The Federal Reserve System investigated itself and determined that concerns about undue political influence surrounding its alleged role in the Nixon Watergate scandal and a subsequent cover up, as well as allegations that the Fed facilitated a massive weapons loan to former Iraqi dictator Saddam Hussein, were unfounded. Analysts and critics of the central bank, however, were not entirely convinced.
The establishment press promptly celebrated the findings — inaccurately characterizing the privately owned U.S. central banking system as a government “agency” — while largely omitting the well-documented evidence of widespread malfeasance by the government-backed monetary cartel. Several mainstream media outlets even used the investigation to attack the escalating suspicion and anger about the Fed, its multi-trillion dollar bailouts to entities around the world, its manipulation of markets, and its notorious secrecy.
During a 2010 hearing of the House Financial Services Committee, longtime central bank critic Congressman Ron Paul — citing reports and past investigations — questioned Fed Chairman Ben Bernanke about the Watergate and Iraq concerns. “Would you grant that the American people deserve to know whether the Federal Reserve has been involved with this and what kind of shenanigans they’re involved with?” he asked.
At the time, Bernanke called the accusations “absolutely bizarre,” claiming he had “absolutely no knowledge of anything remotely like what you just described.” Experts, however, were not buying it. Immediately following the hearing, University of Texas Professor Robert D. Auerbach of the LBJ School of Public Affairs — who assisted in congressional investigations of Fed corruption, abuse, and deception; and later wrote a book about it — sent Congress a letter that was entered into the record.
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Photo of Ron Paul: AP Images