“Audit the Fed, the Fed has never been audited!” shouted the hip, young libertarian as he holds his protest sign to the gods. But little does this Fed-Basher know that his rants are perpetuating a myth that does nothing more than hinder real progress in exposing the fraudulent Federal Reserve Bank. Our protagonist is a strong supporter of Ron Paul. He is tired of witnessing the tyranny in government and has decided to take action against the corruption that has seized our great country. He is a true Patriot, someone who loves his country and his countrymen so much that he is willing to sacrifice his time, effort and possibly even his freedom to see that our crooked system is straightened up. A dying breed in a time when protesting your beliefs makes you an extremist nut-job. But he is also mis-informed.
Ron Paul has introduced legislation to properly audit the Federal Reserve bank. This bill is HR1207 and is called The Federal Reserve Transparency Act of 2009. This bill calls for a reform in the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes. At the moment this bill has 308 co-sponsors.
There is a myth circulating around the internet that the Federal Reserve Bank has never been audited thus explaining our protagonist’s well intended false argument. Instead of ranting, “The Fed has never been audited,” he should have been ranting, “The Fed has never been properly audited!” The fact is that each regional Federal Reserve Bank is audited regularly. The problem is that these audits are not transparent and are not required to meet the same standards as audits performed on every other business. The Federal Reserve can’t account for billions of missing bailout funds that me and you, the taxpayers, will pay back to the government. When asked by the government to reveal where the missing money had gone Ben Bernanke replied, “No.” And why does Benny not have to answer that question? Because the Federal Reserve answers to nobody, not even the United States government.
As far as progress goes on bill HR1207, it loos like our protagonist will have plenty more time to refine his argument and re-design his protest signs now that the bill has been stripped down to nothing. Here is what Bloomberg reports on the status of this bill as of Oct 3oth, 2009:
The bill, with 308 co-sponsors, has been stripped of provisions that would remove Fed exemptions from audits of transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff, Paul said today.
“There’s nothing left, it’s been gutted,” he said in a telephone interview. “This is not a partisan issue. People all over the country want to know what the Fed is up to, and this legislation was supposed to help them do that.”
I think it’s about time we hold the Fed accountable for it’s policies and transactions but I also think that shouting myths from the street corner does more to hurt the cause than help. Let’s try to be a bit more specific in the future and rant, “The Fed has never been properly audited!”
All together now!
For more info on HR1207
The good, honest people over at the PrisonPlanet forums didn’t care too much for this article. I opened a thread called, “The Fed has never been audited myth” and provided a link to this article. As it turns out not everybody is a fan of reading, they hid my thread and retitled it “The Fed has never been audited truth being slandered by stupidity”. It seems that reading a few paragraph summery on the Fed myth is too time consuming for those fellas at PrisonPlanet, they prefer to have Alex Jones spoon feed them everything. Bahaaaaaa!