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30 June 2010
Mr. BACHUS. Mr. Speaker, at this time I yield 3 minutes to the gentleman from Texas (Mr. PAUL), the ranking member of the Domestic Monetary Policy Committee.
(Mr. PAUL asked and was given permission to revise and extend his remarks.)
2010 Ron Paul 36:1
Mr. PAUL. I thank the gentleman from Alabama for yielding.
2010 Ron Paul 36:2
Mr. Speaker, I rise in opposition to this piece of legislation. Iím afraid it is not going to do much to solve our problems. I know itís very well intended, and itís believed that more regulations will solve the problems; but, quite frankly, the problems that weíre facing come from a deeply flawed monetary system.
2010 Ron Paul 36:3
I had made an attempt to emphasize this point by talking about a full audit of the Federal Reserve, and fortunately this House was strongly in support of this piece of legislation. There are 320 cosponsors of this bill. It passed rather easily on the Financial Services Committee, and then it was put into the House version of this reform package. But it was removed in conference.
2010 Ron Paul 36:4
Although there is some attention given to getting more information from the Fed, it truly doesnít serve as a full audit. If we donít eventually address the Federal Reserve in depth, we will never fully understand how financial bubbles are formed and why more regulations tend to fail. If the financial markets were pleased with what weíre doing here today and the discussion of the last several weeks, they wouldnít be reeling as they are at this very moment.
2010 Ron Paul 36:5
So I would say that we should be very cautious in expanding the role of the regulatory agencies, which does not solve the problem. At the same time, giving more power to the Federal Reserve doesnít make much sense if the theory is right that the Federal Reserve is the source of much of our problems.
2010 Ron Paul 36:6
Now, some objected to the transparency bill of the Federal Reserve and said that that was too much information, that the Federal Reserve had to be totally independent. The Federal Reserve Transparency Act doesnít do anything about removing transparency. It doesnít change monetary policy. It just says that the American people and the Congress have a right to know what they do.
2010 Ron Paul 36:7
After the crisis hit, the Federal Reserve injected $1.7 trillion and guaranteed many more trillions of dollars, and it was very hard to get any information whatsoever. So an ongoing audit to find out exactly what they do and why they do it, I think, would be a first step to finding out the relationship of the Federal Reserve system to the banking system and the financial community.
2010 Ron Paul 36:8
Transparency is something the American people have been asking for and they want. They didnít like the lack of transparency with the TARP funds; and once the American people found out about what goes on at the Fed, they want transparency of the Fed.
2010 Ron Paul 36:9
So fortunately today we will have a chance to vote on this because it will be in the recommittal motion, and it will give us a chance to put the language back in, the H.R. 1207, the Federal Reserve Transparency Act, a chance to audit the Fed. So this will be a perfect opportunity to emphasize the importance of the Fed and to say that we do need a full audit.