This week Congressman Ron Paul (R-TX) announced that Watt took the knife to his bill to audit the Federal Reserve – The Federal Reserve Transparency Act of 2009 (HR 1207). According to Paul, Watt as chair of the above mentioned committee cut out, “just about everything” in preparing the bill for a full committee vote.

Specifically, Watt eliminated the provisions requiring audits of the Fed's transactions with foreign banks, its deliberations on monetary policy, the activities of the Open Market Committee, and disclosure of communications between the Federal Reserve Board and reserve banks. Essentially the bill has become a shell of its original self. Paul, of course, does intend to attempt to restore the bill to its original form during Financial Services Committee deliberations, but that is not the point. The point is why has Congressman Watt gutted a bill that has over 300 cosponsors in the House and the support of a large majority of Americans?

It could be because he is repaying the financial industry which has throughout his career in Congress contributed over $890,000 to his campaigns. That would be only fair given how much they have helped him maintain power and the privileged perks of members of Congress – great healthcare, great salary, and a great pension plan.

But, what is funny and ironic is that the industry that is second in contributions to Watt is organized labor at $873,000. Big banks and labor unions make strange bedfellows? You would think their interests are so diametrically opposed that they would not be #1 and #2 in contributions to the same member of Congress. Labor union support of Watt is also curious given that North Carolina is a Right to Work state and not nearly as unionized as the People's Republics of Massachusetts and California. But, not to worry, Congressman Watt has traditionally taken care of unions as well. He has supported every “entitlement” program that comes down the pike in favor of their leadership. The list has included minimum wage, the “right” under law to collective bargaining, so-called fair employment practices, social security, socialized medicine – the list goes on and on.

So, if the congressman is so busy serving big banks and labor unions, what has he done for the actual people who elect him every two years? Well, very little. You see by supporting the Federal Reserve and bailing out big banks through legislation he is supporting the perpetuation of inflation. Our dollar has lost 95 percent of its value since the Fed was given control over it by Congress in 1913. But, most folks don't understand how the Fed imposes this hidden tax on them by debasing our currency causing prices to rise. Instead Watt and his ilk blame capitalism for rising prices and offer socialized medicine, minimum wages, and other socialist schemes to combat the higher cost of living for families. If they would just support sound money in the first place there would be no perceived need for these wasteful programs.

So this is where the charlatan or economic imbecile question comes into play. Does Watt understand that his support for the banking cartel known as the Federal Reserve System is what actually causes hardship for labor and ordinary Americans in his district? Does he realize that by gutting HR 1207 he will help to continue the debasement of our currency? Has it clicked in his head that his support for or at the very least his blind eye toward the reckless monetary policy of the current Fed leadership will be responsible for the future hyperinflation we will experience. Has he considered his own culpability in the coming collapse of the dollar which will usher in an era of even higher unemployment with a drastically reduced standard of living in America?

Given the bubble mentality around Washington, a reasonable person could conclude that Watt is both a charlatan and an economic imbecile. He is an economic imbecile because he must believe that economic doom caused by Fed policies is not inevitable otherwise he would not support them in light of the fact that the collapse would also affect him negatively. He certainly is a charlatan because like many members of Congress Watt has the best of both worlds. Special interests of all stripes get federal goodies from him which personally cost him nothing. In return those special interest groups guarantee his reelection every two years with huge cash contributions to his campaigns. In the meantime, our national debt is grotesquely high, our manufacturing base continues to move overseas, our financial industry is bankrupt, and the dollar is on the brink of collapse.

This is the essence of our problems. Too many charlatans and imbeciles have been in charge of Washington for far too long. Unfortunately all good things must come to an end. The federal gravy train that Congressman Watt and his comrades have built to continually get reelected is about to crash. When it does they won't understand it, but they should because it will be caused by the fraud they have perpetuated on America.

Kenn Jacobine teaches internationally and maintains a summer residence in Haywood County, North Carolina. For a podcast of this post go to: The View from Abroad.