How Ron Paul Could Send Ben Bernanke into Panic Mode
June 24, 2010
The Federal Reserve has blocked the House's original attempt to audit it. I said from the beginning this would happen.
The FED claims the need for privacy. It will not tell the government which banks got what. A Federal judge could not get this information. She ordered the Board to produce it. The Board appealed. The appeals court told the FED to comply. Has the FED complied? Of course not. The story has gone down the memory hole. There is only silence.
The FED runs the government on money matters. It always has. It's just more obvious today.
How could Paul put the FED into complete defensive mode? Simple. By introducing a bill:
The Government Accountability Office is hereby instructed to conduct an annual audit of all of the gold held in trust for the United States Government by the Board of Governors of the Federal Reserve System, and to report the results of this audit to Congress no later than September 1 of each year.
He should call this bill The United States Government's Annual Gold Audit.
There has been no audit of the gold since 1951. There needs to be an audit of the gold.
I believe that the FED has resisted the audit to cover up the fact that a significant portion of the gold is gone. Read my report:
How could the FED publicly resist such legislation?
The FED could not plausibly claim that such a bill is a move to influence Federal Reserve policy, unless it has been the FED's policy to sell the gold without recording this on its books, or "lease" the gold to keep down its price, but not report such leases.
The FED could not plausibly claim that the United States Government has no valid reason to verify the FED's holdings of the government's gold.
The FED could not claim that the gold does not belong to the government, but instead belongs to the Federal Reserve Bank of New York, a private, for-profit entity.
The FED would have to open its books and open its vaults to agents of the United States Government.
Any attempt to stonewall this bill would raise suspicions in the minds of the voters -- and maybe even a few Congressmen -- that all of the gold is not there.
There would be support for this publicly. Congressmen could demonstrate to voters that Congress is ready to exercise its authority over the Federal Reserve System.
Or a Congressman could demonstrate that he is in Ben Bernanke's hip pocket by not supporting this bill. This is an election year. "All those in Bernanke's hip pocket, please raise your hands."
I can think of nothing that would make Dr. Ben wet his pants faster than this bill.
Any objection would be seen as a cover-up. It would fan the flames of public distrust. "What has the FED got to hide?" Plenty.