The Federal Reserve's general counsel, Scott Alvarez, is being disingenuous in the testimony to Congress reported today by Bloomberg News (see below) in regard to U.S. Rep. Ron Paul's legislation to audit the Fed. That is, the threat to interest rates Alvarez warns about has nothing to do with potential congressional interference with monetary policy. Rather, the threat to interest rates -- and the dollar, U.S. government bonds, the Fed itself, and the entire world financial establishment -- arises instead from the possibility that the Fed's surreptitious intervention in the markets might be exposed and the world might see that, in fact, because of the Fed there really are no markets at all, just systematic robbery by banking interests and certain nations.
What the Fed is really saying with its hysteria is that the world will end if what the Fed is doing becomes known. Of course the world won't end; it will just change dramatically.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Very well said, Mr. Powell. More threats of doom to get what they want. In fact, this time it seems more like like a threat.
Audit us and we will raise interest rates is what I get from this. Audit us and we will show you who is really in charge in this country is what I believe they are really saying.
We all know that our economy is so fragile now that increased interest rates will destroy us even more. It seems that the FED cares not if it does as long as they are not audited. An audit might disclose to the American people who The Fed really is owned by and what their true intentions are and always have been. The fear of discovery alone should tell us that the Fed SHOULD BE audited. The American people have a right to know who controls all of our money, our destiny and our lives. We have a right t know, period.
Mr. Powell's post continues with the article from Bloomberg.
By Craig Torres and Scott Lanman
Bloomberg News
Monday, September 28, 2009Read the Full Article...click here http://www.bloomberg.com/apps/news?pid=20601087&sid=adDANopNzewM
WASHINGTON -- Federal Reserve General Counsel Scott Alvarez said audits of monetary policy by the U.S. Congress could lead to higher interest rates and reduced confidence in central bank policy.
Mr. Alvarez is actually making the threat in public to Congress but his comment about reduced confidence in central bank policy is humorous. I believe we all have already lost that confidence in them. That is why Ron Paul is calling for and fighting for the audit which as of this writing he seems to have lost.
Congressional audits of monetary policy could "cause the markets and the public to lose confidence in the independence of the judgments of the Federal Reserve," Alvarez told the House Financial Services Committee...The article in Bloomberg gives a good thumbnail explanation of what Ron Paul was so rightly trying to accomplish.
Fed Chairman Ben S. Bernanke and his colleagues are trying to persuade lawmakers not to pass legislation sponsored by Rep. Ron Paul of Texas that would repeal the central bank's immunity to audits of monetary policy. Fed officials used emergency powers to protect creditors of Bear Stearns Cos. and American International Group Inc. during the financial crisis, prompting congressional scrutiny.Using their emergency powers to protect creditors of Bear Stearns and AIG is reason enough to be audited and transparency created. The Fed with no oversight or discussion by Congress or the American people gave $55 billion to JP Morgan to buy Bear Stearns for $250 million. Less then what the Bear Stearns building in New York City was worth. The decision and the action to do this was made on a Sunday night and in secret. Reason enough for transparency and audit, I say.
"Monetary policy independence prevents governments from succumbing to the temptation to use the central bank to fund budget deficits," Alvarez said in his prepared testimony. "Financial markets likely would see the grant of audit authority to the GAO with respect to monetary policy as undermining the Federal Reserve's independence."What is Alvarez talking about? "Monetary policy independence prevents governments from succumbing t the temptation to use the central bank to fund budget deficits,". Perhaps we should be doing just that instead of creating more deficits.
All the money the Fed has given away under TARP and other programs to AIG, JP Morgan, General Motors and others is creating a deficit.
Where did the money come from? It was created. When The Fed creaes money, we pay it back to them with interest and, in fact, never pay down the principal. An eternal profit base for the "private owners" of The Federal Reserve.
If the government used created and borrowed money to buy into companies like General Motors and this country has the largest deficit in its history then it is obvious, to me at least, that deficits are created and should likewise be paid off.
If the money used and given to those "too big to fail" companies was used to pay off our deficit, our country would now be debt free and on a very good road to economic recovery and prosperity for the people once again.
Read the Full Article in GATA...click here
The words of Meyer Rothschild, the creator of the Central Banking system we call The Federal Reserve.
His words are coming true.
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