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House passes Ron Paulís Ďaudit the Fedí bill
The Washington Times ^ | 7/25/2012 | Stephen Dinan

Posted on 07/25/2012 1:01:02 PM PDT by Beave Meister

Edited on 07/25/2012 1:06:19 PM PDT by Admin Moderator. [history]

In a move that serves as a capstone to Rep. Ron Paulís colorful career, the House on Wednesday approved a bill that would let Congressís chief investigators conduct a full audit of the Federal Reserveís shrouded decision-making process.

The overwhelming 327-98 vote sends the bill to the Senate where Majority Leader Harry Reid, Nevada Democrat, has previously expressed support for an audit ó though itís unclear heíll carve out time for the legislation this year.


(Excerpt) Read more at washingtontimes.com ...


TOPICS: Breaking News; Business/Economy; Government; Politics/Elections
KEYWORDS: 112th; 911truther; 911truthers; apaulling; apaulogia; apaulogist; audit; auditthefed; charliesheen; congress; corruption; federalreserve; fedisnottheproblem; fraud; georgesoros; hor; idiots; obama; owslovesronpaul; paulbearers; paulestinians; paulissorosstooge; paulistinians; politicizingthefed; rompaul; ronpaul; ronpaullovesows; soros; sorosownspaul; stupidparty; thefed
Finally.....this should be interesting.
1 posted on 07/25/2012 1:01:12 PM PDT by Beave Meister
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To: Beave Meister

,,,, ya think the Senate will even vote on it ???

Hardly !!!


2 posted on 07/25/2012 1:10:48 PM PDT by Lionheartusa1 (-: Socialism is the equal distribution of misery :-)
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To: Beave Meister

Congress should be focusing on their own decision making process. They’re the ones authorizing all the spending and borrowing.


3 posted on 07/25/2012 1:14:28 PM PDT by DannyTN
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To: DannyTN

Congress should ALSO focus on their decision making process.

AND they should audit the Fed.

It is possible to do 2 necessary things at the same time.


4 posted on 07/25/2012 1:25:38 PM PDT by xzins (Retired Army Chaplain and Proud of It! Those who truly support our troops pray for their victory!)
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To: Beave Meister
Sounds wonderful but it will never happen!

Congress never enforces anything that the PEOPLE want.

5 posted on 07/25/2012 1:30:52 PM PDT by FixitGuy (By their fruits shall ye know them!)
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To: Lionheartusa1

Reid will not allow a vote on it.


6 posted on 07/25/2012 1:35:10 PM PDT by b4its2late (A Liberal is a person who will give away everything he doesn't own.)
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To: Beave Meister

You expect honesty from Harry “Butthead” Reid?
He’s so crooked he’ll have to be corkscrewed into his grave,


7 posted on 07/25/2012 1:36:55 PM PDT by Monkey Face (I have kleptomania, but when it gets bad, I take something for it.)
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To: Beave Meister

Roll call vote:
http://clerk.house.gov/evs/2012/roll513.xml

House doing some nice things today:
http://clerk.house.gov/evs/2012/roll511.xml
“BILL TITLE: Congressional Replacement of President Obama’s Energy-Restricting and Job-Limiting Offshore Drilling Plan”.
Passed with 25 Dem votes.

And... “Considered under the provisions of rule H. Res. 738. H.R. 4078 — “To provide that no agency may take any significant regulatory action until the unemployment rate is equal to or less than 6.0 percent.” “
Currently in debate.


8 posted on 07/25/2012 1:49:20 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: Monkey Face

Here’s a question...

If 95% of Nevada is owned by the Government, what percentage of Harry Reid is owned by the Government?


9 posted on 07/25/2012 2:09:41 PM PDT by Gabrial (The nightmare will continue as long as the nightmare is in the White House)
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To: xzins
The FED is already audited. Every dollar is accounted for. Deloitte & Touche is the independent auditor. Their sign off can be seen in the Fed's financial statements.

What Paul want's to do, is audit the FED's decision making process. Basically he wants the FED to have to account to Congress on a continual basis on how they arrive at every decision they make.

Effectively congress will be able to second guess every move the FED makes. You'll have Pelosi and Reid telling the FED that they should be making monetary policy that increases the number of bath houses in San Francisco instead of keeping the dollar stable and unemployment low.

It's a bad move.

And it plays into Soros' hand. The FED keeps things stable and when things are stable, traders like Soros can't make money.

The George Soros Ron Paul Connection

10 posted on 07/25/2012 2:10:57 PM PDT by DannyTN
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To: xzins
Here's the link to the audited financial statements.

Audited Financial Statements

11 posted on 07/25/2012 2:18:50 PM PDT by DannyTN
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To: DannyTN

I’m sure what a financial audit is, but I’m not sure at all what an audited decision-making process is.

Can you explain?

(serious question, DT)


12 posted on 07/25/2012 2:28:38 PM PDT by xzins (Retired Army Chaplain and Proud of It! Those who truly support our troops pray for their victory!)
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To: Beave Meister

Fascinated to hear any sane argument AGAINST it.


13 posted on 07/25/2012 2:37:08 PM PDT by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office.)
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To: DannyTN
And it plays into Soros' hand. The FED keeps things stable and when things are stable, traders like Soros can't make money.

Ha-ha!! Very funny.

The Fed already serves two masters in conducting monetary policy at the demand of Congress: price stability and maximum employment.

It needs to go back to one chartered purpose.

14 posted on 07/25/2012 2:56:58 PM PDT by newzjunkey (Pontius Pilate 'voters' are arrogant, delusional, lilly-livered collaborators.)
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To: mrsmith
“To provide that no agency may take any significant regulatory action until the unemployment rate is equal to or less than 6.0 percent.” “

Isn't that the provision where the party of fail accidentally wrote 6% employment instead of unemployment and the dems are saying that they will not allow the typo to be fixed?

15 posted on 07/25/2012 2:57:19 PM PDT by houeto (https://secure.freerepublic.com/donate/)
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To: Beave Meister

bttt


16 posted on 07/25/2012 3:06:32 PM PDT by Liberty Valance (Keep a simple manner for a happy life :o)
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To: Beave Meister
there is NO reason the US MINT shouldn't be printing US MONEY not borrowed money from the fed...
17 posted on 07/25/2012 3:43:43 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: xzins
"I’m sure what a financial audit is, but I’m not sure at all what an audited decision-making process is."

That would be looking at the decision making process and the deliberations that lead to an actual decision, to see if the decision making process is complete, relevant, relying on accurate data, etc. And this is the part that you really don't want congress involved in, because they'll have them focused on all kinds of pet peeves.

When Congress set up the Federal Reserve they wanted it to be independent and not subject to political interference from Congress. So although they did provide for independent audits they set some restrictions on GAO audits as follows:

Restrictions on GAO Audits Contained in the Federal Banking Agencv Audit Act' (From 1993 GAO testimony)
Audits of the Federal Reserve Board and Federal Reserve banks may not
(1)include transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2)deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
transactions made under the direction of the Federal Open Market Committee; or
a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items (I), (2), or (3).

Transactions with foreign banks and FOMC transactions were excluded, because the FED enters these transactions to stabilize a market or avoid a crisis. You don't want to telegraph those moves. The GAO is too close to Congress, and it's too political. So it's not that those transactions don't get audited, it's that the "GAO" is prohibited from auditing them, and this was set up by Congress.

The other part of the GAO restriction is the decision making processes themselves. And again this was to keep the FED from becoming a political football. Most of the decision making process is public record anyway. They publish the minutes of the FOMC. Every time the Board of Governor's meet, they immediately announce their interest rate policy and why it is what it is, and what they expect in the future.

If you look at the following testimony from the GAO on their restrictions, on page 6 even they recommend that if their authority to audit is expanded, that additional safeguards will be needed to prevent disclosure of sensitive information as the result of congress requested audits.

GAO 1993 testimony on their restrictions

What Ron Paul's bill would show

The problem with Ron Paul's bill is he wants to report everyone the FED and FOMC is currently doing transactions with on an annual basis. Well if the FED is trying to shore up a part of the financial system, and restore confidence, and you publish details of exactly which countries or institutions are in trouble, you're just throwing blood in the water. That will cause bank runs and people like George Soros will look for opportunities to undermine you and make a profit off of it.

18 posted on 07/25/2012 3:44:07 PM PDT by DannyTN
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To: DannyTN

I can understand the desire not to want sensitive info to leak.

I can also understand the desire to have openness.

If I had people I knew I could trust, then secure information would bother me less.

If I had people I was suspicious of, then I would everything transparent.

It sounds like Paul is suspicious.


19 posted on 07/25/2012 4:11:34 PM PDT by xzins (Retired Army Chaplain and Proud of It! Those who truly support our troops pray for their victory!)
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To: philman_36; Carry_Okie

My Congressman Paul Gosar co-sponsored this bill.

I’ve had 3 opportunities to speak to him in person over about a week recently, but only for brief amounts of time each time. The first time I told him about the Desertification Treaty and how it was snuck through and how concerned many of us are that it would be done again. He didn’t indicate if he already knew about it or not, but, by his face I could see he at least took it seriously. Then we were interrupted.

The second time I asked him if he knew about how much treaties effect our federal laws and he does (he started with Indian treaties, but also said he knows about UN treaties too) and he understands how bad the pending treaties will be for us.

The third time I asked him if he understood that the reservations, declarations and understandings that we put into all treaties supposedly to protect our Constitution are actually null and void. He does, and he said there are several people in the House looking into it to see how/what can be done...

It’s too bad he’s in the House instead of the Senate and my Senators are McCain and Kyl, but at least there are people in DC who know and understand and are concerned.


20 posted on 07/25/2012 5:00:47 PM PDT by Sal (STAND YOUR GROUND laws are the prosecutor's target--GZ is collateral damage.)
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To: DannyTN

The Fed has proven they are nothing but a shill for a corrupt financial system and the banking powers. They either need to be eliminated or reformed, including some very heavy auditing and process changes. The LIBOR scandal alone should probably cause it to get an 86. Frankly, whether it benefits Soros or not is irrelevant. We need to re-institute all of the great depression rules and break up the big banks. You can’t have confidence in the banks because they have off balance sheet junk on their books (as does the fed res), not because of Soros.


21 posted on 07/25/2012 5:03:26 PM PDT by rb22982
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To: Sal
Thanks for the update and for your efforts Sal.

...at least there are people in DC who know and understand and are concerned.
It's those in DC who know and aren't concerned.

22 posted on 07/25/2012 5:24:57 PM PDT by philman_36 (Pride breakfasted with plenty, dined with poverty, and supped with infamy. Benjamin Franklin)
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To: DannyTN
What Paul want's to do, is audit the FED's decision making process. Basically he wants the FED to have to account to Congress on a continual basis on how they arrive at every decision they make.

The Fed shouldn't even exist. Congress made a mistake in ceding the power to a bunch of filthy banksters who were buggering each other at Jeckyll Island. The least it can do is provide some oversight regarding a bunch of private banks to whom every last man, woman and child in this nation is hypothecated.

As a matter of fact, f*ck the Federal Reserve. I want my 16 Trillion with a "T" dollars back.

23 posted on 07/25/2012 5:39:19 PM PDT by Sirius Lee (Goode over evil. Voting for mitt or obie is like throwing your country away.)
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To: DannyTN

Those are just for the Federal Reserve. There are hundreds of bureaus, departments, etc. There’s billions in Medicare, Welfare & Social Security fraud.


24 posted on 07/25/2012 5:49:14 PM PDT by P.O.E. (Pray for America)
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To: DannyTN
I agree with other FReepers here that the Fed should not exist. It has zero accountability to the citizens of the USA. Congress is corrupt and broken, but at least we have the authority to fix it. We don't with the Fed.

There are too many issues with the Fed as it exists today that time and energy doesn't permit me to adress, but it's way past time to restore accountability for managing and minting US currency to return to the America people versus an international cabal of cronies and statists.

25 posted on 07/25/2012 6:09:38 PM PDT by uncommonsense (Conservatives believe what they see; Liberals see what they believe.)
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To: Monkey Face
He’s so crooked he’ll have to be corkscrewed into his grave.................Love it!!!
26 posted on 07/25/2012 6:16:36 PM PDT by mandaladon (PalinGenesis)
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To: DannyTN
The Board is required by the Federal Reserve Act (the Act) to report its operations to the Speaker of the House of Representatives. The Act also requires the Board, each year, to order a financial audit of each Federal Reserve Bank and to publish each week a statement of the financial condition of each such Federal Reserve Bank and a consolidated statement for all of the Federal Reserve Banks. Accordingly, the Board believes that the best financial disclosure consistent with law is achieved by issuing separate financial statements for the Board and for the Federal Reserve Banks. Therefore, the accompanying financial statements include only the results of operations and activities of the Board. Combined financial statements for the Federal Reserve Banks are included in the Board's annual report to the Speaker of the House of Representatives.
27 posted on 07/25/2012 6:42:59 PM PDT by Raycpa
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To: Raycpa
As described in Note 4 to the Combined Financial Statements, these Combined Financial Statements were prepared in conformity with accounting principles established by the Board of Governors of the Federal Reserve System, as set forth in the Financial Accounting Manual for Federal Reserve Banks, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.
28 posted on 07/25/2012 6:45:00 PM PDT by Raycpa
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To: DannyTN; newzjunkey; Sirius Lee; P.O.E.; Raycpa

The FED is already audited.

29 posted on 07/25/2012 10:07:57 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: xzins
Congress should ALSO focus on their decision making process

Voters should focus on their decision making process....

30 posted on 07/26/2012 5:03:22 AM PDT by EBH (Obama took away your American Dreams and replaced them with "Dreams from My (his) Father".)
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To: Beave Meister

Like a few of Ron Paul’s ideas, it sounds good on the surface.

I stopped taking him seriously when he began pushing the legalization of illicit drugs.


31 posted on 07/26/2012 8:51:13 AM PDT by Amish with an attitude
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To: DannyTN
The audit as of now leaves out several things:

Fed’s monetary policy actions or decisions, including discount window lending (direct loans to financial institutions), open-market operations and any other transactions made under the direction of the Federal Open Market Committee. It also can’t look into the Fed’s transactions with foreign governments, foreign central banks and other international financing organizations.

You always leave that part out.

32 posted on 07/26/2012 9:10:48 AM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: DannyTN

“The FED is already audited” where you been the last 4 yrs. We are still waiting for answers on where “our” money (debt) went.

Reid, Pelosi and Barney and you all agree the FED is beyond accountability, great thinkers!


33 posted on 07/26/2012 10:16:24 AM PDT by free_life (If you ask Jesus to forgive you and to save you, He will.)
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To: Sirius Lee
"I want my 16 Trillion with a "T" dollars back."

You got your 16 Trillion back to the penny. There was never 16 Trillion outstanding in the first place. That was a sensationalized number. What they did was they took overnight loans (Loans that have to be paid back the next day) that averaged a few billion a day over a 3 year period. And they added them all up to get the 16 Trillion number.

All the loans that made up the 16 Trillion were paid back the next day. Every single one of them.

And these loans are made to banks with their Bank Reserves as collateral.

You are being played.

Only the auto maker loans weren't repaid. They were transferred to another government loan.

34 posted on 07/26/2012 10:41:00 AM PDT by DannyTN
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To: Theoria
Only the GSA is prevented by law from auditing those transactions.

The independent auditors Deloitte and Touche can and apparently do. The FED's internal auditors can also.

35 posted on 07/26/2012 12:36:56 PM PDT by DannyTN
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To: DannyTN

I think the previous poster is referring to the national debt, which is, indeed, about 16 trillion.


36 posted on 07/27/2012 3:47:06 AM PDT by DennisR (Look around - God gives countless, indisputable clues that He does, indeed, exist.)
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To: DennisR
"I think the previous poster is referring to the national debt, which is, indeed, about 16 trillion."

Okay, but that's not the FED's fault, that's Congress. Congress could borrow money before there was a FED. They could borrow money on a gold standard.

That's part of my problem with Ron Paul, he is distracting people from the real issue which is Congress.

37 posted on 07/27/2012 8:11:25 AM PDT by DannyTN
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To: DannyTN

Thanks for your posts.

The last thing we want is a more politicized Fed.


38 posted on 07/28/2012 3:19:10 PM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: D-fendr

Thanks for the encouragement. I feel like I’m banking my head against a wall.


39 posted on 07/28/2012 3:45:55 PM PDT by DannyTN
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To: DannyTN

The existance of the federal reserve is the biggest problemin America they need to be abolished altogether and our government needs to distribute currency directly and interest free the way JFK was starting to do. The fed have looted the American taxpayer for trillions of dollars. Basically the IRS is an arm of the fed and all tax revenue they collect gets paid directly to the fed then the fed loans our government our money and charges 7 percent interest and all the tax revenue collected is not even covering the interest we owe let alone the principal, then they keep loaning us more of our own money and the debt keeps getting bigger this is the biggest phoney loan shark deal in the history of the world .


40 posted on 07/29/2012 7:54:40 PM PDT by sushiman
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To: sushiman

Please pardon typos .


41 posted on 07/29/2012 7:56:00 PM PDT by sushiman
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To: DannyTN

“The FED is already audited. Every dollar is accounted for.”

NO, it isn’t. The fed has all kinds of money is gives out no one knows where it goes.


42 posted on 07/29/2012 9:43:33 PM PDT by CodeToad (History says our end is near.)
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To: sushiman

You are not even close.

The IRS is not an arm of the FED, the IRS reports to the US Treasury department.

IRS tax collections go to the Federal Treasury not the Federal Reserve. FED profits also go to the Federal Treasury.

The FED doesn’t loan out tax money. It makes loans from the Federal Reserve district banks that collect reserves from their member banks.

The problem is not the Federal Reserve. The problem is Congress.


43 posted on 07/30/2012 7:46:41 AM PDT by DannyTN
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To: CodeToad
"http://www.federalreserve.gov/publications/annual-report/files/2011-annual-report.pdf

That's just not true. Here is their annual report, with their complete financial statements that are audited by the indepedent auditors Deloitte and Touche. And the law only places limits on "GSA" audits because they are too political. There are no limits on independent auditors like Deloitte and Touche.

2011 annual report with independently audited financial statements

44 posted on 07/30/2012 7:57:22 AM PDT by DannyTN
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To: DannyTN

You actually think the Fed is held accountable?


45 posted on 08/02/2012 9:48:48 PM PDT by bjcoop
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To: bjcoop

Yes, and I actually think it works very very well, much better than the gold standard ever did.

In my opinion, it’s about the only agency up there that is actually doing what it is supposed to be doing.


46 posted on 08/03/2012 8:54:22 AM PDT by DannyTN
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To: DannyTN

That’s Hank Paulson Republican ideas. The Federal Reserve has done nothing but exascerbate the situation with its quantitative easing.


47 posted on 08/03/2012 10:06:13 AM PDT by bjcoop
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To: bjcoop
"The Federal Reserve has done nothing but exascerbate the situation with its quantitative easing."

I disagree. The FED has eased in response to unemployment rising. The FED is just trying to keep the patient alive long enough for the country to come to it's senses and throw out the big spenders in Congress and adopt some reasonable energy and trade policies.

And while you've seen some inflation, you've not seen the massive amount of inflation that FED opponents projected because mostly the FED simply countered the massive drop in money supply that occurred from the fall off in bank lending.

People who wanted the FED to do nothing and let the economic crisis turn into a full blown depression to teach congress a lesson, have no idea what they are asking for.

And people who think Congress can't borrow on a gold standard and promise that your children will repay in gold no matter how expensive or manipulated gold is need to think again too.

48 posted on 08/03/2012 10:13:56 AM PDT by DannyTN
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To: DannyTN

That the Fed Reserve has any function in the monetary program of the USA is a tragic result of international bankers under Wilson getting a foothold into the USA banking system. That should never have been allowed and people forget that Pres. Kennedy tried to undercut the power of Fed. Reserve notes with USA Treasury dollars. Too bad for the USA Kennedy was killed under still questionable circumstances.


49 posted on 08/03/2012 12:33:19 PM PDT by noinfringers2
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To: DannyTN

Yes - Congress and a complicit President (and this include GWB) who will not veto a spending bill!!!


50 posted on 08/03/2012 12:50:34 PM PDT by DennisR (Look around - God gives countless, indisputable clues that He does, indeed, exist.)
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