Audit the Fed!

Representative Ron Paul of Texas has introduced H.R. 1207, a bill titled "To amend Title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States, and the manner in which such audits are reported, and for other purposes." Quite a long title, but the bill was introduced on 2/26/2009, and currently has 245 cosponsors and referred to the House Committee on Financial Services. The fact that there are 245 cosponsors is a good sign it may have some traction.

I don't always support Ron Paul , but he has it right on this issue. If this Bill passes it will be a step towards restoring some semblance of confidence, accountability, and responsibility in National Monetary Policy for the American people.

What is the Federal Reserve System (aka the Fed.)? The Federal Reserve System was established on December 23, 1913. It serves as the country's Central Bank, and it was created by an act of congress. The Fed consists of a Board of Governors with seven members and is head quartered in Washington, DC, there are twelve Federal Reserve Banks located in major cities throughout the United States. The seven Members of the Board are appointed by the President, and confirmed by the U.S. Senate for a term of 14 years, and must be a fair representation of the financial, agricultural, industrial and commercial interests, and geographical divisions of the country.

Given this short history of the Federal Reserve System, why do we need an independent audit of this all powerful government entity? Here is why, the Federal Reserve System is responsible for conducting Americas monetary policy, it supervises and regulates banks and protects consumers' credit rights, it is responsible for maintaining the stability of America's financial system, and provides financial services to the U.S. Government, the public, financial intuitions, and foreign financial intuitions. Additionally the Federal Reserve makes loans to commercial banks and is authorized to issue the Federal Reserve Notes that make up America's entire supply of paper money. Any Government entity with as much power and responsibility as the Fed. needs oversight and thorough audits, with results available for all to see.

Any bank using "National Bank" as part of its name is a member of the Federal Reserve System. As a member they must maintain minimum levels of reserves with one of the 12 Federal Reserve Banks and must deposit a percentage of their customers' savings account and checking account deposits in a Federal Reserve Bank. To me that is very scary especially now with the morons that are in control of our financial resources.

What we have with this President and his administration, a run-away Federal Reserve System, with no oversight, with none of the transparency promised by this President, and his rogues gallery. We desperately need serious oversight of this very powerful Congressional creation (the Fed.). I urge each and everyone of you to write, or call your Representatives and urge them to support Rep. Ron Paul's H.R. 1207.

Hang in fellow Patriots, and lets git'er done.