Ron Paul Appeals for Help to Rescue His ‘Audit the Fed’ Bill in the Senate

05/07/2010
       

Ron PaulLast night Ron Paul made an urgent appeal via a 2 1/2 minute video (see below) for immediate help in contacting senators to reject Bernie Sanders' new, watered-down Fed transparency amendment and to support an amendment with the original "Audit the Fed" language of H.R. 1207 and S. 604. A vote on Sanders' amendment to S. 3217 (the financial services overhaul bill) is expected on Tuesday, May 11. (For results of the votes on May 11, read "Senate Caves to Fed Pressure, Waters Down Audit.")

 

 

See Postcript at the end of this article for more details on Sanders' revised amendment as excerpted from an article posted today by the Wall Street Journal, "Plan for Congressional Audits of Fed Dies in Senate."

Here’s the essence of the situation in Ron Paul’s own words as excerpted from a transcript of the video:

I’m not a bit surprised that the Federal Reserve got to the Senate. I had expected Bernie Sanders to offer 604, which was the same as 1207, which is Audit the Fed bill, and at the last minute he switched it and watered it down, and really it adds nothing. It’s a possibility that it even makes the current conditions worse.....

But as we speak — this is Thursday night — they are working on this on the Senate floor. And we need to get as many messages as possible to as many Senators you can think of, especially to Bernie Sanders’ office, that we don’t want this version....

But the only thing that would be fair to the American people after all this work and energy that we put into this is to have an up and down vote on what was our 1207 in the House which is 604 in the Senate....

Here is Ron Paul's video from last night with his urgent appeal for all "Audit the Fed" supporters to contact their senators in opposition to Senator Sanders' watered-down Fed transparency amendment to S. 3217 and in support of an amendment with the original H.R. 1207 and S. 604 language.

You can help rescue Ron Paul's "Audit the Fed" amendment in the Senate by immediately retweeting this blog as well as sharing it on Facebook by using the icons on the right side of this page. Email a link to this blog to everyone in your sphere of influence that would be interested in this issue.

Next, take action yourself. Contact your own senators via email (pre-written, editable message supplied) and/or via personal visits and phone calls in opposition to Sanders' Fed transparency amendment and in support of an amendment that would restore the original "Audit the Fed" language of Ron Paul's H.R. 1207 and S. 604.

As Ron Paul says in the video, "it’s vital and urgent that we do as much as we can to bombard the Senate with information that we the people deserve to have an up-or-down vote on Audit the Fed bill."

Postscript (added later on May 7): We received the following report back from someone who has just called Senator Sanders office (202-224-5141) this Friday afternoon about this issue:

I just got off the phone as well and the gent that works in the [Senator Sanders] office says they disagree with Dr. Paul's opinion that this watered down version that is supported by Sen. Sanders will not result in auditing the FED. No where yet have I seen the actual wording of what BS supports but I trust Dr. Paul on this. Where can the different versions be found for a real comparison?

Apparently Senator Sanders is in denial about what his newly revised Fed transparency amendment would accomplish. Here's the headline of a Wall Street Journal article about Sanders' change-of-heart amendment regarding auditing the Fed: "Plan for Congressional Audits of Fed Dies in Senate." Here's a lengthy excerpt from the WSJ article that reveals just how deeply into denial Sanders is:

Last-minute maneuvering in the Senate allowed the Federal Reserve to sidestep legislation that would have exposed its interest-rate decision-making to congressional auditors.

Pressure from the Obama administration led Senate lawmakers to alter a provision pushed by Sen. Bernie Sanders (I., Vt.) that was gaining momentum despite opposition from the Treasury and the Fed. It would have largely repealed a 32-year-old law that shields Fed monetary policy from congressional auditors....

Thursday's Senate showdown came after senators on the left and right joined forces to support Mr. Sanders' provision....

But Fed Chairman Ben Bernanke, while insisting on a commitment to "openness" at the Fed, said in a letter to Congress the [original] Sanders measure would "seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation."

Deputy Treasury Secretary Neal Wolin, in a statement, endorsed the revisions to the Sanders provision, saying they would provide a comprehensive audit of the Federal Reserve Board's operations in response to the financial crisis, "while preserving the existing protections of the Federal Reserve's independence with respect to monetary policy."

A House bill sponsored by Rep. Ron Paul (R., Texas) that passed in December contains a proposal similar to the original Sanders measure. If the Senate bill passes, it will need to be reconciled in a conference committee. That keeps the pressure on the Fed alive for the coming months....

Before the last-minute compromise, the Fed's foes appeared to be winning, and got a major boost when Senate Majority Leader Harry Reid (D., Nev.) said he would side with Mr. Sanders.

Mr. Bernanke, meanwhile, returned to Washington Thursday afternoon after a morning speech in Chicago to continue pressing for changes to the Sanders bill. In the past few days, Mr. Bernanke has spoken to at least a half-dozen senators to argue the Fed's case that the bill would deeply damage the Fed's credibility and ability to make tough decisions about interest rates.

At least half a dozen Obama administration officials joined the blitz, including Treasury Secretary Timothy Geithner—a former Fed official—and Rahm Emanuel, the White House chief of staff. Administration aides credited Mr. Dodd with pushing back against the original amendment and developing an acceptable alternative....

 

 


 

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