Ron Paul words on HR1207

Here is the speech given on the House floor by Congressman Ron Paul when he was introducting HR1207.



* Mr. PAUL. Madam Speaker, I rise to introduce the Federal Reserve Transparency Act. Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95% of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy. How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation.

* Serious discussion of proposals to oversee the Federal Reserve is long overdue. I have been a longtime proponent of more effective oversight and auditing of the Fed, but I was far from the first Congressman to advocate these types of proposals. Esteemed former members of the Banking Committee such as Chairmen Wright Patman and Henry B. Gonzales were outspoken critics of the Fed and its lack of transparency.

* Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations. While the conventional excuse is that this is intended to reduce the Fed’s susceptibility to political pressures, the reality is that the Fed acts as a foil for the government. Whenever you question the Fed about the strength of the dollar, they will refer you to the Treasury, and vice versa. The Federal Reserve has, on the one hand, many of the privileges of government agencies, while retaining benefits of private organizations, such as being insulated from Freedom of Information Act requests.

* The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight? Particularly when hundreds of billions of dollars of currency swaps have been announced and implemented, the Fed’s negotiations with the European Central Bank, the Bank of International Settlements, and other institutions should face increased scrutiny, most especially because of their significant effect on foreign policy. If the State Department were able to do this, it would be characterized as a rogue agency and brought to heel, and if a private individual did this he might face prosecution under the Logan Act, yet the Fed avoids both fates.

* More importantly, the Fed’s funding facilities and its agreements with the Treasury should be reviewed. The Treasury’s supplementary financing accounts that fund Fed facilities allow the Treasury to funnel money to Wall Street without GAO or Congressional oversight. Additional funding facilities, such as the Primary Dealer Credit Facility and the Term Securities Lending Facility, allow the Fed to keep financial asset prices artificially inflated and subsidize poorly performing financial firms.

The Federal Reserve Transparency Act would eliminate restrictions on GAO audits of the Federal Reserve and open Fed operations to enhanced scrutiny. We hear officials constantly lauding the benefits of transparency and especially bemoaning the opacity of the Fed, its monetary policy, and its funding facilities. By opening all Fed operations to a GAO audit and calling for such an audit to be completed by the end of 2010, the Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve. I urge my colleagues to support this bill.


4 Responses to “Ron Paul words on HR1207”

  1. 1 DJ
    12 June 2009 at 14:32

    Yesterday Dennis Kucinich signed on as a co-sponsor giving this bill 218! I believe the total is now around 220 (data from house.gov below). This bill is virtually guaranteed of getting through the house, the Senate may be a bit difficult. Laslty, the Federal Reserve has a hired a PR lobbying group (http://www.reuters.com/article/politicsNews/idUSTRE55460K20090605) to lobby against this bill…I wonder why…

    Title: To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
    Sponsor: Rep Paul, Ron [TX-14] (introduced 2/26/2009) Cosponsors (221)

    Here are the current co-sponsors:
    Rep Abercrombie, Neil [HI-1] – 2/26/2009 Rep Aderholt, Robert B. [AL-4] – 5/6/2009
    Rep Adler, John H. [NJ-3] – 5/6/2009 Rep Akin, W. Todd [MO-2] – 3/19/2009
    Rep Alexander, Rodney [LA-5] – 3/10/2009 Rep Altmire, Jason [PA-4] – 5/20/2009
    Rep Austria, Steve [OH-7] – 5/6/2009 Rep Bachmann, Michele [MN-6] – 2/26/2009
    Rep Bachus, Spencer [AL-6] – 4/29/2009 Rep Baldwin, Tammy [WI-2] – 4/21/2009
    Rep Barrett, J. Gresham [SC-3] – 4/28/2009 Rep Barrow, John [GA-12] – 5/12/2009
    Rep Bartlett, Roscoe G. [MD-6] – 2/26/2009 Rep Barton, Joe [TX-6] – 5/4/2009
    Rep Berkley, Shelley [NV-1] – 5/21/2009 Rep Berry, Marion [AR-1] – 5/20/2009
    Rep Biggert, Judy [IL-13] – 4/28/2009 Rep Bilbray, Brian P. [CA-50] – 4/21/2009
    Rep Bilirakis, Gus M. [FL-9] – 5/4/2009 Rep Bishop, Rob [UT-1] – 4/21/2009
    Rep Blackburn, Marsha [TN-7] – 3/16/2009 Rep Blunt, Roy [MO-7] – 3/24/2009
    Rep Boehner, John A. [OH-8] – 6/10/2009 Rep Bonner, Jo [AL-1] – 6/9/2009
    Rep Bono Mack, Mary [CA-45] – 4/29/2009 Rep Boozman, John [AR-3] – 5/7/2009
    Rep Boswell, Leonard L. [IA-3] – 6/9/2009 Rep Boustany, Charles W., Jr. [LA-7] – 5/13/2009
    Rep Brady, Kevin [TX-8] – 4/22/2009 Rep Braley, Bruce L. [IA-1] – 6/11/2009
    Rep Bright, Bobby [AL-2] – 6/11/2009 Rep Broun, Paul C. [GA-10] – 2/26/2009
    Rep Brown, Corrine [FL-3] – 6/11/2009 Rep Brown, Henry E., Jr. [SC-1] – 4/28/2009
    Rep Brown-Waite, Ginny [FL-5] – 5/20/2009 Rep Buchanan, Vern [FL-13] – 3/17/2009
    Rep Burgess, Michael C. [TX-26] – 3/19/2009 Rep Burton, Dan [IN-5] – 2/26/2009
    Rep Buyer, Steve [IN-4] – 4/30/2009 Rep Calvert, Ken [CA-44] – 4/29/2009
    Rep Campbell, John [CA-48] – 5/4/2009 Rep Cao, Anh “Joseph” [LA-2] – 6/11/2009
    Rep Capito, Shelley Moore [WV-2] – 4/1/2009 Rep Carney, Christopher P. [PA-10] – 6/9/2009
    Rep Carter, John R. [TX-31] – 3/31/2009 Rep Cassidy, Bill [LA-6] – 5/4/2009
    Rep Castle, Michael N. [DE] – 3/17/2009 Rep Chaffetz, Jason [UT-3] – 3/6/2009
    Rep Childers, Travis [MS-1] – 6/9/2009 Rep Coble, Howard [NC-6] – 6/11/2009
    Rep Cole, Tom [OK-4] – 4/21/2009 Rep Conaway, K. Michael [TX-11] – 5/7/2009
    Rep Crenshaw, Ander [FL-4] – 5/4/2009 Rep Culberson, John Abney [TX-7] – 3/26/2009
    Rep Davis, Geoff [KY-4] – 5/6/2009 Rep Deal, Nathan [GA-9] – 3/23/2009
    Rep DeFazio, Peter A. [OR-4] – 3/9/2009 Rep Dent, Charles W. [PA-15] – 5/6/2009
    Rep Doggett, Lloyd [TX-25] – 4/21/2009 Rep Dreier, David [CA-26] – 6/10/2009
    Rep Duncan, John J., Jr. [TN-2] – 3/6/2009 Rep Edwards, Donna F. [MD-4] – 6/11/2009
    Rep Ehlers, Vernon J. [MI-3] – 4/21/2009 Rep Fallin, Mary [OK-5] – 4/2/2009
    Rep Flake, Jeff [AZ-6] – 5/11/2009 Rep Fleming, John [LA-4] – 3/18/2009
    Rep Forbes, J. Randy [VA-4] – 5/20/2009 Rep Fortenberry, Jeff [NE-1] – 5/12/2009
    Rep Foxx, Virginia [NC-5] – 3/10/2009 Rep Franks, Trent [AZ-2] – 3/23/2009
    Rep Frelinghuysen, Rodney P. [NJ-11] – 6/3/2009 Rep Garrett, Scott [NJ-5] – 3/5/2009
    Rep Gerlach, Jim [PA-6] – 5/11/2009 Rep Gingrey, Phil [GA-11] – 3/30/2009
    Rep Gohmert, Louie [TX-1] – 4/23/2009 Rep Goodlatte, Bob [VA-6] – 4/28/2009
    Rep Granger, Kay [TX-12] – 4/28/2009 Rep Graves, Sam [MO-6] – 4/22/2009
    Rep Grayson, Alan [FL-8] – 3/11/2009 Rep Grijalva, Raul M. [AZ-7] – 6/3/2009
    Rep Guthrie, Brett [KY-2] – 5/7/2009 Rep Hall, Ralph M. [TX-4] – 4/29/2009
    Rep Halvorson, Deborah L. [IL-11] – 6/3/2009 Rep Hare, Phil [IL-17] – 5/11/2009
    Rep Harper, Gregg [MS-3] – 5/11/2009 Rep Hastings, Doc [WA-4] – 5/11/2009
    Rep Heller, Dean [NV-2] – 3/6/2009 Rep Hensarling, Jeb [TX-5] – 5/4/2009
    Rep Herger, Wally [CA-2] – 4/21/2009 Rep Herseth Sandlin, Stephanie [SD] – 5/6/2009
    Rep Hinchey, Maurice D. [NY-22] – 6/2/2009 Rep Hoekstra, Peter [MI-2] – 4/28/2009
    Rep Holden, Tim [PA-17] – 6/4/2009 Rep Hunter, Duncan D. [CA-52] – 5/13/2009
    Rep Inglis, Bob [SC-4] – 4/23/2009 Rep Inslee, Jay [WA-1] – 5/12/2009
    Rep Jenkins, Lynn [KS-2] – 4/23/2009 Rep Johnson, Henry C. “Hank,” Jr. [GA- 4] – 6/9/2009
    Rep Johnson, Sam [TX-3] – 4/22/2009 Rep Johnson, Timothy V. [IL-15] – 4/23/2009
    Rep Jones, Walter B., Jr. [NC-3] – 2/26/2009 Rep Jordan, Jim [OH-4] – 6/2/2009
    Rep Kagen, Steve [WI-8] – 2/26/2009 Rep Kaptur, Marcy [OH-9] – 4/23/2009
    Rep King, Peter T. [NY-3] – 6/4/2009 Rep King, Steve [IA-5] – 6/11/2009
    Rep Kingston, Jack [GA-1] – 3/6/2009 Rep Kline, John [MN-2] – 4/29/2009
    Rep Kratovil, Frank, Jr. [MD-1] – 6/4/2009 Rep Kucinich, Dennis J. [OH-10] – 6/11/2009
    Rep Lamborn, Doug [CO-5] – 4/21/2009 Rep Lance, Leonard [NJ-7] – 5/11/2009
    Rep Latham, Tom [IA-4] – 4/21/2009 Rep LaTourette, Steven C. [OH-14] – 4/28/2009
    Rep Latta, Robert E. [OH-5] – 5/20/2009 Rep Lee, Christopher J. [NY-26] – 6/10/2009
    Rep Linder, John [GA-7] – 5/6/2009 Rep Lipinski, Daniel [IL-3] – 6/4/2009
    Rep LoBiondo, Frank A. [NJ-2] – 5/4/2009 Rep Loebsack, David [IA-2] – 6/10/2009
    Rep Lucas, Frank D. [OK-3] – 4/21/2009 Rep Luetkemeyer, Blaine [MO-9] – 4/21/2009
    Rep Lummis, Cynthia M. [WY] – 3/19/2009 Rep Lungren, Daniel E. [CA-3] – 5/7/2009
    Rep Mack, Connie [FL-14] – 5/12/2009 Rep Maffei, Daniel B. [NY-25] – 5/12/2009
    Rep Manzullo, Donald A. [IL-16] – 4/21/2009 Rep Marchant, Kenny [TX-24] – 3/11/2009
    Rep Massa, Eric J. J. [NY-29] – 4/22/2009 Rep McCarthy, Kevin [CA-22] – 5/4/2009
    Rep McCaul, Michael T. [TX-10] – 4/21/2009 Rep McClintock, Tom [CA-4] – 3/6/2009
    Rep McCotter, Thaddeus G. [MI-11] – 3/19/2009 Rep McDermott, Jim [WA-7] – 4/29/2009
    Rep McGovern, James P. [MA-3] – 6/10/2009 Rep McHenry, Patrick T. [NC-10] – 4/30/2009
    Rep McHugh, John M. [NY-23] – 5/4/2009 Rep McIntyre, Mike [NC-7] – 6/10/2009
    Rep McKeon, Howard P. “Buck” [CA-25] – 6/11/2009 Rep McMorris Rodgers, Cathy [WA-5] – 5/4/2009
    Rep Mica, John L. [FL-7] – 5/12/2009 Rep Michaud, Michael H. [ME-2] – 5/7/2009
    Rep Miller, Candice S. [MI-10] – 4/28/2009 Rep Miller, Gary G. [CA-42] – 6/10/2009
    Rep Miller, Jeff [FL-1] – 3/24/2009 Rep Minnick, Walter [ID-1] – 5/13/2009
    Rep Mitchell, Harry E. [AZ-5] – 6/9/2009 Rep Moran, Jerry [KS-1] – 5/4/2009
    Rep Murphy, Patrick J. [PA-8] – 6/9/2009 Rep Murphy, Tim [PA-18] – 4/29/2009
    Rep Myrick, Sue Wilkins [NC-9] – 4/28/2009 Rep Neugebauer, Randy [TX-19] – 4/30/2009
    Rep Olson, Pete [TX-22] – 4/21/2009 Rep Ortiz, Solomon P. [TX-27] – 5/14/2009
    Rep Pascrell, Bill, Jr. [NJ-8] – 6/9/2009 Rep Pastor, Ed [AZ-4] – 5/20/2009
    Rep Paulsen, Erik [MN-3] – 3/30/2009 Rep Pence, Mike [IN-6] – 4/21/2009
    Rep Perlmutter, Ed [CO-7] – 6/10/2009 Rep Perriello, Thomas S.P. [VA-5] – 5/13/2009
    Rep Peterson, Collin C. [MN-7] – 3/19/2009 Rep Petri, Thomas E. [WI-6] – 3/10/2009
    Rep Pitts, Joseph R. [PA-16] – 4/28/2009 Rep Platts, Todd Russell [PA-19] – 3/19/2009
    Rep Poe, Ted [TX-2] – 2/26/2009 Rep Polis, Jared [CO-2] – 6/11/2009
    Rep Posey, Bill [FL-15] – 2/26/2009 Rep Price, Tom [GA-6] – 3/10/2009
    Rep Putnam, Adam H. [FL-12] – 4/28/2009 Rep Radanovich, George [CA-19] – 5/6/2009
    Rep Rehberg, Denny [MT] – 2/26/2009 Rep Reichert, David G. [WA-8] – 5/20/2009
    Rep Roe, David P. [TN-1] – 4/21/2009 Rep Rogers, Mike D. [AL-3] – 5/13/2009
    Rep Rogers, Mike J. [MI-8] – 5/20/2009 Rep Rohrabacher, Dana [CA-46] – 3/6/2009
    Rep Rooney, Thomas J. [FL-16] – 4/22/2009 Rep Ros-Lehtinen, Ileana [FL-18] – 4/28/2009
    Rep Roskam, Peter J. [IL-6] – 6/2/2009 Rep Ross, Mike [AR-4] – 5/21/2009
    Rep Royce, Edward R. [CA-40] – 5/12/2009 Rep Ryan, Paul [WI-1] – 5/14/2009
    Rep Scalise, Steve [LA-1] – 5/20/2009 Rep Schakowsky, Janice D. [IL-9] – 5/6/2009
    Rep Schauer, Mark H. [MI-7] – 5/20/2009 Rep Schmidt, Jean [OH-2] – 6/11/2009
    Rep Schock, Aaron [IL-18] – 5/6/2009 Rep Sensenbrenner, F. James, Jr. [WI- 5] – 5/7/2009
    Rep Sessions, Pete [TX-32] – 3/23/2009 Rep Shadegg, John B. [AZ-3] – 5/7/2009
    Rep Shea-Porter, Carol [NH-1] – 6/9/2009 Rep Shimkus, John [IL-19] – 4/22/2009
    Rep Shuster, Bill [PA-9] – 5/7/2009 Rep Simpson, Michael K. [ID-2] – 4/28/2009
    Rep Smith, Adam [WA-9] – 4/22/2009 Rep Smith, Adrian [NE-3] – 4/28/2009
    Rep Smith, Lamar [TX-21] – 4/2/2009 Rep Speier, Jackie [CA-12] – 6/11/2009
    Rep Stark, Fortney Pete [CA-13] – 3/26/2009 Rep Stearns, Cliff [FL-6] – 3/6/2009
    Rep Taylor, Gene [MS-4] – 3/6/2009 Rep Terry, Lee [NE-2] – 3/30/2009
    Rep Thompson, Glenn [PA-5] – 4/22/2009 Rep Thornberry, Mac [TX-13] – 5/21/2009
    Rep Tiahrt, Todd [KS-4] – 4/28/2009 Rep Tiberi, Patrick J. [OH-12] – 4/28/2009
    Rep Tonko, Paul D. [NY-21] – 6/9/2009 Rep Turner, Michael R. [OH-3] – 5/13/2009
    Rep Upton, Fred [MI-6] – 4/29/2009 Rep Walden, Greg [OR-2] – 5/4/2009
    Rep Walz, Timothy J. [MN-1] – 5/7/2009 Rep Wamp, Zach [TN-3] – 3/16/2009
    Rep Welch, Peter [VT] – 5/21/2009 Rep Westmoreland, Lynn A. [GA-3] – 4/2/2009
    Rep Whitfield, Ed [KY-1] – 5/14/2009 Rep Wilson, Joe [SC-2] – 4/29/2009
    Rep Wittman, Robert J. [VA-1] – 4/1/2009 Rep Wolf, Frank R. [VA-10] – 6/11/2009
    Rep Woolsey, Lynn C. [CA-6] – 2/26/2009 Rep Young, C.W. Bill [FL-10] – 6/3/2009
    Rep Young, Don [AK] – 3/6/2009

  2. 12 June 2009 at 14:48

    @DJ: Thank you for the update.

    The bill is now up to 221 cosponsors…


    Also, from your linked article….

    Robertson was vice president for government affairs at now-defunct energy company Enron Corp from November 2000 until she closed its Washington office in early 2002. Enron collapsed in scandal in 2001 and her work there may raise some eyebrows.

    Before that, she was an assistant Treasury secretary for legislative and public affairs under then-President Bill Clinton.

    I find this amusing…

  3. 3 DJ
    12 June 2009 at 15:17

    Amusing yes, unexpected…..Nope!

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