President Barack Obama’s campaign pledge was to defend the little guy. So why is Rahm Emanuel, the White House Chief of Staff,against auditing the Federal Reserve Bank?
Long before the financial crisis of 2007 crashed across the planet, a soft-spoken Congressman from Texas was leading a one-man campaign that would force the Federal Reserve Bank to crack open its dusty books for an annual public inspection.
Ron Paul, 74, regularly met with howls of protest when he tried to warn about the Bank’s secretive ways. But his dogged determination has (almost) paid off, as dozens of his colleagues are jumping on the audit bandwagon, and his efforts to regulate the Federal Reserve Bank are just a few votes from being realized.
But first, what is the Federal Reserve Bank? Well, considering the strange way it came into existence many decades ago (during a secret meeting on Jekyll Island off the coast of Georgia, attended by a handful of America’s richest individuals), some would argue it is the single most-powerful syndicate ever imagined.
Following on the heels of the meeting at Jekyll Island in 1913, when most of the Senate was out of town on Christmas holiday, the Federal Reserve Act was voted into force. Yet despite the official-sounding “federal” in its name, the Bank has no connection with the US government. It is for all intents and purposes just another corporation, albeit one with the power to a) control the money supply; b) control interest rates; and c) lend money to the US government – at interest, which is paid by, yes, the US taxpayer.
“The law says that the GAO (Government Accountability Office) has the right to audit the Federal Reserve,” Paul warned the Conservative Political Action Conference. “But we are prohibited from getting any answers from the Fed, yet they have more money and more control over out lives and our dollars and your future. They have control over the foreign policy and the domestic policy and you don’t have any right to know anything about it, because I can’t even get the information.”
Paul called the ability of the Federal Reserve to print money and play with interest rates at will “a monstrous fraud.” (To watch video of Ron Paul addressing CPAC, click here).
But these financial fears are not new, and have been expressed by some of the most powerful men in America’s history.
“The real truth of the matter is that a financial element… has owned the government since the days of Andrew Jackson,” admitted Franklin D. Roosevelt in 1933, when the effects of the Depression were at its worst. Unfortunately, only in days of despair and desperation does truth reveal its ugly head.
For Thomas Jefferson, the entire notion of an outside power controlling the money supply was equivalent to slavery.
“If the American people ever allow private banks to control the issue of currency… the banks and corporations that grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered.”