The latest edition of BullionBuzz is out. Among the articles is one re Congressman Ron Paul's recent comments on US spending: Here is an excerpt: "The US State Department is building a $1-billion embassy in London; the plans even include a moat! This has Congressman Paul wondering about his government’s use of funds, especially given the difficult economic times. Many are unemployed; those who are employed worry about losing their jobs as they struggle to pay bills. Meanwhile, Washington talks about increasing taxes, something voters were promised would not happen during the Obama administration.

The US should be focusing on eliminating waste and preserving public funds rather than expanding the Federal budget. Most businesses have had to cut back in order to survive; the government should do the same. The administration has committed to doubling foreign aid, a promise that is likely to be kept despite the economic crisis. Paul asked Fed Chairman Bernanke about agreements with foreign central banks, and if he had discussed bailing out Greece, which he flatly denied. However, Bernanke recently announced the Fed will be looking into Goldman Sachs’ derivative agreements with Greece. Goldman Sachs has “too big to fail” status with the Fed, so it is conceivable that any Greece-related catastrophic losses at Goldman Sachs will once again be passed on to taxpayers. Perhaps most sinister are the revelations in Robert Auerbach’s Deception and Abuse at the Fed that $5.5 billion was sent to Saddam Hussein in the 1980s – money that allowed Iraq to build up its military machine to fight Iran prior to the first Gulf War, the same machine turned against Americans within just a few years.

Bernanke says it is “bizarre” to think that Americans at the Fed could engage in this type of behavior, which some have called criminal. However, Professor Auerbach served as a banking committee investigator, and an economist at the Treasury Department and at the Fed.  His claims are solidly backed by court rulings and other evidence. “We simply must keep pressing these issues and voicing our objections if we are ever to reverse our failed policies,” writes Congressman Paul." Read the Buzz here: BullionBuzz