As always, the term “delelegate” is often confused with SURRENDER– just as with the People of the states delegating powers to the federal government, is taken as a permanent surrender of those powers, as when the Jackson administration authorized the use of military force against the individual states, and the Lincoln Administration carried out such.

However in reality, “delegation” in the Constitution refers to authorizing a subordinate to carry out orderso– not not giving away the power to an independent or superior body. For example, a manager may delegate authority to an employee, but it always subject to oversight by the manager or a superior.

Here, the federal government SURRENDERED power to an independent body over which is not directly subordinate to any branch of government– and did so through normal legislative process, and not by Constitutional Amndment.

This not only breaches separation of powers, but breaches the Constitution altogether by usurpation of clearly extra-constitutional authority, exercising congressional power without direct congressional oversight.

However once the federal government usurped the power to coerce the states through military invasion, it suppressed their power of sovereign recourse; and as Madison and Jefferson warned, this made the federal government into the supreme and final judge ot its own powers– since no other power could stand against it.

So essentially the die was cast under the Lincoln Administration; and the Federal Reserve was simply a matter of time and tide– as with all other federal abuses, i.e. since the states have no recourse against them.

Every “dollar” in circulation is created based upon debt. Congress gives T-securities (bills, bonds, or notes) to the Federal Reserve, and the Fed credits the Treasury’s account with the value of the securities. Voila !!! New fiat money. Congress can spend up to the limit of the account and the Fed will honor the checks.

The problem is that the arrangement obligates the US to pay interest on the principal thus generated. The interest has never been generated. It does not exist. It is impossible to culminate the agreement. The only way the interest can be paid is to generate more principal and pay the interest on the initial securities from the principal on the later securities. It is the classic Ponzi, par excellence.

Mathematical details on the rip-off by the Fed, including how the Fed obtains the ENTIRE VALUE of ALL issued securities (off of the accounting records) is posted at http://www.scribd.com/doc/43482648/rip-off-by-the…
and http://www.scribd.com/doc/43465593/QE2-Rational-C…

“It is known that the very power now proposed as a means was rejected as an end by the Convention which formed the Constitution. A proposition was made to them to authorize Congress to open canals, and an amendatory one to empower them to incorporate. But the whole was rejected, and one of the reasons for rejection urged in debate was, that then they would have a power to erect a bank, which would render the great cities, where there were prejudices and jealousies on the subject, adverse to the reception of the Constitution.” –Thomas Jefferson, Jefferson’s Opinion on the Constitutionality of a National Bank : 1791 http://avalon.law.yale.edu/18th_century/bank-tj.asp

So with all due respect to Ron Paul, the following statement really has no meaning, IMO.

“Congress, although not by law, essentially has given up all its oversight responsibility over the Federal Reserve.”

After all, how do you make laws regulating anything without some kind of oversight responsibility?