Our Constitution gives Congress direct authority over America’s monetary policy. Among the enumerated powers Article I, Section 8 grants to Congress is this one:

“To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures …”

Boaz ItsHaky, Candidate for Connecticut’s Third Congressional District, considers Sec. 8 to be unambiguous. And, there is no amendment of the Constitution that permits any entity to meddle in this responsibility of Congress.

And yet, the Federal Reserve Act of 1913 has effectively nullified a portion of Sec. 8 by granting the quasi-independent banking syndicate known as the Federal Reserve Banking System discretionary control over America’s money supply.

It wasn’t supposed to be this way. The Federal Reserve Act was designed to end a cycle of commodity bubbles that hurt the economy. And, the Act only permitted the twelve Federal Reserve banks to issue loans and inject cash as needed to ensure liquidity in their regional marketplaces.

Things went quite wrong from the start. A sharp recession in 1921 challenged the Fed as a commodity bubble expanded beyond their expectation. The Fed responded by loosening the money supply, but only after the recession had already ended. According to Great Myths of the Great Depression”,

Economist Murry Rothbard, author of “America’s Great Depression”, used a broad measure that includes currency, demand and time deposits, and other ingredients, to estimate that the Fed bloated the money supply by more than 60 percent from mid-1921 to mid-1929. Rothbard argued that this expansion of money and credit drove interest rates down, pushed the stock market to dizzy heights, and gave birth to the “Roaring Twenties.”

And the Great Depression. Once the money bubble burst, the Hoover administration undertook massive government intervention in the form of price controls and excessive tariffs. It would take nearly twenty years for America to climb out of the hole the Federal Reserve had dug. But the Fed’s position was strengthened by the event, not weakened.

By 1971, the Treasury Dept. ceded all powers to the Fed to regulate the value of our money. Recently, we have lived through several commodity bubble bursts courtesy of the Greenspan-Bernanke “loose money” policy: the dot.com bubble in 1998, the housing bubble in 2008, as well as many shifts and market seizures that the Fed was supposed to prevent–but rather created with its loose credit policies, shady deals with chosen favorites, and casino-style credit swaps.

Boaz ItsHaky is on record for auditing the Federal Reserve Banking System from top to bottom. He wants to know why the world’s most secretive and exclusive banking syndicate has been playing dangerous games with America’s hard-earned money.

Even more so, he will strive to uncover the special relationship between the biggest investment banks on Wall Street and the Federal Reserve banking system, as well as the deals these entities may have struck with Greece and other faltering countries abroad. Are We the People going to bail out member states of the EU? Boaz ItsHaky wants to know!

Furthermore, Boaz ItsHaky wants to restore the Federal Reserve Act to its original intent, and firmly uphold the U.S. Constitution to its purpose, beginning by restoring Congress as the regulator of our money. After all, “stop the spending” isn’t just a campaign slogan to harp on. Its a core principle that demands critical judgment from our elected representative. (And a lack of such principle among the incumbents has burdened us with deficits for the last decade.)

Boaz ItsHaky can do this for us if We the People send him to Congress in an historic election in 2010!

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