Political Metals

In my earlier post, I mentioned Congressman Ron Paul’s “mission” to audit the Federal Reserve now that he’s been appointed chairman of the Domestic Monetary Policy Subcommittee. Very much in line with expectations, he passionately reiterated his mission in his recent speech at the Conservative Political Action Conference (CPAC).

Remember. The Fed is a key player in the Political Metal price management scheme, and as holders of PMs, it is in our interest to follow its development irrespective of where you live or which currency you earn or save in.

On Foreign Policy - 03m:05s

We got to be doing a lot less a lot sooner not only in Egypt but around the world

Foreign aid is taking money from the poor people of a rich country and giving it to the rich people of a poor country.

On the Federal Reserve - 9m:25s

The Federal Reserve used 4 billion dollars to pass out without congressional approval…. it is our job to check out and find what the Federal Reserve has done, audit them, and find out who their buddies are that they’re taking care of.

The Federal Reserve prints money out of thin air .. they can loan to banks, central banks of the world, to other governments and other international financial institutions and we were nit even allowed to know. They resent thefact that when I asked these questions, that they don’t have to give us this information. That’s why the Bill to audit the Fed is the first step to ending the Federal Reserve.

On Liberty - 15m:40s

The purpose of all political activity from my view point is to promote liberty… Liberty comes from our creator. It doesn’t come from government.

Government should not be allowed to do anything you can’t do. If you can’t steal from your neighbour, you can’t send the government to your neighbour to steal for you. There should be no redistribution of wealth.

More on the Fed in his latest article at Texas Straight Talk

Deception at the Fed

For the past three decades, the Federal Reserve has been given a dual mandate: keeping prices stable and maximizing employment. This policy relies not only on the fatal conceit of believing in the wisdom of supposed experts, but also on numerical chicanery.

Rather than understanding inflation in the classical sense as a monetary phenomenon- an increase in the money supply- it has been redefined as an increase in the Consumer Price Index (CPI). The CPI is calculated based on a weighted basket of goods which is constantly fluctuating, allowing for manipulation of the index to keep inflation expectations low. Employment figures are much the same, relying on survey data, seasonal adjustments, and birth/death models, while the major focus remains on the unemployment rate. Of course, the unemployment rate can fall as discouraged workers drop out of the labor market altogether, leading to the phenomenon of a falling unemployment rate with no job growth.

In terms of keeping stable prices, the Fed has failed miserably. According to the government’s own CPI calculators, it takes $2.65 today to purchase what cost one dollar in 1980. And since its creation in 1913, the Federal Reserve has presided over a 98% decline in the dollar’s purchasing power. The average American family sees the price of milk, eggs, and meat increasing, while packaged household goods decrease in size rather than price.

Loose fiscal policy has failed to create jobs also. Consider that we had a $700 billion TARP program, nearly $1 trillion in stimulus spending, a government takeover of General Motors, and hundreds of billions of dollars of guarantees to Fannie Mae, Freddie Mac, HUD, FDIC, etc. On top of those programs the Federal Reserve has provided over $4 trillion worth of assistance over the past few years through its credit facilities, purchases of mortgage-backed securities, and now its second round of quantitative easing. Yet even after all these trillions of dollars of spending and bailouts, total nonfarm payroll employment is still seven million jobs lower than it was before this crisis began.  Read more >>

-