Saturday, November 21, 2009

Fed Sicks Attack Dogs On Ron Paul After Audit Amendment Passes

Establishment efforts to kill move toward Fed transparency are crushed

Steve Watson
November 20, 2009

The Federal Reserve attack dogs are out in full force today following Congressman Ron Paul’s decisive victory in the battle to bring transparency to the privately owned central bank.

The House Financial Services Committee passed the amendment to increase Federal Reserve transparency in an overwhelming and bipartisan vote of 43 to 26.

The amendment, sponsored by Ron Paul and Democratic Representative Alan Grayson, mandates a genuine and full probing audit of the Fed.

The Committee rejected the parallel amendment introduced by Congressman Mel Watt (D-NC) which would have severely limited the audit, “gutting” Ron Paul’s H.R. 1207 bill as the Congressman put it, and paving the way for further Fed secrecy.

Key Committee Democrats such as Chairman Barney Frank (D-Mass.) who had previously expressed support for an audit, had moved behind the Watt amendment at the behest of banking industry and Fed officials, as well as the Democratic leadership.

Had the alternative provision passed, those individuals would have succeeded in appearing to support transparency while actually protecting the Fed from any real examination.

The success is significant because it proves beyond doubt that there is true bipartisan support for H.R. 1207. Barney Frank had pushed for a no vote on the Paul/Grayson amendment, but 15 Democrats defied him to vote with Ron Paul.

The vote acknowledges the fact that representatives on both sides of the political spectrum are sick to the back teeth of the the incessant pillaging of America’s economic security by a handful of financial elites who have bought and paid for the leadership of both parties.

The power the Fed now holds has vastly increased over the past twelve months owing to the fall out of the financial crisis, yet it continues to operate in total secrecy. Its chairman and other officials act as if their unfettered power is a god given right, and they express loathing and contempt when they are simply asked to describe and explain their actions to Congress and the American people.

The establishment was forced to move against the tide of momentum to audit the Fed by introducing it’s own watered down legislation. However, they acted too late and they have been thoroughly crushed.

“Today was Waterloo for Fed secrecy,” a victorious Grayson noted following the vote.

“We are happy to see the Financial Services Committee preserve a measure to bring true Fed transparency,” said John Tate, President of Ron Paul’s Campaign for Liberty. “This amendment helps to ensure that real and complete audit legislation remains unaltered, and from here on out we will continue to push for a standalone floor vote of H.R. 1207.”

In addition, a further bill sponsored by Grayson and Paul also passed – this requires written concurrence by the Treasury Secretary prior to the Fed engaging in a foreign currency swap.

Predictably, in response to this victory, the Fed has come out in force in today’s press with former chairmen Alan Greenspan and Paul Volcker, along with former vice chairman Alan S. Blinder all penning attack pieces about how harmful the move to audit the Fed remains.

While Binder’s piece appeared in the Washington Post, Greenspan and Volcker sent their letter to the Financial Committee’s chairman and ranking Republicans.

Knowing that the tired counter of “this is harmful to the Fed’s independence” would be wheeled out again, Ron Paul addressed his detractors on the issue during the hearings yesterday, making it clear that the argument holds no weight, noting that H.R. 1207 and the amendment are not about regulation of the Federal Reserve, the powers it holds or political influence on monetary policy.

“‘Independence’ means secrecy, it doesn’t mean anything else.” Paul noted.

“We live in an age where the American people are sick and tired of this. They are sick and tired of secret government and government out of control and Congress passing TARP funds and on and on with nobody knowing what happened.” the Congressman asserted.

Ron Paul's remarks:

Alan Grayson's remarks:

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