Skip to comments.Congress Debates Ending the Federal Reserve?
Posted on 05/10/2012 3:58:57 PM PDT by yoe
In a rare moment of bipartisan unity, lawmakers and economists on both sides of the aisle largely agreed on two points: The Federal Reserve System as it stands is hurting America and something must be done to stop it. Just what exactly needs to happen, however, was the subject of considerable debate during a Subcommittee on Domestic Monetary Policy hearing Tuesday chaired by sound-money advocate and GOP presidential contender Rep. Ron Paul (R-Texas).
Dr. Paul, of course, has become famous around the world for his tireless efforts to audit, expose, and abolish the central bank. He even published a best-selling book in 2009 entitled End the Fed, a title that has become a rallying cry for millions of Americans angry about the institutions (U.S. Fed Bailout of Euro Prompts New Push for Audit & Sound Money)
The subcommittee hearing, entitled (The Federal Reserve System: Mend It or End It?) , examined a range of different proposals to reform the nations monetary system it was supposed to look at six different options emanating from both parties. One of the measures on the agenda was Congressman Pauls own Federal Reserve Board Abolition Act, legislation to dismantle the central bank and restore sound money based on market principles.
More and more people are beginning to understand just how destructive the Federal Reserves monetary policy has been. I hope that this hearing will kick start a serious discussion on the need to rein in the Fed, Chairman Paul said in a (statement) about the event. A hundred years is far too long for Congress to have taken a hands-off approach. The Fed continues to reward Wall Street banks while destroying the dollars purchasing power and driving up the cost of living for average Americans. This reckless behavior must come to an end.
It's a start.
I hate Ron Paul’s positions on international and especially mid-east affairs, but stuff like this is great.
If only he could drop the mid-east junk I could really be happy about the guy.
Last time congress issued it’s own money, United States Notes (red Treasury Seal) as opposed to Federal Reserve Notes (green Treasury Seal), the sitting president was assassinated shortly thereafter.
democrats will want to replace the federal reserve with the world bank and end currency all together...and have the world bank issue people electronic credits every week for a paycheck...rather than your boss printing a paycheck. and then they will want the world bank to be owned and operated by the United Nations.
A hundred years is far too long for Congress to have taken a hands-off approach. The Fed continues to reward Wall Street banks while destroying the dollars purchasing power and driving up the cost of living for average Americans. This reckless behavior must come to an end.
This part cracked me up...because it was from a US CONGRESSMAN! I suppose he thinks congress has done a better job managing money and that therefore congress should be doing the job of the federal reserve?
Allow citizens to borrow directly from the Fed Res at 0.5% for 30 years and cut out the martini and lobster dinner middle men.
Agree 100%... Therefore all transactions are taxable, no under the table deals that are missed by the Government. This WILL happen, it is just a matter of time before “We the Sheeple” are hoodwinked...
Bing Bing Bing
We have a winner.
That is exactly what the Commie Dems and the Globalist Pubbies want. Both are traitors.....
All that stands in the breach is We The People. Unfortunately very very few understand what we face.
Audit it first!
so when do you plan to suit up do some nation building? btw YOU can donate "YOUR" money to Israel, "YOU" can support Israel the fed government doesnt need to and it especially doesnt need to be funding Israel's enemies...i bet you will say he won't go to war. he has been quite clear, congress declares it , its done..so if YOU feel we should invade IRAN convince YOUR congresscritter to draw up an declaration of war.
The only problem is that when the Federal Reserve digs it’s hands into its right pocket, and pulls out multi trillions of dollar investments sanctioned by its left pocket, the US Treasury debts; how does the nation redeem all the bad debt/good debt and still stay afloat without massive inflation???
I agree. On his domestic policies(Dem’s might say lack there of) I think Ron Paul is great.
As for the Federal reserve I’m not sure how anyone can get off defending an organizations that has so disastrously failed its one original mandate of stopping inflation. Instead of stopping inflation the Federal reserve over its 100 year “trial” has made the inflation more than a 100 times worse.
Whether this organization was ever honestly intended to do as it’s proponents claim it was made to do, it is a matter of serous conjecture. If you ask me it would take a profound level of ignorance of both human nature and economics to believe that the Federal reserve system as designed would have any effect other than the corrupt disaster it has been over the last 100 years.
But of course the progressives that lived and dominated the press & politics at the time were hardly rational thinkers when it came to either economics or human nature. They were instead prone to creating just that sort of disaster.
As you correctly imagin in the 100 years prior to the Federal Reserve. Congress did infact inflate the money supply, and spend reacklessly.
But the truth is, becase of the way congress was designed congress, and money for most of that time consisted of gold & silver coins. Congress was not able to both politically & practically vote & spend enough to outpace the deflationary pressure of population growth and technological innovation.
So in the 100 years prior to the Federal reserve the Dollar on net double in value, as apposed to losing 90% of its value in the 100 years after the federal reserve.
Simply put Congress cannot give away legal tender money as fast as the Federal reserve.
If Ron Paul appeals to the vanity of Congress greed for power & control, he does so with a very practical & historic propose. Congress simply doesn’t have time or political strength to do anything even near the damage of the Federal reserve has done.
“Last time congress issued its own money, United States Notes (red Treasury Seal) as opposed to Federal Reserve Notes (green Treasury Seal), the sitting president was assassinated shortly thereafter.”
Technically speaking the Federal Constitution most wisely left out the power to make anything legal tender, and forbid our States from making anything but gold or silver coins legal tender. Coins our States were also forbidden from making themselves.
Instead Congress got the power to make the coins and the States got the power force people to accept them in payment of debt(or not).
Later as Washington became ever more arrogant & drunk with power. Congress started assuming they had their own legal tender making power “implied” they claimed it was, along with every other desired power of theirs.
Then later still when Washington moved into the empire business(forced Union) with the “Civil War”, they started assuming their “implied” legal tender power extend not only to the gold coins they had the power to make but any substance even papers.
Then for the first time even the availability of raw materials(Precious Metals) no longer constrained their inflationary(spending) apatite.
But as I mentioned in a previous post, even this lack of constrain upon their apatite was nothing compared to the spending apatite of the Federal reserve.
Puting Congress back into this position would be akin to switching from the formula one racer to a turtle. Still going to hell, just a faction of the speed.
non-RPian: RP is good in some areas, but I don’t agree with everything he says.
RPian: evil heretic scum!!!
You can’t win with these guys. Only total obedience to the mantra will be tolerated!
“Yep, and just ask yourself this? How is congress going to spend like it does without a Federal Reserve to finance it? You cannot run a 15 trillion debt without a Central Bank. I think all congress is doing is pandering their class warfare anti-Wall Street groups.”
One of the original points behind making a central bank was to conceal the financial information from most lenders(including the American people who are ultimately lending in the form of debt & devalued currency) enough as to sustain a high enough level of financial creditably to keep new lenders (the ones who have a choice) to keep coming in. Thus preserving the potability that by way of outsiders money politicians in Washington can put off the costs of their spending until they are out of office.
The Federal Reserve knows they are in trouble. This explains their decision to permit Chinese government to take shares in our American banks...