Audit the Fed - call to action

[liftsboxes]

I just got this (excerpted) from my old Libertarian party mover and shaker in MI.

Dear friend of liberty:

This must go viral. I know the concept can be over-done, and I know the impact of such messages can become diluted when done too often. That is why I haven't pushed anything like this since the 2008 election season, but this is different.

There has been a groundswell of support for an audit of the Federal Reserve System (sic). The movement has swept the house of representatives (with most of them becoming co-sponsors). It transcends ideological beliefs. The House version was introduced by a Laissez-Faire Capitalist, and the Senate version was introduced by an avowed socialist. The house version has cosponsors from both major parties.

So don't leave anyone out. Email EVERYONE you know. Call EVERYONE you know. Post the message everywhere you can:

On July 6th call your Senator and politely insist that he or she cosponsor "SB 604: Federal Reserve Board Sunshine Act of 2009."

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On Monday, July 6th we will follow up our nationwide End the Fed! Tea Parties with an "Audit the Fed! Melt the Senate Switchboard Day".

We must all call in on that day and get EVERYONE we know to also call in to our Senators.

The Senate Switchboard number is:
(202) 224-3121 or toll free at 888-355-3588 or 888-818-6641.

Let's also call our Senator's local offices as well.

Let's also call to PRAISE and APPLAUD those Representatives and Senators who have Co-Sponsored the HR 1207.

The Congressional Switchboard number is:
1-877-851-6437.

Audit the Fed Petition
http://www.campaignforliberty.com/campaigns/auditthefed.php


Participate in our Discussion Forum topic on HR 1207:
http://endthefedusa.ning.com/forum/categories/hr-1207-hr-833/listForCategory

Join the Audit the Fed! Action Group:
http://endthefedusa.ning.com/group/repealthefedpetitionproject

Monitor the status of the bill here:
http://www.govtrack.us/congress/bill.xpd?bill=h111-1207

Audit the Fed! New Song by Steve Dore

[John Edward Mercier]

Do you really believe that Dave Walker missed something amiss at the Fed Reserve Board of Governors and the Regional Federal Banks?
Because I find it hard to believe.

While I find it quite easy to believe that Congress wishes to take attention away from Mr. Walker's Fiscal Awakening Tour. It does quite a bit of damage to both parties... and ALL their members.

[Little Owl]

I'm not saying I oppose an audit of the Federal Reserve, but be careful what you wish for.  An honest audit of the Federal Reserve could single handedly destroy the U.S. economy.

What potential benefit would this produce?  No matter what the audit showed, I for one would still favor a complete elimination of the Federal Reserve.

[marknh]

I'm not saying I oppose an audit of the Federal Reserve, but be careful what you wish for.  An honest audit of the Federal Reserve could single handedly destroy the U.S. economy.

What potential benefit would this produce?  No matter what the audit showed, I for one would still favor a complete elimination of the Federal Reserve.

agreed

[bigmike]

Let's say the house and senate bills pass, what then? Would a serious audit actually take place? What if some "wrongdoing" were discovered? What penalty would take place? And if the Fed were abolished altogether, are we going to be better off with the idiots in congress controlling the purse strings and the printing presses?

I applaud the fact that people are waking up to how our monetary policy actually works, but this bill would likely only create an audit to discover where the TARP money went and not why it went there.

[liftsboxes]

So an audit wouldn't be a likely first step to abolishment of the Fed?  Seriously, do you believe that the agency would ever stand a chance of being chopped if no audit is ever even done?

[John Edward Mercier]

Audits on the FED have been federal law since 1978...
The new legislation is just a time table to get the next audit done, as the original legislation did not set a period between audits.
The audit oversight falls to the Comptroller General, which used to be David Walker... but he left the post five years early.

BigMike is correct. If the FED is abolished, monetary policy returns to the Congress.
But the TARP funds wouldn't be part of the audit, as they are under the US Treasury...
I do believe that the TARP funds were unconstitutional... and their management may have been criminal under the legislation that created them.

[Little Owl]

Seriously, do you believe that the agency would ever stand a chance of being chopped if no audit is ever even done?

Sure, why not?  When Ron Paul ran for President, he didn't say "I'd like to audit the Fed to determine whether they should go away".  I don't see how an audit particularly strengthens, or weakens, the case for eliminating the Fed.  Axing the Fed stands on its own merit.

[John Edward Mercier]

The FED would need to be abolished by revoking the Act that established it.
Congress would then retain the powers of monetary policy.

[bigmike]

So an audit wouldn't be a likely first step to abolishment of the Fed?  Seriously, do you believe that the agency would ever stand a chance of being chopped if no audit is ever even done?

It's not that I am against ending the fed's monopoly on the creation of "money", it's that I don't trust the audit would lead to that. I'm sure an audit would create some good sound bytes and make for excellent theater in congressional hearings, but that's it. It would quickly revert to business as usual, just like it did in the 70's.

I don't have the answer to what an appropriate government-alternative would be which is what we'd get if the fed was abolished. The only political options I see would be to repeal the legal tender laws and/or revert to a commodity-backed currency, but even those will bring their share of problems.

To me, "money" is what we deem acceptable for value so an outside-the-system alternative is to barter and use alternative forms of currency. It's not an easy way to do business, but nothing worthwhile is ever easy.

I do think, however, that there are enough intelligent people within the liberty movement to help create a system that works and I'd rather put my effort into that than helping push the audit legislation.

[John Edward Mercier]

At this time, either with or without the FED global communication and markets are strong enough to determine the value of the USD.

I could see it in Ben Bernanke's eyes as he testified before Congress that not only the FED, but the combined central banks of the G8 had lost control of money creation... and it now laid in the hands of sovereign hedge funds.

[bigmike]

At this time, either with or without the FED global communication and markets are strong enough to determine the value of the USD.

I could see it in Ben Bernanke's eyes as he testified before Congress that not only the FED, but the combined central banks of the G8 had lost control of money creation... and it now laid in the hands of sovereign hedge funds.

John could you elaborate on this, specifically what you mean by money "creation" in the hands of hedge funds? I understand how they have a role in the value, I'm just not sure about the creation aspect.

[John Edward Mercier]

General money creation entails the global growth of physical currency, credit, or quantitative easing.
The various national treasuries control the growth of the physical currency... they actually coin and print currency under their various government policies. Central banks distribute the currency directly and through credit restriction. While seldom do the central banks quantitative ease by purchasing debt instruments issued by its forming government entity.

The second, credit, is not only through the manipulation of interest rates... but also through the control of fractional reserve banking and lending standards. Since these hedge funds do not operate within a single nation, they behave in sovereign manner. And have no restrictions on fractional reserve banking nor lending standards.

So while counterfeiting may, even at a national level like North Korea's Super Bills, have an effect on physical currency... its no where near as strong or dynamic an effect as fraction reserve expansions by the sovereign hedge funds.