mathematically perfected economy™ (MPE™)    1  :   the singular integral solution of  1) inflation and deflation,  2) systemic manipulation of the cost or value of money or property, and  3) inherent, artificial multiplication of debt into terminal systemic failure;    2  :  every prospective debtor's right to issue legitimate promises to pay, free of extrinsic manipulation, adulteration, or exploitation of those promises, or the natural opportunity to make good on them;    3  :  our right to certify, to enforce, and to monetize industry and commerce by this one sustaining and truly economic process.

MORPHALLAXIS, January 14, 1979.

Mathematically Perfected Economy™ FORUMS, DISCUSSION

Forum rules

Posts must be polite, constructive, and on topic. No unsupported claims, no unqualified assertions. Spam is reported to the offending IP, with loss of posting privileges. You may post links to *related*, constructive material meeting these standards only.

Post new topic Reply to topic  [ 1 post ] 
Print view Previous topic | Next topic
Author Message
 Post subject: House panel OKs plan to open Fed policy to audits
PostPosted: 21 Nov 2009, 8:41 am 

Joined: 29 Jan 2008, 6:06 pm
Posts: 731
House panel OKs plan to open Fed policy to audits

Mark Felsenthal wrote:
WASHINGTON (Reuters) - A U.S. congressional panel on Thursday approved a measure to open the Federal Reserve's monetary policy decisions to government audits, a surprise blow to the central bank's efforts to shield its independence and a signal of frustration with the central bank.

The provision, co-sponsored by Republican Representative Ron Paul and Democrat Alan Grayson, would allow a congressional watchdog agency to conduct a broad review of the U.S. central bank's policy and lending. Fed officials have strongly opposed it, saying it would cast doubt on the central bank's independence from political pressure.

The House of Representatives Financial Services Committee approved the amendment to broader legislation to revamp financial rules. The panel put off a vote on the broader measure.

House Financial Services Committee Chairman Barney Frank, who opposed the Paul-Grayson measure, predicted it would be revisited when financial reform legislation is debated by the House.

"I think it's going to be seen as weakening the independence of monetary policy with consequent negative implications," he told reporters after the vote. "I think people will be worried about the impact on the dollar and on interest rates, and I think that one may be revisited when we get to the floor."

However, Paul's measure has earned support from more than half of the members of the House.

The amendment is a further congressional slap at the U.S. central bank after a Senate regulatory overhaul proposed stripping the Fed of its regulatory authority. Some lawmakers fault the Fed for failing to anticipate or prevent the financial crisis that pitched the economy into deep recession, while others are angry at its extensive emergency support for financial institutions.

The Fed objected to the provision, saying it could raise financial market questions about its independence and could result in higher long-term interest rates as investors worry about inflation risks.

"History provides numerous examples of non-independent central banks being forced to finance large government budget deficits," Fed Vice Chairman Donald Kohn said in July. "Such episodes invariably lead to high inflation."

Paul is an outlier in U.S. politics who advocated abolishing the U.S. central bank well before the financial crisis. He ran for president as a Republican in 2008 and recently published a book called "End the Fed."

However, the Texas lawmaker was able to tap into widespread congressional frustration with the Fed.

"The Fed currently has no political capital," conceded Representative Mel Watt, a Democrat who opposed the Paul-Grayson provision. "Everybody would like to beat up on the Fed and call them the bad guy," Watt said. "(But) are we going to so substantially castrate the Fed so it cannot do what it was set up to do?"

Watt had promoted a compromise amendment that would have allowed audits of the Fed's balance sheet and lending but would have drawn a clear line at leaving monetary policy alone. Frank, the committee chairman, backed Watt's proposal.

A Fed representative declined to comment on the vote, and cited earlier comments from senior Fed officials expressing concern that monetary policy audits would undermine the central bank's independence.

(Reporting by Mark Felsenthal; Editing by Gary Crosse, Gary Hill)

House Panel Votes to Advance Paul Plan on Fed Audits (Update2)
Scott Lanman wrote:
November 19th,2009 (Bloomberg)
A U.S. House committee advanced a proposal to remove a three-decade ban on congressional audits of Federal Reserve interest-rate decisions, a measure backed by a lawmaker who has called for the abolition of the central bank.

The House Financial Services Committee today, in a 43-26 vote and a second voice vote, attached the amendment for a broad audit of the Fed to legislation creating a council of regulators to monitor systemic risk. The proposal was offered by Representative Ron Paul, a Republican from Texas, and based on a bill with more than 300 co-sponsors.

ms:the exact count on Audit the Fed Bill HR1207 & S603 is:
HR1207: 313 co-sponsors
S603: 30 co-sponsors

Scott Lanman wrote:
Fed Chairman Ben S. Bernanke has opposed the Paul legislation, saying it may result in interference with monetary policy. The panel’s vote increases the possibility that Congress will reverse the ban on audits of interest-rate decisions. The broader bill on financial regulation is subject to a vote by the committee, then must be approved by the House and Senate and signed into law by President Barack Obama.

“It’s going to be seen as weakening the independence of monetary policy with consequent negative implications,” Barney Frank, the Massachusetts Democrat who chairs the committee, told reporters after the vote. “People are going to be worried about the impact on the dollar, on the interest rate.”

Frank, who opposed the Paul measure, said the issue “may be revisited” when the legislation reaches the House floor.

“This is the bill that would allow the people to win over the special interests,” Paul said during debate on the measures today. “There is no doubt that the individuals opposing this amendment represent the secrecy of the Federal Reserve.” An audit “shouldn’t hurt them in any way,” he said.

End the Fed

Paul, who wrote a best-selling book this year titled “End the Fed,” said provisions in his amendment would limit interference in monetary policy. The measure, co-sponsored by Representative Alan Grayson, a Democrat from Florida, would exclude any unreleased transcripts or minutes of Fed policy meetings. It calls for an audit of the Fed and its 12 regional banks within a year after enactment.

The committee voted first, 43-26, to substitute Paul’s proposal for a Democratic measure to retain the ban on audits of monetary policy while requiring more limited audits. About one- third of Democrats joined the unanimous Republicans on the vote. Then, in a voice vote, the committee attached the Paul measure to the broader bill.

Frank said he expects to finish the legislation in committee on Dec. 1, delaying a vote he had scheduled for today until after lawmakers return from the Thanksgiving holiday. He supported a competing measure from Representative Mel Watt, a North Carolina Democrat, to retain the ban on auditing monetary policy.

Inflation Expectations

“Perception is very important in monetary policy,” Frank said. He said he was concerned that “inflationary expectations will be given a boost if we adopt the Paul” measure.

Michael Feroli, an economist for New York-based JPMorgan Chase & Co. and a former Fed researcher, said the central bank “should do whatever it takes to stop this from going forward and eroding confidence in the Fed’s independence.”

“It’s probably not going to be helpful in terms of keeping inflation expectations low and supporting the dollar,” said Feroli.

The Fed’s powers and rate-setting independence are under threat on several fronts in Congress. Separately today, the Senate Banking Committee began debate on legislation that would strip the Fed of bank-supervision powers and give lawmakers greater say in naming the officials who vote on monetary policy.

Lax Oversight

Paul and other lawmakers have accused the Fed of lax oversight of banks and failing to avert the financial crisis. He said Watt’s measure instead would put further restrictions on the power of the government to audit the Fed, contrary to its sponsor’s assertion.

“This actually takes away some auditing authority,” said Paul. “This amendment eliminates all the benefits that people see coming from” Paul’s legislation, he said.

Watt cautioned against succumbing to popular anger at the Fed during debate on the measures.

“Everybody would like to beat up on the Fed and call them the bad guys,” Watt said. “So if we make this decision on a political basis, I know what the result will be.”

Emergency Loans

Also today, lawmakers attached, by voice vote, a separate Republican measure to audit all Fed emergency-loan actions “during the current economic crisis.” Legislators may need to figure out how to combine the amendments when the bill goes to the House floor.

Watt said that “if we do what Mr. Paul has suggested, we will be inconsistent with every industrialized country in the world,” which have central banks not subject to “political second guessing.” Grayson responded that most other central banks were in fact subject to audits.

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net.
Last Updated: November 19, 2009 19:37 EST

 Profile E-mail  
Display posts from previous  Sort by   
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 8 hours [ DST ]

Who is online

Users browsing this forum: No registered users and 1 guest

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  

While 12,000 homes a day continue to go into foreclosure, mathematically perfected economy™ would re-finance a $100,000 home with a hundred-year lifespan at the overall rate of $1,000 per year or $83.33 per month. Without costing us anything, we would immediately become as much as 12 times as liquid on present revenue. Transitioning to MPE™ would apply all payments already made against existent debt toward principal. Many of us would be debt free. There would be no housing crisis, no credit crisis. Unlimited funding would immediately be available to sustain all the industry we are capable of.

There is no other solution. Regulation can only temper an inherently terminal process.

If you are not promoting mathematically perfected economy™, then you condemn us to monetary failure.

Powered by phpBB3 © 2000, 2002, 2005, 2007 phpBB Group.

© COPYRIGHT 1979-2009 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED.COPYRIGHT 1979-2009 by mike montagne and PEOPLE For Mathematically Perfected Economy™. ALL RIGHTS RESERVED. TRADEMARKS: PEOPLE For Mathematically Perfected Economy™, Mathematically Perfected Economy™, Mathematically Perfected Currency™, MPE™, and PFMPE™ are trademarks of mike montagne and PEOPLE For Mathematically Perfected Economy™, perfecteconomy.com. ALL RIGHTS RESERVED.


Search perfecteconomy.com     Search Web