Sen. Paul’s Audit the Fed Bill Will Be Voted on Today. Paul’s Indictment of the Fed in Time Is Strong

Sen. Rand Paul (R-KY) (photo credit: Gage Skidmore)
Sen. Rand Paul (R-KY) (photo credit: Gage Skidmore)

Now in Time Magazine, U.S. Sen. Rand Paul yesterday boldly states, in an op-ed, that “The Fed Is Crippling America.” Sen. Paul writes:

On Jan. 12, Congress is scheduled to vote on the “Audit the Fed” legislation (H.R. 24/S. 264), which, if passed, would bring to an end to the Federal Reserve’s unchecked—and even arguably unconstitutional—power in the financial markets and the economy.

According to Ron Paul’s Citizens For Liberty, which is putting a full court press on for Senate passage of Audit the Fed, prospects for passage are uncertain. Sen. Paul’s indictment of the Fed is very certain. Sen. Paul:

The Fed was intended to be an apolitical body, a concession to placate the naysayers. But today, the Fed isn’t even shy about entering the political fray: witness Federal Reserve Chair Janet Yellen’s income inequality speech riddled with Democratic talking points during the 2014 elections.

The Fed is, indeed, a political, oligarchic force, and a key part of what looks and functions like a banking cartel. During the 2007-08 financial crisis, the Fed’s true nature was clear to anyone paying attention. As the Treasury began bailing out the investment banks from the consequences of their profligate risk-taking (and in some cases fraudulent schemes), the Fed moved in tandem, further purchasing the underwater assets of these institutions, as well as actually paying interest to the commercial banks (hemorrhaging from risky loans) for reserves they kept parked at the Fed.

Call your Senators and make your voice heard!

Most of the GOP presidential contenders, including, along with Rand Paul; Ted Cruz, leading in Iowa, who has called for the gold standard; Donald Trump, the current leader of the pack; Ben Carson; Chris Christie; Carly Fiorina; and Mike Huckabee, have been vocally critical of the Fed for its growth-retarding monetary policy.

Whether or not Audit the Fed passes the Senate — as it has passed the House — monetary policy, and its effect of retarding a climate of equitable prosperity in America and the world, is almost certain to be an important issue in the 2016 general election.

America owes a debt to Sen. Rand Paul for pushing the crucial issue of good money to the forefront for the voters’ minds. Monetary policy well could, and should, emerge as the “sleeper issue” of the 2016 presidential race.

Ralph Benko, internationally published weekly columnist, co-author of The 21st Century Gold Standard, lead co-editor of the Gerald Malsbary translation from Latin to English of Copernicus’s Essay on Money, is American Principles Project’s Senior Advisor, Economics.