HR 1207: A Call For Fiscal Responsibility
In the realm of legislation that fails to receive sensationalized media attention, Ron Paul’s HR 1207 has largely been ignored by the mainstream media. However, the legislation has garnered the cosponsorship of over half of the representatives in the house, and a companion bill in the senate has enjoyed similar success.
So what is HR 1207? HR1207 is a bill to audit the Federal Reserve; the quasi-governmental agency responsible for managing the money supply of the United States. Despite the word “Federal” in the name, they are no more a part of the government than a Federal Bank. The Federal Reserve’s website lists their goals as Influencing Monetary and Credit conditions, supervising and regulating banking institutions, maintaining the stability of the financial system, and providing financial services to depository institutions and the US Government.
Many people find fault with the Federal Reserve through the inflationary tactics it uses to accomplish its goals. Inflation, the expansion of the monetary supply causes price increases and makes money worth less. Since the Federal Reserve’s inception in 1913, the worth of an American dollar has fallen 97%; what one could buy for three cents in 1913, one now has to spend one hundred cents in 2009.
The rampant inflationary tactics have taken a new turn in the past decade, as the inflation creates boom and bust cycles within our economy, as evidenced most recently by the housing bubble that spawned our current recession. Furthermore, the Federal Reserve has increased the monetary supply by buying assets of struggling companies, which results in a hidden tax on the average American consumer.
This issue becomes relevant to students as we progress through college and seek employment in the workforce. A Federal Reserve that manipulates the financial markets has the ability to bring widespread panic and ruin to the population.
HR 1207: http://www.govtrack.us/congress/bill.xpd?bill=h111-1207
