Here we go again. Last week the Federal Reserve (Fed) decided to green light another round of quantitative easing; ostensibly to help the economy, but many suspect the true impetus behind the Fed’s move was to create the appearance of an economy in recovery to grease the wheels for President Obama’s bid for reelection.
Quantitative easing is a monetary policy that many experts believe will eventually lead to disastrous results in the form of hyperinflation. It may create the illusion of recovery in the short term, but the consequences of such action will create an economic crisis even more devastating than the one Americans have been dealing with ever since President Obama took office.
So how does quantitative easing (QE) work? We will keep it simple since it is a very complex piece of monetary policy. When Ben Bernanke, Chairman of the Fed, decides to embark on QE, the Fed will buy up financial assets from commercial banks and other financial institutions using newly printed money.
You read that correctly, the Fed has decided to “assist” the economy by simply printing up new money. Any fool can see how this will likely lead to inflation. It may stimulate the economy in the short term, but the long-term prospects are disastrous.
Then again, what does Obama care? If he wins reelection, he will be term limited and will ride rough shod over our capitalist society. In fact, in a video uncovered this week, Obama admitted to be in favor of redistribution! The man admitted to being a Socialist and yet millions out there still champion his failed presidency? When did stupidity become infections?
A nationally recognized financial magazine ran a story on the failed policies of President Obama and his lackey, Chairman Bernanke. It states that Bernanke’s QE policy has already failed citing number for the Real Dow Jones Industrial Average (Real Dow). The Real Dow is calculated by dividing the Dow Jones Industrial Average with the price of gold. The Real Dow soars during economic prosperity and plummets during economic crisis. In fact, the Real Dow ONLY rises during economic prosperity.
With that calculation in mind, it is important to note that during Barack Obama’s presidency and supposed economic recovery, the Real Dow FELL more than 16%. This demonstrates that we never really entered recovery and a new round of QE could create a true economic depression in the future if Obama and Bernanke are allowed to continue their policies of economic destruction.
It is clear that the Fed needs Congressional oversight. It can no longer be trusted to steer the United States economy. Thankfully, Rep. Ron Paul (R-TX) has introduced H.R. 459 that will FINALLY give Congress oversight over the failure known as the Fed.
For those of you new to the subject of Federal Reserve transparency, we will briefly explain what the Federal Reserve does and why it should be audited by Congress. Hopefully, this will create an even greater ground swell of support that will push the bill through the Senate and be ratified as part of the 2012 Republican Party Platform.
Since 1913, the Federal Reserve System has been at the helm of the US economic vessel, steering us from one financial crisis to the next; making decisions that affect every American and the global economy.
The Fed is an independent body that makes decisions in secret while covertly managing trillions of dollars in American assets and unilaterally creating US monetary policy. As past and current financial crises can attest, the system is not working. Rep. Ron Paul’s legislation, H.R. 459, would allow for Congressional oversight over the Fed, creating monetary policy transparency and thereby jump starting the process of healing our wounded economy.
Congress created the Fed in 1913 with the passage of the Federal Reserve Act. It is NOT a governmental body. While Congress created it, the Fed is an independent entity that works with the US treasury to drive economic policy in the United States. The legislatively created objectives of the Fed are maximum employment, stable prices, and moderate long-term interest rates. They are FAILING at these objectives.
The Fed has proven that it needs a babysitter; we need your faxes DEMANDING immediate Congressional oversight or the economy will continue to spiral out of control. We must be the engines of change!!
The Board of Governors runs the Fed; the Chairman of the Board is Ben Bernanke. The Board of Governors has 7 total members and they are tasked with guiding the Fed AND the United States economy.
The problem with the Fed is that while it attempts to manage the most massive, complex, and powerful economic system in the world, it does so in the dark with almost no government oversight. The Fed acts in near total secrecy while creating one economic policy disaster after another. This must change if the United States is to regain its position as an economic super power!!
The United States has faced one financial meltdown after another since the creation of the Fed; including the Great Depression in 1929 and the Great Recession in 2007. In all, the Fed has guided the US economy into at least half a dozen financial icebergs; yet for all the damage they have caused the American economy, they still act in secret. This is because Congress is STILL legislatively prohibited from auditing most aspects of the Fed. This MUST change if we are to have ANY hope of a full economic recovery. We NEED your voice!!
According to the Federal Reserve Act, Congress may only audit check processing, currency storage and shipments, and some regulatory bank functions. Current law prohibits Congress from auditing deliberations and decision-making procedures regarding monetary policy matters. Further, Congress cannot subpoena communications of and between the Board of Governors, officers, and employees of the Fed. Finally, the law prohibits Congressional oversight of foreign bank transactions as well as transactions with other governments.
Congress gave the Fed carte blanche to work in anonymity back in 1913. In 1913, the horse was still the most popular means of transportation and the idea of a technologically connected world could not be imagined by even the most creative of minds. During this time period, indoor plumbing was the vanguard of progress and the electric light bulb was only 34 years old.
It is very clear that the old system is COMPLETELY outdated and a change is REQUIRED if we are to provide a healthy economy for our children. We need your voice telling Congress to destroy the anonymity provisions and conduct a full audit of the Fed!!
The Fed has failed to protect our economy, pushing the US towards one financial crisis after another. Chairman Bernanke seems to believe that government intervention in the way of bailouts is the most efficacious way to create economic recovery despite mountains of data that say otherwise. This anachronistic system has proven time and time again that it is incapable of driving our economy towards prosperity; its consistent failures amidst secret deliberations underscore the need for IMMEDIATE Congressional oversight.
H.R. 459 would kick down the doors of secrecy. No longer would the Fed be capable of shielding themselves from public scrutiny stemming from their many failures. Further, the legislation would allow for public dissection of Fed policies. This would create a competitive environment where the Fed would finally be accountable to the American people; Chairman Bernanke’s will no longer be able to hide behind a veil of secrecy while in the driver’s seat of an increasingly atrophic American economy.
Specifically, Rep. Paul’s bill would destroy the provisions in the original Federal Reserve Act that protect the Fed from Congressional oversight. H.R. 459 would allow Congress to audit and review all communications of and between the Board of Governors, officers and employees of the Fed. Congress would be able to review all deliberations and decision-making procedures currently in use by the Fed. Finally, Congress would have oversight over all Fed transactions; Congress would no longer be handcuffed to reviewing only domestic transactions, oversight would extend to all foreign transactions as well.
We all know that the Fed and Ben Bernanke are failing as stewards of the American economy. We can look at our bank accounts, home values, and investment portfolios to see all the proof we need. Why should the Fed be insulated from public criticism? Why are they afraid of Congress and the American people? Transparency is the hallmark of democracy then why the subterfuge and clandestine approach to decision-making? This is OUR economy. Those who are entrusted to protect it ought to be accountable to the American people through Congressional oversight!
Continuing with the same closed-door deliberations will lead to the same failed policies that have been plaguing the US economy since the early 20th century. We CAN make America more prosperous, we CAN make the Fed more transparent, and we CAN make our country better for our children; but to do so we need your VOICE!!! DEMAND Congressional oversight and let’s all do our part in fixing our economy.
Auditing the Fed is now part of the Republican Party platform, but we still need your help to demand that Congress passes H.R. 459. We can longer sit idly by and watch as Ben Bernanke destroys the long-term prospects of our economy to placate our Socialist President bent on redistribution and the destruction of wealth in our country. Fax Congress today and demand Congressional oversight over the Fed! We must revert to our Capitalist system before our nation becomes just another second rate nation that destroyed its economy because of the precepts of a Socialized economy!