Under Pressure

" For the first time in decades due to the Federal Reserve's abuse of power and manipulation of our currency. As Wallace congressman Ron Paul's tireless efforts to persuade the congress to -- it. The Federal Reserve is beginning to show some cracks in its once super secret of facade. Wednesday's New York Times reports that Ben Bernanke the head of the Federal Reserve. Has been schooled by of all people congressman Barney Frank the chair of the house financial services committee. On how to handle the political scrutiny that he and the Fed are now under. At the same time Senate Finance Committee chair senator Chris Dodd of Connecticut. As proposed legislation. That would strip the -- of much of its unconstitutional. And illegal regulatory authority giving it no surprise. Two other federal bureaucracies. But still clipping the -- wings nevertheless. So what's going on here -- the big government crowd suspect that hard times are coming for one of its sacred house. Joining me now to discuss all this is Lew Rockwell chairman of them -- institute in Auburn Alabama and Peter sheriff. President of Euro Pacific Capital -- and a candidate for the Republican nomination. To -- United States senator from the state of Connecticut -- first to you is the big government crowd in Washington. Getting word that notwithstanding. Unbelievable opposition. Notwithstanding -- Arab efforts from politicians in his own party to water -- down. Congressman Paul's HR 1207. The bill that would truly. And ultimately and finally. Make the Fed transparent. Just might. Arrive on the president's desk with a two thirds majority from both houses."

" What -- to believe that judge but I I think what's actually happening is that they're terrified. That anybody is looking at the may mean really for the first time since that was established. In 1913. This hugely dangerous and and destructive bureaucracy is controversial. It never has been it's always been boring and that was a deliberate strategy. Now thanks to Ron Paul thanks for the work of the Austrian economists thanks to all the spokesman like leadership. And and others we have. This of this horrible agency is is. Is controversial is being criticized. And they're they're scared the pants up mr. Bernanke. And they're all afraid so we have their they're worried about that actually changes in public opinion because -- but -- knows the Fed has dedicated to. Bailing out the banks here is billing out Wall Street. At the expense for the average guy and there -- people. May not know the details -- that operates but more and more Americans suspicious of that they don't like it. And as with any aspect of the government. If they lose popular. Approval. They lose their power."

" Appear you and I were talking. Before we started the show. About how much regulatory authority the Fed has which was never even lawfully given to it. Which you just assumes by virtue of that being the 800 pound gorilla in the room I don't we get the worst of of all worlds here first of all power that the Fed doesn't actually have -- usurped. That it should be admonished for it should have been restricted instead now that power is being formerly given. Two new government agencies that are gonna -- it even more are because after all they're actually diligently -- have the power. But of course there's nothing in the constitution even gives the government the authority. To give them that power you know the whole thing is -- they -- talk about that the the pot calling the kettle black this whole thing is being orchestrated by -- Where was he was the chairman of the Senate banking committee he was overseeing Freddie and Fannie was overseeing the mortgage industry. He's saying that the Fed didn't do its job right he's doing his job either I know -- running."

" Against -- make a very compelling case as to why doesn't belong in the Senate but. What is it that he is claiming that the Fed is done wrong why is this big government guy. I try to take power away from the most super secret big government entity in the history of the country."

" Probably things they didn't do enough he thinks if they're to focused on what aspect of the country demonic monetary policy. That they shouldn't be focused on all these other things and so he wants other government agencies to focus on them -- he wants a -- basically make a super fed. Because he wants to make several different departments. So weak weak -- think -- killed from you know many different angles and noisy fueling your earlier segment -- this but no regard for the constitution. You talked earlier that they gonna require us to buy health insurance and we -- buy it we get finder go to jail. We'll get the government can finest in jails for not buying health insurance the what that is there any limit on their power do we have any right slap -- it is. Who knew what what we got left -- his country you know."

" A little earlier this weekend when I was filling in for Glenn -- are our colleague and friend Tom woods was I'm with me and he reminded me. Of a very famous back and for the period in US and non lawyer and economist will be interest in in this. A famous back and forth in oral argument in the Supreme Court between Justice Scalia. And a a lawyer for the Justice Department and Justice Scalia it says to the lawyer for the Justice Department. Is there any area of human behavior that the congress is unable to regulate. And the lawyer for the Justice Department was unable to come up with an answer. Question have we gotten to the the deplorable state of affairs that Jefferson predicted when he said it but congress can define its own. Power if the congress determines the limits of what it can do there will be no limit to what it can do."

" Well just we have merger -- nightmare for consolidated government. That yes absolutely -- no limit to its powers. And I would say in in in in de facto in terms what they called a law these days there are no limits to its power. Except among the people and Chris Dodd is doing this because he is afraid the Fed is afraid. Barney Frank -- afraid. That the Fed is losing its authority in losing -- star because Americans are coming to -- its cuts which is very good development as though this -- wonderful."

" If if Chris -- bill becomes law and an unexpected or read it -- because it just came out this morning and it's about 1200 pages though knowing you you will read it. Which is more than can be said for the 535. People Ron Paul rated a few of the publisher Chris -- put -- get a -- and Chris Dodd however wrote it for him. -- even read it but is this should we rejoice that the Fed will lose some of its powers as -- versus tweedle dumb."

" Well I think it's I think we can actually. Think both positions it is -- the Fed is losing some of its power but it's an attempt to protect the Fed. And yes it goes to other federal agencies but the fact that they're worried about the reputation of the -- The fact that they're worried about popular opposition to the -- is a great metal on Ron Paul's chest."

" Can you -- mansion. And you're getting into the nitty gritty and dirty fingernails of politics leadership can you mansion. Being a fly on the wall while Barney Frank a -- characters. Is counseling Ben Bernanke as to how to appear in public when the Fed is being criticized. -- I -- what what what are they are worried about what do we do frank and Bernanke know will be revealed to the world. If congressman Paul's bill becomes law."

" what the Fed is actually doing I mean the whole the whole fraud behind our monetary system that our monetary system is based on nothing. That we just -- worthless pieces of paper that everything that the government is doing this whole policy of stimulus and and 0% interest rates. Is the cause of the problem the government doesn't want the public to know the -- responsible for this mess. They want us to think that more governor is gonna cure the disease of too much government. And you talk about the Fed losing power. How does it lose power never hat powered usurped I think it's more dangerous to -- invest that power in these new agencies and believe me. -- is great for new government agencies. Who knows what these days they're gonna do and you're letting him loose it's like -- cancer cells and putting in the in in the body of the country and that is gonna start growing -- out they're gonna they're gonna screw up everything and -- believe read my industry I'm sure is gonna get regulating even more. Right -- than it is now were already being regulated to death the regulations are making the industry. Less competitive less productive -- they do they protect these huge too big -- firms from competition because they've got the economies of scale. To handle -- this regulation but the small firms don't and a lot of proposal never even get started because they can't get all the regulation."

" what is the thinking from congressman Paul about the efforts by. It Republican senator from Tennessee and a democratic colleague from -- forgive me I don't remember. What state to -- HR twelve -- seven and make it a meaningless. Only sort of show like. But not truly transparent -- it."

" Well he's in I would say he's not surprised by it but he's not giving up by other and he thinks that there is more more popular support for. For what he's doing and he also knows that Americans. -- America's want to find out as. Cool to the Fed benefited would they print off all this money for both. In terms of investment banks and Wall Street other big banks in this country and also international organizations that the national banks who got what. So. They're going to try to water down this bill. -- Or for that matter the Republicans in power but it would ever get there with the veto proof majority. But still in the hearts and the minds of the American people the Fed as being vetoed. And that skiers. Heck of --"

" Peter Schiff Lou Rockwell makes a great point and this is always fascinated me. Is it possible that the Fed has actually been conducting its own foreign policy. Through the transfer is -- enormous amounts of wealth. To central banks of other countries and we don't even know about it and is it possible that the -- foreign policy. Might even be at odds with what the popularly elected congress and president. Have decided our foreign policy is now."

" And I suppose anything is possible -- mean who knows what's going on behind closed doors I mean in general if we're gonna have a -- it should be independent because we wanna keep. The pretty presses away from the politicians but in practice they're not independent they're they're doing a politician's bidding -- there helping everybody get reelected. But -- does not often wondered you know why is it that all these foreign central banks. Are are propping up the dollar I don't know maybe they're getting paid from some secret accounts from the Fed. I don't know what's going on behind closed doors I don't know why the Chinese the Japanese are doing some of the things that they're doing because it certainly -- in the interest of their own people. It's in the interest of preserving a phony American economy that eventually is gonna come crashing down and the longer they keep it propped up the -- it's gonna fall and the harder it's gonna be to build a back up."

" Rockwell will we ever return in the lifetime of any of the three of us or any of the many people watching and listening to us now to the gold standard to a commodity standard to sound money. Or -- is doomed. To -- worthless pieces of paper in our pocket the value of which are controlled in secret by seven people and a fortress like structure in March -- decently."

" there's no question that people listing to your show will be alive and we have locals there. And me in the Fed of course always been political -- can't be independent as. Nixon as the Fed Chairman Arthur Burns that you have to do what the president ordered him to do otherwise -- would have lost its independence. What's that -- can -- it up of course. So I mean as if the Fed of course is political it's always been political it can't be independent it shouldn't be independent. It shouldn't exist it's unconstitutional. It's immoral it's an economic. An engine of destruction. We have to abolish the Fed and that was the Ron Paul's new book. "

" And it right when we may abolish the Fed though and just turn over its functions to new government agencies that will abuse of power even more to demonstrate even more instructions -- turned -- to the private sector well that's part. Yes but that would mean going back on -- money can buy the power of the person in the -- money creation. -- from the government which is what our founding fathers envisioned agree -- the country couldn't agree with you more do you agree with lose a prediction. -- Who didn't in the transact in gold I don't know but the public will eventually seek out sound money -- law. You -- money chase Al -- and nobody is gonna want to -- to use currency when they're winners when there's gold."

" We get back to the constitution -- I mean you you know history. A better than most people I know FDR on his own. By signing a piece of paper in March 1933. Made it a crime for people to own gold. At a time when three quarters of the population. Owned it something that was made of gold MM three weeks -- the congress that old. We're the ones that are supposed to write the laws we better make what the president jurors did lawful. Now it was unlawful for the president to do it and it -- unlawful for a duck congress to authorize the president to do it. But they did it anyway they got away with it and we suffer from it even -- to the present day."

" And judge Richard Nixon of course also by his own place so -- the act of a dictator. End of the final ties to gold on August -- that it's evident when he finished. Evil work the Franklin Roosevelt began and so we ended up -- for the first time in world history but total discretionary monetary policy. For the whole globe and we've had much -- since we've -- much more probable and store because of the Federal Reserve and its subsidiary Central Bank."

" Blair was that where was that where was the US Supreme Court that is the real problem the real enemies they shouldn't just be wearing black robes they should be mayor wearing hoods and masks. Because these guys have really abdicated their authority they were put here. To keep the government in -- to make sure the governor abides by the loss and abide by the congress -- and they have done nothing."

" There's two legal tender cases from the early twenties the first says nine to nothing. The congress can't interfere with the monetary standard the other says nine denouncing the congress can. The same court ruling exactly the opposite way we will probably never know from history what happened in the -- space of time. Between those two opinions --"

" The capital and Lew Rockwell from the leases institute it's a pleasure gentlemen thanks for joining us you can catch today's show on foxnews.com slash freedom march and on serious 145. XM 160 -- line of Fox News talk dot com. At 6 PM eastern on Saturdays from New York defending freedom until the next time state -- America."