Ron Paul, author of End the Fed and the most vocal advocate for Federal Reserve transparency in the congressional history, is officially out the House of Representatives as of January 3.
But his legacy of advocacy for Federal Reserve transparency and ending the Federal Reserve system was quickly picked up by Rep. Paul Brown (R-Ga.) who introduced three bills on the first day of the 113th Congress that would shed light on the monetary policy decisions of the Federal Reserve System, end the Federal Reserve altogether, and repeal legal tender laws.
H.R. 24, which is identical to the “Audit the Fed” bill Paul sponsored a year prior, requires the U.S. Comptroller General to fully audit the monetary policy decisions made by the Federal Reserve’s Board of Governors and its member banks – decisions currently untouched by the Government Accountability Office.
The Federal Reserve has been only partially audited thanks to an amendment by Sen. Bernie Sanders (I-Vt.) attached to the Wall Street Reform bill of 2010. That audit revealed that the Federal Reserve secretly lent out $16 trillion to American and overseas banks and corporations.
Paul’s bill passed in the House in 2012 with a 327-98 vote last year. But because the Senate failed to bring the Senate version of the bill to the floor, the chances for Federal Reserve transparency in the 112th Congress dissipated.
Broun’s bill currently has zero co-sponsors (although Broun’s office says that he is “circulating the bill” around other House members for support).
The second bill, H.R. 73, is similar to previous legislation that Paul introduced, in that it abolishes the Board of Governors of the Federal Reserve System and its member banks and also repeals the Federal Reserve Act.
The third bill, H.R. 77, would repeal legal tender laws and prohibits taxation on “certain coins and bullion” and repeals “superfluous sections related to coinage.”
For all bills, Broun says that he has constitutional authority.
For the “End the Fed” bill, Broun points to Article I, Section 8’s necessary and proper clause, arguing that it “includes the power to repeal legislation that exercises power beyond that which is granted to the Congress in the Constitution.”
For the “Audit the Fed” bill, Broun points to another section in Article I, Section 8 of the Constitution which says that Congress has the power to “coin money, regulate the value thereof, and of foreign coin, and fix the standards of weights and measures” and to “provide for the punishment of counterfeiting the securities and current coin of the United States.”
Broun points to the same section to defend his legislation that would repeal legal tender laws. He defended the constitutionality of his bills in the constitutional authority statements available on the Library of Congress website.
The Federal Reserve System, through its fractional-reserve banking process, is said by critics to be engaged in a form of institutional counterfeiting, since it practices keeping a fraction of the bank’s deposits on hand, while lending out the rest and yet simultaneously guaranteeing that all deposits are available for instant withdrawal.