Rep. Paul introduces bill to cancel $1.6T in debt held by Federal Reserve

[sailingaway]

http://thehill.com/blogs/floor-action/house/174953-rep-paul-introduces-bill-to-cancel-public-debt-held-by-the-fed

[IPSecure]

:cool:

[wgadget]

Is Ron campaigning for the Head Terrorist position? I wonder how long until They pull me over for sporting my "got ron paul?" bumper sticker?

GO, RON!

[JamesButabi]

YEAH G-Ron! Expose the damn scheme for all it is.

[Zippyjuan]

That would completely remove any ability (limited as it already is) for the Fed to pull back any of the money they pumped into the banks (basically all of which is sitting at the Fed in the form of excess reserves- they total $1.6 trillion too). Should inflation take off, their only tool left to the Fed would be to sharply raise interest rates.

[Bern]

Dr. Dean Baker says you are wrong:
...
This would mean that the Fed would not be able to sell bonds to pull reserves out of the banking system. However, it can accomplish the same result with a different tool. It can simply raise the reserve requirement, forcing banks to hold a larger fraction of their deposits on reserve.

Raising the reserve requirement can be just as effective as reducing the quantity of reserves in limiting lending. If the amount of reserves in the banking system is doubled, and the reserve requirement is also, then the banking system will just be able to make the same amount of loans. The big difference between these two paths is that the government would not have to pay as much interest on its debt, in the case where the volume of lending is limited by higher reserve requirements.
...

http://www.isn.ethz.ch/isn/Current-Affairs/ISN-Insights/Detail?lng=en&id=130800&contextid734=130800&contextid735=130795&tabid=130795&dynrel=4888caa0-b3db-1461-98b9-e20e7b9c13d4,0c54e3b3-1e9c-be1e-2c24-a6a8c7060233,cab359a3-9328-19cc-a1d2-8023e646b22c

[HOLLYWOOD]

Here's an poll on RP's HR 2768. You have use a social account, email, FB, etc, to vote/leave a message.

h ttps://www.popvox.com/bills/us/112/hr2768


What’s your position on H.R. 2768?

H.R. 2768: To cancel public debt held by the Federal Reserve System and to lower the public debt limit by an equal amount.

[sailingaway]

That would completely remove any ability (limited as it already is) for the Fed to pull back any of the money they pumped into the banks (basically all of which is sitting at the Fed in the form of excess reserves- they total $1.6 trillion too). Should inflation take off, their only tool left to the Fed would be to sharply raise interest rates.

No, they only have to increase reserve amounts. It just puts some brakes on their ability to fund future bailouts without Congressional approval.

[sailingaway]

Here's an poll on RP's HR 2768. You have use a social account, email, FB, etc, to vote/leave a message.

h ttps://www.popvox.com/bills/us/112/hr2768

You need to give full info to send to rep, didn't. I can and have sent my reps my own messages.

[KingRobbStark]

I just sent my rep an email to my rep detailing Paul's bill, but I have feeling he's just going to ignore it. So i'm going to send another one in a couple of days.

[swissaustrian]

We already had a long discussion on the idea in the econ subforum, the thread might be an interesting read :) http://www.ronpaulforums.com/showthread.php?300825-Ron-Paul-Why-don´t-we-just-elimininate-the-debt-that-we-owe-to-the-FED

Also watch Ron Paul talking about this idea, starting at 10:00

http://www.youtube.com/watch?feature=player_embedded&v=ATTP9rg2noE#at=634

[Teaser Rate]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which have absolutely no chance of getting anywhere.

[Carehn]

G-Ron knows how to get people talking.

[Carehn]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which have absolutely no chance of getting anywhere.

He is making a point and getting on TV wile doing so. You know, he is running for the executive branch.

[Tinnuhana]

The idea is to introduce bills that can be picked up as part of a bigger package. For example, Ron reintroduces a bill each year to have a TSP category for physical hard metals. That would never be voted as stand-alone. Also, his bill for making tips tax exempt wouldn't stand alone; but would be picked up as part of a larger reform bill. So if everyone gets heat for the bill just passed, or it looks like the agreement is going to be breached, there's Ron's bill, to be included in a "deal".That's what happened with HR 1207 last year.

[dean.engelhardt]

I just sent my rep an email to my rep detailing Paul's bill, but I have feeling he's just going to ignore it. So i'm going to send another one in a couple of days.

Same here. Everybody should be pressuring their Rep to co-sponsor!

[dean.engelhardt]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which have absolutely no chance of getting anywhere.

Explain how you are not trying to bash? You do realize this is a very very good bill and should be passed let alone introduced?

[Bern]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which have absolutely no chance of getting anywhere.

You say that like Ron Paul is the only politician to ever float a trial balloon or push some legislation over and over again until it finally gains enough support to pass.

Boy that Ron Paul sure was stupid to keep introducing his go nowhere legislation to audit the Fed all those years!

F'ng acorns, how do they work?

[sailingaway]

Explain how you are not trying to bash? You do realize this is a very very good bill and should be passed let alone introduced?

I agree, sure sounds like bashing to me. If it is something that SHOULD be passed, having a bill on it gives something people can direct their representatives to when voicing their displeasure at how unrepresentative those reps are. Otherwise, how do things improve? The lack of other, better choices is the problem, not the solution.

It is far too 'cozy' for sell out politicians to have no one even raise the alternatives that should be a no brainer.

[angelatc]

I don't think Teaser Rate is bashing. I used to have the same thought, and my hubby still does. My question is how is this constitutional?

[sailingaway]

I don't think Teaser Rate is bashing. I used to have the same thought, and my hubby still does. My question is how is this constitutional?

If they can create the Federal Reserve, they should be able to change the terms of dealing with it, no?

[Teaser Rate]

The idea is to introduce bills that can be picked up as part of a bigger package. For example, Ron reintroduces a bill each year to have a TSP category for physical hard metals. That would never be voted as stand-alone. Also, his bill for making tips tax exempt wouldn't stand alone; but would be picked up as part of a larger reform bill. So if everyone gets heat for the bill just passed, or it looks like the agreement is going to be breached, there's Ron's bill, to be included in a "deal".That's what happened with HR 1207 last year.

I can see what you're saying, but I don't see how this process could apply to this sort of bill.

[Teaser Rate]

Explain how you are not trying to bash? You do realize this is a very very good bill and should be passed let alone introduced?

Whether a bill would be good or bad for the country is of little relevance to whether it should be introduced or not. The Congress is a place where you try to craft legislation which has a chance of becoming a law, not a place where you present your vision of an ideal world.

[Teaser Rate]

I don't think Teaser Rate is bashing. I used to have the same thought, and my hubby still does. My question is how is this constitutional?

How did you manage to get past that kind of thought?

[ds21089]

The Congress is a place where they craft bad legislation which has 100% chance of eventually becoming a law, not a place where you present your vision of an ideal world.

Fixed

[Zippyjuan]

No, they only have to increase reserve amounts. It just puts some brakes on their ability to fund future bailouts without Congressional approval.
Changing reserve requirements is something the Fed hasn't done for decades. That won't do much about inflation in reality- that is why they haven't used it when targeting employment or inflation. And it would not stop them from funding any future bailouts either. At this point in time, Treasuries are about half of their total holdings.

[dean.engelhardt]

Whether a bill would be good or bad for the country is of little relevance to whether it should be introduced or not. The Congress is a place where you try to craft legislation which has a chance of becoming a law, not a place where you present your vision of an ideal world.

I surrender, you win.

[sailingaway]

Whether a bill would be good or bad for the country is of little relevance to whether it should be introduced or not. The Congress is a place where you try to craft legislation which has a chance of becoming a law, not a place where you present your vision of an ideal world.

How long have you been in congress?

[jmdrake]

Here's an poll on RP's HR 2768. You have use a social account, email, FB, etc, to vote/leave a message.

h ttps://www.popvox.com/bills/us/112/hr2768

Done, Facebooked and tweeted

[DamianTV]

how long have you been in congress?

roflmaobbqwtf?!?1?

[kill the banks]

I think Ron should push this in an ad campaign ... let the people know and understand !

[leipo]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which might harm the integrity of the Fed.

Fixed that for you...

From the "What is your main issue?" thread:


Important issues

1. National security: if the government can’t keep us safe in the nuclear age, nothing else really matters.

2. Economic policy: reform taxes & regulations, eliminate most subsidies, tariffs & quotas and maintain the integrity of the Fed.

3. Domestic policy: ensure the long term solvency of the Federal Government with sensible reforms to the entitlement programs.


Less important issues

1. Abortion: it’s a divisive issue government intervention can’t do anything about anyways.

2. Drugs: while I sympathize with the potheads who are in jail for wasting their lives getting high, we have bigger problems to address right now.

3. Gitmo/Patriot Act: I have yet to meet anyone whose life was directly affected by either policy; at this point, I see these issues as theoretical rather than practical.

[Freedom 4 all]

I'm not trying to bash Ron here, but I honestly have a hard time understanding why he keeps introducing bills which have absolutely no chance of getting anywhere.

They are designed to get under the establishment's skin, keeping them on the defensive while gaining attention from the masses. It's a legitimate strategy.