Federal Reserve Policy Audit Legislation ‘Gutted,’ Paul Says

No, slave, you may not look at the Fed's books and see how much money you've been robbed of. You may not know the inner workings of an institution that creates your money out of thin air and then loans it to you at interest. The Fed is the shadow government. Most of the representatives and senators, as well as the president, are its puppets. They are not going to allow an audit so that the American people will have laid bare before them the theft and enslavement they've endured since the Fed's inception. This is all FYOG. Go back to sleep. Everything is OK. Your government is in and under control. Here's 56 channels of NFL football. You are free...to do what they tell you to.

Get this through your heads, all you fake patriots who think your tea party movement will save this country, and that all you have to do is vote the current bums out to reclaim your country: nothing will ever change so long as the Federal Reserve exists. If you want peaceful revolution, and you're not behind the End the Fed movement, you are barking up the wrong tree.

Bloomberg -

Representative Ron Paul, the Texas Republican who has called for an end to the Federal Reserve, said legislation he introduced to audit monetary policy has been “gutted” while moving toward a possible vote in the Democratic-controlled House.

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.”

The Fed, led by Chairman Ben S. Bernanke, has come under greater congressional scrutiny while attempting to end the financial crisis by bailing out financial firms and more than doubling its balance sheet to $2.16 trillion in the past year. The central bank is also buying $1.25 trillion of securities tied to home loans.

Paul, a member of the House Financial Services Committee, said Mel Watt, a Democrat from North Carolina, has eliminated “just about everything” while preparing the legislation for formal consideration. Watt is chairman of the panel’s domestic monetary policy and technology subcommittee.

Keith Kelly, a spokesman for Watt, declined to comment and said Watt wasn’t immediately available for an interview. Watt’s district includes Charlotte, headquarters of Bank of America Corp., the biggest U.S. lender.

Original Language

Paul said he intends to introduce an amendment to the bill when it comes to the House floor for a vote restoring the legislation’s original language.

Representative Barney Frank, a Democrat from Massachusetts and chairman of the committee, said in interview that he intends to ensure legislation would provide a time lag between FOMC actions and the reporting of them.

Such a provision would “lessen the market impact,” he said on Oct. 20. “The importance is to see that there are no abuses and to judge what they did.”

The legislation will probably be included in a broader Democratic package of financial-regulation changes in the House, Frank said.