Ron Paul, Alan Grayson Ask Senate To Postpone Bernanke Confirmation

Reps. Ron Paul (R-Texas) and Alan Grayson (D-Fla.) have asked Senate Banking Committee Chairman Chris Dodd (D-Conn.) to postpone the confirmation of Ben Bernanke for a second term as chairman of the Federal Reserve.

Paul and Grayson want the Fed to open itself up to public scrutiny before the Senate confirms Bernanke.

"We are writing to ask you postpone the confirmation of Ben Bernanke until the Federal Reserve releases documentation that will allow the public and the Senate to have a full understanding of the commitments that the Federal Reserve has made on our behalf," the letter says.

The letter calls out the Fed for its role in the Wall Street bailout.

"Today, big banks are being bailed out and have a substantially lower cost of capital through an implicit government backstop even as Americans themselves are seeing their pay cut," the letter says. "This lower cost of capital -- at government expense -- coupled with increased scarcity of credit is resulting in the banks recapitalizing by charging American consumers higher credit costs, including record overdraft fees and much higher credit card rates."

House Financial Services Committee chairman Barney Frank (D-Mass.) predicted in August that the House would pass Paul's legislation to audit the Fed this fall.

Grayson sparred with Bernanke at a hearing in July. The Florida lawmaker laughed in Bernanke's face during an exchange in which the Fed chairman said "I don't know" in response to a question about what foreign central banks do with $550 billion in loans from the Fed.

Here is the letter:

SenateLetteronBernankeNomination -

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Comments

[PhilipTaylor]

It is time as people pile onto his Bill to Audit the FED!

We must uncover the secrets behind the curtain and on Maiden Lane!

[WeMustSpeakOut]

Yes! Postpone indefinitely.
Beelzebub Bernanke is an enemy of the state.

[Chazmania]

We are witnessing the fall of an empire from incompetence, greed, corruption, duplicity and dishonor!

[Chazmania]

The devil may come in the most pleasing disguise! Bernankey! the face of duplicity!

[pedernales]

The chances of anything real happening to get us out from under the self-serving, delusional aristocrats that run the FED is not good. Why? We'll be lucky if there aren't riots in our major cities in the next two years. Obama has not created one job other than throwing money. He will continue to overpopulate the U.S. by melding us with fertility cultures to the south and destroy the middle class. He's among the very worst Democrats we could have chosen to be President. He is nothing. Obama recently said that he doesn't understand why CEO's in banking shouldn't try to make as much money as anyone else. That says everything. In 2003, he said he didn't support impeaching the Bush-Cheney Freakdom (illegal aggressive war, war profiteering, institutionalized torture, et al) because it "would take away from the people's business." Now he's going to give more billions to the state of Pakistan and send more troops into that black hole. The only reason anything is working on health care is because of the Congress and Senate, in spite of the backdoor corporate bootlicking and selling-out by Obama.

[Nelson Jacobsen]

Such "folly" has not worked out well for any leader of country that has tried to pry the hands of private bankers off their central bank. Just go back in US history and look the Presidents that did and the results to their personal health.

[Nelson Jacobsen]

Connected with this subject is the character of the currency. The idea of making it exclusively metallic, however well intended, appears to me to be fraught with more fatal consequences than any other scheme having no relation to the personal rights of the citizens that has ever been devised. If any single scheme could produce the effect of arresting at once that mutation of condition by which "Connected with this subject is the character of the currency. The idea of making it exclusively metallic, however well intended, appears to me to be fraught with more fatal consequences than any other scheme having no relation to the personal rights of the citizens that has ever been devised. If any single scheme could produce the effect of arresting at once that mutation of condition by which thousands of our most indigent fellow-citizens by their industry and enterprise are raised to the possession of wealth, that is the one. If there is one measure better calculated than another to produce that state of things so much deprecated by all true republicans, by which the rich are daily adding to their hoards and the poor sinking deeper into penury, it's an exclusive metallic currency. Or if there is a process by which the character of the country for generosity and nobleness of feeling may be destroyed by the great increase and neck toleration of usury, it is an exclusive metallic currency."

http://en.wikisource.org/wiki/William_Henry_Harrison%27s_Inaugural_Address

[Lyr]

I'd say history has proven him wrong on several accounts.

[crookedcountyillinois]

I'm printing this out and filing it under "O" for Obvious.

[blueskybigstar]

Grayson is too cool. He'll be making a run for the presidency some day and he would make a very good one.

[Carl Caroli]

Certainly not an unreasonable request - where do I sign?

[dontsellmyemail]

Ron Paul has been advocating for the abolition of the fed for years. He is a medical doctor and a student of American history. I have been following this bill since it had 12 co-sponsors and could have never imagined it gaining this much support in the house. That being said, the money/power elite will never allow the "real" fed books to be opened because it will expose the giant ponzi scheme that is the U.S monetary policy. It would open up the "Pandora's box" and expose decades of LIES which have been perpetrated in the name of American citizens.

[barack is prez]

Very true and well said.

[pvbeachbum]

couldn't agree more. it's outrageous that the TARP oversight committee led by the intelligent, bipartisan Elizabeth Warren cannot elicit any info from Bernake, Geithner or Paulson. it's time to open the books now. Thanks Ron Paul.

[BizSamurai]

Agreed. The history of the Fed's birth is incredible. Everyone check out the book, "The Creature from Jekyll Island". Fabulous read... but I'm a history geek and probably a li'l biased.

[MarsAmbassador]

If you want to read something interesting, check out Grayson's bio:
http://grayson.house.gov/about/

This guy has been around and accomplished some amazing things. He's no fly by night Congressman. He's going to make big waves for a long time.

[AndyWright68]

Ron Paul's HR 1207 The Federal Reserve Transparency Act has 300 co-sponsors!

SUPPORT HR 1207 and S 604

They must pass in tact. Please call your representatives.

This is our money they are giving away and we have the right to know where it is going.

[timbonotes]

It's about time someone take this Greenspan clone to the wood shed. Grayson is da man!

[KevinHallShow]

Grayson is quickly rising in the polls as one of the top new democrat leaders. He has principles and chutzpah, two characteristics that are sorely lacking in those holding public service offices today.

[WandaBooneshaft]

Too true! I wonder how long it will take Rahm to tell him to sit down and shut up.

[Nicholas Okonkwo]

I agree totally with you on Congressman Grayson. What refreshing breath of candor and chutzpath. I like the guy!

[LeLoup]

Moreover, he is totally independent when it comes to finances. He does not have to accept anything from any lobbyist.

If I recall correctly, he is one of the rare congressperson that did not receive any campaign contribution from the financial industry..­..and it shows when he grilled them, doesn't it? *evïl grin*

Turns out he's also well versed in international affairs.

http://www.huffingtonpost.com/howie-klein/alan-grayson-on-afghanist_b_315087.html

Who knew?

[consumerist]

Take interest in understanding finance - I am an electrical engineer, but that skill is not as important as the life skill of understanding finance and civics.

We are all part of a giant ponzi scheme where we (the consumers) support 70% of this giant bubble of an US economy. This means we provide for over 10 Trillion $ contribution to GDP every year which is much higher than any other country (China's total GDP is 3.2, India-1.1, EU-16.5).

Ponzi #1: We start with a negative networth in life, hoping that our retirement savings and house will grow rapidly to fill the gap and bring us into positive territory. Recent events have exposed the scheme.

Ponzi #2: We are showing only 11 Trillion $ national debt which doesn't take into account under funded Social Security/pensions at local governments. The feds (and hence the federal govt) has guaranteed huge bets by the banks - the size of which we don't know. Absence of transparency makes me believe that the size of the commitments and risks are much larger than what the feds want us to believe.

What will expose these Ponzi scheme? It could be as simple as a "fearful consumer". Today, the consumer is saving more, but putting those savings into mutual funds/equity aka Wall Street Casino - no wonder the equities have done so well at a time when the savings have increased and the economy is in the tank.

[SinfullySublime]

It's good to see some actual bipartisanship. Now for their colleagues to follow suit ... before the spin cycle finishes wringing us to death.