Newsmaxx - Rep. Broun: Audit Fed That Has 'Made Our Money Worthless'

News Article

Date: Sept. 18, 2014
Issues: Monetary Policy

By Todd Beamon

Rep. Paul Broun says legislation passed by the House on Wednesday to audit the Federal Reserve seeks to "push back the total veil of secrecy so that the American people can see how disastrous these folks are."

"The American people deserve a fully transparent, total comprehensive audit of the Fed so that we know what they've been doing," the Georgia Republican told Newmsax.

"Hopefully, we can get the American people, we the people, the strongest political force in America, to demand that the Feds stop their poor policies.

"It's going to lead to an economic collapse of this nation if they continue what they're doing," Broun added. "We're going to have hyperinflation because their policies have made our money worthless -- and our money is going to be worthless if they keep on."

Broun, 68, who has represented Georgia since 2007, introduced the bill last year. The House passed it Thursday on a bipartisan 333-92 vote. The legislation calls for the General Accounting Office to audit the Fed within a year.

The bill has been sent to the Democratic-controlled Senate, where it is expected to face strong opposition.

Established in 1913, the Federal Reserve is the nation's central bank. It sets the nation's monetary policy -- and among its other duties are regulating and monitoring the U.S. banking system and providing financial services to financial institutions in the United States and abroad and the federal government.

The Fed also conducts research on the economy and monitors economic trends.

The current Fed chairman is Janet Yellen, 68, an Ivy League-educated Democrat whom President Barack Obama nominated to succeed Ben Bernanke, who served two terms as head of the central bank. He was named to the post by President George W. Bush.

Yellen assumed the post in February after she was confirmed by Congress.

Republicans have long charged that the Fed is an insular institution that has bungled the nation's monetary policy, particularly as the United States continues its slow rebound from the latest economic recession.

Former Texas Rep. Ron Paul, who unsuccessfully ran for the White House in 2008 and 2012, has argued that the Fed should be abolished and that the United States to return to the gold standard, linking the supply of money to the amount of gold held in the nation's vaults.

President Franklin D. Roosevelt took the U.S. dollar off the gold standard in 1933.

In his interview, Broun told Newsmax that the Fed was last audited in 2011 under the Dodd-Frank financial reform legislation signed into law by President Obama the year before. Congress discovered that the central bank had "distributed $16 trillion to corporations, to foreign central banks, to foreign entities without one vote of Congress.

"Congress needs to take that power back," he added. "I'd like to see us eliminate the Federal Reserve and go back to the gold standard, which will stabilize our economy."

Broun acknowledged that the House bill faces a tough battle in the Senate because of Majority Leader Harry Reid and urged voters to pressure their senators to challenge the Nevada Democrat to bring the legislation to a floor vote.

"Harry Reid has been the obstructionist to all the good work that the U.S. House has been doing over the last two years," Broun said. "Harry Reid is the reason that this has been a do-nothing Congress.

"It's up to the American people to put pressure on their U.S. senators and their leadership in the U.S. Senate to pass this bill so that we can restore fiscal sanity and good money policy back to the United States," he added. "Jobs, our economy are dependent upon it."