Audit the Federal Reserve: Support H.R. 24

Audit the Federal Reserve: Support H.R. 24
By JBS President John F. McManus

On January 3, 2013, Congressman Paul Broun (R-Ga.) introduced H.R. 24 entitled “Federal Reserve Transparency Act.” It calls for audits of the Board of Governors of the Federal Reserve and the Federal Reserve Banks. And it further calls for those audits to be provided to Congress.

As of May 9, 2014, H.R. 24 has 228 co-sponsors. This means that more than a majority of the members of the House of Representatives has formally indicated a desire to remove the cloud of secrecy under which the Federal Reserve has operated during its 100 years of existence. (An act of Congress created the Fed in 1913.)

Even though similar numerical support for an audit has been gained in two predecessor congresses, a meaningful audit that counts more than desks and pencils has never been conducted. Secrecy continues to prevail and the Fed’s officials continue to maintain that its “independence” requires that it operate behind closed doors.

When the Fed began in 1913, the dollar was worth 100 cents. Its value has steadily declined so that now, according to numerous monetary specialists, its worth is approximately two cents. In other words, the price paid in dollars for an item in 1913 has risen by a factor of 50 times. “Dollars aren’t worth what they used to be,” can be heard from coast to coast and beyond. Credit the Federal Reserve!

In Article I, Section 8, the U.S. Constitution grants Congress power to “coin money.” No power was given to create or issue money, and certainly none to pass on illegitimate power to a private entity such as the Fed. But this is where we are. Without a thorough audit of the Fed, we don’t know who owns it, where it delivers much of the funds it creates out of thin air, and a great deal more. Intolerable? You bet.

When the Fed got started, the U.S. Treasury was issuing paper money redeemable in the government’s gold. That process died in 1933 when President Roosevelt took the nation off the gold standard. The Treasury was then issuing silver certificates backed by silver in the government’s vault. That process ended during the Richard Nixon era. Now we have Federal Reserve Notes backed by nothing and, because they have nothing behind them, the amount that can be printed and inserted into the system is unlimited. Totally unbacked paper bills flooding the nation take on value by acquiring some value of all existing bills. In simple terms, the erosion of the dollar’s value is Fed-created thievery.

If the power possessed by the Fed remains unchallenged, the dollar will continue its slide toward nothingness. Karl Marx wanted a central bank that would destroy freedom. The looming national catastrophe desired by Marx would inevitably result in reliance on some new form of world currency, something being proposed by the United Nations. And our nation would no longer be independent and free. Having the Fed audited is a major step toward averting such a tragedy.

The current attempt to audit the Fed is likely to run into the same blocking wall as in the past unless more people demand that the secrecy cease. While it’s somewhat comforting to know that more than half of the House membership is formally on record wanting “transparency,” having a majority isn’t enough. H.R. 24 must be enacted by the House and then by the Senate. Has your congressman co-sponsored H.R. 24? What about your two senators? Are they willing to put their portion of Congress on record issuing a similar demand? Contact them today!

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