HR 1207: Audit The Federal Reserve

The Federal Reserve, or the “Fed”, is considered the central bank of the United States. What exactly is the Fed?

Birth of the Fed
The Fed was created in 1913, and was a product of the Federal Reserve Act, which was enacted on Dec. 23, 1913, signed by President Woodrow Wilson.

The First and Second Central Bank Of America
The First Bank (1791-1811) was a strong centralized bank that was shut down by President James Madison. The Second Bank (1816-1836) met the same fate under President Andrew Jackson. Why were these banks closed? The second bank was closed because of political opposition and corruption.

The Third Central Bank
The Panic of 1907 led to a desire for financial reform. Proponents felt the need to create “elasticity” in currency, and promotion of liquidity. The end result was to open a third central bank, what we now call the Federal Reserve Bank.

Purpose of the Fed
The primary motivation for creating the Federal Reserve Bank was to address banking panics. Other functions include: regulate banking institutions, provide elasticity in currency, stabilize prices, strengthen economy, etc. Not to mention protecting credit rights of consumers, and to provide maximum employment.

Ron Paul’s End The Fed Movement
Congressman Ron Paul has been writing about economics for thirty years. Dr. Ron Paul believes that the Fed’s role has led to manipulation of money, and has contributed to the financial crisis that we currently are facing.

Ron Paul says that innocent citizens who understand little about the system are the ones that will suffer the most. He has written a book about why he thinks the Fed domination should come to an end. The book is titled End the Fed.

HR 1207
Congressman Ron Paul has introduced HR 1207, or Federal Reserve Transparency Act, the bill to audit the Federal Reserve. Ron Paul explains why only an audit will protect the public’s interest.

Why should you care? Best-selling author Ron Paul believes that freedom itself is at stake.