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Opinion from a Libertarian ViewPoint

Posts Tagged ‘audit the Fed’

Hey Incoming Congress: Try These Three Simple Tricks for a Successful Start – LewRockwell

Posted by M. C. on November 8, 2022

First, Republican Party Leadership must vow to end the massive money spigot opened by the last Congress for Ukraine.

Second, Republicans can signal that they will de-fund the Department of Homeland Security.

Finally, the third task an incoming Republican House and Senate can take is maybe the easiest one: pass the Audit the Fed bill.

Fat chance, especially with warparty water carriers Kelly and Casey.

http://ronpaulinstitute.org/archives/featured-articles/2022/november/07/hey-incoming-congress-try-these-three-simple-tricks-for-a-successful-start/

Tomorrow is election day and polls suggest that Americans are going to overturn Democratic Party control of the House and Senate. Politicians and the media always say that this is the most important election ever, but all too often once the voting is over and the smoke has cleared, not much changes. The Washington uni-party takes over and makes sure the status quo is maintained.

It doesn’t have to be this way. An incoming Republican House and Senate, for example, could take early steps to reassure their supporters that their votes weren’t wasted on Tweedledee vs. Tweedledum in Washington. Here are three suggestions to get things off to a good start.

First, Republican Party Leadership must vow to end the massive money spigot opened by the last Congress for Ukraine. By some estimates some $60 billion dollars have been authorized for Ukraine to fight a proxy war between the US/NATO and Russia.

This would be a move strongly supported by the Republican base. A recent Wall Street Journal poll showed that only 37 percent of Republicans support sending more US aid to Ukraine. Republican firebrand Representative Marjorie Taylor-Greene said recently that under Republicans, not another penny will go to Ukraine. While I am skeptical that her party leadership would support such a move, it’s clear Republican voters would.

Plus, ending this proxy war would carry with it the benefit of reducing the dangerously high possibility of global nuclear war. That’s not a bad trade-off.

Second, Republicans can signal that they will de-fund the Department of Homeland Security. At the time this monstrosity was created, I said this on the House Floor:

“The list of dangerous and unconstitutional powers granted to the new Homeland Security department is lengthy. Warrantless searches, forced vaccinations of whole communities, federal neighborhood snitch programs, federal information databases, and a sinister new ‘Information Awareness Office’ at the Pentagon that uses military intelligence to spy on domestic citizens are just a few of the troubling aspects of the new legislation.”

Unfortunately all of these things came to pass…and more. As we recently learned, the DHS has been colluding with social media companies to try and prevent Americans from being able to say or post opinions the government doesn’t want others to hear.

They promised that a Department of Homeland Security would keep us safer, but there is nothing that makes us less safe than the destruction of our Constitution.

Finally, the third task an incoming Republican House and Senate can take is maybe the easiest one: pass the Audit the Fed bill. Ten years ago the US House voted in a bipartisan manner to pass my Audit the Fed legislation only to see it stall in the Senate. With Republican control of both houses of Congress there is no reason a broadly-supported bill to open the books at the Federal Reserve cannot find its way to President Biden’s desk. We all support transparency, right?

Inflation is out of control and causing real harm to the American middle class. The Biden Administration seems determined to lead us to a potentially life-ending war with Russia. The Department of Homeland Security has turned into a weapon mobilized against the American people and our Constitution.

A Republican-controlled House and Senate can actually do something to fix these problems and thus make us more safe and more free. Will they?

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The Ron Paul Institute for Peace and Prosperity : Can the Fed End Racism?

Posted by M. C. on October 14, 2020

Supporters of this scheme say that inflation raises wages and creates new job opportunities for those at the bottom of the economic ladder. However, these wage gains are illusory, as wages rarely, if ever, increase as much as prices. So, workers’ real standard of living declines even as their nominal income increases.

http://www.ronpaulinstitute.org/archives/featured-articles/2020/october/12/can-the-fed-end-racism/

Written by Ron Paul

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House Financial Services Chair Maxine Waters and Senator Elizabeth Warren have introduced the Federal Reserve Racial and Economic Equity Act. This legislation directs the Federal Reserve to eliminate racial disparities in income, employment, wealth, and access to credit.

Eliminating racial disparities in access to credit is code for forcing banks and other financial institutions to approve loans based on the applicants’ race, instead of based on their income and credit history. Overlooking poor credit history or income below what would normally be required to qualify for a loan results in individuals ending up with ruinous debt. These individuals will end up losing their homes, cars, or businesses because banks disregarded sound lending practices in an effort to show they are meeting race-based requirements.

Forcing banks to make loans based on political considerations damages the economy by misallocating resources. This reduces economic growth and inflicts more pain on lower-income Americans.

The Carter-era Community Reinvestment Act has already shown what happens when the government forces banks to give loans to unqualified borrowers. This law played a significant role in the housing boom and subsequent economic meltdown. The Federal Reserve Racial and Economic Equity Act will be the Community Reinvestment Act on steroids.

This legislation also requires the Fed to shape monetary policy with an eye toward eliminating racial disparities. This adds a third mandate to the Fed’s current “dual mandate” of promoting a stable dollar and full employment.

Federal Reserve Chair Jerome Powell has already publicly committed to using racial disparities as an excuse to continue the Fed’s current policy of perpetual money creation. Since inflation occurs whenever the Fed creates new money, Powell and his supporters want a policy of never-ending inflation.

Supporters of this scheme say that inflation raises wages and creates new job opportunities for those at the bottom of the economic ladder. However, these wage gains are illusory, as wages rarely, if ever, increase as much as prices. So, workers’ real standard of living declines even as their nominal income increases. By contrast, those at the top of the income ladder tend to benefit from inflation as they receive the new money — and thus an increase in purchasing power — before the Fed’s actions cause a general rise in the price level. The damage done by inflation is hidden and regressive, which is part of why the inflation tax is the most insidious of all taxes.

When the Fed creates new money, it distorts the market signals sent by interest rates, which are the price of money. This leads to a bubble. Many people who find well-paying jobs in bubble industries will lose those jobs when the bubble inevitably bursts. Many of these workers, and others, will struggle because of debt they incurred because they listened to “experts” who said the boom would never end.

The Federal Reserve’s manipulation of the money supply lowers the dollar’s value, creates a boom-and-bust business cycle, facilitates the rise of the welfare-warfare state, and enriches the elites, while impoverishing people in the middle and lower classes. Progressives who want to advance the wellbeing of people in the middle and lower classes should stop attacking free markets and join libertarians in seeking to restore a sound monetary policy, The first step is to let the people know the full truth about the central bank by passing the Audit the Fed bill. Once the truth about the Fed is exposed, a critical mass of people will join the liberty movement and force Congress to end the Fed’s money monopoly.


Copyright © 2020 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.


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David Stockman on What an Audit of the Federal Reserve Could Reveal

Posted by M. C. on January 4, 2020

The point is, inflation targeting is one of the greatest efforts at misdirection that a government agency has ever concocted. This gives them a license to constantly intervene and meddle in the financial markets—pointlessly fiddling with the whole price structure of debt and equity assets.

There’s about $1.5 trillion of excess reserves in the banking system.

So, they’re paying out to the banks upwards of $23 billion a year in order to keep excess funds on deposit at the Fed, rather than putting it to work in the macroeconomy.

How stupid is that?

https://internationalman.com/articles/david-stockman-on-what-an-audit-of-the-federal-reserve-could-really-reveal/

by David Stockman

International Man: Trump is calling for a weaker dollar and negative interest rates. What does this tell you about Trump’s understanding of economics?

David Stockman: It tells you that he has no understanding of economics at all!

I think Trump is not even a primitive when it comes to economic comprehension. His views are just plain stupid when it comes to exchange rates. He seems to think it’s some grand game of global golf, where the strongest player gets the lowest score.

What sense does it make tweeting as he did recently in attacking the Fed?

According to Trump, the US economy is so much better than the rest of the world’s economies, and therefore we should have the lowest interest rate as a result. It has nothing to do with economic logic or with principles related to sound money. I think he’s just thrashing about trying to create a warning that if things go badly, it’s the Fed’s fault.

The whole narrative on the economy is wrong…

Even John Maynard Keynes himself said that you ought to try to balance the budget and even generate a surplus at the top of the cycle.

We’re right in the middle of the worst kind of economic policy in my lifetime, anyway—going back to the 1960s.

Trump is completely clueless about how we got here, how he got here, and where we’re going…

International Man: The Fed recently said it could increase its tolerance for inflation before it considers raising interest rates. It would be a major policy shift. What’s really going on here?

David Stockman: I think what’s going on is that they’re looking for another excuse to capitulate to Wall Street next time it has a hissy fit because it believes the Fed owes them another shot of stimulus and more liquidity.

Let’s address the underlying issue now. The 2% inflation target is absurd to begin with. There is no historical or theoretical evidence to suggest that inflation at 2% is better for growth and prosperity than inflation at 1.5%, 1%, or even -1%.

This is just made up, just like the money they created that’s been snatched from thin air, adopted as official policy in January 2012.

It becomes a rolling excuse for running the printing press and accommodating both the politicians in Washington, D.C., who want low interest rates so that debts are cheap to finance and the gamblers on Wall Street who want low interest rates because they result in higher asset values and cheaper costs for carry trade speculators.

The idea that we haven’t had enough inflation as it’s measured by one indicator—the Personal Consumption Expenditure (PCE) deflator—is kind of crazy for two reasons.

First, there’s a lot of other inflation measures that say we easily achieved 2% inflation.

The 16% trimmed-mean CPI is a very handy tool. It has the same CPI data at the product code level as that in the regular CPI, but in order to smooth out the monthly figure, it takes out the lowest and highest 16% of individual prices.

It’s probably more accurate than CPI because it removes the outliers but puts them back in as soon as they reach the center of the distribution.

The trimmed-mean CPI has averaged 2% since January 2012. During the last 12 months, it’s reached 2.34%, way over the Fed’s 2% target.

There are lots of issues here…

International Man: There are increasing calls for central banks to combat climate change. The IMF, the European Central Bank, and several others have chimed in. What does this mean, and why are central bankers suddenly so keen on this topic?

David Stockman: This is beyond stupid. What could the central banks possibly do to help the global economies adjust to climate change? Climate change may or may not be happening, and if it is, it’s due to planetary forces that central banks have absolutely no power to impact or counteract…

International Man: If Rand Paul finally gets his audit of the Federal Reserve, what do you think they’ll find?

David Stockman: What he’s going to find is just more detail on the absurdities of what they’re doing already.

I think one that you would look into is this policy called Interest on Excess Reserves (IOER). They targeted that number at 1.55% right now. There’s about $1.5 trillion of excess reserves in the banking system.

So, they’re paying out to the banks upwards of $23 billion a year in order to keep excess funds on deposit at the Fed, rather than putting it to work in the macroeconomy.

How stupid is that?…

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END the FED Rally planned for OKC – Nationwide Nov 22nd ...

 

 

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The Ron Paul Institute for Peace and Prosperity : Bill Dudley’s Noble Lie

Posted by M. C. on September 10, 2019

http://ronpaulinstitute.org/archives/featured-articles/2019/september/09/bill-dudley-s-noble-lie/

Written by Ron Paul

Former Federal Reserve official Bill Dudley’s recent op-ed calling for the Federal Reserve to implement policies that will damage President Trump’s reelection campaign states that such action would be unprecedented. Dudley claims the Federal Reserve bases its policies solely on an objective evaluation of economic conditions. This is an example of a so-called noble lie — a fiction told by elites to the masses supposedly for the people’s own good, but really designed to maintain popular support for policies that benefit the elites. Dudley’s noble lie is designed to bolster a rapidly (and deservedly) eroding trust in the Federal Reserve. The truth is the Federal Reserve has always been influenced by, and has always tried to influence, politics.

President George H.W. Bush and other members of his administration blamed his 1992 defeat on then-Federal Reserve Chairman Alan Greenspan’s refusal to reduce interest rates. Greenspan was more cooperative with Bush’s successor, Bill Clinton. Lloyd Bentsen, Clinton’s first Treasury secretary, wrote in his autobiography that the Clinton administration and the Federal Reserve had a “gentleman’s agreement” regarding support for each other’s policies. Greenspan also boosted President George W. Bush’s “ownership society” agenda by lowering interest rates after 9-11 and the collapse of the tech bubble, thus creating a housing bubble.

Ben Bernanke, Greenspan’s successor, facilitated both Bush W. Bush and Barack Obama’s bailouts, “stimulus” spending, and massive welfare-warfare spending with record-low interest rates and quantitative easing. Speculation that the Fed was keeping interest rates low during the 2016 presidential campaign in order to help Hillary Clinton was fueled by the revelation that a Federal Reserve governor donated to Clinton’s campaign.

Presidents have always tried to influence the Fed — usually pushing for lower rates to (temporally) boost the economy. President Richard Nixon was recorded joking with then-Fed Chair Arthur Burns about Fed independence. President Lyndon Johnson shoved Fed Chair William Martin against a wall after an interest rate increase. Johnson’s frustration may have been because he realized that the success or failure of his guns and butter policies was largely out of Johnson’s control. The success or failure of presidents’ agendas is often determined by a secretive central bank’s manipulations of the money supply. No wonder presidents spend so much time trying to influence the Fed.

The Fed’s history of influencing, and being influenced by, presidents is one more reason why Congress should pass the Audit the Fed bill. Auditing the Fed is supported by almost 75 percent of Americans across the political spectrum, including such leading progressives as Bernie Sanders and Tulsi Gabbard.

My Campaign for Liberty is leading a major push to get a majority of Congress members to cosponsor Audit the Fed in order to pressure House and Senate leadership to hold a vote on the bill. The American people have had enough of noble lies about the Federal Reserve. It is time for truth; it is time to audit the Fed.

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The Last Fed Chairman?

Posted by M. C. on January 30, 2018

Let’s hope so.  Why do the biggest money creator and the biggest spender (pentagram) are never pressured for audits? Because the only ones not making out are you and me.

http://ronpaulinstitute.org/archives/featured-articles/2018/january/29/the-last-fed-chairman/

The economy may seem to have recovered, but the recovery is not built on a firm foundation. Instead it rests on Fed-created bubbles in areas such as automobile sales, credit cards debt, student loan debt, stocks, and even a new housing bubble.

The most dangerous bubble is the government debt bubble. The Fed facilitates deficit spending by monetizing the federal debt… Read the rest of this entry »

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A State’s Right to Honest Money – LewRockwell

Posted by M. C. on March 6, 2017

https://lewrockwell.com/2017/03/ron-paul/states-right-honest-money/

Audit the Fed is not the only focus of the growing anti-Fed movement. For example, this Wednesday the Arizona Senate Finance and Rules Committees will consider legislation (HB 2014) officially defining gold, silver, and other precious metals as legal tender. The bill also exempts transactions in precious metals from state capital gains taxes, thus ensuring that people are not punished by the taxman for rejecting Federal Reserve notes in favor of gold or silver. Since inflation increases the value of precious metals, these taxes give the government one more way to profit from the Federal Reserve’s currency debasement.
The American West is still wild, if wild is what you call freedom loving. Washington has another word for freedom, treason.

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