Tuesday, January 12, 2010

Opening Up The Fed's Books

The House Financial Services Committee has approved Rep. Ron Paul’s measure to drastically expand the government’s power to audit the Federal Reserve.

The measure, based on a Paul proposal that has attracted more than 300 co-sponsors, passed, 43-26, as an amendment to a financial reform bill. Florida Democrat and fellow Fed critic Alan Grayson co-sponsored the amendment with Paul and played a leading role drumming up support for it among committee members. The adoption of this amendment is an extraordinary victory for Paul, whose libertarian, anti-Fed leanings have often been dismissed by the political establishment.

Whether you agree with Ron Paul or think he is crazy I suggest you watch the following video. The video is over a half an hour long, but the exchange between Paul and Steve Forbes is really interesting. I am by no means an expert on the Fed and our nation's monetary policy, but this video does a great job of using history to explain how our nation has reached it's current state and why we are experiencing more financial turbulence than ever. I, or anyone for that matter, cannot prove that Paul's line of reasoning is absolute fact but it surely does a good job of providing a crash course on the history behind the Fed, its sheltered operations, and the connection to our recent crises.

Check out the full video HERE.

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