Epiphany! Why Rand Paul voted to sanction Iran...

Matt Collins

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I was laying in bed this morning shortly before sunrise pondering on the future of the movement, where we are going, and what the next steps are. And then randomly a thought entered my brain which I believe explains why Rand voted to sanction Iran late in 2011.

Rand and myself and his staff had some very informative and deliberative e-mail exchanges after his vote because it did upset a great amount of us in the liberty movement. I wanted to ensure they were aware of this and pointed them to some threads here and on the DP as well as ask for their rationale behind the vote. The rationale they explained was that 'central banks should be sanctioned'

The important thing to realize was that this sanction was actually against Iran's central bank!

Read the following:


S.Amdt. 1414 to S. 1867 (National Defense Authorization Act for Fiscal Year 2012) - here is the roll call.


(3) On November 22, 2011, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, David Cohen, wrote, ``Treasury is calling out the entire Iranian banking sector, including the Central Bank of Iran, as posing terrorist financing, proliferation financing, and money laundering risks for the global financial system.''.

(b) Designation of Financial Sector of Iran as of Primary Money Laundering Concern.--The financial sector of Iran, including the Central Bank of Iran, is designated as of primary money laundering concern for purposes of section 5318A of title 31, United States Code, because of the threat to government and financial institutions resulting from the illicit activities of the Government of Iran, including its pursuit of nuclear weapons, support for international terrorism, and efforts to deceive responsible financial institutions and evade sanctions.

(1) IN GENERAL.--Except as specifically provided in this subsection, beginning on the date that is 60 days after the date of the enactment of this Act, the President--
(A) shall prohibit the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that the President determines has knowingly conducted or facilitated any significant financial transaction with the Central Bank of Iran or another Iranian financial institution designated by the Secretary of the Treasury for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); and

(B) may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to the Central Bank of Iran.


Now as we get closer and closer to a full audit of the Federal Reserve, there are some things to keep in mind. Remember that the Fed was caught giving money to the Libyan central bank just before our government bombed them?

The Fed's FOMC operations, and specifically any deals with foreign central banks or foreign governments are NOT subject to an audit.


Here is my point in sequence:

- What if the Federal Reserve is giving money to the Iranian central bank or government?
- What if the us government attacks Iran?
- What if we get a full audit of the Fed?
- What if the audit of the Fed reveals that the Fed is giving money to the Iranian central bank in direct violation of US law, specifically if the Iranian central bank is indeed involved in funding "terrorism" or money laundering?

Now that it is now illegal to do business with the Iranian central bank, if an audit of the Fed reveals that they are conducting such business anyway and outside of the bounds of the law, they would be defacto in violation of US law, right?

Would being able to decisively show that the Federal Reserve was breaking US law and "funding a declared terrorist organization" help turn public tide against the Fed?

Was this perhaps Rand's plan all along on that specific vote? Was Rand trying to prevent the Fed from conducting business with the Iranian central bank? Was Rand trying to set up the Fed to eventually be found in violation of US law thus forcing a microscopic inspection of everything they do?

I think this very well could have been Rand's mindset, it fits his style, and he does tend to think things 3 or 4 steps ahead. Although this is just speculation on my part it makes perfect sense - make an underhanded activity the Fed is about to engage in illegal, and when they get caught, throw everything you have at them.

:cool:




Thoughts? :confused:
 
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So you are saying Rand knew about the Fed's activity without an audit? Then you are saying that the sanctioning of their Central Bank has no effect on their people? I believe the reason we don't like these sanctions is because it hurts the normal everyday people and not the rich folks in the government. And to top all of that, why do you care what happens in Iran anyways? Don't we have enough problems in our own country?
 
So you are saying Rand knew about the Fed's activity without an audit? Then you are saying that the sanctioning of their Central Bank has no effect on their people? I believe the reason we don't like these sanctions is because it hurts the normal everyday people and not the rich folks in the government. And to top all of that, why do you care what happens in Iran anyways? Don't we have enough problems in our own country?

Help me out, here. What do sanctions against Iran's central bank do besides prohibit our own Federal Reserve from lending money to them?
 
A few things..

1) It is my limited understanding that sanctioning the Iranian central bank impairs their ability to complete sales transactions of oil. And therefore severely constricting their oil sales. And severely constricting their per capita GDP. Thus further impoverishing their population. Thus folks on the margin may succumb to starvation and disease.

2) The amendment would have passed easily without Rand's vote.

3) Sanctioning as many foreign banks as possible, in the hopes that the Fed will contribute liquidity to them subsequently and so that we can catch them in a "sting operation" is very circuitous. Ron Paul's assertion is that the Fed is criminal for lending even nice central banks money, so it's really beside the point and could actually serve as a straw man argument down the road that we might do well to avoid.
 
Help me out, here. What do sanctions against Iran's central bank do besides prohibit our own Federal Reserve from lending money to them?

I think Anaconda answered your question in his post right below yours. He obviously knows more than I do about this. Do you really believe it's our business to sanction Iran's central bank?
 
very, very interesting. If we get a full audit, and it turns out the FED has been loaning money to Iran then we can lock up Bernanke and crew for supporting terrorism?
 
very, very interesting. If we get a full audit, and it turns out the FED has been loaning money to Iran then we can lock up Bernanke and crew for supporting terrorism?

Not likely. They'd probably find or invent a legal loophole. Or just pretend like it never happened
 
Not likely. They'd probably find or invent a legal loophole. Or just pretend like it never happened

Yes. Until we take back our government, the rule of law does not apply to most high ranking government people and their rich cronies. Unless they piss one another off for one reason or another.
 
I think Anaconda answered your question in his post right below yours. He obviously knows more than I do about this. Do you really believe it's our business to sanction Iran's central bank?
If all it did was to stop our own central bank from loaning money to another central bank, yes, yes, I do. But, there appears to be more to it than that.
 
A few things..

1) It is my limited understanding that sanctioning the Iranian central bank impairs their ability to complete sales transactions of oil. And therefore severely constricting their oil sales. And severely constricting their per capita GDP.

There have been stories for many months about countries paying for Iranian oil with gold. From what I've read Iran has plenty of customers for its oil such as India, China, etc.
 
To The Collins: If you have access to Rand and his staff, why not simply ask them if this was his real intent? Or perhaps you've already asked him, and he prefers to keep his cards close to the vest for now? Is this your back-door way of telling us what's really going on, while keeping it on the DL for the rest of the world?
 
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