What Would Be Involved in an Audit of the Federal Reserve?

As I mentioned in the last article, don’t be fooled when supporters of not having the Federal Reserve audited assert it is audited all the time. The facts and existing laws directly contradict that and reveal the Fed only has to release mostly irrelevant data that bears little resemblance to what’s really going on behind closed doors.

The data which really matters is protected by existing anti-auditing laws which keep the important decisions and actions of the Fed shrouded in secrecy with absolutely no oversight and accountability.

A lot of you reading this may respond or think that while this is interesting and sounds right for any person or organization which has too much power, “why should it matter to me?”

The answer to that question is the key to why the Federal Reserve must be audited.

Let’s first look at what has been happening over the last year or so with the outrageous bailouts of banks.

The bailouts of the banks weren’t only outrageous because the poorly managed banks were wrongly kept from failing when that is exactly what should have happened. If that would have been allowed, the bad banks would have failed and the solid and well-managed banks would have ended up taking them over and we would have had a stronger banking system as a result.

Many people get confused about this because of the effective but stupid idea that the banks were “too big to fail.” That’s really a lie for the reasons stated above; another bank would have stepped in and assumed the deposits and acquired the healthy assets. That’s how banking and business is built to, and should work.

What an audit would reveal is that the big banks were close to being insolvent near the end of 2008, and in fact were close to declaring bankruptcy. In response the Fed swooped in and saved them, propping up their puppet leaders while allowing close to 100 banks to fail. In other words, Bernanke and the banking cartel scratched each other’s backs at the expense of other banks.

This is important to learn by consumers and the general pubic because it’ll show that this is what determined the gigantic bailouts which resulted in unprecedented transfer and creation of dollars to these chosen companies, while others received nothing.

The practicalities of this was the exchange of Treasury debt, which is a marketable product, with toxic debt with the largest banks in the country at face value; an outrageous action taxpayers in the United States will pay for for a long time.

So why is this important to us other than the exorbitant debt all Americans have now inherited, which is bad enough? It will reveal the soft underbelly of the banking system in America, but even more important, it will reveal the individual banks within that system which are extremely weak.

What will happen if that data are revealed? Individual investors will take their money out of the weak and failing banks and put it into what they feel is a safer bank. Now we’re getting into the real battle going on with the Fed audit, and what and why data are attempted to be kept secret and hidden by Bernanke and the Federal Reserve.

Along with most Americans, members of Congress, for the most part, don’t understand what’s going on with the Federal Reserve and the consequences of their monetary policy. So when the crap hits the fan, they’ll suddenly be introduced to the fact that overall the banking system is build on a weak and shifting foundation that is in danger of collapsing. I don’t think Ben Bernanke and the Federal Reserve would appreciate that very much, and neither would the gigantic American banks being propped up by them.

While that would be a public relations nightmare and disaster, that would be secondary to the inevitable failure of gigantic American banks which would experience a deserved bank run which would effectively end their corporate existence. This is the real fear Ben Bernanke has and why he is trying everything within his power to ensure an audit doesn’t happen. There are other reasons, but this is the key one that really keeps Bernanke up at night.

Now let’s examine quickly what we’ve talked about before in this series, and that is the assertion of Ben Bernanke that Congress could appear to be interfering with monetary policy, when in fact the U.S. Constitution requires them to.

This is a smokescreen by Bernanke obviously, but it’s not just one smokescreen, it’s a couple smokescreens at the same time.

The first smokescreen is the Congressional one, which is so easily refuted that you must wonder why it was brought up in the first place. It’s possible that Bernanke is just ignorant, but it’s probably more than that. What he’s really afraid of ultimately is the free market; in other words, he doesn’t want Americans to find out which banks are weak and ready to crumble, so consumers are the ones to determine their fate by no longer doing business with them through the removing of their capital.

The Federal Reserve, Ben Bernanke, and the huge Wall Street banks know who really determines their fate, and that’s those who voluntarily choose to do business with them. In response, they all work together to keep those very depositors from getting the needed data to make the best decision with their capital for themselves.

Here’s the end of the reasoning behind why we should care about the auditing of the Federal Reserve: we have no idea if our capital is safe in the banks we do business with. The data to make that determination is at this time legally being kept from us by laws made to protect big banks.

So for all of us as consumers, the reason we must insist that the bill introduced by Ron Paul – HR 1207 – is brought out of committee and voted on and passed.

At this time the strategy by Barney Frank and its opponents is to keep it locked up there so politicians can say they were on board with it but it wasn’t released out of committee.

The truth on that is this: all the members of Congress have to do is vote for the bill to be released from committee in order for it to be voted on the floor to get it passed.

This is important so all of us can force the rascals to go on record and let us know if they’re representing us. Politians know they’ll pay for that vote, so aren’t making a lot of waves to make the vote happen.

Every American with money in a bank should contact and pressure their representatives to vote this out of committee and bring it on to the floor for a vote.

Our money is literally at stake, and we are holding our money in banks which we have no idea as to their financial status. We must insist that we have the right to all the data available to make the decision on which bank we’ll do business with safely, and that will never happen unless the Federal Reserve is audited on a consistent basis from now on. We all need to support HR 1207 for that reason.

I couldn’t see a full truthful audit happening. They’ve been acting with impunity for so long the tendrils probably reach throughout the entire upper echelon of power and influence, internationally. The Fed has been extremely successful in getting what it wants. It’s criminal IMO. Fear of general widespread economic turmoil, perpetuated by the Fed, will most likely lead to a vague overview with Congress, as they always have been, complicit.

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