US News, a mainstream media publication if there ever were one, interviewed Congressman Ron Paul about his bill to audit the Fed. Amazingly, the magazine allowed the congressman to lay it on the line about the nefarious central bank.

Although Paul would prefer that the Fed be abolished, he knows that bills to abolish the Fed go nowhere. Considering how ignorant most Americans are about Fed, it is understandable that our representatives in Washington do not know much more about the Fed.

Further, the media have long held the Fed in adulation. The Fed is beyond criticism, except for comments about whether the Fed should raise or lower interest rates. Never do the media discuss the immoral fractional reserve banking system, of which the Fed is part and parcel.

Additionally, whoever heads the Fed is nearly worshiped by the media. Always, the Fed Chairman is portrayed as the most brilliant economist in the land. How dare a congressman from a rural Texas district suggest that the great and wonder Oz be banished! However, with Paul’s bill to audit the Fed, the camel’s nose may be in the tent.

More than a few Americans were watching when the Treasury passed around hundred of billions of tax dollars under the TARP bailout, and now there’s “all this talk about transparency” at the Treasury, which prompted interest in what the privately-owned Federal Reserve System does. With greater understanding of the Fed, perhaps a great debate (and it would be great!) would follow about abolishing the Fed.

For the interview, read Exclusive Conversation With Ron Paul: The Future Of The Federal Reserve.

(By the way, if you had been following me on Twitter, you would have learned about this interview hours ago.  On Twitter, I’m theoldgoldguy.)

As noted on this blog before, the IMF wants to sell gold to fund more international welfare programs but must have the approval of the US Congress before it can sell any gold. In a February 2008 post, I speculated that approval under a new Congress would be likely. Now, approval appears imminent.

This week a House-Senate committee will meet to reconcile differences between the House and the Senate in the Supplemental Budget Appropriations Bill. Buried in the bill is approval for the IMF to sell gold. No one is objecting to the sale.

To some, talk of a major institution selling gold is frightening. But, as I noted in the February 2008 post, the gold market has seen IMF sales before and has weathered them nicely.

As the mainstream media report the approval, there may be some downside movement in gold, but at least one gold analyst and investor sees the IMF sale as positive for gold.

Brian Kelly, writing for seekingalpha.com, sees China stepping forward and buying the gold. Kelly doesn’t think that it’s a coincidence that Treasury Secretary Timothy Geithner just ended a trip to China.

By all reports, Geithner avoided all contentious issues with China, such as massive Chinese theft of intellectual property or revaluing the Chinese currency. Instead, he sought a “greater role for China in the International Monetary Fund.”

Kelly further speculates that a sale to China would upset “India and several of the Gulf States as they all have expressed interest in purchasing the gold. If this occurs, nothing could be more bullish for the price of gold.”

Frankly, I haven’t seen anything substantive about India or any Gulf States wanting to buy the IMF gold. But, I guess it could be true. If I were sitting the gargantuan quantities of dollars that those nations hold, I’d want to buy gold. I just wonder if Kelly really has such information or is he, as a gold investor, simply wishing a major buyer would step forward.

Regardless, when news comes out that Congress has approved the sale of IMF gold, it will roil the markets. Bargain hunters may have opportunities to buy on dips in price. And, if Kelly is right about India and some Gulf States wanting to buy the IMF gold, he will certainly be right about that being bullish for gold.

Spreading across the Internet like a wildfire is the Bloomberg release that “Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time in 152 years to hedge against further asset declines.”

“Gold just seems to make sense; it’s a store of value,” Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor’s in Brooklyn. “In the Depression, gold did very, very well.”

Although many gold investors do not need validation to make them feel good about their gold investments, other investors like to know that such an esteemed institution as Northwest Mutual shares their feelings about how to protect against potential declines in the value of the dollar.

The insurance behemoth has accumulated about $400 million in gold; Zore did not disclose Northwestern’s plans for future gold investing.