Ron Paul to Federal Reserve: Open your books

In February, Texas Republican and Libertarian darling Ron Paul introduced a bill directing the U.S. comptroller general to audit the Federal Reserve's books.

Paul, who ran for president last year, wants the Fed to open the door on all of its secret transactions -- the talks with foreign banks, the deliberations on monetary policy, the activities of the Open Market Committee, and the communications with the regional reserve banks.

In the shadows of Wall Street's collapse last year, he has attracted more 300 co-sponsors, including 130 Democrats.

But this week, he charged, the provision was gutted from the landmark financial reform legislation being marked up by Barney Frank's Financial Services Committee. Paul blamed the chair of the subcommittee on monetary policy, North Carolina Democrat Mel Watt, whose Charlotte district is home to the headquarters of Bank of America, the nation's largest commercial bank.

Arguing that the Fed is hiding the extent of U.S. dependence on printing new money, Paul -- who is hoping to get the provision restored in the bill before it gets to the House floor --  told MSNBC today that the big spending masks a serious crisis in the value of the dollar.

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Critics worry that robbing the Fed of its ability to deliberate in private will result in a weakened central financial structure -- and put Congress in charge of managing the nation's money supply.

But Paul, a physician, argues that a doctor would never hide from a cancer patient the extent of his illness, and that hiding the Fed's books amounts to kidding ourselves about the impact of its policies.

"We're still kidding ourselves," he said. "You have to bite the bullet, you have to admit the truth.... It's sort of like trying to get somebody off drugs.... Keeping them on the drug -- which is  easy money, easy spending and huge deficits and all that -- that will kill the patient, and the patient for me is the dollar.... And when you see gold up at $1,100 at ounce, that's a little bit of a warning signal."

-- Johanna Neuman

Photo credit: Bleier / Getty Images

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Comments

[John Smith]

We have been lied to while conspiratorial activities, corruption and deceit have run rampant in the halls of government. This has culminated in decent public servants have been stealthy replaced with lackeys who answer to a "shadow government", whose members are composed of the super rich and powerful. These people openly call themselves our "leaders" and constantly move to replace the will of the people with "what is best for them."

It is far past time to open books, file criminal charges and remove the pestilence of criminals which have usurped power from the people. It appears that treasonous actions have become the mode of government!

Regards,
JS

[steve rodriguez]

Obama Admin. pay your taxes!!!!!

[Ben]

Nice interview. Sound honest answers from the good doctor.

[Nancy]

People would be wise to take note of what Mr. Paul is saying. The crisis we are going thru now; realization of mortgage and personal bad debt, is nothing compared to what a crisis of realization of national bad debt. Increased government spending will just hasten us to that ugly scenario.

[Aaron Nichols]

Well said!

[Billy Kilford]

I would love to see this bill get passes and see what skeletons are hiding in bernanke's closet!!
GJ Ron :)

[Leo Liberty]

Oh Johanna...

Why can't Andrew be like you and write like you ON THE ISSUE...
Whatever happen to our pride in SERVING THE PUBLIC...

You can kill a man, but you can NEVER KILL HIS IDEAS...

[Maggie Knowles]

I agree, we HAVE to open up the FED and see what's inside.

I've been reading "Confessions of An Economic Hit Man" by John Perkins - he helps connect the dots on U.S. Foreign Policy, the banks, the CIA, Iraq, Iran, Pakistan, Indonesia, Panama, etc. He's got another book coming out, "Hoodwinked":
Hoodwinked: An Economic Hit Man Reveals Why the World Financial Markets Imploded--and What We Need to Do to Remake Them (Hardcover)

http://www.amazon.com/Hoodwinked-Economic-Reveals-Financial-Imploded/dp/0307589927/ref=ntt_at_ep_dpt_4

"Another thriller from the master storyteller with an insider view. Perkins takes us once again into the dark netherworld of corrupt bankers and economic hit men who lure the unsuspecting into financial ruin and reveals the connection between the folks who for decades enriched themselves at the expense of the world's poor and those who now reap billions at the expense of America. Same people, same scams."
—David Korten, author of Agenda for a New Economy and The Great Turning, and board chair of YES! magazine

"John Perkins' engaging narrative draws us into a brilliant analysis of capitalism's shadow side, and points us to a hopeful path to a better future. Hoodwinked is a must-read for anyone who cares about our economic welfare, social justice, and our collective well-being."

—DANIEL GOLEMAN, bestselling author of Emotional Intelligence and Ecological Intelligence

[James Orleans]

Ron Paul is one of the only honest politicians in Washington D.C. He would make a good President.

[Xoro]

Johanna --

You seem to have left out the amused-yet-alarming references to kooks, Nazis and Truthers that must accompany all articles about Ron Paul's policy positions.

Press pass revoked.