The Fed has reportedly denied German requests to view their own gold reserves, ‘in the interest of security’
- Tag Archives Federal Reserve
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Bernanke to Congress: We’re Much Closer to Total Destruction Than You Think
Official Congressional budget estimates understate the peril of rising debt, Fed chair Ben Bernanke told the Budget Committee on Capitol Hill today.
Warning that our nation’s fiscal health has deteriorated appreciably since the onset of the financial crisis and the recession, Bernanke called upon lawmakers to confront the long term fiscal challenges sooner rather than later. If lawmakers don’t confront them, they’ll find themselves confronted by them.
From Bernanke’s prepared remarks:
By definition, the unsustainable trajectories of deficits and debt that the CBO outlines cannot actually happen, because creditors would never be willing to lend to a government with debt, relative to national income, that is rising without limit. One way or the other, fiscal adjustments sufficient to stabilize the federal budget must occur at some point. The question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people adequate time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will come as a rapid and painful response to a looming or actual fiscal crisis.
Bernanke explained that the Congressional Budget Office’s calculations miss an important reality. As the government’s debt and deficits rise, the economy will slow down—an effect not taken into account by the CBO. So, for instance, when the CBO says that federal spending for health-care programs will roughly double as a percentage of GDP in the next 25 years, it is probably being too optimistic. If debt keeps, rising, GDP will be much lower than the CBO estimates—which will mean that health care spending will be a much larger percentage of the overall economy.
Full article: http://www.cnbc.com/id/41491193/
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Tell the Senate: Audit the Federal Reserve, Pass S. 202!
“To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States before the end of 2012, and for other purposes.”
On June 25, the House of Representatives overwhelmingly passed Rep. Ron Paul’s HR 459 to Audit the Federal Reserve 327 to 98. It is now time for the Senate to act!
Demand the Senate to bring S. 202 to a vote and pass the bill. It is the responsibility of the Senate to hand this ever-important Federal Reserve Transparency Act to the President.
The Federal Reserve Transparency Act would demand our Central Bank, the Federal Reserve, to undergo a full audit and have the findings reported to Congress — the branch of government that is responsible “to coin Money [and] regulate the Value thereof.” (US Constitution, Art. I, Sec. VIII, Cl. IV).
The Congress created the Fed, our third central bank, in December of 1913 — upon the passage of the Federal Reserve Act the Congress had formally delegated their constitutional monetary responsibilities to an institution that is not a part of government at all — the Federal Reserve operates independently of the US Government, yet has full government protection. Protection enough that established the Federal Reserve Note, our dollar, as the only legal tender in this country.
The Federal Reserve was created to end depressions (or “panics”) and secure the value of the dollar. Yet, the exact opposite has been the reality. Under the Federal Reserve System the following have transpired: the 1920-21 panic; the Great Depression (which lasted, according to the stock market’s performance, until 1948); the Stagflation and Depression in the late 1970 through the mid-eighties; the dot-com boom and bust; the housing-bubble and bust; and the current economic recession. This is to say that the 20th Century, the Century of the Fed, has had more economic trouble than the century that preceded it … after the Fed was formed. Panics have been a fact our our history, but ever since the Federal Reserve was born they have been more frequent and more prolonged.
Under the Federal Reserve our dollar has lost 98% of its original value through inflationism, which has most recently euphemized as the “monetary tool” called Quantitative Easing. Through the destruction of the value of the only legal tender — the Federal Reserve Note — we are seeing the distortion and destruction of the economy. The middle class is shrinking in the proportion that the rich and, most notably, the poor classes are growing. A strong medium of exchange, or money, is a requirement for a healthy economy. The Federal Reserve’s destruction of the currency and economic meddling is the root of our troubles — Easing, Interest Rates by Fiat, Bailout facilitation, etc.
What’s as devastating as the Federal Reserve’s calculated recklessness, is that they are never challenged in any significant way by the US Government; they have the privilege of operating in total secrecy, protected from the public. The Central Bank has never to this day had an audit; and, save the members of the Fed themselves, no one knows the Bank’s workings.
It’s time we find out. It’s time the Senate pass S. 202 to audit the Federal Reserve Bank. The House passed it, and they must follow suit.
TAKE ACTION WITH CONSERVATIVE ACTION ALERTS, SIGN THE PETITION, AND SEND MESSAGES TO YOUR SENATORS DEMANDING THEY AUDIT THE FED BY PASSING S. 202!“It is little known that there is a federal agency that tops the others in secrecy by a country mile. The Federal Reserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of, or can truly supervise, its operations. The Federal Reserve, virtually in total control of the nation’s vital monetary system, is accountable to nobody — and this strange situation, if acknowledged at all, in invariably trumpeted as a virtue.” – Free-Market Economist Murray N. Rothbard, 1994.
Sign the petition: http://petitions.conservativeactionalerts.com/7416/tell-senate-audit-federal-reserve-passs-202/