Former Congressman Ron Paul, the man who literally wrote the book on criticizing the Federal Reserve, issued a statement Wednesday acknowledging the nomination of Janet Yellen, an American economist and professor who currently serves as vice chair of the Board of Governors of the Federal Reserve, to be the top official at the Nation’s central bank.
“Many will make a big deal about the nomination of Janet Yellen to be the next Fed Chair, but the reality is, as long as we tolerate the Federal Reserve System and its flawed monetary policy, there will be no policy change at the Federal Reserve,” said Paul.
“Notably absent from the discussion surrounding the debt ceiling and the government shutdown is the fact that the federal government would not be able to borrow the money it needs to finance its wars, bailouts, and entitlement programs if the Federal Reserve did not continue to buy government debt.
“Until the issue of the Federal Reserve is addressed, I am not optimistic we will see any true spending reform in Washington. Thankfully, the American people are waking up to what the Federal Reserve has been doing to our money and our economy,” Paul concluded.
Throughout his Congressional career, and especially during the tenure of Fed chairman Ben Bernanke, Paul became known for using his position on House economic committees to issue scathing rebukes and ask tough questions of Fed officials.
Paul also authored legislation to “Audit the Fed” (H.R. 459), which gained 274 cosponsors and passed the House during the 112th Congress on July, 25, 2012, with an overwhelming three-fourths majority of 327-98. The legislation calls for a “full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks by the Comptroller General of the United States.”
Paul’s son, Senator Rand Paul (R-Ky.) introduced companion legislation in the Senate and garnered 37 co-sponsors, though Senate Majority Leader Harry Reid refused to allow “Audit the Fed” legislation to be brought to the floor for a vote in that legislative chamber.
Following the elder Paul’s departure from Congress, Representative Paul Broun (R-Ga) reintroduced the House “Audit the Fed” bill in January as “The Federal Reserve Transparency Act of 2013” (H.R 24) for consideration by the 113th Congress. The bill currently has 166 cosponsors. Senator Rand Paul (R-Ky) also re-introduced companion legislation this year— it currently has 25 cosponsors in the Senate.