Ron Paul: “Audit the Fed!”

Everyone loves money, but the U.S. Federal Reserve may be loving it a little too much and keeping it all to itself. Perhaps that's why one of the hottest stories of the summer involves the Fed coming under fire.

The US Federal Reserve, which controls the nation's monetary policy, has been pumping money into struggling firms to try and keep America's head above water during the recession.

But there's a growing call for the U.S. Central Bank to open its books and face heavier scrutiny. For example, Congressman Ron Paul is worried that the secretive way the Fed goes about it is damaging to the American people.

Ron Paul and about 263 members of Congress were at the centre of a heated debate once they backed a bill to audit one of the most powerful monetary institutions in the world.

Ron Paul states his motives precisely: “What I want to find out is what they are doing. They can create money out of thin air and make promises and guarantees to private entities, international bankers, other governments and other central banks. We deserve to know exactly what they are doing.”

The Federal Reserve is an organization with unprecedented financial power that is heavily influencing the course of the US economy and the global financial system.

And one that is supposed to operate independently of the US government – or so we think – and the eagle atop the massive marble structure in the downtown Washington D.C. also oversees the regulation of interest rates and the printing of US dollars.

Ron Paul spoke exclusively to RT correspondent Dina Gusovsky.

“Now, because of what the Fed does, they are embarking on a policy of destroying the value of our dollar. This could give capitalism a bad name. This is not capitalism, this is cronyism and inflationism and secret central banking,” bemoans Ron Paul.

Experts and politicians agree that the Federal Reserve, with its immense economic power, has exercised more control over the economy than any other government body. And as Congressman Ron Paul and others like him demand an investigation into this organization, the Fed itself says that the audit would only hurt, not help the economy.

Perhaps that’s why they have enlisted the help of over 180 economists and businessmen, who have written a letter urging the US government to “reaffirm their support for and defend the independence of the Federal Reserve System as a foundation of US economic stability."

The Fed’s defenders say the independence of US monetary policy may be risk.

“The Federal Reserve is hysterical over it. I mean, they are sort of ganging up, getting all the economists to prove that transparency is terrible; they love secrecy. They threaten that they will raise interest rates and do all these terrible things,” says Congressman Ron Paul.

But the US president seems to be on the side of this massive money machine.

RT: "A key component of Barack Obama’s financial overhaul is actually to give the Fed more power. What do you make of that?'"

Ron Paul: "I said look, if you do give them more authority then that’s an even stronger argument for transparency, you can’t just keep giving them more and more power. My argument is that if you are against big government, centralized government, war mongering, and welfare-ism you can’t be for the Fed!"

The outcome of the brewing battle over Federal Reserve audit could very well shake the US financial system and finally get rid of the “don’t ask don’t tell’ policy that the Fed has become all too accustomed to – until now.