NOTHING TO SEE HERE... MOVE ALONG

Wall Street is an economic extension of the big banks, which are the government-protected segment of a government-created cartel: the national bank system. The government controls entry into this cartel, thus offering above-market rates of return to those who are approved.

The primary enforcer of this cartel is the Federal Reserve System. The FED provides the fiat money that in turn provides banks with reserves to lend. It also serves as the lender of last resort -- officially, to the government; operationally, to the banks. This keeps the largest banks from having to face free market competition.

We can use this syllogism: As goes the Federal Reserve System so go the big banks. As go the big banks, so goes Wall Street.

Wall Street is hostile to any suggestion that the U. S. government has any legitimate authority to audit its creation: the Federal Reserve System. The government's authority must be limited to enforcing the barrier to entry in banking. Anything beyond this is conceptually and operationally illegitimate. This is the party line of the Wall Street establishment. It has been since before the creation of the FED in 1913. The Federal Reserve was the joint product of a mutually beneficial alliance between the Morgan bank and the largest Rockefeller bank. The story of this alliance is here

The Federal Reserve System has been described as the Temple. That is because, ever since 1914, it has been sacrosanct: above politics and above the law. It has also been the inner sanctum. No unauthorized person is allowed to open its door.

Congressman Ron Paul dared to introduce a bill, H.R. 1207, that would require an audit of the FED by a government agency. The House of Representatives agrees with him. He got over 300 co-signers of the bill. Barney Frank at first tried to bottle it up in committee. Then he tried to substitute a watered-down version. The committee voted for Paul's version last week. This was a palace revolt against Frank. This does not happen often in any committee.

This is the first bill in Paul's long career that has had widespread support. This indicates that the Federal Reserve, for the first time since 1914, has serious opposition in Congress. This in an historic event. The FED can no longer presume that Congress will treat it with kid gloves.

The Wall Street establishment understands the threat.
Read the rest... Gary North

-flynn