Tags: Rand Paul | Iowa | Federal Reserve | Tea Party

Rand Paul Rallies Iowans to Audit the Federal Reserve

Saturday, 07 February 2015 01:06 PM


Rand Paul couldn’t have planned it better. At the end of January, the senator from Kentucky he introduced legislation to audit the Federal Reserve’s finances and give Congress more insight into its decisions. He’d done the same in previous years.

He’d never done it in a Congress controlled by Republicans. In advance of Paul’s speech to Iowa activists, part of the group Liberty Iowa’s four-day “Audit the Fed” campaign, members of the Fed went on record criticizing Paul’s idea.

“Who in their right mind would ask the Congress of the United States — who can’t cobble together a fiscal policy — to assume control of monetary policy?” asked Richard Fisher, president of the Federal Reserve Bank of Dallas, in an interview this week with the Hill.

On Friday night, more than 150 people filed into Des Moines’ Jasper Winery. Each of them paid at least $15 for snacks and a speech.

Some paid more to enter a smaller meeting with Paul. Several wore T-shirts from the campaign of Paul’s father, former Representative Ron Paul of Texas, who first introduced the “audit the Fed” bills.

“Anybody here want to audit the Fed?” Paul asked from the stage. “Anybody feel that the Fed’s out to get us? They’re all over the TV! They’re going to be out there saying, ‘Oh, we can’t audit the Fed.’ What, are they too big to audited? To secret to be audited?”

Paul said that Fed bankers were “going crazy” with paranoia about an audit, asked activists to consider what would happen to a small bank that behaved as the Fed did.

“They’d be bankrupt, they’d be insolvent,” he said. “[The Fed’s] liabilities are $4.5 trillion; their assets are $57 billion. Do the math.

"They are leveraged 80-1. They are leveraged three times greater than Lehman Brothers was when Lehman Brothers went bankrupt. Why do we give ‘em a pass? Because they’ve got a printing press, and they can print up some more money.”

Paul linked the Fed’s policies to economic inequality and the decline of the dollar. “Once upon a time they said your dollar is good as gold,” said Paul. “Then for many decades, they said your dollar was backed by the full faith and credit of government. You know what it’s backed by now? Used car loans, bad home loans, distressed assets and derivatives."

The Fed does publishbalance sheets, weekly. Paul insisted that what was made public was mostly trivial, and that “$2 trillion” of what the central bank owned “was said to be troubled,” and could precipitate a crisis.

“I want to know who the people are that own the $4 trillion worth of debt,” he said. “Are they friends? Are they relatives of the people who work there? Did they go to school together? Is there a revolving door between Wall Street and the Treasury and the Fed, and back to Wall Street again.”

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Finance
Rand Paul couldn't have planned it better. At the end of January, the senator from Kentucky he introduced legislation to audit the Federal Reserve's finances and give Congress more insight into its decisions. He'd done the same in previous years.
Rand Paul, Iowa, Federal Reserve, Tea Party
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2015-06-07
Saturday, 07 February 2015 01:06 PM
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