Congressman Ron Paul’s bill to audit the Federal Reserve received overwhelming support in the House, passing 327-98. The bill now heads to the Senate, where Democratic Majority Leader Harry Reid -- once a proponent of auditing the Fed -- now says he plans to block it. We suspect it's at the behest of President Obama.
Passage of the “audit the Fed” bill is a new milestone for Tea Partiers and conservatives who have questioned not only the ineffectiveness of the Federal Reserve’s efforts to stimulate the economy, but its political motivation.
According to reporting by Bloomberg, Fed policy makers have cut their expectations for growth in 2012 to a range of 1.9 percent to 2.4 percent, down from an April prediction of 2.4 percent to 2.9 percent. The forecasts have been lowered in five of the six economic projections since January 2011, when most central bankers predicted the economy would grow 3.5 percent to 4.4 percent in 2012.
As Bloomberg noted, the latest estimate is in line with those of private forecasters, who project 2012 growth of 2.2 percent (according to a Bloomberg survey). Similarly, the Fed’s Open Market Committee has cut its projections for 2013 six times since January 2011.
Clearly the Federal Reserve’s own economists and policy makers don’t believe their efforts are working, or will work.
There can only be one explanation for continuing these failed policies: this is what President Obama wants.
Between the two ineffective “quantitative easing” or QE1 and QE2 programs, Federal Reserve Chairman Ben Bernanke has put something close to $2 trillion behind Obama’s reelection effort by purchasing mortgage backed securities (MBS’s) and longer term Treasury securities.
These efforts have achieved little or nothing for the millions of unemployed and under-employed workers in this country, but they have made using taxpayer-backed funds almost free for Obama’s cronies on Wall Street.
238 Republicans and 89 Democrats voted in favor of auditing the Federal Reserve because they understand that it is one of the primary tools that the Wall Street/Washington Axis has used to enrich itself and protect its privileges, while sticking taxpayers with the bill.
It is time to pull the curtain back and find out exactly why Federal Reserve Chairman Ben Bernanke is so wedded to policies that clearly aren’t working.