Best of the Week
Most Popular
1.Dow Stock Market Trend Forecast 2015 by Nadeem Walayat - Nadeem_Walayat
2.Gold And Silver – Forget The News. Silver $12 – 14? Gold $1,000 – 1,100? 5 - Michael_Noonan
3.A TOP Formation In Apple Inc. - Crash Condition Signal Recorded - David Harris
4.Gold Gets Safe Haven Bids But COMEX Has Stopping Power - GoldSilverWorlds
5.The Swiss 10-Year Bond Illustrates Central Banks` Flawed Monetary Policy - EconMatters
6.Exponential Explosions in Debt, the S&P, Crude Oil, Silver and Consumer Prices - DeviantInvestor
7.“Forgive Us Our Debts” – Only Way To Prevent Economic Meltdown - GoldCore
8.Is Russia Planning a Gold-Based Currency? - Marcia Christoff-Kurapovna
9.Stock Market Trend Forecast 2015 Video - Nadeem_Walayat
10.Gold GDX ETF Technical Analysis - Austin_Galt
Last 5 days
GGD Going for Mexican Gold - 27th Feb 15
Foreign Real Estate Is the New Swiss Bank Account - 27th Feb 15
10 Reasons Washington Has War Fever - 27th Feb 15
Gold and the Euro Tragedy, Iraq 3.0, Ukraine Conflict Three Ring Circus - 27th Feb 15
Deepak Chopra - New Age Genius or Bullshit Expert? - Video - 27th Feb 15 - Videos
New Greece Drachma Revealed Amid Bank Runs - Greeks Buy Gold Sovereigns - 27th Feb 15
Will Month Long Stocks Rally Continue? - 27th Feb 15
The Only Public Hedge Fund You Should Own - 27th Feb 15
UK House Prices Trend 2015 and the May General Election - 27th Feb 15
Why America is Ungovernable - The Republicans’ Civil War - 27th Feb 15
Gold vs Gold Stocks: Bullish Anomaly Developing? - 27th Feb 15
I Heart Capitalism, Nasdaq Stocks, Then And Now - 27th Feb 15
The Fed’s History of Assassination - 27th Feb 15 i
Gold Bull Market Forecast - Money Will Rotate Into These Dead Investments - 27th Feb 15
"Audit the Fed"? We've Already Done That (Well, Kind of) - 26th Feb 15
Forget Peak Oil; Worry About Peak Demand - 26th Feb 15
Currency Wars, Again - 26th Feb 15
The Fed Waited Too Long: Here Comes Inflation - 26th Feb 15
Investing Inertia Won’t Keep Your Cash Safe - 26th Feb 15
The Net Neutrality Scam - 26th Feb 15
Will Conservatives Out of Control Immigration Crisis Boost UKIP Election 2015 Prospects? - 26th Feb 15
EU Warns Ireland and Euro Zone of Debt Dangers - 26th Feb 15
Commodity Prices Set To Plunge Below 2008 Lows - 26th Feb 15
Ukraine Hyperinflation as Currency Plunges 44% in One Week! - 26th Feb 15
The State of the Global Markets 2015 - 53 Page Report - 26th Feb 15
NASDAQ New 15 Year High - Stock Market Death By Overdose - 25th Feb 15
12 Reasons Why Barry Ritholtz and Many UK Experts Are Mistaken On Gold - 25th Feb 15
Sugar Commodity Price To Sweeten Up - 25th Feb 15
Investor Profits from China 2,000-Year Unstoppable Trends - 25th Feb 15
How to Borrow Cheaply from a Government-Owned Bank - 25th Feb 15
Debt Be Not Proud - 25th Feb 15
Liberal Democrat Election Blood Bath - Could Nick Clegg Lose Sheffield Hallam? - 25th Feb 15
Wheat Commodity Price Technical Trend Forecast - 24th Feb 15
Bitcoin Price Might Stay below $250 - 24th Feb 15
Another Important Stock Market Inflection Point Approaching - 24th Feb 15
Gold: The Good, Bad, and Truly Ugly - 24th Feb 15
Eurozone Gold Holdings Increase to 10,792 Tonnes As “Reserve of Safety” Amidst Crisis - 24th Feb 15
Bird Doo; Yellen Goes to Congress - 24th Feb 15
Is Gold Investing Risk Free? - 24th Feb 15
The Bull Case For Gold Price 2015, and the Bear - 24th Feb 15
Europe - The Intersection of Three Crises - 24th Feb 15
Gold Price Just Needs More Time - 24th Feb 15
Gold Price Downtrend Looks Set to Continue - 23rd Feb
Silver Price Depressing Downtrend Will Eventually End - 23rd Feb 15
5 Reasons Why You Should Sell Amazon Stock - 23rd Feb 15
Global System Catastrophe Is Key Threat To Human Civilisation - 23rd Feb 15
Greece Crisis Yields Ideal Market Opportunities - 23rd Feb 15
Gold and Silver Stocks or General Stock Market Indices? - 23rd Feb 15
Swimming With Sharks: Goldman Sachs, Schools and Capital Appreciation Bonds - 23rd Feb 15
Stock Market - The Fed Still Has Your Back - 23rd Feb 15
Soybean Commodity Price Technical Outlook - 23rd Feb 15
Gold Weekly COTs and More - 23rd Feb 15
Stock Market New Highs With Weak Breadth - 23rd Feb 15
Greece Surrenders to Troika - 22nd Feb 15
This Greek Tragedy is a Global Farce - 22nd Feb 15
Copper Commodity Price Technical Outlook - 22nd Feb 15
U.S. Dollar and Investing in Gold Stocks - 22nd Feb 15
Is Putin's Russia Ready For Total Economic War With the West? - 22nd Feb 15
Stock Market New All Time Highs - 22nd Feb 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The State of the Global Markets 2015

Auditing The Fed is Like Auditing a Mafia Counterfeiting Operation

Politics / Central Banks Jul 28, 2012 - 03:56 PM GMT

By: Jeff_Berwick

Politics

Best Financial Markets Analysis ArticleRon Paul’s Federal Reserve Transparency Act (H.R. 459), or “Audit the Fed,” passed Wednesday July 25, 2012 in the U.S. House of Representatives by a wide margin of 327-98, exceeding the two-thirds majority needed. It had 274 cosponsors. But, by the evening of the same day, mainstream press around the country was already preparing the people for the bill’s fate in the Democrat-controlled Senate. As the Chicago Tribune and others reported, it had little chance of passing in the Senate, let alone being signed into law by the President. In fact, Senate Majority Leader Harry Reid has already said that the Senate will not even consider the bill, because, as Ron Paul told CSPAN, he didn’t have the “guts.” With this in mind, as well as their own reputations, Romney, Boehner and Cantor backed it.  Even Harry Reid backed it… in 1987 and 2010, but now he has changed his mind on a Fed audit for some reason.


But, here is the plain fact of the matter.  We already know what the Federal Reserve is doing.  Sure we may not know exactly which banks get exactly which graft, which may be of some interest.  But for the most part we know exactly what they are doing.  They are artificially price-fixing/manipulating interest rates at 0% through to 2014… which will be six years of ZIRP.  And they are counterfeiting as much money as is necessary to support the massive trillion+ dollar deficits that the US Government has been doing for the last five years and with no end in sight in an unprecedented amount of money printing that has never been surpassed in Federal Reserve history.

And, any audit that uncovers these two facts will do nothing to change anything.  The western world’s propaganda campaign to teach only Keynesian economics, which are pro-money printing and deficit spending, have enveloped all levels of society now.  It is all that is taught in the economics department of almost every university in the west including Harvard and Oxford.  So, will auditing the Fed change anything?  Of course not. 

Not to mention, even if the bill did pass Senate and mass murderer Barack Obomber signed the bill into law it is unlikely that the regulators assigned to the task of auditing the fed would really have the “guts” to properly audit the public-private institution. The Fed is above-and-beyond the rest of the financial industry insofar as it submits to no regulatory oversight. But, this regulatory oversight of the financial industry has done nothing to stem the moral hazard and abuses of power that plagues the sector. The same would be true of the Federal Reserve. With two sets of books, a bribe and a threat here-and-there, the malfeasance can be made to disappear. We’ve seen it before and we will see it again.

This would lead to an audit of the forged set of books the Fed keeps which supports the evidence that the Fed is doing what it can do to achieve the objectives of its “light”, impossible mandate – maximum employment, stable prices, and moderate long-term interest rates – as enunciated by the Federal Reserve Act. The set of books which support the evidence that the Fed is doing what it can do to achieve the objectives of its “dark” mandate – pillaging the planet of its every last vestige of wealth -  would be safely kept far away from the Fed’s auditors.

That means that the real success of the bill, as even Ron Paul has argued, has been the light it has shone on the secretive Federal Reserve. As Paul said on the floor on Tuesday, the American people are “sick and tired of what happened in the bailout and where the wealthy got bailed out and the poor lost their jobs and they lost their homes.” Since the crisis, Fed asset purchases have swollen the bank’s balance sheet to $2.8 trillion from around $800 billion. For three-and-a-half years it has kept interest rates at nearly zero, as well as pledged to keep them at these levels at least until late 2014.

Among Federal Reserve policies that would be scrutinized under the bill are monetary policy, deliberations and decisions, agreements with foreign central banks, foreign governments, finance capital and international organizations like the International Monetary Fund.  These are areas of the Federal Reserve that were made illegal to audit in the 1970s. Paul’s bill would remove these prohibitions. 

Paul’s bill would require the Government Accountability Office to conduct a full Fed audit. Paul’s son, Republican Senator Rand Paul, has introduced a companion bill in the Senate, but, as Reid has said, Democrats in control of the Senate will most likely not bring this to a vote. Rand Paul was expected to try to force a vote on it as an amendment to other legislation. There are hints that the bill could resurface in 2013 if Republicans win control of the Senate this November, as Rand Paul is set to succeed his father as Congress’ top Federal Reserve critic. But, it is clear that Rand Paul has not been as stalwart as his father when it comes to libertarian and constitutional principles, which leaves the bill prone to a further watering down under Rand’s watch.

Nonetheless, Ron Paul has once again been successful– and no, not in the sense that his bill passed. But, instead, in the sense that the headlines across the nation yesterday were swirling with news of the bill’s passing, bringing the Federal Reserve once again into the limelight for all to see. With the paramount help of Ron Paul and the financial crisis, the Federal Reserve has gone from a mystery to the American people to an entity that 75% of Americans are in favor of publicly auditing. As Paul says, “I like to think of it more as verifying my approach is a little bit different than just becoming a powerful player and having influence, versus really changing people’s minds.”

Nevertheless, that we do not know certain things about the Fed is not the problem, it’s the fact that central banking at its core is criminal and does nothing but impoverish people and economies. Auditing the Fed is like auditing GOSPLAN, the Soviet State Planning Commission, a very important institution in Soviet Russia. Throughout numerous “reformations” of the soviet economy, GOSPLAN maintained its central role in determining production and investment decisions until the disintegration of the USSR in 1991. No matter how many more left shoes were made than right shoes, GOSPLAN endured.

 The mentality in US politics towards the Fed is similar to the mentality towards GOSPLAN in the Soviet Union: economic central planning is not up for debate – we just would maybe like to tinker with it a bit.

But the reality is that auditing the Fed is akin to auditing a mafia counterfeiting operation.  We know they are doing it and the great majority of people approve of them doing it.

Auditing the Fed, while maybe a small step for mankind, does nothing to really end the crime of central banking.  All auditing does is ask the man who robbed your house what he did with the proceeds and then letting him go on about his business.

Until people realize that nothing will change for the better.  Unfortunately, very few in the world have any critical thinking abilities, again thanks to the government indoctrination centers and fascist media propaganda.  Therefore, central banking, like Soviet style central planning, will only end once they destroy themselves because all artificial, criminal systems are unsustainable.

As dollar vigilantes we await their demise with great pleasure.  But it won’t come at the hand of a government auditor.

The Federal Reserve will only end when it ends in the tears of a hyperinflation within 3-5 years.  Protect yourself now.  Subscribe to The Dollar Vigilante, the only newsletter whose express focus is info, news, analysis and advice on how to survive The End Of The Monetary System As We Know It (TEOTMSAWKI).

The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. The Dollar Vigilante offers a free newsletter at DollarVigilante.com.

© 2012 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

1776Again
29 Jul 12, 03:23
Hyperinflation Coming ? Housewife's index

Mr. Bernanke says we have little inflation, but I have developed an inflation index, which has proven pretty accurate. In the last 3.5 years, you might have noticed a trend which you might not have noticed before; you will have to take a measurement of the length of your toilet paper roll. Then keep a mental record of any more decreases in length, and thus decreases in the little squares that make up the total of the roll.

Having noticed this continuing process meant to disguise the fact of inflation, the result of my calculations is this: Decrease in length over 3.5 years is 1.75 inches' when divided by 3.5 years results in 0.5 inches per year on average.

Maybe we will know when those little square have reached the size of a postage stamp, we then have hyperinflation, and the toilet paper will have literally reached the useless the value of the US Federal Reserve Note.


The Cliff
31 Jul 12, 10:21
Run Away Train.....

Whether we audit the fed or not we are far to late to stop this run away train. Soon as China and Japan figure out were never gonna pay them back and the rest of the world switches to a basket of currencies instead of the petrodollar... That will be the end of this charade that the central bank is looking out for the people.. No different than what happened in Greece except times a thousand and nobody is coming to bail us out...


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014