Saturday, December 19, 2015

Forget 'Audit the Fed'

Rand Paul is crowing that establishment crony Senate leader Mitch McConnell is going to allow a vote on Rand's bill to audit the Fed.

Rand is blasting out email donation requests based on this news.

I have never been a fan of the bill. What exactly is the audit the Fed bill going to do, even if it is passed (unlikely)?

Back in 2009, when Rand's father proposed an audit of the Fed, I wrote:
I hope Congressman Paul knows what he is doing, to me it sounds like this may evolve into a power play over who controls Fed money rather than an investigation into whether the Fed should be printing money in the first place. If Democrats start signing on to the bill in heavier numbers, it may be a sign that an audit may come, but it will end with a restructured Fed controlled by left wing radicals, who believe money is for handing out and who have no fear of inflation.

What would an audit of the Fed tell us that we don'y already know?  It's no secret that they create money out of thin air to manipulate the economy (See:The Mystery of Banking). And the Fed publishes every damn week  (on Thursday's at 4:30 PM ET) the H.6 report, which shows exactly how much money they have printed on a weekly basis. We also know the money goes to banksters and assorted other cronies. What else is there to know?

An audit of the gold at Fort Knox would be much more enlightening to the masses. For sure, the Treasury is lying at least about the quality of the gold there, if not the quantity.

But beyond audits, an End the Fed bill would be much more impressive. It will get the masses at least thinking in the right direction.

If Rand submits such a bill on the floor of the Senate, I will donate to his campaign.



  1. I think they hope to get the masses attention, so that they know what's been going on, so they no longer dismiss it all as conspiracy theory and be offended leading to an end the fed bill. The trouble is if they are successful the masses will just accept it.

    That's how it goes, people work for decades to uncover the misdoings of insiders, researching how this or that came about and why. Then at some point it goes 'official'. Then the public doesn't care or even accepts it as a good thing. So more than 100 years after the fed is established people will learn what it really does and they won't care that the people they dismissed as conspiracy theorists for decades were correct. They'll just incorporate it into their view that authority and management by experts is a good thing.

    80's sci fi of turning off the transmitter that keeps people in world of lies just doesn't seem to work in real life.

  2. 1. The Pauls should first realize that 99.99% of the public seems to think that inflation is a mysterious inexplicable force of nature as opposed to official government policy. No one will be able to understand the ABCT until they grasp that.

    2. The Pauls should emphasize that every emission of new funny money and credit results in an immediate transfer of purchasing power to someone FROM someone else and that it dilutes the purchasing power of all money eventually. No one will be able to understand the ABCT until they grasp that.

    3. 1 and 2 supra are ALWAYS true regardless of whether the dollar collapses, whether the dollar gains value vs. other currencies or whether we’re in a boom or bust.

    4. The Pauls should emphasize that the entire basis of Keynesianism is a) the market fails; but b) it can and must be externally provided with “momentum” in the form of government “stimulus”. While this is baseless and preposterous, most people appear to unthinkingly believe it to be true. No one will be able to understand the ABCT until they grasp that the market does not require an external government source to provide “momentum” and that such “stimulus” results in unsustainable activity.

    5. The MMTers are making inroads with the left preaching the idea that it is deficits that power “the economy” and that $200 trillion in unfunded obligations is entirely affordable because the government “can never run out of fiat money”. MMT (allegedly) solves the problem of scarcity that might otherwise bedevil their proposal of almost unlimited government spending by eliminating the need for taxation. Taxation is only required to control inflation. ”. Bernie Sanders is a closet MMTer.

    6. No MMTer or advocate of “straight-forward money creation by the government to fund everything” will ever engage an Austrian or any of our self-evident basic concepts, much less the ABCT.

    7. Rand Paul has no concept of how average people think. Perhaps he should work road construction with them for 2 years. Average people are not going to make the complex logical conclusions he thinks they are going to make from an audit of the Fed. The entire approach is like explaining the 7th logical step in calculus to people who haven’t grasped the difference between the plus and minus sign.

  3. "If Rand submits such a bill on the floor of the Senate, I will donate to his campaign."

    Ditto. Otherwise, sure wish they'd quit inviting me to fundraisers.