Audit the Federal Reserve

By Bruce Layne:

Our federal government is out of control, spending money like drunken sailors, and 912 activists are committed to stopping this reckless behavior that is ruining our country. But how? Time is short, but as critical as it is to act immediately, it is also critical that we act correctly. There is no time to make a mistake and start over. That is a luxury we do not have.

The first step to solving any problem is a thorough understanding of the problem, and this is no different.

There are three sources of the money our federal government is overspending. We need to cut off the flow of these three sources of money to force the federal government to reduce spending.

1) Taxation - There are many types of taxes from many sources, and the government has consistently increased the overall rate of taxation. They're trying to tax us more, even as their reckless fiscal policies have ruined our economy. We have participated in Taxed Enough Already (TEA) parties. The well is about dry. We can't be taxed much more.

2) Borrowing - The US government issues several types of treasury securities that are used to debt finance government operations, and investors are becoming more reluctant to invest in the US as our government becomes less financially sound.

3) The Federal Reserve - Since it was created in 1913, The Fed has consistently enabled overspending by the federal government. This is a mutually beneficial arrangement. When The Fed creates money out of thin air, they cause inflation. That's the definition of inflation. Reduced buying power isn't inflation. It's an effect of inflation. Inflation is an increase in the money supply, and The Fed is responsible. Prior to 1913, the US dollar was stable. $20 would buy an ounce of gold. In late October 2009, you need $1060 to buy an ounce of gold. Gold hasn't increased in value. The US dollar has decreased in value. A 1913 dollar is worth less than two cents in 2009. The Fed did that, by creating more dollars, thus making the money already in existence worth less. Where did that lost spending power go? It was transferred to the US government and those who had the earliest use of the new money as it was spent into the economy, prior to the devaluation it eventually caused as it began to circulate. In a very real sense, inflation is a hidden tax. The spending power of our money is transferred from us to the government and the large banks that own the secretive privately held Federal Reserve corporation.

We will never rein in big government spending as long as The Fed can secretly conjure money out of thin air.

Through tireless grassroots effort, all six Kentucky congressmen have co-sponsored HR 1207, the Audit The Fed bill. So far, neither Kentucky senator has yet agreed to co-sponsor S. 604, the senate version of this bill. Call and encourge thier support!

202-224-2541 Senator McConnell
202-224-4343 Senator Bunning