know what you’re talking about. Thanks to the economic downturn, the subject of the Federal Reserve and monetary policy isn’t boring or esoteric anymore, as much as the Fed would like to remain so and out of the spotlight. This subject is now one of the most important issues in our country and world today.
You can’t talk about “big government” without addressing the Fed. You can’t talk about high taxes without addressing the Fed. You can’t talk about warfare without addressing the Fed. And you can’t talk about a sluggish economy without addressing the Fed.
The Federal Reserve is behind all these things. It is the “great facilitator.” It allows politicians to spend and waste vast amounts of money on pet projects. It allows the President to start and fight wars on a whim. It causes economic bubbles to form and eventually burst. It encourages the welfare state to exist and grow. It allows bankers to get filthy rich at the expense of the taxpayers.
The Fed is responsible for our inherently worthless paper currency. The Fed can literally create money from nothing and loan it to corporations, foreign governments or our own government, expecting repayment with interest. This inflation of the money supply devalues the dollar and causes prices to creep up. So things aren’t necessarily worth more; our dollar is just worth less.
So, should we end this quasi-private institution? Yes. But the least we can do is audit it.