Home > 2014 SD Legislative Session, Free Market, South Dakota > Ask your elected South Dakota state legislators to support auditing the Federal Reserve

Ask your elected South Dakota state legislators to support auditing the Federal Reserve

January 19, 2014

Representative Dan Kaiser (R-3) has posted the following on his Facebook page:


This is a House Concurrent Resolution I would urge all legislators in Pierre to support. Luckily Kaiser is one of the elected legislators from my district (3, Aberdeen), so I only have two others to try convincing on this issue.

There are many reasons to support this HCR, many of which are too complex for a short blog post. Instead of going in-depth into the issue I will provide a short bullet list of reasons why this HCR is a good idea:

  • The Federal Reserve (also know as The Fed) is a private bank. It is NOT a branch of the government as many believe it to be. Congress outsourced monetary policy to the Federal Reserve bank in 1913.
  • The Fed consistently prints money ‘out of thin air’, causing the value of the dollar to inflate. As a direct result of printing policies from The Fed, the dollars used by Americans every day continues to lose purchasing power. The more steps The Fed takes to artificially inflate the dollar it leaves less value in that dollar to buy goods and services. People that care about the poor should give up on well-meaning, but misguided, attempts to raise the minimum wage and look at why our dollar continues to lose value.
  • Inflation is a ‘tax’ on hard-working Americans. Those opposed to high taxes should research policies of The Fed and see how much they are truly ‘taxed’ by this centralized private bank.
  • Nothing but a promise actually backs up the value of the dollar. The US used to use gold to back the value of the dollar. That is no longer true. The value of the US dollar hangs completely upon the promise of the US Government and a private centralized bank called the Federal Reserve System.

I actually could keep going on. But I think the above points show why it is important to audit The Fed. This audit would look at the policies and procedure of The Fed to make sure the best interest of the US economy are the highest priority; instead of the priorities of a few elite businessmen that run The Fed.

Like any HCR this one would be non-binding. However, if enough states pass these resolutions and exert political force on their Federal elected officials it may open the opportunity to actually get an audit of The Fed some day. To put this in perspective for South Dakota residents: auditing The Fed is analogous to auditing the Governors Office of Economic Development and the EB-5 program to ensure taxpayer dollars are being used properly.

  1. Merlyn Schutterle
    January 20, 2014 at 8:41 am

    To say the value of our dollar is inflating seems to be the wrong term to me. Inflate means to get larger and the value of our dollar is deflating- getting smaller.

    The only reason gold is valuable is because people believe it is. It has little practical value in itself. The gold standard is a stupid idea. As long as people BELIEVE something is valuable then it is. It’s all in our belief systems – in our minds. So, if people believe our dollar is valuable, then it is. When people stop believing in the value of the dollar or gold and silver it will have little value. Those metals produce nothing. The only things that has real value are things like land because it produces something.

    • January 20, 2014 at 12:19 pm

      True, any monetary system relies upon the confidence users have in that currency. I personally am using Bitcoins more now. Technically nothing backs that at all, but it has anti-inflationary concepts built into the currency.

      Gold and silver are not likely to lose all value (although they will likely go down). Gold and silver at least have real-world importance, especially in high end electronics manufacturing. Having our currency backed by gold had problems, but I feel there were less problems than our current centralized private bank backing it with a promise.

  1. January 24, 2014 at 11:18 am
  2. February 19, 2014 at 10:04 pm
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