Archive for Audit the Fed

Common Sense 2009

Posted in 1 with tags , , , , , , , , , , , , on September 11, 2009 by truthwillrise

Larry Flynt

The Huffington Post
August 20, 2009

The American government — which we once called our government — has been taken over by Wall Street, the mega-corporations and the super-rich. They are the ones who decide our fate. It is this group of powerful elites, the people President Franklin D. Roosevelt called “economic royalists,” who choose our elected officials — indeed, our very form of government. Both Democrats and Republicans dance to the tune of their corporate masters. In America, corporations do not control the government. In America, corporations are the government.

Here’s what Rockefeller said in 1994 at a U.N. dinner: “We are on the verge of a global transformation. All we need is the right major crisis, and the nations will accept the New World Order.” They’re gaming us. Our country has been stolen from us.

featured stories   Common Sense 2009  












This was never more obvious than with the Wall Street bailout, whereby the very corporations that caused the collapse of our economy were rewarded with taxpayer dollars. So arrogant, so smug were they that, without a moment’s hesitation, they took our money — yours and mine — to pay their executives multimillion-dollar bonuses, something they continue doing to this very day. They have no shame. They don’t care what you and I think about them. Henry Kissinger refers to us as “useless eaters.”

But, you say, we have elected a candidate of change. To which I respond: Do these words of President Obama sound like change?

“A culture of irresponsibility took root, from Wall Street to Washington to Main Street.”

“And a regulatory regime basically crafted in the wake of a 20th-century economic crisis — the Great Depression — was overwhelmed by the speed, scope and sophistication of a 21st-century global economy.”

This is nonsense.

The reason Wall Street was able to game the system the way it did — knowing that they would become rich at the expense of the American people (oh, yes, they most certainly knew that) — was because the financial elite had bribed our legislators to roll back the protections enacted after the Stock Market Crash of 1929.

Congress gutted the Glass-Steagall Act, which separated commercial lending banks from investment banks, and passed the Commodity Futures Modernization Act, which allowed for self-regulation with no oversight. The Securities and Exchange Commission subsequently revised its rules to allow for even less oversight — and we’ve all seen how well that worked out. To date, no serious legislation has been offered by the Obama administration to correct these problems.

Instead, Obama wants to increase the oversight power of the Federal Reserve. Never mind that it already had significant oversight power before our most recent economic meltdown, yet failed to take action. Never mind that the Fed is not a government agency but a cartel of private bankers that cannot be held accountable by Washington. Whatever the Fed does with these supposed new oversight powers will be behind closed doors.


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Obama’s failure to act sends one message loud and clear: He cannot stand up to the powerful Wall Street interests that supplied the bulk of his campaign money for the 2008 election. Nor, for that matter, can Congress, for much the same reason.

Consider what multibillionaire banker David Rockefeller wrote in his 2002 memoirs:

“Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”

Read Rockefeller’s words again. He actually admits to working against the “best interests of the United States.”

Need more? Here’s what Rockefeller said in 1994 at a U.N. dinner: “We are on the verge of a global transformation. All we need is the right major crisis, and the nations will accept the New World Order.” They’re gaming us. Our country has been stolen from us.

Journalist Matt Taibbi, writing in Rolling Stone, notes that esteemed economist John Kenneth Galbraith laid the 1929 crash at the feet of banking giant Goldman Sachs. Taibbi goes on to say that Goldman Sachs has been behind every other economic downturn as well, including the most recent one. As if that wasn’t enough, Goldman Sachs even had a hand in pushing gas prices up to $4 a gallon.

The problem with bankers is longstanding. Here’s what one of our Founding Fathers, Thomas Jefferson, had to say about them:

“If the American people ever allow private banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their father’s conquered.”

We all know that the first American Revolution officially began in 1776, with the Declaration of Independence. Less well known is that the single strongest motivating factor for revolution was the colonists’ attempt to free themselves from the Bank of England. But how many of you know about the second revolution, referred to by historians as Shays’ Rebellion? It took place in 1786-87, and once again the banks were the cause. This time they were putting the screws to America’s farmers.

Daniel Shays was a farmer in western Massachusetts. Like many other farmers of the day, he was being driven into bankruptcy by the banks’ predatory lending practices. (Sound familiar?) Rallying other farmers to his side, Shays led his rebels in an attack on the courts and the local armory. The rebellion itself failed, but a message had been sent: The bankers (and the politicians who supported them) ultimately backed off. As Thomas Jefferson famously quipped in regard to the insurrection: “A little rebellion now and then is a good thing. The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”

Perhaps it’s time to consider that option once again.

I’m calling for a national strike, one designed to close the country down for a day. The intent? Real campaign-finance reform and strong restrictions on lobbying. Because nothing will change until we take corporate money out of politics. Nothing will improve until our politicians are once again answerable to their constituents, not the rich and powerful.

Let’s set a date. No one goes to work. No one buys anything. And if that isn’t effective — if the politicians ignore us — we do it again. And again. And again.

The real war is not between the left and the right. It is between the average American and the ruling class. If we come together on this single issue, everything else will resolve itself. It’s time we took back our government from those who would make us their slaves.

Max Keiser on Alex Jones 8/6/2009: The Fed’s Dirty Little Secret is Out!

Posted in Alex Jones, economic tyranny, Economy, Fiat Currency, International Bankers, New World Order, The Federal Reserve with tags , , , , , , , , , , , on August 14, 2009 by truthwillrise



Fed Chairman ‘Forgets’Banks He Loaned Half Trillion $

Posted in economic tyranny, Economy, Fiat Currency, International Bankers, News, Ron Paul, The Federal Reserve, Tyranny, Unconstitutional with tags , , , , , , , , on August 4, 2009 by truthwillrise

By Christopher J. Petherick


Ben Bernanke, the head of the privately owned and controlled Federal Reserve, cannot remember to which foreign banks the Fed has loaned a half trillion dollars. His lack of memory can be understood, given that the Fed has loaned or guaranteed trillions of U.S. dollars to banks around the world since the U.S. economy took a turn for the worse in the summer of 2008. Still, it was quite an embarrassment for the country’s top banker, who, during a three-hour grilling on July 21 before the House Committee on Financial Services, admitted he did not know the recipients of foreign liquidity swaps—loans to foreign financial entities—that amounted to some
$550 billion.

Shortly after news broke of Bernanke on the hot seat, video of his testimony spread like wildfire on the Internet with hundreds of thousands of viewers around the world watching the chief banker stutter and squirm. Here is the relevant portion of the official transcript relating the exchange between Bernanke and Rep. Alan Grayson (D-Fla.), who is also a sponsor of Rep. Ron Paul’s landmark “Audit the Fed” legislation (H.R. 1207).

Grayson: “What’s that [the $553 billion amount]?”

Bernanke: “Those are swaps that were done with  foreign central banks. Many foreign banks are short dollars. . . .”


Grayson: “So who got the money?”

Bernanke: “Financial institutions in Europe and other countries.”

Grayson: “Which ones?”

Bernanke: “I don’t know.”

Grayson: “Half a trillion dollars, and you don’t know who got the money?”

Grayson was following up on earlier testimony by Bernanke, who said that loans to foreign banks had increased from $24 billion at the end of 2007 to $553 billion at the end of 2008. That is a 2,300 percent increase in one year for anyone doing the math.

Grayson and Bernanke were debating complicated global financial transactions known as foreign liquidity swaps, whereupon the Federal Reserve gives U.S. dollars to foreign financial entities, usually foreign central banks. In return for dollars, the foreign institutions usually hold an equivalent amount of their own currencies in accounts for the Fed.

Officially, the Federal Reserve states, “When the foreign central bank lends the dollars it obtained by drawing on its swap line to institutions in its jurisdiction, the dollars are transferred from the foreign central bank’s account at the Federal Reserve to the account of the bank that the borrowing institution uses to clear its dollar transactions.”

Translated from banker-speak, the U.S. dollars, in a nutshell, are going to back unstipulated loans in countries around the world.

As of now, the Fed has dollar liquidity swap lines open with 13 foreign central banks. These include the Reserve Bank of Australia, the Central Bank of Brazil, the Bank of Canada, Denmark’s National Bank, the Bank of England, the European Central Bank, the Bank of Korea, the Bank of Mexico, the Reserve Bank of New Zealand, Norway’s Norges Bank, the Monetary Authority of Singapore, Sweden’s Sveriges Riksbank, and the Swiss National Bank.

Bernanke tried to clarify the need for the swaps, saying that foreign central banks are short of U.S. dollars and come into the U.S. market, driving up interest rates. “We swap our currency dollar for their currency,” said Bernanke. “They take dollars and lend to banks in their jurisdiction.”

Grayson responded that his staff had looked into some of the swaps, including a $9 billion dollar loan to New Zealand. That works out to $3,000 for every citizen in New Zealand, he said.

“Seriously, wouldn’t it have been better to extend that kind of credit to Americans rather than New Zealanders?” asked Grayson.

Putting aside the constitutionality of lending dollars to foreign banks—strictly speaking, neither the Federal Reserve nor the fractional reserve banking system is constitutional—there are considerable dangers associated with these types of transactions. Should the “swapped” foreign currency lose value, and the foreign bank balk at paying back the loan at the agreed-upon rate, the Federal Reserve and the dollar could be dragged down with them. Also, should the U.S.-backed foreign loans go bad, the whole system could go down like dominoes with foreign central banks taking down the Federal Reserve and the U.S. economy.

It’s a dangerous game the U.S. private central bank is playing with the American people’s money, all the more reason why it should be opened up to public scrutiny. With no clue as to the solvency of the Federal Reserve, Rep. Paul’s “Audit the Bill” looks better and better every day.

UPDATE: Since AFP last went to press on July 22, another legislator—Rep. DonYoung (R-Alaska)—has signed on to sponsor Rep. Paul’s audit the Fed bill, bringing the number of supporters in the House to

Judge Andrew Napolitano’s Speech at the Columbus Ohio Tea Party, August 1, 2009

Posted in New World Order, News, Stupid Government Tricks, The Constitution, The Federal Reserve with tags , , , , , on August 4, 2009 by truthwillrise


Tenth Amendment Center
August 3, 2009

Keynote speech at the Ohio Rally for State Sovereignty, August 1, 2009.


Let me set down a couple of fervent beliefs that animate everything I do and everything I say.

I believe that God created heaven and earth and every single individual on the planet.

I believe that the God who gave us life gave us liberty and that freedom is our birthright.

I believe that the States created the federal government and not the other way around. And that the power that the States gave to the Federal Government – they can take back.

When we were colonists, and the King and the Parliament needed money from us, and they always seemed to need money, they devised ingenious ways to tax us. One of them was called the Stamp Act. The Parliament decreed that every piece of paper that the Colonists had in their homes; every book, every document, every deed, every lease, every pamphlet, every poster to be nailed to a tree had to have the King’s stamp on it. You think going to a Post Office is bad? You had to go to a British Government office and buy a stamp with the King’s picture.

Question. How did the King know that his picture was on every piece of paper in your house? The Parliament enacted a hateful piece of legislation called the Writs of Assistance Act which let the king’s soldiers write their own search warrants, and bang down any door they chose to look for the stamps or anything else that they were looking for.

It was the last straw.

We fought a revolution. We won the revolution. We wrote the Constitution. The constitution doesn’t grant power, it keeps the government off our backs.

When they were debating the Constitution in the Summer of 1787 in Philadelphia, there were two great arguments – one by the Jefferson and Madison crowd and one by the Adams and Hamilton crowd. Jefferson argued, though he wasn’t physically there in Philly, as he did in the Declaration of Independence that our rights are ours by virtue of our humanity. That as God is perfectly free, and we are created in his image and likeness, we too are perfectly free. The big government crowd – yes they had them even in those days – argued that you can’t have freedom without government, and that government gives us our rights, and therefore, that government can take them away. This is not an academic argument. Jefferson and the natural law argument prevailed because the Constitution was written to keep the government from interfering with our natural rights.

And so, your right to think as you wish, to say what you think, to publish what you say, to travel where you want, to worship as you see fit, to keep and bear arms to defend yourself against a tyranny. And, after the right to life, the greatest and most uniquely American of rights – and I say this in front of the seat of the government – is the right to be left alone.

We wrote a Constitution to ensure that the government would never interfere with these rights. Think about it – if rights come from the government, then the government, by ordinary legislation, or presidential decree can take them away. But if the rights come from our humanity, then unless we violate someone else’s natural rights, the government cannot take our rights away.

This is not just a democrat, upper case D, or a republican, upper case R, problem. It’s a problem with government today. There’s a republican version of big government just as assaultive to our liberties as there’s a democrat version of big government.

We fought a revolution because British soldiers could knock on our doors and demand that we house them, and demand that we turn over property to them because they could write their own search warrants. In the Patriot Act, the most hateful piece of legislation since the Alien and Sedition Acts, a republican congress and a republican president authorized federal agents to do the unthinkable – to write their own search warrants. And the republican administration didn’t even let members of the House of Representatives read the Patriot Act before they voted on it.

Why should the government be able to spy on us? We should be able to spy on them!

When some judge is rationalizing away our liberty, or some congressman is plotting to take away your freedom or your tax dollars, we should know what they do every minute that they do it.


I was speaking to a group of congressman from a neighboring state – I won’t tell you which state it was, but they don’t play football there – and they came up to me and said “this is the first time we have heard that the Patriot Act allows federal agents to write their own search warrants.” Remember, in the Constitution, we put in the 4th Amendment, the right to be left alone, to make sure that if the government had a target, no matter how guilty the target, no matter how widespread is the belief in the guilt of the target, no matter how dangerous is the target, the government has to go through a neutral judge with a search warrant before it can get to that target. These members of Congress said, “we didn’t know that the Patriot Act allowed the government to bypass the courts and write any search warrant they wanted.” Then I asked them a question I knew the answer to already – did you read the Patriot Act before you voted on it? The answer – no. What were you voting on? A summary we received. Let me guess who wrote the summary – some lawyers in the justice department, right? Of course.

Would you hire anybody to run your business that committed you to a violation of the very reason you’re in business if they didn’t even the document by which they were making that committment? Of course not.

The camera is the new gun. There’s nothing that government dislikes more than the light of day, and cameras recording what the government is doing, whether it’s on a street corner, or in there, or in Washington D.C., we have the right to know everything that they do and why they do it, and when they do it, and how they are taking our freedoms.

I have another one of my basic core beliefs. The individual has an immortal soul. Every individual is greater than any government.

Your government is based on fear and force. You don’t have to take my word on it. The 2nd president on the United States, John Adams, said “Of course the government is based on fear.” And the first president, George Washington, said “Government is not reason, it is force.” I think they knew what they were talking about.

Now fast-forward to modern times. Whenever the government wants something, it scares us. During the civil war, Lincoln tried civilians in this state where no battles occured, by military tribunal. After he died the supreme court invalidated everything the military tribunals did. During the first world war, the Wilson administration locked up 2000 people called anarchists – same thing as enemy combatants. No trial, no charge, just jail for the duration of the war. In world war II, FDR locked up 150,000 Japanese Americans, people born in the United States, who got no trial and had no charges, and when the war was over were given $25 and told to go home.

Today we have federal agents. You know I get in arguments with my friends at Fox News, and one of them, I don’t have to tell you who it is, but is truly the most irascible person there. And he said to me, you know you have a problem with Guantanamo Bay, and you have a problem with the Patriot Act, what will you do if I get sent to Guantanamo Bay, will you visit me? And I say, Bill – no, because they’ll probably keep me there as well.

Government likes to say that it’s taking an oath to uphold the Constitution. In the years that I was on the bench, it seemed that every time government lawyers were in my courtroom, if the government was prosecuting someone who was legitimately guilty or whether it was a mistake, or whether somebody was suing the government because government contractors or government doctors, or government workers made a mistake – the government doesn’t come in to the courtroom to enforce the constitution, it comes into the courtroom to evade and avoid it. That, ladies and gentlemen, must be stopped.

This is a great moment in our history. A crowd of this magnitude on a beautiful day, in the boiling sun, in the most middle-American of great middle-American states…comes together not because the president is a democrat, not because his predecessor was a republican, not because a war is just or unjust, not because the Fed is stealing or printing – you’re here because you believe in human freedom.

It is the essence of our existence that we should be free. But remember this: the government hates freedom. It is an obstacle to every one of their designs. Whenever they write laws, whenever they take your tax dollars, whenever they regulate your private behavior, whenever they tell you how to spend your money, whenever they tell you what medicines to take, whenever they tell you what food to eat, whenever they tell you with who you may or must associate, they are taking away your freedom and they love to get away with it. And they cannot get away with it any longer.

In the long history of the world, very few generations have been granted the role of defending freedom in its maximum hour of danger. This is that moment and you are that generation! Now is the time to defend our freedoms.

Jefferson was no saint but he was the greatest of our American presidents. He believed that the individual was greater than the state. He believed that the states were greater than the federal government. And when he wrote that our rights come from our creator, and that our rights are inalienable, he forever wed the notion of natural rights to the American experience and the American experiment. We must be vigilant about every right that the government wants to take away from us.

You’ve heard the president say, present president and his predecessor, “my first job is to keep you safe.” He’s wrong! His first job is to keep us free. It is his only job to keep us free.

Shortly before he died, Jefferson lamented, that in his view of the world that is was in the natural order of things for government to grow and freedom to be diminished; how ardently he wish that that wouldn’t happen. And in order to prevent it from happening he had a very simple remedy, “When the people fear the government, that is tyranny. When the government fears the people, that is liberty!”

Ron Paul on The Alex Jones July 29,2009

Posted in Alex Jones, economic tyranny, Economy, Fiat Currency, International Bankers, News, The Federal Reserve with tags , , , , , , , , on July 29, 2009 by truthwillrise

DERU.S. Senator Slams Washington Post Defense Of Fed Secrecy

Posted in 1, Attack on Freedom, economic tyranny, Economy, Fiat Currency, International Bankers, New World Order, News, Ron Paul, Steve Watson, Stupid Government Tricks with tags , , , , , , , , , on July 28, 2009 by truthwillrise


Steve Watson
Tuesday, July 28, 2009

US Senator Slams Washington Post Defense Of Fed Secrecy 280709Sanders

Senator Bernie Sanders (I-VT), sponsor of S 604, the Federal Reserve Sunshine Act of 2009, has slammed a recent Washington Post editorial that contends the Federal Reserve should not be subject to a general audit.

Sanders vented his opinions in a letter to the editor which was published in the Post today.

“We must not equate ‘independence’ with secrecy.” Sanders writes in response to the Post’s Friday editorial entitled “Focus on the Fed” which attacked his own and Congressman Ron Paul’s efforts to enact the Federal Reserve Transparency Act, a move that would allow the American people to find out for the first time where trillions in taxpayer funded bailout dollars have been used.

“No matter how intelligent or well-intentioned the Fed chairman and his staff may be, it isn’t appropriate to give a handful of people the power to lend an unlimited supply of money to anyone it wants without sufficient oversight.” Sanders writes.

“Absolute power corrupts absolutely. The American people have a right to know what is being done with their hard-earned taxpayer dollars. This money does not belong to the Fed; it belongs to the American people.” Sanders urges.

The Washington Post’s editorial angered many readers late last week by essentially advocating the continuation of non-accountability in government.

“Though the bill has attracted 276 co-sponsors in the House and 17 in the Senate, it is wrongheaded in the extreme.” the Post’s anonymously written piece stated.

“By opening up the Fed’s most sensitive interest rate and credit policies to public second-guessing, the bill would create a risk — real and perceived —

 of monetary policy bent to suit congressional overseers. This would destroy financial markets’ faith in the Fed and, by extension, the value of the U.S. dollar, just as surely as a political ‘audit’ of the Supreme Court’s deliberations would undercut public faith in the justice system.” the piece claimed.

“This article makes comparisons that are utterly dissimilar.” Libertymage writer Robin Grammer succinctly points out.

“Not only does our justice system make available verdicts and vote counts the same day that the court votes on the issue, they also make public the dissenting parties with the articulated minority opinion. This is a a world of difference from the transparency policy of the Federal Reserve, who graciously offers us meeting transcripts five years after the meetings occur. The transparency policies of these two groups are in no way similar and making such a comparison is disingenuous at best.” he concludes.

Furthermore, as Ron Paul himself explained during the Financial Services Committee hearings last week, the bill would do nothing to further politicize the Fed’s decision making given that the Fed is already overtly politicized anyway.

“Just the fact that they can issue a lot of loans and special privileges to banks and corporations, that’s political. This idea that it would be political because we know what happened afterwards just doesn’t seem to add up.” Paul beseeched.

The bill would not give anyone in Congress or elsewhere the authority to sit in on Fed hearings, thus it would have no impact monetary policy. All it would do is provide answers to the American people as to where their hard earned money is being spent.

The Federal Transparency Act would also expose the fact that it is the Federal Reserve that is responsible for the artificial inflation of the debt bubble and the issuing of credit out of thin air, the driving force behind the financial crises.

The Truth is that the Washington establishment knows that an audit would set the stage for a return of honest money and fiscal policies, in which the privately run Federal Reserve can play no role.

It comes as little surprise therefore to see the establishment media in Washington advocating a continuation of unaccountability and blanket secrecy.





Ron Paul: Audit the Fed Update

Posted in Alex Jones, Economy, New World Order, News, Ron Paul, The Constitution, Unconstitutional with tags , , , , , , , , on June 16, 2009 by truthwillrise

Saturday, June 12, 2009

Congressman Ron Paul gives the latest exciting news on his legislation to audit the Federal Reserve and explains the possible next steps for the bill.