Audit the Fed

In 1913, Congress created the Federal Reserve system to serve as the central bank for the United States. The Federal Reserve determines the nation's monetary policy. The system comprises three major components: the Board of Governors; a network of 12 Federal Reserve Banks; and member banks.

Congress created the Federal Reserve as an independent agency to enable the central bank to carry out its responsibilities protected from political pressure. The Federal Reserve's monetary policy involves increasing and decreasing the supply of money, which is done primarily by altering interest rates to achieve long-term economic objectives. The primary objective of the Federal Reserve is to ensure that money and credit grow sufficiently to encourage economic expansion without inflation. When economic problems arise, attention can quickly focus on the Federal Reserve's policy decisions.

Recently, some individuals have suggested that the Federal Reserve system should be altered due to the problems revealed in our current economic troubles.

Senator Bernard Sanders (I-VT) introduced the Federal Reserve Sunshine Act (S.604) in the Senate on March 16, 2009.  This bill would reform the manner in which the Federal Reserve System operates.  Currently, the Senate Banking, Housing, and Urban Affairs Committee is considering this legislation.

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Since its inception in 1913, the Federal Reserve has helped to devalue our dollar by 95%. During the recent economic crisis, it has poured trillions of dollars into the economy with no oversight, made secret agreements with foreign banks and governments, and has refused to tell Congress who is getting the money or to give it the details of what deals are being made.

HR 1207, Ron Paul's "Audit the Fed bill," and S 604, its Senate companion, will demand full transparency from the Federal Reserve for the first time in history by removing all restrictions from Government Accountability Office (GAO) audits of the Fed and mandating an audit by the end of 2010.

Help turn up the heat on Congress and convince them to pass Ron Paul's "Audit the Fed" bill. Your petitions, e-mails, letters and phone calls have already made a huge impact, but more of your help is needed right away. Please take a few moments to tell your Congressman to support HR 1207, and urge your Senators to cosponsor S 604. Our tools below make it quick and easy to make a difference today!

There are already 301 cosponsors for HR 1207, and 30 cosponsors for S 604! You can view the list here, or begin your efforts by signing our online petition. A treasure trove of information on Ron Paul's Audit the Fed bill and stories from fellow Campaign for Liberty members can be found below.

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July 6, 2009

Dear Friend of Liberty,

Earlier today, the first shot in our battle to pass Audit the Fed through the U.S. Senate was fired on the Senate floor by Senator Jim DeMint of South Carolina.

Senator DeMint, who has a well-deserved reputation for taking the battle to the other side in the Senate, once again proved why he is such a valuable ally in our fight to bring transparency and accountability to the Federal Reserve.

A little while ago, the Senate voted to pass HR 2918, the Legislative Branch Appropriations Act. This $3 billion bill contains, among many other things, provisions for GAO audits on certain agencies.

Seizing on a chance to take quick action to bring Audit the Fed up for a vote, and with the GAO provisions in mind, Senator DeMint attached the full text of S 604, the Senate version of Ron Paul's Audit the Fed bill, to HR 2918 as Senate Amendment 1367 before it was considered for final passage.

However, Senate Democrats refused to even allow a vote on the amendment!   That's right.  The internationalist, Fed-loving elite in the Senate used a parliamentary tactic to shut down DeMint's amendment.

After Senator DeMint brought Audit the Fed to the floor, Senator Ben Nelson of Nebraska raised a "point of order" to prevent a vote, claiming that the amendment violated Senate Rule 16 by "legislating" on an appropriations bill. The Senate president agreed, and the amendment was shot down.

Senator DeMint did not back down, though, and directly challenged Senate leadership by pointing out the other GAO audits contained in the bill. As Senator DeMint listed them off, the Senate president was forced to agree with Senator DeMint that each one he described, all of which would be left in for final passage, also violated Senate Rule 16.

Which tells us at least one thing: the problem wasn't with "legislating" on the bill or violating Senate Rules (which is commonly done).  Shooting down the amendment was about preventing a thorough audit of the Federal Reserve for the first time in its history!

Senate leadership is hoping this issue will just fade away so they can get on to what they deem to be more "important" business, like dictating what kind of healthcare plan you and I can carry or passing destructive Cap-and-Tax legislation.

But the American people deserve answers on what the Fed has done with trillions of our tax dollars and what they are committing us and future generations to as part of their secret deals with foreign central banks and governments.

The leadership decided today to turn their backs on transparency, but our fight is just beginning.

As Senator DeMint made clear on the floor, the Audit the Fed bill has wide bipartisan support.  He rightly warned the Senate that even if they delay today, they WILL have to deal with the issue on the floor.

It is up to you and me to back up Senator DeMint's words by making sure the momentum continues to build and the bill comes up for a final vote.

The rejection of the Audit amendment is just the first battle in our war. Now is the time to really put the pressure on the U.S. Senate to Audit the Fed!

Senator DeMint fired the opening salvo and showcased the hypocrisy of the Senate for allowing other GAO audits to be included in the bill while refusing to even allow a vote on Fed transparency.

Again, we're just getting started. Senator DeMint will keep fighting to pass Audit the Fed on its own or as an amendment, and we need to continue putting pressure on our senators to do everything in their power to achieve a floor vote!

Visit the Campaign for Liberty Audit the Fed action page for contact information to call, write, and fax your senators and urge them to support S 604 and to push for a final vote.