{"id":391640,"date":"2010-03-04T07:34:03","date_gmt":"2010-03-04T12:34:03","guid":{"rendered":"http:\/\/www.prisonplanet.com\/?p=35870"},"modified":"2010-03-04T07:34:03","modified_gmt":"2010-03-04T12:34:03","slug":"barney-frank-demands-bernanke-probe-fed-involvement-in-watergate-scandal-and-iraq-arms-sales-following-ron-paul-questioning","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/391640","title":{"rendered":"Barney Frank Demands Bernanke Probe Fed Involvement In Watergate Scandal And Iraq Arms Sales Following Ron Paul Questioning"},"content":{"rendered":"

Tyler Durden
\nZero Hedge
\n<\/a>March 4, 2010<\/p>\n

A week ago Ron Paul<\/a> asked Ben Bernanke<\/a> a series of questions, which the Chairman and pundits immediately dismissed as \u201cbizarre\u201d and an indication that the potential presidential candidate has finally lost it (among these was a very nuanced question whether or not the Fed is buying sovereign debt<\/a>, something which Bernanke disclosed in 2002 is a distinct possibility and an action the Fed is permitted to do). Chief among these were queries arising from the work of U of T professor Robert Auerbach, and specifically his book \u201cDeception and Abuse at the Fed<\/a>\u201d (not <\/em>available on Kindle), which seek information on whether the Fed was involved in the Watergate scandal and, subsequently, in Iraqi weapons purchases.<\/p>\n

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Well, Paul may not be as kooky as people are trying to make him out to be. None other than \u201cconsumer protection advocate\u201d Barney Frank has demanded that Bernanke do a full probe based on these allegations.<\/p>\n

Bloomberg reports<\/a>:<\/p>\n

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Representative Ron Paul<\/a> asked questions about \u201cinappropriate political interference\u201d and \u201chidden transfers of resources\u201d during a Feb. 24 hearing with Bernanke, and the allegations \u201cmust be fully investigated,\u201d Frank said in a letter today to Bernanke and obtained by Bloomberg News<\/a>.
\nFrank, 69, said the Fed must address the charges because \u201ccontinued concern about political interference\u201d with the Fed and \u201callegations about a lack of transparency.\u201d Bernanke and other Fed officials are trying to fend off a measure offered by Paul, which passed the House in December, that would open the Fed to audits of interest-rate decisions.
\n\u201cThese specific allegations you\u2019ve made I think are absolutely bizarre, and I have absolutely no knowledge of anything remotely like what you just described,\u201d Bernanke told Paul, a Texas Republican who wrote the 2009 book \u201cEnd the Fed,\u201d during last week\u2019s hearing.<\/p>\n<\/blockquote>\n

Some more on Professor Auerbach\u2019s background, which lends substantial credibility to his allegations:<\/p>\n

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Auerbach worked for Henry Gonzalez, a former chairman of the House committee who died in 2000 and investigated the sale of U.S. arms to Iraq<\/a> in the 1980s, before the Gulf War<\/a>. Gonzalez said the Fed and other agencies initially tried to block his probe, according to a 1992 New York Times article.
\nFed bank examiners in Atlanta failed to note $5.5 billion being funneled to Iraq<\/a> from a local branch of an Italian bank, Auerbach, a critic of the central bank and former congressional economist, said in his book.
\n\u201cThe Federal Reserve<\/a>\u2019s ability to manage monetary policy in an effective manner depends, in large part, on its reputation for independence and integrity,\u201d Frank, a Massachusetts Democrat, said in the letter. \u201cA complete investigation of these charges is necessary to maintain both.\u201d<\/p>\n<\/blockquote>\n

We can\u2019t wait just how deep this particular rabbit hole ends up going, although we will be extremely shocked if the Fed ends up finding absolutely nothing implicating it in any new illegal (and treasonous) activity. Luckily, the Fed is perfectly transparent, so the general population can do a parallel query on its own. Oh wait\u2026<\/p>\n

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