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Federal Reserve- One Step Closer to Transparency

November 24, 2009

Federal Reserve- One Step Closer to Transparency


Could the day be that close? Well I say yes. Finally, the great fortress of private banking known as the The Federal Reserve and its exclusive, congressionally approved, hands-off non-intervention liberty to direct the economic power of the United States of America in secrecy is coming to a close. This marks the beginning of a new era which will usher in a new, improved economic order. The American public and even those in other countries which have privately held Reserve Banks controlling their economies will soon find out how the Federal Reserve’s monetary policy over the years has devalued the dollar and created boom-and-bust cycles.

Forget about the Bernie Madoff’s of the world they pale in comparison to the defrauding through destroying the value of the US Dollar which has taken place since the formation of the Federal Reserve Bank in 1913. It is the Constitutional responsibility of Congress to ensure and protect the value of our currency. They abdicated that responsibility to a private entity cunningly named The Federal Reserve Bank. Congress and thereby the public, retains the authority to revoke the Fed’s charter and regain control of our economic future. This article is a small glimpse into that process of liberation.

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, 1743 – 1826

The really rewarding work has now just begun and you play a significant role. We must hold accountable our representatives and voice opposition where warranted and support those who offer equitable solutions for today’s issues.  Although to many this desire for transparency had been for a long time, a very bold and wishful thinking premise, yet now the writing is permanently on the wall. In a historical move, last Thursday November 19, 2009 the House Financial Services Committee debated and voted on an amendment- “Federal Reserve Transparency Act” H.R. 1207; it passed 43-26. A Senate equivalent, S.604, the Federal Reserve Sunshine Act of 2009, was also introduced by Bernie Sanders (I-Vt.). Both allowing for the audit of the Federal Reserve Bank.

This legislation, H.R. 1207, was introduced by Congressman Ron Paul (Tx) and a Alan Grayson (Fl). The Paul-Grayson initiative is an amendment to Barney Frank’s HR 3996, and will be included in this major banking reform legislation known as the “Financial Stability Improvement Act of 2009″. The Committee was going to vote on that bill on November 19, but Barney Frank surprisingly postponed the vote until after the Thanksgiving recess. That was a great move which was affected by committee members (Congressional Black Caucus) explicit voicing of their dissatisfaction with the White House’s actions regarding escalating unemployment.

Included in H.R. 3996, are provisions giving additional, broad sweeping authority and power allowing the Federal Reserve Bank greater monetary control without public oversight. If and when H.R. 3996 passes, it now contains the Paul-Grayson amendment and the Federal Reserve Bank will no longer be acting behind a veil of secrecy.

Independence’ (of The Federal Reserve) means secrecy, it doesn’t mean anything else.”

“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.”

– Congressman Ron Paul

Ron Paul’s Remarks:

Alan Grayson’s Remarks:

Problem, Reaction, Solution

All this comes on the heels of profound economic upheaval in our banking system which in all reality had collapsed. Nothing like more layers of authority setting new rules to the game of greed. Such is just another form of behavioral modification envisioned to restrain corrupt individuals and entities. Has not history taught us enough of this lesson? Funny, these events always repeat until they no longer serve a useful purpose.

All of this should sound familiar. Think of it as a Problem, Reaction and Solution form of legislation. More power in few hands. This is certainly not what works today as we have awoke from the slumber of ignorance. The delegation of our power to others is ending; however, we are required to participate and accept our continuing role and responsibility in matters of critical importance. Could it be that the Federal Reserve with all its best intentions is out of touch with forward-thinking economists and others who espouse a better economic model? Could there be a better way the United States of America and its citizens would benefit economically in a sustainable way, without us having to employ a privately held secretive bank to determine the prosperity of this great nation? Again, the simple answer is clearer now than ever before- Yes, there is a better way!

As a result, of passing the Paul-Grayson Amendment, (H.R. 1207) all that additional authoritative power authorized by Congress to the Federal Reserve in 1913, is now for the first time, subject to public scrutiny. This welcomed legislation has been in the works for nearly 20 years under the primary guidance of Congressman Ron Paul. As you can imagine, there has been formidable opposition to require full disclosure including complete audits of the Fed’s books by the Comptroller General of the United Sates. The essence of the opposition is that by revealing the Federal Reserve’s secretive actions and activities from special interest deals (funded by issuing public debt) which have been influenced by Wall Street, to dealings with foreign Reserve Banks would wreak havoc in our financial markets. The most recent opposition to H.R. 1207 came from eight economists seven of which had either worked for the Federal Reserve or had current ties to the Bank. Surprised?

For me, this is merely foolishness not withstanding the sources, and a fear-based illusion especially considering the on-going global economic turmoil we face. Allot of the economic woes have been created under the Federal Reserve’s oversight by the very institutions they claim to be overseeing. Look at the Fed’s entire track record and its history and you shall see. Can you say: show me the money benefit Jerry!

Revisit Bail-Out Bonanza

Remember the first emergency bail-out package in the fall of 2008? I still cannot consider the “sales-line” coming from then Treasury Secretary Henry Paulson. Sorry, but I’m going to ask tough questions and do a bit of research before buying an automobile, not relying solely on some salesman’s testimony. Why be any different here especially considering the magnitude of such decisions? According to the so-called experts, like Paulson (who was the former CEO of Goldman Sachs) global financial markets would end as we know them unless dramatic, massive cash infusions ensued. Well, that may have been partially true, but out of chaos comes a more refined order. Is that not what they say- A New Order of The Ages? Some market-driven consolidation and bankruptcies of insolvent institutions must take place to right the system.  Has the economy now in late 2009 improved? No it has not. Please do not fall for the “it’s a jobless recovery” line. This economy is not and never has been about fanciful balance sheet manipulation.

More Wolves in Sheep Clothing?

Back to the experts. Let’s not forget a statement Mr. Paulson made in April 2007 speech to The Committee of 100, a business group in New York promoting better Chinese relations: “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.”

And the following month in May, during an interview with Jim Lehrer: …”So my very strong view is that we are near the bottom and that this will be contained as — the housing will be contained, and we’re fortunate that we have a diverse, healthy economy.

Yes to be human is to err. Well, blunders come in all sizes and some cannot recognize failure or what lies ahead even when it knocks on their front door and upon opening it, screams in their face. While my intent is not to beat upon Mr. Paulson, or any of the other so-called experts, I would only point out we must be aware of the possible implications when Wall Street’s influence is deeply entrenched in the highest positions inside the Beltway and on Capital Hill. This power move from private industry to government service and back again continues in the likes of Timothy Geithner the new Treasury Secretary and the former president of the New York Federal Reserve Bank.

Why reward greed and incompetence with the implicit promise to financially support those “to big to fail” or any others for that matter? If you have institutions defined as to big to fail or too important to disappear from the corporate landscape, then systemic failure fear will continue unabated. Where do you draw the line and who decides what institutions remain? Up to this point, it has been led by those with influence over monetary policy and intervention powers at the Federal Reserve Bank. They are the ones together with the Fed which have dictated terms and agreements of which many are off limits to the public and even Congressional inquiry. All that is changing now.

No, the expert’s recommendations are essentially more of the status quo, only adding laws on the books “so this won’t happen again”.  Of course it won’t happen again at least not the way it did. Only this time change must benefit everyone, no longer a select few. That in fact may just be what those with something to hide fear. Citizen empowerment and a re-balancing of power from Wall Street back to Main Street are both occurring now. We must recognize an opportunity to change when faced with one as important as monetary reform. And it all begins with transparency.  Thanks to Congressmen Paul, Grayson and Sanders along with many others who have stood up to ridicule and even threats for doing what is in the best interest of the citizens of the United Sates of America. The work continues on, so become a voice and offer your support including  demanding monetary reform where you know it must happen.

As always- your comments are welcomed and encouraged. If you like what you see and read here at Shift of The Age, be apart of the awareness- share! Be sure to forward, subscribe via RSS feed or email direct to your inbox. Thanks!
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