Former Congressman and Presidential candidate Ron Paul was known primarily for his movement within the financial and political realms, and it involved a crusade to both audit and end the Federal Reserve bank. And while his tireless efforts led to a miniscule audit of the private central bank which revealed how it had bailed out domestic and foreign banks, as well as many multi-national corporations, the end result accomplished little as his retirement signaled the end of the war on the Fed.
Or has it?
On Dec. 23, Senator and Democratic Presidential candidate Bernie Sanders wrote an op-ed in the New York Times picking up Ron Paul’s mantle and channeling his own crusade to bring about a full and independent audit of the 100 year old central bank.
2016 Democratic presidential candidate and U.S. Senator from Vermont Bernie Sanders wrote an op-ed for The New York Times on Wednesday calling for the Federal Reserve to be audited independently by the Government Accountability Office on an annual basis.
Meanwhile, Senate Majority Leader Mitch McConnell (R-Ky.) has scheduled a historic Jan. 12 vote on a bill, colloquially referred to as “Audit the Fed,” which was introduced by Sen. Rand Paul (R-Ky.). The bill would authorize the GAO to perform full audits of the Federal Reserve System.
“To rein in Wall Street, we should begin by reforming the Federal Reserve, which oversees financial institutions and which uses monetary policy to maintain price stability and full employment. Unfortunately, an institution that was created to serve all Americans has been hijacked by the very bankers it regulates,” wrote Sen. Sanders. – Truth in Media
Seven years after the Federal Reserve usurped its mandates to bail out the very same banks that nearly brought the global financial system to the precipice of collapse, confidence in the policies and abilities of the central bank have led to the unthinkable in the halls of Congress. In fact, the recent interest rate hike had little to do with sound monetary policy, as one does not squeeze liquidity at a time when the economy is in a deflationary recession, but more about saving the Fed’s credibility after jawboning recovery and promising to raise rates for more than a year.
The era of the central bank in America has been one of sheer failure, leading less than 20 years after its inception to a decade’s long Depression and then to the end of gold backed money. And with the entire financial system now run on debt based models, where zero interest rates and massive borrowing have led to virtual insolvency (national debt is now greater than total GDP), politicians are finally coming to realize that the root problem is and always has been a privately run central bank, and unless it is held accountable by some form of regulation, it will eventually kill the host and destroy the American financial system just as it has done to nearly all nations over the past 400 years.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.