Daily Archives: June 12, 2009

FED Inspector Clueless — Where Has All the Money Gone?

The recent testimony before Congress of the Inspector General of the Federal Reserve is laughably outrageous—a startling example of the persistent stonewalling and obfuscation by the private central bank that runs our government. Fortunately, we have a few courageous Representatives who are willing to ask the right questions. This video of questioning by Rep. Alan Grayson (D-Florida) is a “must see.”

Here is an excerpt from Rep. Grayson’s newsletter dated June 11, 2009:

Since last September, the Federal Reserve Bank has handed out over $1 trillion.  That’s $1,000,000,000,000.  It won’t tell us who got the money.

The Federal Reserve Bank also has guaranteed loans for an even larger amount.  Bloomberg News says around $9 trillion.  That’s $30,000 for every American.  It won’t tell us who got those guarantees.

I’m a member of the House Financial Services Committee.  A few weeks ago, the Inspector General of the Federal Reserve Bank was called as a witness.  I asked her if she knew who got the money.  She said no.

The Inspector General also admitted that she didn’t know how much money the Federal Reserve Bank has lost, already, on those deals.

That video was posted on YouTube, here.  Over 650,000 people have downloaded it and seen it.  That makes it the 6th most popular news video in the world last month, as you can see here.

Add the number who have seen the high-fidelity version, here, and the number of viewers is over 900,000.  Counting those viewers, it was the 4th most popular news video in the world last  month.

900,000 concerned citizens.  That’s more than the total circulation of every newspaper in Central Florida, combined.  That’s more than the total number of viewers watching the local news at 6 pm and 11 pm, combined.

The media did not cover this hearing at all.  But people found this clip on YouTube and told their friends about it, over and over again.

What this clip shows is that the Federal Reserve Bank is out of control.  And I’m working to do something about it.

I was the first Democrat to come out in favor of Rep. Ron Paul’s bill to audit the Federal Reserve Bank, H.R. 1207.  And I’ve used this video to mobilize bipartisan support for the bill.  Since the hearing, dozens and dozens of members of Congress have signed up.  They can see for themselves how badly this mess needs to be cleaned up.  We’re getting close to 218 co-sponsors, a majority of the House.

Congressman Ron Paul (R-Texas) has introduced a bill to not only audit the Federal Reserve, but also to abolish it (The Federal Reserve Board Abolition Act, H.R. 833. February 4, 2009). It’s encouraging to see the money and banking problem once more in the political spotlight. This is a time of great opportunity for liberating the “credit commons,” but it is also a time of great danger. Most politicians know little about the principles of sound money and banking, they believe in the centralization of power that is enabled by laws like “legal tender,” and they can easily be manipulated or bought off by the financial powers who will use any crisis as an opportunity to promote “solutions” that further enhance their power and ability to dominate economies, nations, and peoples.

It’s not only the Federal Reserve that’s “out of control,” it’s also our government and virtually all of our institutions and life support systems. The situation calls for the application of our collective intelligence to solving our problems and the devolution of power to the community level.

As I said in an earlier blog post, Eventually, it may be possible to act effectively at the governmental level, but only after the people have strongly asserted their own power to mediate the exchange process using their own credit apart from banks and the political money system. Only that assertion can bring about the “true free-market economy” that Mr. Paul desires. The nature of this power and how we can assert it are thoroughly addressed in my latest book, The End of Money and Future of Civilization. Please read it, and ask your representatives to read it. Better yet, send them a copy. –t.h.g.