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State, National Lawmakers Take Aim At Fed

February 8, 2013 by  

State, National Lawmakers Take Aim At Fed

Faith in the Federal Reserve continues to falter throughout the country as the central bank’s endless quantitative easing and near-zero interest rates have failed to result in economic recovery while increasing the danger of a hyperinflation nightmare. Lawmakers throughout the Nation are looking at ways to rein in the central bank’s power while also hedging against the consequences of possible Fed policy failures.

Two Republican Senators, Bob Corker of Tennessee and David Vitter of Louisiana, announced Monday that they would introduce legislation requiring the Fed to scrap the employment portion of its dual mandate and put all of the central banking power into avoiding inflation.

“I’ve long argued that the Fed should just focus on inflation,” Vitter said in a news release. “With endless stimulus-type initiatives coming out of the Fed and the money printing press never ending — all under the banner of helping boost employment — the Federal Reserve should get back to its original goal. This policy strives to do just that.”

The idea of returning Fed policy focus to a single mandate has been championed by fiscal conservatives since Congress issued the dual mandate requiring the central bank to aim for high employment and low inflation in all of its action. Lawmakers like Corker and Vitter argue that the dual mandate has done little more than give Congress a free pass to ignore budgets and encourage reckless borrowing. They evidence the claims by pointing to the nearly $3 trillion worth of Federal debt the Fed has purchased since Congress issued the dual mandate.

“Providing the Fed with a clear and explicit focus on keeping inflation low will serve America better than the broad, bipolar mandate it has today,” Corker said. “The dual mandate blurs the line between fiscal and monetary policy and allows Congress to shirk its responsibility to enact sound budgets and policies that produce economic growth.”

Meanwhile, lawmakers in 13 States throughout the Nation — including Minnesota, Tennessee, Iowa, South Carolina and Georgia — have made moves to consider setting up their own gold-backed currencies. In 2009, just after Ron Paul published his book End The Fed, making the central bank a mainstream political topic, only three States had begun taking similar steps. So far, Utah is only the State to approve a law recognizing nontraditional currency.

The latest State to move closer to coining its own currency is Virginia, where GOP lawmakers are taking an approach similar to that of other States that are looking to hedge against possible Fed failures. Virginia State lawmaker Robert Marshal introduced legislation proposing a serious study on the topic; the bill passed in Virginia’s House of Delegates with a 2-1 majority this week. Three years ago, the same legislation was shrugged off by fellow lawmakers when Marshal introduced it.

On Monday, Senator Rand Paul (R-Ky.) did his part to hold the Fed accountable by following in his father’s footsteps and re-introducing a bill to audit the Fed in the Senate.

“I introduced Audit the Fed (S. 209) in the U.S. Senate to put an end to the Fed’s ‘print-now, ask-questions-later’ policies that are bankrupting every man, woman, and child in the United States.” Paul said in an email to supporters.

He continued, “Of course, Ben Bernanke’s puppets in Congress are doing everything they can to stop folks like you from blowing the lid off the Federal Reserve.”

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.

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  • Warrior

    In the year 2043, I wonder if the “cillens” textbooks will even mention “congress”?

  • Mikey

    The corruption in our government runs so deep, it will be hard to end the fed. We must try, however. I would encourage all readers to contact their representatives in support of S 209.

  • johno

    Those that control the fed, and it isn’t us, have close to an absolute power over our gov’t. They not only control our money system but also the taxing system. Also most of the media is under their control. Combine this with low integrity politicians that think more about getting reelcted than what is right and you get more of the same. Changing the fed in any way will not get done through the normal channels.

    • tony newbill

      I think this is perfect time to
      offer a Economic growth solution that can run
      counter to the Liberals position of Tax Hikes to the Moon as the
      solution to balanced budgets and economic vitality .

      We can make great inroads to the Middle of this Great nation and the Spirit of Free market prosperity if you say to the American people “ Hey everybody why is it we do
      not hear more from the Liberal leadership on Tax reforms that Put U.S. Small
      Businesses and the moms and dads and sisters and brothers that represent these
      business and their communities why is it that we only hear of Tax Hikes that
      continue to favor the Big Government approach that makes us all Dependent on
      Government like a Mommy and Daddy instead of being Weaned from the Udder of Public Revenue that is causing a supply shortage and inflation in our cost of Living ??

      “ What we need is a Balanced approach to our Tax Code that opens the door for the isolated funds that are being held off shore by these Importing Corps to repatriate the funds back into the USA and those funds be allowed reinvestment into securities
      positions that can work in funding through bond allocations that can go towards
      the support and rebuilding of Infrastructure in the State Municipalities so
      that these funding requirements are not such a burden on the Local economy and
      small businesses and families that lives and work in their communities “ .

      I think this is a Rallying Point
      to gain support for this and rally both parties together for Real Economic
      Sustainability because these funds can be appropriated through the tax code
      being selective in the implementation of a stabling effect of Infrastructure
      and private sector growth that can have sustaining effects on the local
      Economies of the states and create the revenue needed for Stabilizing the
      federal deficit as well as the states .

  • http://midcontent ridge runner

    If states would grow a backbone, and tell Washington to go take a flying fk, when they try to threanto with hold funding for all the BS regulation guidelines. It works both ways with hold taxes and just in infrasyucture building, 52 cents of every dollar is pissed away on BS mandated fed requirements, which has not produced anything, just something to keep book trained morons busy, all have never done anything related to building anything, and head ackes don’t count. Since states have to come up with matching money, they might as well keep the extra 2 cents, and get something done.

  • cawmun cents

    Monopoly money.
    Just take the modern bills and stick monopoly money next to them and see for yourself.

  • joe momma

    not a failed system…..for private bankers to loot the middle class….highly sucessful program for the looters

    • tony newbill

      This Doctor is so GREAT !!!!!!! I bet this guy could FIX the USA !!!!

      5 Doctors signed the US Constitution and were instrumental in the Bill of Rights he said and that acknowledgment is Monumental in Sustainable Freedom .

    • http://midcontent ridge runner

      joey, thebsorry bast–ds that looted our savings and our local banks, were durning the 2 years when the muslim marxist amd his communist facist were in the super majority. The local bankers could not make loans to small provate business, or private ibdividuals, who are the job creators, but agaon everything had to be signed off by the booktrained beltway fkups, that only know the class rooms and theories.It was practiced for decades that your reputation and your history of paying off loans, helped you advance in the real world. All that changed 4 years ago. When the Dudd-Flanks banking reform bill was passed by the fascist/communist democraps and signed by the marxist perv in the WH. I was only 13 when I bought 2 head of cows, I already had 1 that was the same age set. When I called home to get some money, my Mom and Dad said I had better hurry down to the bank to borrow the balance to pay the sale barn and the former owner off. I had borrow a small amount from the old banker in the past year and always worked at something to pay the loan off. When I asked for approval of $!200, I leveraged my one cow as a security. @ of the 3 calves i sold cleared up the loan. Buy the time I graduated high school i had 15 head and still ngrowing. When I went college I paid for everything buy sell the calves. Now the government school loans have greatly inflated costs, and put the most lazy azzed people in society that have never done a damn thing in life but go to schools and become perpetual fkofs, and do not pay off their government loans. So the USA taxpayers pay the freight on these idoits, like the muslim marxist puke in the WH

  • Gary L

    These lawmakers better watch out or they may find themselves in the FED’s crosshairs as did these men 1) Andrew Jackson (Survived); 2) Abraham Lincoln; 3) James Garfield; 4) William McKinley; 5) John Kennedy.

  • ibcamn

    This whole thing comes down to greed and control!we have allowed the congress to take too much control,we have allowed it!we have!

    maybe we need to stumble and fall to realize what has happened.then we can see what’s really going on,reset the amount of time each seat in power is allowed to remain at that seat and make the contacts and investments and so forth that create that greed.the longer a person sits in power the more he can take and control,that’s why the president can only sit in his seat twice!the fed seem hell bent on destroying the system we have,with the help of the gov’t(which wants to destroy the country)and they all want to build some utopia together and call it good!

    it will take some major undoing to get it back on track!

    And by the way,how come no one is arresting Obama for his little end around against the law he just pulled,he got caught doing it!(the in session vote)he deliberately went against and broke the law! he above the law?!??!

    • Andy

      Yes, obviously.

  • Vicki

    From the OP:
    “Two Republican Senators, Bob Corker of Tennessee and David Vitter of Louisiana, announced Monday that they would introduce legislation requiring the Fed to scrap the employment portion of its dual mandate and put all of the central banking power into avoiding inflation.”

    Too late. And besides the Federal Reserve is a PRIVATE bank. Why exactly should they care?

    Oh and the reason it is too late to avoid inflation is that the fed has already printed so many trillion new pieces of fiat paper that prices (apparent inflation) have already started up. The only power the central banks would have to avoid inflation is to take in money (Interest payments on loans?) and destroy it.

    Just think how much fun a 20% APR on bank to bank loans would be. The loans to business would have such a high APR that no business could possibly survive long enough to even get a customer to buy.

    • Deerinwater

      You seem to be saying “too little ,too late ” Vicky

      Maybe so, ~ but better then never.

      It all starts with talking ~ Ron Paul has help bring the discussion forward, I do believe that it will gain notoriety and popularity with time. ~

      • Vicki

        What are you doing to help Ron? Perhaps you have gone to downsizeDC? Say this campaign?

        Thanks to the sole urging of the Downsize DC Army, Rep. Ron Paul has introduced a bill called the “Free Competition in Currency Act” (HR 1098), has three parts . . .

        The Honest Money portion would repeal the legal tender law, which gives the Federal Reserve a monopoly over the money supply.
        The Competitive Currency section would repeal the words of Title 18 Section 489 of the U.S. Code, which gives the United States government a monopoly over the creation of coins for use as currency.
        The Tax-Free Gold component of the bill would prohibit federal and state taxes, such as capital gains, on precious metal coins and bullion.

        • tony newbill

          The problem is the majority of those in congress believe in what the Kissinger Memorandum suggested be done by the year 2000 and the Federal Reserve is the machine they use to reel in what they reel out as a Independent machine that they all can Politically shield themselves from as the wealth is consolidated during times of Unsustainable Population Growth .
          WW 1 was a result of supply shortages due to a Population growth exceeding supply , which was never resolved until WW2 and the Post War Industrial revolution that brought the greatest period of supply expansion in world History .

          We are at this Turing Point yet again and we all have front seats to the show ……..

  • Vicki

    From the OP:
    “Meanwhile, lawmakers in 13 States throughout the Nation…..have made moves to consider setting up their own gold-backed currencies”

    “The latest State to move closer to coining its own currency is Virginia….”

    They can consider all they want. They are prohibited from doing it. Then again they are prohibited to make anything but gold and silver coin a Tender in Payment of Debts.
    (Article 1 section 10, US Constitution)

    Seems the Constitution is just a piece of scrap paper to more than just the Federal Government.

    • http://midcontent ridge runner

      Bernke is just making an enviormental green product, it can be used in places like a bird cage, out house lining, or wiping material. Since the muslim marxist s such the s–ts, and needs several bundles to do the job, which he never will and needs flushing down to the sewer of tme.

  • Evan

    Fractional reserve currency by nature is inflationary. That is what must change if we ever want a stable money system. Gold backed, 1:1 is the answer.

  • rightgunner

    Since the Administration is already taking us down the path to default, perhaps we should begin by reneging on all the debt sold to the FED. The FED is not a government organization, just a group of for-profit banks, deliberately made independent of the government There is no reason those banks should not absorb the loss for engaging in such a risky investment, with unreliable persons like Bernanke and Obama.

    • Warrior

      So if the “fed” is buying bonds by printing monopoly money. Why should the “fed” receive any interest? Is “supposed” interest on this money (national debt) really a scam? And if the “fed” is in fact being paid interest, where is that money going?

  • Kurt Van Luven

    Folks, they already played poker with our cash in the 80′s and it paid off! In collapsing the USSR and their Ruble, the FED MADE $23 TRILLION (off the books) They kept it and we could be debt free:

    • tony newbill

      the dollar as reserve currency is crippled with the derivatives market , thats a quadrillion


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