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More Power for the Federal Reserve?

|Includes:SPDR Gold Trust ETF (GLD)

There were two very disturbing articles on page A2 in Friday's Wall Street Journal. The first, titled Fed's Posture Improves in the Senate, explains how the Fed and Treasury Secretary Geitner have successfully lobbied for the Fed to have ever more power, not less. Apparently, formerly outspoken Fed critics such as Senators Dodd. Bayh, and Shelby have now been brought back into the fold and now support legislation giving the Federal Reserve supervision of the largest banks in the country. Senator Dodd had formerly crafted a bill to carve the central bank out of bank supervision and focus the Fed on monetary policy (which they have also failed at).

In the second article, Bernanke Says Deficit Action is Key, Bernanke is quoted as saying:

"But it is very important for Congress and the administration to come to some kind of program, some kind of plan that will credibly show how the United States government is going to bring itself back to a sustainable position."

Where was Bernanke when Bush was doubling the deficit? This statement is actually an admission by Bernanke that the U.S., led by his policies at the Federal Reserve, is in currently in an unsustainable position. Given that he and his predecessor Alan Greenspan have put us in an unsustainable position today, then why on Earth would Congress give the Federal Reserve even more power as stated in the first article? This reminds me of the "bonus money" bailout for the executives at Goldman Sachs, JP Morgan, AIG and others: let's reward the people most responsible for the financial mess we find ourselves in today!

This is an abomination. It proves without a doubt Congress is bought and paid for by the fascists in charge of monetary policy. And why not? The Fed can simply print money and give it to anybody it wants. After all, the Federal Reserve is an un-Constitutional bureaucracy operating in complete secrecy with no Congressional oversight whatsoever. And now Congress will give them even more power? The framers of the Constitution did not want a central bank. They required money be backed by gold and silver specifically to prevent the type of control of the money supply that we have today (and the associated fraud that goes with it). On the other hand, every major historical figure supporting socialist or communist rule explained how a central bank is a requirement. Well, we've got our central bank too, so we know where the U.S. is headed. Besides, if the U.S. is going to have a central bank to begin with (we should not), the first requirement must be TRUST. Who can trust Bernanke and friends after they shoveled money at their fellow cronies Lloyd Blankfein, Jamie Dimond, and Robert Benmosche among others? This is fascism, plain and simple. To give these people more power is surely heading in the wrong direction.

Meanwhile, while Congress pats Bernanke on the back for a job "well done" a true American patriot like Ron Paul continues to be vilified in the press for his very common sense legislation to audit the Federal Reserve. All the legislation asks for is to find out:

1) how much money did the Federal Reserve print?
2) who got it?
3) when did they get it?
4) why did they get it?

Every American should support such transparency. Every American tax-payer who is sick and tired of working hard to pay taxes only to see their hard earned money be given to already ultra-rich executives should support Paul's legislation. All Americans who want to get back to the U.S. Constitution and move away from fascism should support this legislation. All Americans who understand the U.S. Constitution require our currency be backed by gold and silver should support this legislation. But who am I fooling - since when did American citizens support of any legislation mean anything?

Investment Advice

It is simple" buy gold. The U.S. dollar has depreciated by 95% since the Federal Reserve was created out of thin air (just like the money they print). Expect this to continue and accelerate. We have an oil crisis and a total lack of an energy policy. We now have monetary and fiscal crisis and Congresses response is to give the perpetrators even more power. Congress is leaving American citizens with two choices to preserve their wealth: move out of the country, or buy gold and bury it in the backyard.

Disclosure: Long gold

Stocks: GLD