From the April 2010 Idaho Observer:

Why Audit the Fed?

by Bruce G. McCarthy

A possible audit of The Fed has become front burner news after years of increasing unrest regarding the bank’s economic reign of terror. However, as Congressman Ron Paul has cautioned, the audit proposal is appended to a larger bill that will actually strengthen The Fed’s dictatorial power. So what kind of victory is this?

Eustace Mullins, when asked years ago what he thought about an audit answered with a better question: “Would you audit the mafia?”

An audit means a thorough examination of books and records to determine income vs. outgo, profits and losses, taxes owed, and such normally tedious ballyhoo. There is nothing normal, however, about a cartel that creates imaginary money with the stroke of a pen or computer keyboard; compounding and concealing the crime by charging interest on principal that it never pays out and no one ever receives.

When America’s gold was demonetized in 1933-34, and our monetary silver was confiscated from 1963 to 1968, Congress failed to identify what substance would replace them as money for payment of debts. We entered the world of 100% credit, with “monetized debt” as the intangible correlative.

Nothing (no substance) - measured in dollars - is loaned by or borrowed from any bank. What, then, is lawfully owed - with or without interest - to The Fed? This question is not likely to surface during the anticipated audit.

Seeking the right answers to the wrong questions will leave Americans as far from the truth as they are now. So, as former Congressman Jim Traficant says: “Forget the Audit: Just Go Ahead and Abolish the Federal Reserve.” Pretending for a moment that this is possible; what would replace it?

The folks who met at Jekyll Island to create this systematic fraud have been (and are still) miles ahead of their opposition. Surely they anticipated an eventual cry for bank audit and repeal of the Federal Reserve Act. And since they control the full spectrum of media debate, we should expect them to roll out a new and improved bank credit system. Or better yet, to have their Hegelian dialectic opponents do it for them. Nationalization is the cry. You heard it first from Karl Marx (Levy):

“Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.” - 5th Plank, Communist Manifesto.

Nationalization is recognized for what it is when a South American dictator seizes the assets of a foreign corporation. Most of The Fed’s critics want Congress to “take back” (i.e. nationalize) the power allegedly delegated to a private bank. But Congress cannot take back a power it never had and could never give away. Their Constitutional power to “coin money” is not authorization to print redeemable or dishonored legal tender notes; nor a synonym for the power to create money. They may, on the other hand, decide what substance to use as money for public purposes, but they have not done so since our monetary system was abolished 40+ years ago.

The crime of central banking is not in who runs the system; but in banking itself. Likewise, it’s not the private ownership of aborticide (Yes, that’s right) clinics that should disturb us. It’s the brutal murder of babies that warrants our Godly wrath.

Here’s the problem. Avarice is fueled by bank credit. So the sea of anti-Fed, “honest money” reformers cater to this by offering carbon copies of the very system they propose to abolish. Topping their list is the United States Note or Lincoln Greenback.

All “improved credit money” proposals violate Scripture and the various State and Federal Constitutions; complying instead with Mr. Levy’s 5th plank. In a nutshell, here’s why:

  1. Intangible credit will be used in lieu of substantive money.
  2. The Treasury will have the monopoly of issuing legal tender credit.
  3. Credit, spent into circulation, steals whatever wealth people surrender to get it.
  4. Interest (usury) will serve as the disciplinary tool to help “mathematically regulate” (oh, so comforting) the credit supply.
  5. And an army of regulators will dictate a centrally planned economy. But all of these elements are essentially with us today. It’s the Federal Reserve System.

So why is banking unlawful? In brief: 1.) God commands just weights & measures (Deut. 25:1S-16). This presupposes that a tangible thing (gas, liquid or solid) serve as money so we can weigh or measure it. Our Hebrew ancestors used silver as money, and the word for both money and silver was keceph. The coins were weighed in shekels. Much later, our Constitutional coins of gold and silver were, unfortunately, weighed in two different decimal (100 per cent = $1) systems, with the decimal weight stamped on each coin. Thomas Jefferson preferred that they be weighed in ounces or fractions thereof - an infinitely better idea. 2.) Theft is unlawful (Ex. 20:15) - even when done by “honest” politicians. Fiat money - currently expressed in dollars - is free to the first user (bankers and Uncle Sam) - with no monetary cost to print, create, or issue it. 3.) Interest (usury) was prohibited (Ex. 22:25) on all loans to our kinsmen.

To defeat - or bypass - this Babylonian system will require unity in applying the commandments of God. Anything less is doomed to failure. Nearly a century of anti-Federal Reserve rhetoric ought to prove this, but the Bible should finalize it for those who have ears to hear. By refusing to obey His commandments (cause), we should readily see (the effect):

The LORD shall smite thee with madness, and blindness, and astonishment of heart: And thou shalt grope at noonday, as the blind gropeth in darkness, and thou shalt not prosper in thy ways: and thou shalt be only oppressed and spoiled ever more, and no man shall save thee. - Deut. 28:28, 29

The stranger that is within thee shall get up above thee very high; and thou shalt come down very low. He shall lend to thee and thou shalt not lend to him: he shall be the head, and thou shalt be the tail - Deut. 28: 43, 44.

President John Adams, an avid Bible reader, reminded us that the Constitution was written for a moral and religious people, it being wholly inadequate for the governance of any other. When we finally unify on that point, abolition of The Fed will become a reality.

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