Congressman Ron Paul, Chairman of the House Financial Services subcommittee on Domestic Monetary Policy, had an interesting exchange with two Fed lawyers at a June 1st hearing entitled “Federal Reserve Lending Disclosure: FOIA, Dodd-Frank, and the Data Dump.”
The congressman criticized the Fed’s use of the term “independence” as a front for what they really desire: secrecy.
“What people hear when you say independence, they hear secrecy”
Paul asked the Fed’s two lawyers if the Federal Reserve has been involved in any gold swaps. The lawyers replied that the Fed does not and has not owned any gold since 1934, despite holding what are called “gold certificates.”
Congressman Paul, skeptical of the Fed because of its lack of transparency, suggested that gold swaps and loans of various sorts have indeed taken place at the Federal Reserve as well as other central banks.
Raising another question, Paul asked, since gold is no longer considered money by the mainstream but is still a valuable asset, why does the government not sell it back to the people?
The Fed lawyers did not have a position as they consider it to be matter for the Treasury.