That’s right, the Fed has never been audited before. Ever.

If you’re thinking this is long overdue for an institution that controls the money supply and whether or not you can get a loan, you’re correct.

NYC and Long Island have six representatives sitting on the House Financial Services Committee, the committee in which H.R. 1207 was introduced. This means they were among the first House Reps to see this bill and they have still not signed on to the bill. It makes you wonder if Wall Street’s influence is making its way into New York’s congressional districts.

If you want to read more about why we need to Audit the Fed, please visit this page.

The biggest reason is the big banks’ ability to go to the Fed whenever they want easy access to money. If you’re upset about bailouts, you should be upset about the Fed since it was established back in 1913 for the sole purpose of bailing out Wall Street banks whenever they needed the money.

Another big reason is that if the Fed did have a hand in creating the current mess, only an Audit of its books will allow us to reveal the extent to which this happened. They’re sitting on evidence and we need to see it!

Which is why many big bankers and other well-connected Wall Street/Washington cronies would prefer the Fed continue operating without anyone being able to audit its activities. The big question for New Yorkers: is this the reason the following Congressmen have still not co-sponsored the bill?

Rep. Peter King
(202) 225-7896, (516) 541-4225

Rep. Carolyn McCarthy
(202) 225-7944, (516) 739-3008

Rep. Gary Ackerman
(202) 225-2601, (718) 423-2154

Rep. Gregory Meeks
(202) 225-3461, (718) 327-9791

Rep. Nydia Velázquez
(202) 225-2361, (718) 222-5819

Rep. Carolyn Maloney
(202) 225-7944, (212) 860-0606

Please call these public officials today. The Federal Reserve has the power to create money out of thin air. While there is a dispute among many economists about whether the Fed should have this power, one thing is clear: it should not be unchecked power. If the power to create money is left unchecked, there is no stopping the Fed or Washington from bailing out Wall Street time and time again.

But auditing the Fed will put a check on money creation. Once Americans see what’s going on behind closed doors, they’ll demand the Fed stop its continuous bailouts to Wall Street and stop destroying the value of the dollar!

Come down and let your voice be heard: No More Secrecy In Government! Audit the Federal Reserve! Support H.R. 1207.

“Audits of the Federal Reserve Board and Federal reserve banks may not include:

1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;”

This just means that when foreign governments, banks and other international institutions end up owing Wall Street banks, the Federal Reserve can give their central banks money to pay back Wall Street without anyone knowing. In plain terms, it’s just another way to bailout Wall Street without having the transaction reach the light of day.

2) “deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;”

This is pretty much everything under the sun. It’s a blanket clause that basically says the Fed’s most basic functions, which are of the utmost importance to the economy, cannot be audited. Notice how it says “reserves of member banks.” This basically allows banks to operate without letting their customers know their true health. If we don’t Audit the Fed, no matter how many phony “stress tests” D.C. performs, we’ll never truly know the health of America’s largest banks. And they would like to keep it that way.

3) “transactions made under the direction of the Federal Open Market Committee;”

This committee is more powerful than any committee in Congress. For instance, it determines its own organization! No laws, no rules. Just whatever they’d like. It has been cited in several sources as the “principal organ of United States monetary policy.” Imagine if decisions made by government regarding fiscal policy, or taxation, weren’t made public? Would that be proper representative government?

Open market operations are the purchasing and selling of government securities. One would think Congress would be able to ask about its own government’s securities. As it stands, Congress cannot.

4) “a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.”

If clauses 2 or 3 weren’t large enough blankets, this one is. If anyone at the Federal Reserve even talks about anything mentioned in (1)-(3), the public can’t know about it. So that basically covers everything the Federal Reserve does, the institution charged with taking care of the economy’s money supply and banking industry.

It is very convenient for the Federal Reserve Board that it does not have to share any of this information. If concerned citizens want to find out what role the Fed had in creating the current crisis, the Fed can quietly point to Title 31 and tell the Comptroller General, “Sorry, I don’t care what the people say, we’re not discussing our continuing series of bailouts to Wall Street, the government and other well-connected CEOs and corporate boardrooms.”

Barney Frank was recently giving a speech in which he argued the Federal Reserve was doing just fine and therefore it didn’t need to be audited. Right.

No thank you. The whole point of representation is to have public officials protect their constituents by doing three things:

1) Public officials should make sure government is responsive to citizens by passing laws that conform to their wishes.

2) Public officials should protect their citizens by voting against laws that would amount to democratic tyranny. Remember, votes are not used to determine the morality of laws, only whether people approve of them. People can approve of immoral laws, and it is the duty of public officials to stop them from passing.

3) Public officials should make sure their constituents have access to government records to make sure no corruption is taking place. Think about secret trials. If citizens are not allowed access to government records about trials, anyone can be imprisoned, tortured or executed for any reason without a single soul knowing why. In this situation it is not enough that legislators know what’s going on. As it has been made clear by history, legislators can find out about the most heinous actions and let them slide.

And that’s the true point of citizens having access to government records, Mr. Frank. To make sure when you say things are alright, you are doing your job. When you say everything is alright, not only do we have to verify that claim, but whether or not you were acting in good faith when you made it. And, no, once again, we’re not going to take your word for it. A free people should never have to.

In short, it’s not the job of public officials to pat citizens on the back and say, “Just trust me, everything is alright.”

And this is why we need to Audit the Federal Reserve. There has been too much trust given to politicians and too much of our money making its way into black holes. It is a shame that it took trillions of dollars in bailouts to get to a point where people demand accountability from their public officials, but at least the day came.

So now is the time to make sure the Federal Reserve is no longer operating in secret. To make sure the trillions of dollars it creates out of thin air are accounted for. Once they are, I am sure Americans will be convinced of the pernicious nature of the Fed.

“The House Financial Services Committee voted 48-19 to approve a bill to clamp down on rates and fees; nine Republicans joined the panel’s Democrats in voting for it.

“The House bill would, among other things, ban ‘arbitrary’ interest rate increases, prohibit excessive fees and order more disclosure.”

Good for you, right? Wrong!

Don’t complain that you didn’t see it coming when the government pilfers taxpayers on this one.

So let’s say Mastercard jacks up rates. The government will swoop down and prevent them from doing it, right? Wrong!

It is more likely that the government will sanctify these rates as “approved by regulators.” Once government has the right to define what constitutes an arbitrary rate increase or excessive fee, there is nothing to guarantee it will do so for the benefit of consumers. Of course that is how it will be sold to the public, as a huge power grab for the benefit of the people.

There will be the sacrificial lambs, the unconnected credit card issuers and firms that don’t have their hands in Washington’s pockets. The press will glorify the regulators and condemn the “capitalists” while paying no mind to the well-connected firms that own all the media outlets anyway and whose market shares increase as the government targets the competition.

And so it goes with bailout money and surplus funds. We are now hearing about the courageous investigators whose job it is to track the corrupt spending associated with being gifted billions of dollars by the government. Great! Was the money set aside to prosecute these claims included in the TARP money or whatever other bailout Congress approved? Who cares!? More jobs! Increased government spending!

I love how government spending enthusiasts think a job investigating corruption in government big-money schemes is one that, when created, adds to the productivity of society. What? You might as well pay people to dig holes in the ground. But I didn’t say that. Keynes did.

And let’s not forget that this legislation doesn’t touch any of the transactions that institutions have with the Federal Reserve. Since Auditing the Federal Reserve is illegal and not even possible under FOIA requests, we don’t know who is getting the $100B+ in money at the Fed’s discount window every week. Which also means we don’t know if any of that money is being used to, who knows, buy up constituents and bailout everyone but the little guy and the middle class.

And so continues the long road toward government control of absolutely everything. I can see Congressional eyes lighting up at the idea of new positions within the administration, more rungs added to D.C.’s social ladder. The climbers will climb! The Leviathan grows. More regulators! More investigators! More capitalist traitors! Off with their heads!

Go lick a boot. I don’t care what you do, personally. I’m paying off all my credit cards this week. I’m out of this game; I want no part of it. But you can be sure I’ll be watching and snickering as the “drama” unfolds once the media starts reporting about vicious credit card companies and their unsuspecting victims (who spent nearly 90,000k on their credit cards because of the 3.5% predatory interest rate and excessive $200 per year membership fee).

Download the PDFs before it’s illegal.

Helene Jnane, a Ron Paul supporter upset by spending under both Mr. Obama and Mr. Bush, said she was thrilled with the existence of the rallies, though somewhat wary of the embrace of the mainstream GOP.

“We don’t want our message of sound money and a non-interventionist foreign policy to be corrupted through compromise or coalition,” she said.

Still, she added, “the more people that come out in support of sound money, the better.”

Read more here!

Please take the time to explore the site. More importantly, send it to as many people as you know! Americans are fed up with intrusive government and corporate bailouts. Now is the time not only to send messages by attending protests, but to take back government by hitting the streets, hitting the phones and taking direct action that reminds politicians that We the People permit them whatever power they have.

Get involved today!

As Tea Parties around the country peter out and everyone goes home after “sending a message” (more like leaving messages on the government’s machine), the government goes on bailing out banks via the Federal Reserve. But for some reason, of which I am not aware, most conservatives are only concerned with Tax and Spend policies.

What about Indebt and Spend? What about Inflate and Spend? Mainstream conservatives have taken the bait for the larger part of a century. Just as long as liberals keep on talking about raising taxes, and thus stoking conservatives’ ire and thereby limiting the focus of the conflict, they can keep devaluing the dollar and relying on a Communist regime to buy up our Treasury bonds.

That’s right: increasing the amount of debt our government owes to a Communist country for the purpose of funding big-government programs.

And what about the inflation? Well, do you think the huge push for the CRA would have been possible if the Fed didn’t keep interest rates low? And the cost? Inflation and economic malinvestment. I am no expert on the subject, but I do suggest reading Tom Woods’ great article in the American Conservative Unnatural Disaster.

Let’s put it this way. If you think liberals have no problem with Tax and Spend, why would you think they would have a problem with Inflate and Spend? The power to inflate currency and draft savings is pernicious precisely because it is an indirect and hidden tax. Prices go up and people have been led to believe inflation is merely a consequence of economic activity. But it’s not. Inflation is the increase of money and credit by the government. So think of it this way: do you really think liberals would have a problem creating money out of nowhere when they don’t even have a problem looting it by force?

As Murray Rothbard stated in his article Ron Paul: A Most Unusual Politician:

“Inflation, as Ron Paul points out, is caused by the government’s continual creation of new money, by what amounts to its system of legalized counterfeiting…

Let us put it this way: give any man or group power, and it will tend to use that power. If the power is inherently abusive, then that power will be abused. Our present system gives to the federal government and its Federal Reserve the unlimited power to counterfeit. The problem is that if the Fed has the power to counterfeit, it will inevitably use that power. Why? Because the power to counterfeit is too tempting. The power to create money means that it is far more tempting to print it than to work for it… In the case of government, the power to counterfeit means that government’s debts can be paid without levying taxes, that government spending can increase, and that political allies can be purchased and maintained…

Counterfeiting is fraud, and no one should have the right to counterfeit, least of all the government, whose record of counterfeiting throughout history is black indeed. Money and banking must be separated from the State.”

It has become all too clear in our day that when money and banking are in the hands of the state those with political connections and leverage over politicians will be the beneficiaries of monetary policy to the detriment of the little guy. And the Fed will give its canned response that without these measures we would enter a deflationary spiral that would consume happiness itself!

But deflation is necessary after periods of rampant inflation, however painful it might be. Government apologists claim that inflation was low because consumer prices did not increase dramatically over the past seven years. But that’s using a disingenuous definition of inflation. If we use the true definition, an increase in the supply of money and credit, we can see that inflation does not only manifest in the form of higher consumer prices. Inflation can also be—and often is—the driving force behind economic bubbles.

This inflation merely represents more money being dumped into the economy via the Fed, not true economic growth. If this is the case, the longer we live in an asset-class fantasy land, the longer the bubble ensues and the harder the subsequent crash. Why? Because economic and business decisions are based on all information at hand. This means the longer bubble prices remain too high, the longer planning is made with the assumption that these prices are real and not just a bubble. In other words, the price structure of a bubble infects other prices in an economy distorting the whole show. The longer this takes place, the longer it takes to unwind.

Deflation is this unwinding. It is necessary because the only other alternative is allowing an inflationary bubble to persist and increase the chances of economic collapse. It is better to allow the economy to return to natural price levels rather than try to support those created by inflation. That is, it is better to return to the free market rather than continue the central planning occurring at the Federal Reserve.

But not on the liberals’ watch! Nope! It’s time to institute Keynesian style spending made possible by selling government debt to… not even the Chinese. To the Federal Reserve.

That’s right; the Federal Reserve has been buying up Treasury Debt for a long time now. So whenever liberals want to institute new programs these days they don’t even have to go to communist China hoping they’ll subsidize their social programs. Now they can just print it up.

Once again, why do you even bother with taxation when you’ve given the government the power to create money out of thin air? Remember, the longer this ruse goes on and the longer you focus on taxation rather than monetary manipulation, the longer government looting goes on right under your nose.

So, I’m calling out to fiscal conservatives everywhere. Become a monetary conservative. Join the Campaign for Liberty and promote a return to Sound Money. If you don’t, Tax and Spend will always remain the tip of the hidden Inflate and Spend/Indebt and Spend iceberg.