Should we audit the Fed?
Ask that question of Rep. Ron Paul (R-Texas), his answer, I’d bet, would be “Yes.” In fact, such a bet would be as close to a sure thing any American could hope for when it involves Washington politicians and bureaucrats. That’s because Dr. Paul has long called for such active oversight and analysis of the bookkeeping at the Fed.
Simply stated, key reasons for initiating the audit process are these two facts:
- The Federal Reserve is the central control point for all things affecting ‘money’; and,
- Since the Federal Reserve was created in 1913, the staged decline of the intrinsic value of the American dollar has been dramatic.
How much is our dollar worth today? Think “plugged nickel.”
Setting aside those who, over the years, choose to speak in tongues about money to America’s citizens, here’s a brief historical recap for you:
Back in Bethlehem, the three wise men brought gold, frankincense and myrrh with them as gifts for the newborn king. Setting aside the frankincense and myrrh, even then gold was the primary metal of tangible value. Among its various forms, gold could be made into coins. That made gold convenient to carry and exchange for goods and services.
Particularly importantly, individuals could set the value of gold for themselves in what was a real free-market of commerce and exchange.
Today, almost all forms of money are intangible. How did it get that way.
In no small part because of what happened in 1913 with the creation of the Federal Reserve System.
The Fed is the central bank with monopoly power and the power of the currency. That single action has had profound impact on your ancestor’s money, your parent’s money, and now on your money.
As you ponder that point, consider too how people and their lives can be controlled via the power of the purse. Perhaps, our understanding is enhanced—indeed made clear—by considering the succinct statement by the German banker Mayer Amschel Rothschild “Permit me to issue and control the money of a nation, and I care not who makes its laws.”
It would be foolish to think that those behind the creation of the Federal Reserve were unaware of Rothschild, his philosophy on banking and beyond.
In 1913, a dollar was worth a certain amount of gold. More importantly, your ancestors could bring their dollars to any bank and demand in exchange the dollars deemed value in gold. In other words, both gold and dollars could be held by individuals or used as money.
Within 20 years, Franklin Roosevelt would change that. In 1933, Congress agreed to outlaw gold ownership by individuals, and more.
In 1971, President Nixon prohibited payments to foreigners who wanted to exchange American dollars for gold.
Both actions undermined the implied relationship between gold and what we call the American dollar: the Federal Reserve Note.
Before continuing, pause and take out one of your hard-earned dollars or notes, if you will. Look at it. Read the face of it—Federal Reserve Note. Crinkle it—feel it. It’s real—right? Yes—and no. Yes, it’s real because you can see it and feel it. So, it that sense, you and I can say, it is real.
But, go to the nearest bank. Present your dollar to the teller, and dare request in exchange its worth in gold. I must warn you, the only immediate thing you should expect is a blank stare. You will not get gold or silver, just that blank stare.
And, please do not demand anything else—including frankincense or myrrh. That went the way of the wise men.
The Federal Reserve Notes you and I have in our wallets, deposit accounts, etc., is what has come to be called “fiat money.” What is that? Fiat money is “state-issued (paper) money which is neither legally convertible to any other thing… nor fixed in value in terms of any objective standard… without intrinsic value.” Is it any wonder why Dr. Paul’s call for an audit of the Fed has gone nowhere? America’s Citizens deserve better. We need not only an audit, and full accounting; we need a new set of external accountants—in fact, forensic accountants—with the will and persistence to uncover the truth and report expeditiously to the people.
Richard Olivastro is president of Olivastro Communications, a professional member of the National Speakers Association, and founder of Citizens For Change (www.CFC.us). He can be reached via email: RichOlivastro@gmail.com ; telephone: 877.RichSpeaks.Checkout his blog: www.richardolivastro.com/blog