Where there is smoke- there’s fire. Where there is obfuscation – there is something to hide.  Bloomberg’s effort to make the FED disclose firms benefiting from the bailouts is being dragged out by the guilty FED and its chief, Ben Bernanke.   This is why we need to pass Paul’s Audit the FED bill post haste.  We need to know what’s going on with the FED.

(ht Zerohedge) Congressman Ron Paul reports that Congressman Mel Watts, a Democrat from North Carolina, has eliminated “just about everything” while preparing Ron Paul’s legislation for formal consideration. Watt is chairman of the panel’s domestic monetary policy and technology subcommittee.  What will be the bankster’s quid pro quo for Watt’s selling the American people down the river?  More importantly, what will be the American people’s reaction to Mr. Watts?

There’s a great review of Ron Paul’s book and his efforts to audit the FED at the Ludwig von Mises site.  Worth the read…

Dr. Paul’s fight for freedom has not been confined to the issue of sound money. He has also led the struggle against interventionist and imperialist foreign policy. But the fight for liberty is seamless, and he shows that an aggressive foreign policy depends on government control of the money supply:

It is no coincidence that the century of total war coincided with the century of central banking. When governments had to fund their own wars without a paper money machine to rely upon, they economized on resources. They found diplomatic solutions to prevent war, and after they started a war they ended it as soon as possible. (p. 63)

The book contains an abundance of other arguments against our current monetary system, e.g., that it violates the Constitution. Readers will discover Thomas Paine’s poor opinion of paper money, and even how monetary debasement helped bring the Byzantine Empire to ruin. Those who have absorbed the book’s message will come to a clear conclusion: End the Fed.

According to Reuters, Rep. Barney Frank said he plans legislation to restrict the Federal Reserve’s emergency lending powers and subject the central bank to a “complete audit” in October 2009.

Frank said he has been working with Paul on compromise language. “He agrees that we don’t want to have the audit appear as if it is influencing monetary policy because that would be inflationary” . A video of his remarks was posted on YouTube here .

Frank said the audit and emergency lending provisions would be incorporated in broader legislation to revamp U.S. financial regulation that would likely pass the House in October. By seeking a compromise with Paul, Frank thinks he can strengthen the broader legislation’s chance at passage.

We’ll see if this actually gets done. Hopefully these “compromises” will not strip the bill of its teeth. We MUST have a REAL Fed Audit, not some pie-in-the-sky publicity stunt to make the ignorant think something is being done.

The Grand Rapids Press reports on a Ron Paul visit:

Former Republican presidential candidate Ron Paul has a frank prescription for the health care plan making its way through Congress: Scrap it.

“I think it’s monstrous,” Paul said.

“I don’t think it will improve medical care in this country. I think it’s very, very costly and we don’t have any money. And they don’t have any way of paying for it.”

Elsewhere, Congressman Paul has touted his own health care proposal:

Universal Healthcare never quite works out the way the people are led to believe before implementing it. Citizens in countries with nationalized healthcare never would have accepted this system had they known upfront about the rationing of care and the long lines.

As bureaucrats take over medicine, costs go up and quality goes down because doctors spend more and more of their time on paperwork and less time helping patients. As costs skyrocket, as they always do when inefficient bureaucrats take the reins, government will need to confiscate more and more money from an already foundering economy to somehow pay the bills. As we have seen many times, the more money and power that government has, the more power it will abuse. The frightening aspect of all this is that cutting costs, which they will inevitably do, could very well mean denying vital services. And since participation will be mandatory, no legal alternatives will be available.

The government will be paying the bills, forcing doctors and hospitals to dance more and more to the government’s tune. Having to subject our health to this bureaucratic insanity and mismanagement is possibly the biggest danger we face. The great irony is that in turning the good of healthcare into a right, your life and liberty are put in jeopardy.

Instead of further removing healthcare from the market, we should return to a true free market in healthcare, one that empowers individuals, not bureaucrats, with control of healthcare dollars. My bill HR 1495 the Comprehensive Healthcare Reform Act provides tax credits and medical savings accounts designed to do just that.

Congressman Paul also said he believes the Republican party needs to return to its core principles:

“They are going to have to earn that trust back. They should be more concerned about personal liberties. They shouldn’t be the great defenders of government secrecy and torture…”

“The young people aren’t supporting Republicans. The worst group for the Republicans is (age) 15 to 25. If they can’t appeal to that group, what kind of future is there for the party?”

The truth is the Republican party has no core principles.  Their “principles” are as transitory as the Democratic party’s.  The Republican party needs to be given the coup de grace and a new party without the Big government and special interest baggage formed.

Ron Paul is interviewed by the judge arguing that we can’t give the FED this much power. He goes on to say that “the people always vote for sound money”:

Senator Jim DeMint (R-SC) is blocked by Senate Democrat Leadership from having a vote on his amendment to audit the Federal Reserve by Senator Ben Nelson of Nebraska who raised a “point of order” to prevent the vote.

After being blocked, DeMint directly challenges Senate leadership by pointing out the other GAO audits contained in the bill. The Senate president was forced to agree with Senator DeMint.

The bill is based on a bill authored by Congressman Ron Paul (R-Texas) in the House, H.R. 1207, and Senator Bernie Sanders (D-Vermont) in the Senate, S. 604.

Rep. Alan Grayson asked House Dems to co-sponsor the Federal Reserve Transparency Act (HR1207). The bill calls for the GAO to audit the Federal Reserve. Ron Paul was the original author.   Zero Hedge has the link where readers can lend their support to this bill. Yves Smith has a more complete post about this effort:

It’s been obvious to anyone who bothered paying attention that the Fed is increasingly acting as an extension of the Administration, without the oversight and disclosure to which the Executive Branch is subject. For instance, only the Federal Reserve Board of Governors appears to be obligated to honor to Freedom of Information Act requests (the Board of Governors has a FOIA office). The New York Fed, which is the where the alphabet of new programs is domiciled, argues that it is a private organization and has made only limited. voluntary disclosures.

It truly is time to limit the FED. Go to the link and support the bill!  Also, be aware that the fight is just beginning in the Senate, where true persuasion will need to be accomplished (later)…only one senator is sponsoring the effort…Swamp Report suspects that the FED and it’s minions, like Goldman Sacks, Rapes and Pillages, have substantially more control over the Senate than they do of the House.