Will Ron Paul Vote Against His Own Bill to Audit the Federal Reserve?
Washington has been so out of touch with principles and reality for so long, that they probably think voting for the bill initiated by Ron Paul to edit the Federal Reserve would be political feather in the cap of Ron Paul. But it looks like that isn’t going to be so, as it wasn’t allowed to stand alone, and has been tacked on to another bill which Paul couldn’t allow himself to vote for, so it looks like he’ll be voting against his own bill, which of course, has quickly become something more.
Having said that, the bill itself, assuming it remains as it is, will be a very positive step forward to reining in the Federal Reserve, which has become an unaccountable, secret organization which make deals with foreign governments and foreign central banks with impunity, while making decisions which go far beyond its charter; things like bailing out whatever industry they feel like bailing out, even if they’ve never been delegated the authority to do so. Sectors like the insurance and auto industry, which aren’t in any way under the umbrella of the Federal Reserve.
What the Ron Paul legislation will do, is subject the Federal Reserve to a full audit for the first time in history, via the Government Accountability Office. Unfortunately, as mentioned earlier, it has been grouped together with a finance reform bill which Paul doesn’t believe in. So being a truly principled man, he’ll vote against it, even with his legislation included. The good news for Paul’s bill is, more than likely Paul will be outvoted and the bill will pass, with Paul’s legislation included.
Paul rejects the notion that this will somehow interfere with the independence of the Federal Reserve, as his primary focus in the bill is to force the highly secretive Federal Reserve out into the open so lawmakers and the public can see what they have been doing behind closed doors with foreign nations and domestically. In other words, Paul is asking for transparency at the financial institution through this bill.
As Paul has rightly noted though, it must be big what the Fed is trying to hide, as the opposition is so strong it seems whatever is attempted to be hidden will not be approved of by Americans or its political representatives.
Paul stated in a recent interview: “What they’re talking about when they say they want no political influence, what they’re talking about is they just want secrecy. Why would they be so nervous about us finding this out? It tells you there’s something big going on.”
With the Federal Reserve picking and choosing who they decided to allow to be bailed out, this has also triggered a red flag with Paul, who wants to know through the audit of the Federal Reserve why certain businesses were chosen to be saved and others not. He wants to know why the Federal Reserve went beyond its authority and bailed out those in the auto and insurance industries.
One of the ideas the Federal Reserve has been using to combat the bill is that there could be a perception by outsiders and the public that political pressure could undermine the independence of the Federal Reserve, creating economic stability. Let’s see, you mean like we’re living in today without an audit of the Federal Reserve.
It couldn’t get much worse than we’ve been experiencing over the last couple of years in America, so how would keeping things as they are help in any way concerning the Federal Reserve? They wouldn’t, which is why a full audit of the Federal Reserve is a great thing, even if it is attached to a bill full of other misguided proposals.
So, yes, Ron Paul will vote against his own bill, but for the reason that it has been mingled together with something else Ron Paul doesn’t believe in. Too bad we don’t have a large number of politicians who understand the forces they’re dealing with and yet stick to what they believe in as Ron Paul does.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.