When will the Fed’s folly and madness come to an end? Perhaps next year, we’ll begin to see big changes at the Federal Reserve, including the sacking of Fed chief Ben Bernanke, and his henchmen of addicted money printers, who have tossed aside the notion of “Moral Hazard,” a long time ago, and instead, are engaging in “financial repression” in the bond markets, and the rigging of the stock market, much to the chagrin of believers in free markets. However, in order for this shake-up at the Fed to occur, the Republican Party would have to beat the odds, by capturing the White House, and majorities in both chambers of Congress.
Perhaps the most important piece of legislation to come down from Capitol Hill this year was HR #459, sponsored by Texas’s Ron Paul, a long-time critic of the Fed. By an overwhelming 327-98 vote, the House on July 25th voted to authorize Congress’ chief investigators to begin a forensic audit of the Fed’s secret activities in the markets, including its dealing with crony capitalists on Wall Street and in Europe. Nearly half of the Democrats in the House voted for the passage of HR #459, supporting the high-water mark for Mr Ron Paul, who has been pushing the slogan “End the Fed” for many years, and more recently “Audit the Fed.”
Before the House vote, Mr Paul noted that since the 2008 financial crisis erupted, the Fed has in essence, become the fourth branch of the US-government. “Today we have a combination of a secret Federal Reserve dealing with private banks who collude with private banks to set interest rates. At the same time they collude with the executive branch. They claim, they say we can’t have an audit of the Fed because it would make it political,” Paul said.
“Well, how can it be more political if the Treasury Department from the executive branch gets together with the Fed and bails out their friends? And then they want it kept secret. And they say it would be chaotic. Yea, it would be chaotic for those people who have been ripping us off. That’s why they don’t want to have it. They talk about, ‘I want transparency.’ And they talk about independence. Independence to them means secrecy,” Mr Paul declared.
Mr Paul also got political support from a far-left leaning Democrat, who is retiring from Washington politics at the end of this year. “The Fed wants to be spared a full audit,” said Rep. Dennis Kucinich, Ohio Democrat on July 25th
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