Archive for HR 1207

It’s not fair to destroy the dollar and cheat responsible savers! – Ron Paul to Ben Bernanke

Posted in Attack on Freedom, Attack on the Republic, Economy, End The Fed, Fiat Currency, General, International Bankers, Ron Paul, Shadow Government, The Banking Cartel with tags , , , , , , , , , , on July 26, 2010 by truthwillrise

High-stakes duel between Rep. Paul and Bernanke intensifies

Posted in Fiat Currency, International Bankers, New World Order, News, Ron Paul, Shadow Government, Stupid Government Tricks, The Federal Reserve with tags , , , , , , , , , , , , on December 10, 2009 by truthwillrise

By Silla Brush

Rep. Ron Paul and Ben Bernanke are locked in a clash of titans.

Paul, the 74-year-old House libertarian from Texas with the high-pitched voice, has fought for decades to kill off the Federal Reserve.

Bernanke, the mild-mannered ex-Princeton professor and chairman of the bank, is waging a high-stakes battle for the Fed’s reputation. And he’s doing everything possible to knock out Paul.

The fight is still in the early rounds. But with the full House expected to vote this week to give government auditors more power to scrutinize the Fed, Paul has the upper hand.

The Senate is a much more difficult round for Paul, though a similar stew of liberal and conservative support is starting to simmer in the upper chamber behind the Republican’s wonky auditing measure.

Bernanke and Paul have never met one-on-one behind closed doors, Paul’s office said. The battle has taken place in public — on blogs, with grassroots activists and during congressional hearings.

Bernanke has testified against the provision, given lengthy media interviews, written op-eds and attempted to lift the cloud of secrecy that hangs over the bank.

The Fed is audited, he argues, but allowing government scrutiny of interest rate decisions will politicize the Fed. Opening the door to congressionally requested audits would compromise the market’s confidence in the bank.

Paul, a longstanding supporter of a new gold standard, made his case formally in his recently published book, End the Fed.

The 2008 presidential candidate’s crusade is no longer a quixotic quest. He is a prime beneficiary of the grassroots anger this year against government bailouts for Wall Street.

First introduced in February, Paul’s bill to audit the Fed has gained 317 co-sponsors, a shocking three-quarters of the House. The bill has not won over many Democrats in leadership, but it has picked up several committee chairmen, including Reps. Bart Gordon (Tenn.), Jim Oberstar (Minn.) and John Spratt (S.C.).

Rep. Alan Grayson (D-Fla.), a prominent Paul ally on the bill, has provided a huge boost to the effort with his firebrand strain of liberal politics.
Grayson has publicly slammed the Fed, going so far as calling its top lobbyist a “K Street whore” before apologizing. Paul himself said the full force of “lobbyists for the Fed” is stacked against him.

As the popularity of the Paul-Grayson measure rose this year, Bernanke’s fell.

Praised by many economists for taking the necessary steps to right the economy over the last year, his overall public approval has soured. A Rasmussen poll in November showed that just 21 percent of those surveyed thought Bernanke should be reappointed. Meanwhile, 79 percent of those polled said auditing the Fed is a good idea.

Republicans have jumped behind Paul, who stood out in last year’s GOP presidential primary for his outspokenness against the Iraq war.

“There needs to be Fed independence and accountability for those dollars to at least look back at those decisions,” said Rep. Kevin Brady (R-Texas).

But the political value is plain as Republicans argue the government is taking too large a role in the economy.

“The Fed becomes for Republicans a very convenient, always controversial, always misunderstood, very specific whipping boy that they can ride to potential victory in 2010 and 2012,” said a Washington-based financial lobbyist.

Bernanke has the normally powerful Rep. Barney Frank (D-Mass.) in his corner. But as chairman of the House Financial Services Committee, Frank couldn’t eke out a compromise.

Frank rarely loses battles, but an attempt — with Rep. Mel Watt (D-N.C.) — at a deal on the audit issue simply fell short at the committee level. Liberal activist Robert Borosage, who is campaigning against Bernanke’s nomination for a second term, said the compromise effort was nothing more than “the establishment alternative.”

The committee voted 43-26 in favor of Paul’s amendment as 15 Democrats on the panel bucked Frank.

The vote drew a bright line between the senior Democrats atop the committee and the freshman and sophomore members.

“I think some of the newer members are in the most vulnerable districts,” said Rep. Brad Miller (D-N.C.), a Paul-Grayson co-sponsor who instead joined Frank in voting against the Paul amendment. “They were certainly getting the calls that I was getting, and they were reading the politics differently.”

Frank and Paul are both veterans of the House, and while they are on nearly opposite ends of the political spectrum, they have a mutual respect. The two have worked closely on an Internet gaming measure.

Many Democrats and Republicans on Capitol Hill say that Frank, despite his partisan rhetoric, is a pragmatist.

“I never felt [Frank] was against me,” Paul said.

Frank said last week the language wouldn’t be changed when the House heads for the vote. Ten of the 13 House members on the Rules Committee are among Paul’s backers, including Chairwoman Louise Slaughter (D-N.Y.).

“Absent some change in the way the public is reacting, I don’t see any changes,” Frank said. “I think there is this tension within the Republican Party. A lot of their people who traditionally have a lot of influence are troubled by this, but they may be cowed by the anger at the Fed.”

In the Senate, Paul has found support from Sens. Jim DeMint, the conservative Republican from South Carolina, and Bernie Sanders, the Independent from Vermont who calls himself a proud socialist.

A left-right coalition of interest groups on the outside is joining forces against Bernanke.

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  
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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.

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

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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. . . .”

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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
276.

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
Infowars.net
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.

 

 

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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

Youtube
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.