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Democrats warn Rep. Paul's 'audit the Fed' bill will politicize monetary policy
The Hill ^ | 07/24/12 | Pete Kasperowicz

Posted on 07/24/2012 4:29:25 PM PDT by markomalley

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To: SaraJohnson
Her's another chart using 1931 dollars:


21 posted on 07/25/2012 6:35:41 AM PDT by khelus
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To: khelus

Would you say that a fair reading of that graph is to say that the difference between red & blue is how much ‘real’ inflation has been taking place?


22 posted on 07/25/2012 7:19:19 AM PDT by Kevmo ( FRINAGOPWIASS: Free Republic Is Not A GOP Website. It's A Socon Site.)
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To: khelus
The blue line ia a measure

Based on what?

23 posted on 07/25/2012 7:21:08 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: E. Pluribus Unum
I dare them to say that with a straight face.

Chuckie Schumer did exactly that when he tole "The Ben Bernank" to "get to work."

24 posted on 07/25/2012 7:27:56 AM PDT by Night Hides Not (My dream ticket for 2012 is John Galt & Dagny Taggart!)
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To: markomalley

Audit but terminate the Reserve. This is the biggest scam in world history, creating MOOTA (Money Out Of Thin Air). If you gave me the _right_ to loan money which I didn’t even have; I should be rich quickly or be dumb. Dumb like so many are to allow this high crime to continue.

Congress is told to own USA money as coinage by USC (period).

“That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.”
— Thomas Edison, via NYT


25 posted on 07/25/2012 8:49:10 AM PDT by veracious
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To: markomalley
I'm with the democrats on this one.

Paul is an idiot.

The Federal Reserve already is audited by Deloitte & Touche. Every dollar is accounted for.

Congress doesn't need to be looking over the shoulder of the FED second guessing their policy decisions.

The FED has kept year to year fluctuations in the dollar far more stable than year to year fluctuations under the gold standard which sometimes fluctuated 20% in a year.

The Fed has also avoided deflation which is associated with depressions, by targeting a small amount of inflation each year, which works well for business and everyone except those that want to hoard dollar bills in their mattress for 50 years instead of invest them.

Finally, the Fed didn't cause the debt, Congress did.

26 posted on 07/25/2012 9:26:14 AM PDT by DannyTN
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To: veracious

Any loan creates money. It’s not the Federal Reserve. Every bank ever individual that loans creates money.

It works like this.
Sam has $200.

He loans it to Fred.

Sam now has a receivable of $200 and Fred has cash of $200 and a debt of $200. Voila Sam’s Receivable of $200 and Fred’s cash total $400, you’ve just printed money out of thin air.


27 posted on 07/25/2012 9:32:54 AM PDT by DannyTN
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To: DannyTN

Not even. The Reserve does not have the money it loans. Duh.


28 posted on 07/25/2012 10:14:16 AM PDT by veracious
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To: veracious
"Not even. The Reserve does not have the money it loans. Duh."

Sure it does. It's got loads of money due to the bank reserve requirement. Plus it collects interest on the money it loans and makes an enormous profit each year, which it turns over to the Federal Treasury.

29 posted on 07/25/2012 10:30:32 AM PDT by DannyTN
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To: markomalley
I just started Dr. Murray Rothbard’s book, “The Case Against the Fed”. The first chapter deals with just what the Democrats and others say, we must not interfere with The Fed.
Looks like a great book, written in 1995 but full of the history of The Fed and other things.
30 posted on 07/25/2012 10:34:54 AM PDT by Captain Peter Blood
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To: veracious
By the way, here are the Federal Reserve audits for everyone to see.

Federal Reserve Audits.

And the Fed's annual report with audited financial statments (Auditors statement pg 341)

31 posted on 07/25/2012 10:42:39 AM PDT by DannyTN
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To: DannyTN

To say we don’t see eye-to-eye is an understatment. This is the most important secular issue of our lives. You may believe what you wish, but the crisis which is engulfing the earth is MOOTA; i.e., sovereign debt. Many are going to have to find out the hard way.

“Lenin was certainly right, there is no more positive, or subtler, no surer means of overturning the existing basis of society than to debauch the currency ... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million is able to diagnose.”
— John Maynard Keynes, economic adviser to FDR


32 posted on 07/25/2012 11:16:16 AM PDT by veracious
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To: veracious
True Sovereign debt is the issue.

But the Federal Reserve didn't create that debt, congress did. The Federal Reserve is the only group up there doing exactly what they are supposed to be doing and what the country needs from them.

The Federal Reserve doesn't buy federal securities so congress can run up the debt. They started buying them only once unemployment started soaring, and then to bring interest down, to get the economy back on track. Not doing so, would kill the patient in order to show congress they shouldn't have run up the debt like that.

Congress, the President, and the Judiciary have lost sight of our values.

And if you think Congress won't continue to borrow money on a gold standard and promise that your children will repay foreigners with gold, you better think again.

33 posted on 07/25/2012 11:23:14 AM PDT by DannyTN
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To: veracious
Congress is the key, and Paul's Federal Reserve conspiracy side show is a distraction from the real problem.


34 posted on 07/25/2012 11:32:38 AM PDT by DannyTN
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To: veracious
He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 that is what it amounts to, with interest.

Of course! When the government borrows money, they shouldn't have to pay interest. You should lend them your money, right away!

35 posted on 07/25/2012 11:35:50 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: All
Congress is only part of the problem. They and Reserve are like two drunks propping each other up. The configuration enables each to point to the other as the problem. Congress owns the issue via the USC but is deliberately obfuscating this with the Reserve. Further the Reserve uses the full good faith of USAians to it own benefit.

It is beyond belief that such a special group of people exist. They loan money they don't have and it must be paid back in real money. Let me see, if the _reserve_ rate is say %5, they have made 95%, even without the interest. Completely anti-Bible. If I tried to loan this way I'd be put in jail, so should they.

36 posted on 07/25/2012 11:42:18 AM PDT by veracious
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To: markomalley
Democrats warn Rep. Paul's 'audit the Fed' bill will politicize monetary policy

So? Do it anyway.

37 posted on 07/25/2012 11:43:27 AM PDT by dfwgator (FUJR (not you, Jim))
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