"Audit the Fed Amendment Passes 43-26!" – Consequences for Gold and Stocks

Ever so slowly we move towards some level of transparceny at the Fed.  By the time we get such transparency, will it be too late.   I still can not get a clear understanding of whether such analysis of the Fed will also be in regard to their Gold Leasing practices and also the count and deep scan physical analysis of the gold bars stored at Fort Knox and elsewhere.  

It is a bit ironical that Paul won't sign the bill because it has been turned into an ammendment to another bill with provisions which have way too many loose ends in my opinion.   You can see some serious analysis on the financial reform efforts here:

The Root of the Financial Tsunami and A Solution: Banks Unleashed, OTC Derivatives, Phantom Money and Deregulation. – The thinking of Old and gray on the Financial Crisis

I think its noteworthy to see just how much GATA has informed Ron Paul.  I don't agree with Paul on a lot of social issues but on Gold, Money and too much government intervention, I am in full accord:

Not so long ago Ron Paul Introduced this legislation, which is clearly based on the oustanding research done through the Gold Anti Trust Action Comittee, GATA.

Paul Introduces Legislation Requiring Congressional Approval
 of Treasury Gold Dealings

"…Washington, DC: Congressman Ron Paul of Texas this week introduced legislation designed to curb the ability of the President or the Treasury Secretary to manipulate worldwide gold prices. The "Monetary Freedom and Accountability Act" restores proper congressional authority over gold policy by requiring that body to vote its approval before the President or Secretary buys or sells gold.

"The Constitution grants authority over monetary policy specifically to Congress alone, not to the executive or the administration," Paul stated. "Yet Congress has neglected its duty for decades, and now our foolish fiat money system is run without challenge exclusively by unelected Treasury and Fed bureaucrats. As a result, the Treasury has been able to engage in the buying and selling of gold to manipulate the worldwide market price. Gold is very important to markets and investors in America and across the globe, and Congress should not allow the administration to interfere in the gold market behind closed doors."

The private Gold Antitrust Action Committee held a press conference this week to discuss federal manipulation of gold markets. The group has uncovered evidence suggesting that the Federal Reserve and the Treasury department, operating through the Exchange-Stabilization fund and in cooperation with the International Monetary Fund, have been systematically working to deflate the price of gold. Because rising gold prices are seen by investors as a barometer of inflation, the Fed has purportedly suppressed prices to disguise the true nature of the financial bubble of the 1990s.

"The Fed wants all of us to think the stock market is not overvalued, and that credit and monetary expansion can create lasting prosperity," Paul concluded. "My bill will make it harder for the Fed and the Treasury to manipulate gold prices, which should always serve as an unbiased indicator of the true health of world markets." …"

While this legislation didn't pass, it showed that he understands what is happening and believes in free markets and not government intervention in markets.

Today, it almost seems like we don't have real markets but only interventions at times.

Duffminster

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