CNN, October 30, 2009 - Ron Paul: Let the dollar prove itself

Fed [US Federal Reserve Bank] Chairman Ben Bernanke has embarked on an ambitious program of monetary expansion, more than doubling the monetary base to almost $1.9 trillion and doubling the size of its balance sheet to over $2 trillion, placing the American economy in a precarious position.

If all this excess money begins to be loaned out, the Fed risks creating a hyperinflationary crisis similar to 1920s Germany. If the Fed contracts this money, it risks harming the banks it desperately wants to see bailed out.

Many people fear that as the US economy recovers the value of the US dollar will drop dramatically.

It has happened in Germany, Argentina and Zimbabwe. Is the US next in line?

The Barbados dollar is tied to the US, so the effect would be wide spread. The good news is that if the dollar loses much of its value, the price of a vacation in Barbados will be more affordable for those holding non-US currencies.

What is interesting is that the Fed is not a true Government agency, and is not subject to audit!

Fed Opposes Audit

Ron Paul proposes that the Fed should be audited, but there is resistance:

According to Bloomberg News, the Federal Reserve Bank will not submit to a voluntary public study of its internal structure and methods of governance, as it was requested to do so by Treasury Secretary Timothy Geithner.

Source: The Raw Story  - Federal Reserve rejects request for public review

Private Banks Dictating US Monetary Policy?

The core of Federal Reserve is twelve private banks. It is not a government agency. See: Neither Federal Nor Reserve

Here is a quote from Want to Know:

Do you know who issues the money in your wallet or purse? Take a look at the top of any U.S. bills and you will find “Federal Reserve Note” printed along the top. In a small black circle on the left side of these notes, you will read “United States Federal Reserve System.” It is the Federal Reserve which issues all bank notes in the United States. Yet who owns the Federal Reserve?

Though the Board of Governors of the Federal Reserve is categorized as an independent government agency, “The Fed” is not owned by the government. In Lewis v. United States, the U.S. Court of Appeals for the Ninth Circuit stated that “the Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations.” To verify this fact, please see the Ninth Circuit’s decision 680 F.2d 1239 at the end of paragraph five. The same decision in paragraph 13 states, “Reserve Banks, as privately owned entities, receive no appropriated funds from Congress.”