Sunday, July 05, 2009

Ron Paul vs. Barack Obama - Round One

Or in slightly broader terms:

The Populists vs. The Political Class - Round One

Reuters picked up this story on The Big Money by Chadwick Matlin. It's a story about the only member of Congress who I believe to be 100% honest and forthright - Ron Paul:

He has rallied the majority of the House to support his new cause: an audit of the Federal Reserve. Legislators are sick of not knowing what's going on inside Bernanke's fortress, especially as the Fed becomes further enmeshed in the nation's fiscal policy. Paul's little bill has become emblematic of a larger movement, one that could spell trouble for Obama's troubled regulatory plan. Ron Paul—always an enemy of regulation—is now an enemy of Obama. And a mighty powerful one at that.

Paul wants to audit the Fed primarily because he wants to destroy it; the audit bill is just the latest chapter in Paul's lifelong crusade against it. His vendetta is fueled by the belief that the Federal Reserve is unconstitutional, a central bank within a country that doesn't allow central banks. That the Fed can manipulate the currency and "create legal tender out of thin air" is heresy. And so Paul attempts to dismantle it the only way he can: through legislation.

Sure, The Beast The Fed is not about to be slain. But that's based on current knowledge. If we can ever find out where the $2.2 trillion went that Bernanke printed... all bets are off. Ron Paul believes such information may steel the Congress' anger toward The Fed. I don't disagree.

At this point, I want to know where in the world is the $2.2 trillion? Or how about the other $8 trillion in so-called "guarantees?" Until we know the answers to such significant questions, I'm not convinced The Federal Reserve will survive the aftermath of HR 1207 - Audit the Fed!

I think it's also worth noting that President Transparency remains silent on both HR 1207 and it's Senate counterpart, Bernie Sanders' S 604. If Obama is truly concerned about transparency, it seems this is a logical place to start. If it's confirmed that Obama opposes transparency at The Fed (and it sure looks like he does by virtue of his silence), then I will view him as an avowed member of The Political Class.

Tim White

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