End the Fed | Until Fed Reform, No Budget Will Fix US Fiscal Maladies

Ron Paul reveals the truth about the budget debate and federal reserve control

Kenneth Schortgen Jr.|Examiner.com

Ron Paul on April 19th revealed the underlying truth about the budget debate raging between Congress and the White House, and the fact that not matter what is passed by law, the results are meaningless unless federal reserve control over the monetary system is addressed.

Currently, the United States government borrows nearly half of the money used for their yearly budget, and that money is borrowed from US treasury sales made to the Federal Reserve.  So in essence, the Federal Reserve has immense power and control over not just the monetary system, but over the government as well since a large portion of tax receipts taken in by the Treasury go towards the payment of debt and interest to the private bank.

What is also not mentioned in the budget debate, is that borrowing made to fight overseas conflicts is not counted in any budget bills, and is relegated as additional expenditures that must be borrowed on top of any deficits created in a yearly budget.

Of course, our disastrous wars in Afghanistan and Iraq are not even included in this budget as they are considered emergency spending. They constitute $3.3 billion in spending in the same period of time, so they more than cancel out any small cuts the warmongers may crow about. – Campaign for Liberty

The debt ceiling issue that is voted on by Congress is coming to its maximum very shortly, and it will denote another key battle between fiscal responsibility, and more of the spending status quo. All of that money allowed under the raised debt ceiling would come from more borrowing and more money owed to the Federal Reserve.

As for Federal Reserve transparency, all the public needs to do is look at documents disseminated recently by the Fed regarding how taxpayer money was spent during the credit crisis of 2008.  Payments were made not just to domestic banks, but also trillions were given to foreign banks and multi-national corporations.  All of this was done without public knowledge, and without oversight by Congress.

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