Ron Paul on Audit the Fed (on Kudlow)

November 30, 2009 · Posted in Monetary Economics · 1 Comment

Ron Paul’s Audit the Fed Amendment Passes; One More Hurdle Taken; More Battles Ahead

November 20, 2009 · Posted in Politics · Comment

From John Tate with C4L:

Dear Friend of Liberty,

Thanks to your quick action in contacting Congress, the House Financial Services Committee earlier today rejected Representative Mel Watt’s attempt to hijack Audit the Fed by voting 43-26 to pass Ron Paul’s amendment to the financial regulatory reform bill.

Dr. Paul called me right after the vote to personally express his thanks to C4L members for all of your efforts!

It is an incredible testament to the growing power of the liberty movement that we were able to get such an audit passed by a major House committee, but this is by no means the end of our fight.

Financial Services leadership has seemed determined for several months that if an audit of the Fed were to get out of Committee, it should be attached to an overall regulatory reform package that would actually increase the powers of the Fed to interfere in our economy.

Congressman Paul’s amendment gives the Government Accountability Office power to conduct a thorough audit of the Fed’s entire $2 trillion balance sheet and replaces the Watt language that would have further restricted GAO audits of the Federal Reserve.

While this is a victory over an attempted hijacking of our cause, the audit authority is still being rolled into the Financial Stability Improvement Act, a bill that Campaign for Liberty will oppose.

This Act will be voted on as soon as the Committee returns from its Thanksgiving break, and we will then know if it will move to the floor.

And it’s already becoming clear that Ron Paul’s amendment may face challenges on the House floor.

Now is the time to turn up the pressure!

Keep contacting Congress and tell your representative that before Congress debates over giving the Fed any new powers, we need to know what they’re doing with the ones they already have!

Urge your representative to support a standalone, up or down vote on Audit the Fed, H.R. 1207.

We’ve put too much work into this effort to see an audit bogged down in yet another Washington bureaucratic nightmare.

Make no mistake, though, the victory today proved we can get the votes to pass the thorough, historic audit we’ve been fighting for this past year. We have put the Federal Reserve on notice that the freedom movement is serious about reclaiming our country and that it is here to stay.

Thanks for all you do for the cause of freedom. Now, let’s finish this fight!

In Liberty,

John Tate

President

P.S. Turn up the pressure! Tell your representative you want a standalone vote on Audit the Fed, H.R. 1207.

Stay on top of this. Remain vigilant. There will be many more attempts to water down this bill and maintain secrecy of the Fed!

Here is Alan Grayson:

Tags: audit the fed, mel watt, ron paul

“Audit the Fed” Bill Gutted; Ways to Take Action

November 14, 2009 · Posted in General Economics · Comment

As Ron Paul recently pointed out, and as was unfortunately expectable, there are forces at work in Congress that attempt to prevent a meaningful audit of the main culprit of the financial crisis:

Representative Ron Paul, the Texas Republican who has called for an end to the Federal Reserve, said legislation he introduced to audit monetary policy has been “gutted” while moving toward a possible vote in the Democratic-controlled House.

The bill, with 308 co-sponsors, has been stripped of provisions that would remove Fed exemptions from audits of transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff, Paul said today.

“There’s nothing left, it’s been gutted,” he said in a telephone interview. “This is not a partisan issue. People all over the country want to know what the Fed is up to, and this legislation was supposed to help them do that.”

The Fed, led by Chairman Ben S. Bernanke, has come under greater congressional scrutiny while attempting to end the financial crisis by bailing out financial firms and more than doubling its balance sheet to $2.16 trillion in the past year. The central bank is also buying $1.25 trillion of securities tied to home loans.

Paul, a member of the House Financial Services Committee, said Mel Watt, a Democrat from North Carolina, has eliminated “just about everything” while preparing the legislation for formal consideration. Watt is chairman of the panel’s domestic monetary policy and technology subcommittee.

Keith Kelly, a spokesman for Watt, declined to comment and said Watt wasn’t immediately available for an interview. Watt’s district includes Charlotte, headquarters of Bank of America Corp., the biggest U.S. lender.

Original Language

Paul said he intends to introduce an amendment to the bill when it comes to the House floor for a vote restoring the legislation’s original language.

Representative Barney Frank, a Democrat from Massachusetts and chairman of the committee, said in interview that he intends to ensure legislation would provide a time lag between FOMC actions and the reporting of them.

Such a provision would “lessen the market impact,” he said on Oct. 20. “The importance is to see that there are no abuses and to judge what they did.”

The legislation will probably be included in a broader Democratic package of financial-regulation changes in the House, Frank said.

I should remind you again of past disagreements between Barney Frank and Ron Paul:

I quote:

… but you’re not going to see the [housing] collapse that you see when people talk about a bubble and so those of us on our committee in particular will continue to push for home ownership…

Thanks, Barney, for admitting, at least back then, that you were on the forefront of pushing for excessive home ownership and thus being instrumental to the housing crisis. Would you come forward today and say the same things? But then, I guess, nobody could see this coming, right?

Nobody? Here’s Ron Paul in 2003:

The special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital that they could not attract under pure market conditions. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing, the damage will be catastrophic.

… who would you rather listen to?

Today we know the tragic consequences of such foolishness. Unfortunately people continue to put these people in charge. We have to deal with that reality for the time being and take action. This I received today from the Audit the Fed Coalition:

Dear Supporter of Transparency,

You and I face our biggest challenge yet.

Mel Watt (D-NC), Chairman of the Monetary Policy Subcommittee, has sided with Fed and is working to gut substantial audit provisions from HR 1207.  The bill Congressman Watt has sent to the full Financial Services Committee contains no audit of the Fed’s monetary policy-making authority or transparency of the Fed’s secret agreements with foreign central banks.

Without these provisions, a so-called “audit” of the Fed would be worthless.

The full Financial Services Committee is likely to vote on this bill either later this week or early next.

Congressman Ron Paul will offer an amendment to restore the provisions contained in HR 1207 to audit monetary policy and activity with foreign central banks. Thirteen of the 41 Democrats and all 29 Republicans on the Committee have cosponsored HR 1207, and if they hold the line, we will have the votes to win and restore our audit.

Pressure on the Democrat House Financial Services Committee members is critical! Below is a list of Democrats who have cosponsored. Please call them and urge them to vote “Yes” on the Paul Amendment. Click on their names to get their web contact information.

1. Rep. John Adler, NJ (202) 225-4765

2. Rep. Travis Childers, MS (202) 225-4306

3. Rep. Steve Driehaus, OH (202) 225-2216

4. Rep. Alan Grayson, FL (202) 225-2176

5. Rep. Rubén Hinojosa, TX (202) 225-2531

6. Rep. Suzanne Kosmas, FL Toll Free: 1-877-956-7627

7. Rep. Dan Maffei, NY (202) 225-3701

8. Rep. Brad Miller, NC (202) 225-3032

9. Rep. Walt Minnick, ID (202) 225-6611

10. Rep. Ed Perlmutter, CO (202)-225-2645

11. Rep. David Scott, GA (202) 225-2939

12. Rep. Brad Sherman, CA (202) 225-5911

13. Rep. Jackie Speier, CA (202) 225-3531

When contacting these members, remember that up to this point, these members have been allies on this issue.  A civil yet firm tone should be kept during these calls.  They should be thanked for their cosponsorship, told that Mel Watt’s changes to the bill are unacceptable, and urged to hold the line and honor their promise to support transparency at the Fed by voting “Yes” for the Paul amendment.

It is also important that we contact Financial Services Chairman Barney Frank and House Speaker Nancy Pelosi and urge them to schedule a standalone, up or down vote on the real Audit the Fed bill.

Rep. Barney Frank: (202) 225-5931

Speaker Nancy Pelosi: (202) 225-0100

Now is a crucial time for Audit the Fed.  If these 13 Democrats hold the line, we can win this battle.  But, they must vote “Yes” on the Paul amendment when the full committee votes.

Sincerely,

The Audit the Fed Coalition

The Federal Reserve bank is an institution that exists without any moral, legal, or economic justification. It has been at the center of creating this financial crisis. It is at the center of the fraudulent fractional reserve banking system. It has created a banking cartel that represents the pinnacle of arrogance, irresponsibility, and corruption in our society.

All major problems over the past 96 years can be traced back to the Fed. It needs to be audited, exposed, and closed down. Whoever tries to prevent an audit in such a shady, cowardly, and secretive manner as Mel Watt needs to hear from those who deserve to know what is happening to their money: We, the people.

Tags: audit the fed, barney frank, ron paul

Ron Paul on Audit the Fed – What Are They So Afraid Of?

July 31, 2009 · Posted in Monetary Economics · 1 Comment

Well overdue: Ron Paul takes 5 minutes to completely crush every single one of Bernanke’s and his supporters’ rubbish arguments against auditing the Fed.

I say Ron Paul should offer Ben Bernanke one last chance: a public debate. He can take it and convince us how right he is, or decline and shut up once and for all.

Tags: audit the fed, ron paul

Ron Paul – Suddenly All Over the News :)

July 16, 2009 · Posted in Politics · 3 Comments

I tuned into Yahoo Finance this morning. I usually do it to amuse myself about newsflashes such as “Stocks advance on cheaper oil.” and “Stocks fall as lower oil fuels demand worries”.

But what do I find today? On the front page there are 5 different stories involving Ron Paul:

Click image to enlarge.

(…they are even interested in his appearance in the movie Bruno)

One may wonder why this was not the case when it actually mattered, like during the Republican primaries for example, or in 2003 when he warned about the disaster that subsidized loans made by Fannie and Freddie will cause. However, late enlightenment is better than none at all. The Campaign for Liberty is winning. The proof is in the pudding.

Tags: ron paul

Ron Paul’s Audit the Fed Bill – Now 242 Co-Sponsors

June 25, 2009 · Posted in Monetary Economics · Comment

While President Obama continues his mindless praise for the Federal Reserve and Ben Bernanke, the representatives in the House continue to sign on to audit the Fed:

Ron Paul’s bill to audit the Federal Reserve (HR 1207) now has 242 co-sponsors, and the numbers keep growing! At the same time, HR 1207’s companion bill in the Senate, S 604, is beginning to attract its first co-sponsors!

This is history in the making, and victory is within reach. Imagine what will happen if HR 1207, The Federal Reserve Transparency Act, comes up for vote in Congress! With more than 55% of the House of Representatives already co-sponsoring this bill, it has real potential to pass — BUT only if we educate and rally the people to support it and get our Congresspeople to put it to vote and pass it.

… history in the making indeed! But no time for complacency. The companion bill in the Senate, S604 still needs more co-sponsors.

Tags: audit the fed, ron paul

Ron Paul’s Audit the Fed Bill Gains Majority Support

June 11, 2009 · Posted in Politics · Comment

And finally, enough Congressmen and -women are on board with Ron Paul’s push for more transparency. Audit the Fed Bill Reaches Crucial Benchmark:

Washington, D.C. – Congressman Ron Paul’s Federal Reserve Transparency Act, HR 1207, has reached and surpassed the level of 218 cosponsors in the House of Representatives, which means it is now cosponsored by a majority of the members.

The 218th cosponsor was Dennis Kucinich (OH-10), and the bill has since received its 222nd cosponsor.

“The tremendous grass-roots and bipartisan support in Congress for HR 1207 is an indicator of how mainstream America is fed up with Fed secrecy,” said Congressman Paul. “I look forward to this issue receiving greater public exposure.”

Hearings on Federal Reserve transparency are expected within the next month, as part of the Financial Services Committee’s series of hearings on regulatory reform.

… unfortunately, I expect the Senate to do everything they can to dilute the bill, so no time for complacency here.

However, it is truly remarkable how the Campaign for Liberty has come at this point. While government officials left and right are capable of nothing but staging a deplorable circus, one Congressman from Texas has accomplished much more than anyone of the people who are supposed to be in charge.

To repeat what I said back in February:

[Obama's] fundamental misunderstanding on this matter is that he believes these disagreements are nothing but political games. They are not. They reflect sincere and deep-rooted concerns of the direction where this country has headed. They represent the voices of millions of frustrated workers, businessmen, housewives, students, and retirees calling their representatives, jammed fax machines, letters, town hall meetings, and the like. The movement for liberty is not one of political expediency. Its members are not in it for personal, monetary, or political gain. They are in it for true conviction and with all their heart. But on top of that, it is a movement of substance, reason, logic, and sound understanding of historical and economic facts. There is nothing in the world that could change some one’s mind, once one has understood the true blessings of Freedom, Liberty, Peace, Prosperity, and Happiness. It is a patient movement. It is not in a rush. It’s not gonna go away. It will grow stronger year by year. To ignore it would be the biggest mistake Obama could make now.

… and this is only just the beginning. The movement marches on.

Tags: audit the fed, campaign for liberty, ron paul

Audit the Fed – Only 11 More Co-Sponsors Needed

June 11, 2009 · Posted in Politics · Comment

Good news: Ron Paul’s Audit the Fed bill only needs 11 more co-sponsors to get a majority in the House …

Tags: audit the fed, ron paul, shelly roche

Ron Paul on GM – It’s Amtrak all over again …

June 9, 2009 · Posted in Interventionism · Comment

Ron Paul writes in GM, Amtrak and an Increasingly Fascist America:

Last week, General Motors finally declared bankruptcy. Many in government thought $20 billion in taxpayer dollars would save the company, but as predicted, it only postponed the inevitable. The government will dump another $30 billion into GM and take a 60 percent controlling interest for it. Public officials are now involving themselves in tactical business decisions such as where GM’s headquarters should move and what kind of cars it will build.

The promise that this is temporary and will eventually be profitable is supposed to ease the American people into accepting this arrangement, but it is of little comfort to those who remember similar promises when the American taxpayers bought Amtrak. After three years, government was supposed to be out of the passenger rail business. 40 years and billions of dollars later, the government is still operating Amtrak at a loss, despite the fact that they have created a monopoly by making it illegal to compete with Amtrak. Imagine what they can now do to what is left of the great American auto industry!

In a truly free market, GM would get your money one way and one way only — by selling you a car you want, at a price you are willing to pay. Instead, the government is giving public money to a private company in spite of the market signals it has been sending. Throwing money at GM does not stop it from being an engine of wealth destruction; on the contrary, it simply gives it more wealth to destroy.

Had it been allowed to fail naturally, the profitable pieces of GM would have been bought up and put to good use by now. The laid off employees would likely have found new jobs and all that capital would be in private hands, reinvested in companies that produce products demanded by consumers. Instead, we are all poorer now.

Political pressure, rather than the rule of law, is deciding how to divide up the remains of GM. The bondholders had billions in retirement savings invested in the company, and though they were entitled to nearly three times as much as the United Auto Workers, the bondholders were left with just a 10 percent stake compared to the union’s 17.5 percent stake. For their 60 percent stake, taxpayers have a future of constant bailouts to look forward to.

Comingling public control of private business is known as fascism. While today’s politicians may feel emboldened with all their new power, history will only repeat itself as all this collapses on itself. It is the height of hubris for bureaucrats and politicians to attempt to control the market and the freewill of the American people. In the end, the market always wins out. Maybe one day future generations will wise up and allow free markets to function and thrive without the albatross of government around its neck. For now, it looks like those in charge have not learned the lessons of the past, and have doomed us to repeat those mistakes once again.

… GM is here to stay for a long, long time. It will take ongoing subsidies, monopoly rights, and bureaucracy to keep it on live support. Bureaucracy is the scourge of the US System. More bureaucracy won’t fix it. Favoritism will be rampant. Corruption scandals along the way will be predictable. The solution presented to fixing such problems will be yet more bureaucracy. As Ayn Rand wrote in Atlas Shrugged:

Politicians invariably respond to crises — that in most cases they themselves created — by spawning new government programs, laws and regulations. These, in turn, generate more havoc and poverty, which inspires the politicians to create more programs . . . and the downward spiral repeats itself until the productive sectors of the economy collapse under the collective weight of taxes and other burdens imposed in the name of fairness, equality and do-goodism.

There is no point in denying the inevitable Trouble with Bureaucracy:

So long as the government confines its activity to the protection of individuals against aggression and theft only little harm can be inflicted. Every expansion of governmental powers, however, will inevitably lead to a bureaucratic misuse of the scarce factors of production available, an increase in poverty, and a lower standard of living for everyone.

Tags: amtrak, bureaucracy, General Motors, gm, ron paul

Barney Frank on Housing – Clueless in 2005, Clueless Now

May 27, 2009 · Posted in Politics · Comment

I quote:

… but you’re not going to see the [housing] collapse that you see when people talk about a bubble and so those of us on our committee in particular will continue to push for home ownership…

Thanks, Barney, for admitting, at least back then, that you were on the forefront of pushing for excessive home ownership and thus being instrumental to the housing crisis. Would you come forward today and say the same things? But then, I guess, nobody could see this coming, right?

Nobody? Here’s Ron Paul in 2003:

The special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital that they could not attract under pure market conditions. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing, the damage will be catastrophic.

… who would you rather listen to?

Tags: barney frank, housing market, ron paul

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