As gold prices rise past $1200 an ounce and the Euro tumbles due to the debt contagion, Congressman Ron Paul continues to implicate the U.S. Federal Reserve as the one of the primary culprits for domestic and international monetary problems.

While his full-scale "Audit the Fed" bill did not pass this time around, his assault on the world's most powerful (and secretive) central bank led to a landmark vote by the US Senate to conduct a one-time audit of the Fed's actions during the 2008/2009 bailouts.

For the first time, the Fed will have to open its books to increased congressional and public scrutiny, albeit in a limited fashion.  But, such a scenario would have been unthinkable just a few years back.  In addition, the Fed was forced to hire a PR rep and aggressively lobby Congress against a full-scale audit of its covert policy actions.

A long-time critic of the Federal Reserve's virtually unlimited money printing power, Dr. Paul continues to alert the public to its unprecedented and unregulated powers.  In a CNBC Squawk Box interview, Paul stated:

"The Federal Reserve behind the scenes has the power to create money out of thin air. It's very bizarre," Paul said. "They can bail out their friends and let the people they don't like fail, and create a trillion dollars or more out of thin air in order to prop up some companies at the expense of others ... It's absolutely bizarre and, yes, the American people right now I think are waking up to it.

Paul believes the Federal Reserve's inflationary policies are largely responsible for the current, severe recession brought about by massive deficit spending, and a stock, credit, and housing bubble financed by the Fed's artificially low interest rates over the last decade.  He also believes that the Fed is likely bailing out European banks as the EU's debt crisis intensifies.

The Congressman predicts that the Fed's actions, coupled with the government's insatiable spending habits, will ultimately lead to a U.S. Dollar crisis within the next few years in a scenario similar to that being played out in Europe at this time.  He said in his CNBC interview, "...the economic laws will bring this to an end and probably in the not-too-distant future."

Dr. Ron Paul's views on the Fed, once considered enigmatic, unpopular, and irrelevant, have become a mainstream issue since the crash of 2008/2009.  His views have united Democrats and Republicans alike, fueled an entire grassroots political movement, and put the Titan of Wall St in the cross-hairs of Congress and the American people.

So, while the Federal Reserve may have won the battle in securing only a limited audit this time, it may be in danger of losing the war.