Symbolic Swan Song.

A bill to expand congressional authority to audit the Federal Reserve Bank. Should H.R. 459 be a political gesture? As reported by USA Today "The bill stands no chance of becoming law because the Democratic-controlled Senate will not take it up. The vote served as a symbolic swan song for Paul, who is not seeking re-election."  This brings up a question in my mind.  Why would democrats vote to protect the FED.  Everything I know about democrats, everything they talk about on the news outlets is how evil big business is.  What business is bigger than the federal reserve? A question was brought up in a comity hearing about "Why would we use brokers to sell the bonds to the federal reserve." The reply was to have an element of separation so that the relationship between the Federal Reserve and the Federal government so political influence wouldn't exist.  Kind of isn't working if you have a senate full of democrats voting to protect big business.  It sort of sings out someone is being influenced by the largest bank in the world.  I personally do not trust the Fed or the government for that matter. 

Let's figure it out a lil bit. If you go here to this website http://en.wikipedia.org/wiki/Fractional_reserve_banking we learn that fo every $100 of deposit results in $457.05 of deposits and $357.50 of loans so by just multiplying by orders of magnitude (not actual number crunching) for every 10 million in federal securities that banks puts $475,050,00 in deposits and $357,500,000 loans into circulation. Heres the catch though guess who pays all the interest on all that credit? That's right we do. Basically the dollar bills you have in your wallet are certificates of debt. When you spend your money to buy something you are transferring debt. The value in your money is actually not value in the empirical sense (it's not backed by value) it's backed by debt. If the U.S. government were to take one dollar out of circulation it would still owe 70 cents to the federal reserve bank.  

Shouldn't we as a people be interested in the oversight of this very special institution?  I personally am of the mind that we really should't use the Federal Reserve to manufacture money.  I'm sure the Federal government has the capability to print and press cash and coin. I mean isn't that what the Treasury department used to do?  The government cannot really legally do Fractional Reserve Banking because the federal government isn't a bank.  So removing the Federal Reserve Bank out of the loop would reduce the currency the government could circulate. The government would actually have to pay it bills basically. 

Isn't that what is expected though?  When you get a loan from a bank and you spend all of that money do you go and get another loan to cover the interest payments? No you don't because that would be stupid. That is exactly what the government dose when it extends the debt ceiling.  This is yet another example of how our government is using us to make 97% of the population into debt slaves. We should do something. Don't you think?