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BUT WILL HARRY REID ALLOW A VOTE IN THE SENATE?
by Sharon Rondeau
(Jul. 26, 2012) — On Wednesday the U.S. House of Representatives passed a bill for a complete audit of the Federal Reserve to be completed by Congressional investigators.
In 1995, Sen. Harry Reid had “sponsored legislation to call for an audit of the Federal Reserve…every year…” but now reportedly opposes it. Some Democrats are pleased that Reid says he will not allow a vote on it during this session, stating that the Congressional oversight would become a “nightmare scenario.”
Constitutionally, it is the responsibility of Congress “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;…”
In December 1913, President Woodrow Wilson signed the Federal Reserve Act into law to create a new central banking system with the purpose of avoiding financial panics. Economist and free-market advocate Milton Friedman had blamed the Federal Reserve for making the Great Depression, which began in 1929, worse. Although brought into existence by federal legislation, the Federal Reserve has been ruled by the Ninth Circuit Court of Appeals to be a private organization.
Currently, there are 12 regional Federal Reserve banks throughout the country in 12 Federal Reserve “districts” created by the 1913 law. Money issued by the Federal Reserve is sometimes referred to as “fiat money” and identified as a cause of financial collapse, including the current crisis in banking, housing, and the national debt.
Rep. Paul is retiring from Congress after three decades of service and says that Mitt Romney has endorsed the legislation against what Paul says is “the most powerful institution in the world.” He added that 80% of the American people favor an audit. One news service states that there is “zero” chance of its coming to a vote in the U.S. Senate.
Federal Reserve Chairman Ben Bernanke claims that the organization is already transparent and should not become subject to “political pressure.”
The House bill, titled “To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States before the end of 2012, and for other purposes,” would require a “regular audit” of a system which Paul considers responsible for the “boom and bust” cycles in the economy.
Rep. Paul will be holding a rally prior to the Republican National Committee meeting to nominate their presidential candidate at the end of August in Tampa, Florida.