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Rand Paul’s Audit the Fed Bill Gets a Vote, But May End Up Helping a Primary Opponent

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After introducing legislation to audit the Federal Reserve System, one lawmaker looks to be finally getting a vote this week.

Over the weekend, U.S. Sen. Rand Paul announced on Facebook that when the Senate returns this week, there will be a vote on his legislation, commonly called Audit the Fed. The vote will likely come on Tuesday. The Kentucky senator said:

“It is finally time that the Federal Reserve’s shroud of secrecy is revealed and we find out what they have been up to. No more bailouts to Wall Street and political insiders. No more trillion dollar bailouts to foreign banks. The time has finally come to audit the Federal Reserve and expose their secrets.”

Paul introduced the Federal Reserve Transparency Act of 2015 last January. At the time, Paul said, “The time to act is now”:

“The Fed currently operates under a cloak of secrecy and it has gone on for too long. The American people have a right to know what the Federal Reserve is doing with our nation’s money supply.”

An audit the Fed bill passed the House of Representatives in November 2015. President Barack Obama threatened to veto the bill, saying:

“The Federal Reserve is an independent entity designed to be free from political pressures, and its independence is key to its credibility and its ability to act in the long-term interest of the Nation’s economic health.”

A previous audit of the Federal Reserve revealed that in addition to bailouts of private corporations in the US, it also loaned out billions to foreign central banks.

The vote on the audit the Fed legislation was announced in December, but it could have implications for the presidential campaign.

The cause of auditing the Federal Reserve was long championed by Paul’s father, former congressman Ron Paul. Unlike his father, however, Rand has not made monetary policy transparency a distinguishable hallmark of his presidential campaign.

At an October presidential candidate debate, Sen. Ted Cruz of Texas called for an audit of the Federal Reserve and a return to the gold standard. Though Paul did speak about monetary policy at that debate, Cruz seized the initiative. In November, the Texas senator officially became a cosponsor of the bill.

Paul’s presidential campaign, which has been treading water for months, could receive a boost if he is the only presidential candidate who passes legislation while running for president.

The latest NBC/Marist poll for Iowa shows Paul in fifth place and well behind the frontrunners at 5 percent.

However, the passage of the Audit the Fed bill could also help Cruz who is in second place in most national polls. The Texas senator could potentially gain more politically from an anti-establishment electorate by being attached to a legislative effort aimed at exposing the Washington power structure.

Photo Credit: blvdone / shutterstock.com

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83 comments
Dianne123
Dianne123

Cruz didn't even show up for the cloture vote.....Bernie Sanders has also been working on this and did vote for the audit.

James Francis
James Francis

We need a constitutionalist government. And like Andrew Jackson did way back when. ... get our government out of the clutches of private banking and federal reserve notes.

James Francis
James Francis

Seems the Fed has control over the politicians. Not the other way around

Sanford Heath
Sanford Heath

It would be good but I'm not sure the majority of americans are ersed enough in economics to understand the feds purpose.

Jared Warren
Jared Warren

He's the most qualified and best fit for the job but he's so middle nobody will give him hype and air time.

William Bill Hamilton
William Bill Hamilton

All things political is flawed. If elections and politicians really made an impact those in Washington would outlaw the process. Political shenanigans have been part of the process since the founding of our Republic. Much of which never makes it into the history books. LOL

Jerry Doyle
Jerry Doyle

It's as real as any other audit under GAAP such as Microsoft, General Motors, or Walt Disney.

Alex Svendsen
Alex Svendsen

All he did was refuse to participate in an undercard debate. I wouldn't call it a "hissy fit". He has more precinct captains in Iowa than any Republican in history. I'd say that at the very least, ranking candidates by what percentage of 50-64 yo registered Republicans with landlines is a flawed methodology.

Gus Allen McKinney
Gus Allen McKinney

He is a legislator doing his job. If it helps the public and in some way his opponent then he is still doing his job. Just because he is campaigning doesn't mean he should stop doing his job.

Todd Ward
Todd Ward

I am against anything that gives politicians more control over the fed.

Dianne123
Dianne123

So its ok that its not answerable to anybody but the powers that be????  I think the Dems are wrong on this and we need accountability and openess in our foreign and domestic policy, monetary included.  Sure I wouldn't be thrilled with a teabag congress fiddling in it, but we sink or swim with the people we elect and the constitution assigns the power.  Bernie Sanders voted for the audit.

Cliff Taylor
Cliff Taylor

I SUPPORT THIS LEGISLATION, ESPECIALLY IF IT REPORTS THR TRUTH

Sherry Daffron
Sherry Daffron

Good luck on that because WE are the bull with a ring in his nose

Mark Schork
Mark Schork

Really, I guess google and many others know. This should help with some of the confusion. "Who owns the Federal Reserve? The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution. As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as "independent within the government" rather than "independent of government." The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year" http://www.federalreserve.gov/faqs/about_14986.htm Perhaps if you're into conspiracies, I don't know. The federal reserve is (for the most part) a branch of the federal government.

Charles Isildur
Charles Isildur

The problem is that Congress needs to take back the control of the Nation's money, and dissolve the Federal Reserve.

Ray Young
Ray Young

We don't want politicians dipping into that too.

Jake Strubel
Jake Strubel

#Bernie2016 come on Iowa! We're going to win this!

Bernard Kenneth Baldwin
Bernard Kenneth Baldwin

On the contrary. "We the People" will benefit from it and he is one of We. May not help his campaign directly but will open the gates to a better political environment. The simple truth of the Fed is that it is controlled by big money that charges interest on that money for our use and then prints more money at interest that we pay for to use and the cycle continues.

Dustn Sedohr
Dustn Sedohr

Bernie Sanders: Please read and feel free to share! The wealthy aren't paying for ANY of Bernie Sanders proposals, we are with our tax dollars. However, there are only two taxes being proposed to the middle class. The first one is in regards to the single payer universal healthcare bill. This will result in a 2.2% increase on income under $200,000. However, when factoring in the cost savings of no longer having the excessive costs of insurance premiums, copayments, x-rays, etc, it will result in an overall savings for many. The second tax increase will result in roughly a $1.85 per week for the costs of the Paternal Leave Act. The tuition-free education bill will be funded by a minuscule tax of 0.5% on Wall Street speculation trades(*High-risk trades only), a 0.1% tax on bonds, and a 0.005% tax on derivatives. That's how Bernie's going to pay for all his crazy plans. In addition, Bernie Sanders isn't raising taxes to 90% like Donald Trump, and many conservative articles have suggested. He's openly admitted that he isn't raising taxes that high. Now, the top 1% of income earners in the U.S. will indeed have some higher taxes and rightfully so. In 2014, the top 1% of income earners paid an effective tax rate of just 24%, while one making an annual salary of $75,000 paid an effective tax rate of 19.7%. So, when you figure the difference of percentage between the two, that means the top 1% of income earners in the U.S. only paid 4.3% more in taxes as an effective tax rate than the middle class. It's time we finally take our country back from the top 1% of income earners in the U.S. The link below clearly details precisely what Bernie Sanders is proposing and how each program will be funded. http://berniementum.blogspot.com/2015/07/how-does-bernie-sanders-plan-to-pay-for_29.html?m=1

Ken Hald
Ken Hald

Audit the Pentagon, as well.

William Bill Hamilton
William Bill Hamilton

Is Rand Paul still running......oh wait he's throwing a hissy fit for his debate placement.... Suck it up cupcake. LOL

Trev Anderson
Trev Anderson

I don't think giving congress more authority over the money supply would be a good idea... Transparency and oversight can occur without introducing political motivations into the institution that controls interest rates.

Robert Allard
Robert Allard

We all ready know there stealing it and giving it to illegals !!!!!!!

Benny Hill
Benny Hill

An annual audit should be made on a perm basis no matter who is in office.

Donna Farrell
Donna Farrell

I believe that any agency/organization handling money should be audited

Merl Miller
Merl Miller

Yup. There are people in Congress with barely room temperature IQ's. Our economy is a complex system.

Robert Weber
Robert Weber

There is no known way to find out the ACTUAL OWNERS OF THE PRIVATELY OWNED " Federal Reserve Bank" the Banks are known but the Actual Ownerships of the Banks is not. It was established by Banking Interests For Banking Interest . The meetings are private and secreact , even the federal Appointee to the Feds position as chairman is not included in all meetings .......

Merl Miller
Merl Miller

Howard, 600+ pages of small type and numbers. You won't get many takers. It is interesting, however.

Antonio Calco
Antonio Calco

Yes!! Audit the hell out of the federal reserve!!!!!!!

Gary A Wilson
Gary A Wilson

61 million Independents plus 72 million eligible but unregistered voters has the potential to shut down the Democrats and Republicans permanently

Gary A Wilson
Gary A Wilson

Pete Smith nope - already backing the Veterans Party of America candidate Chris Keniston and when Priebus lets the Republicans down by anointing Jeb formally in July - feel free to check the VPA platform and see what a real constitutional candidate looks like #vpa #vpanm #KenistonTaylor2016

Pete Smith
Pete Smith

I bet you agree with him on more issues than you realize

James Francis
James Francis

If they don't want the audit, then it's because they are part of the problem

Douglas Kowalczyk
Douglas Kowalczyk

1913 was the start of the big downfall... followed by 1971 taking us off the gold standard temporarily so they said!

Raymond Berry
Raymond Berry

You aint ever going to know, they don't want you to know. You are all slaves.

Matt Powers
Matt Powers

Destroying our currency is what they are doing!

Steve Waugh
Steve Waugh

And no informed answers here either.