H. R. 1148 — RON PAUL'S ATTEMPT TO RESCIND THE FEDERAL RESERVE ACT?

A real revolution, and a revolution deserving to succeed, deserve and require more. The gold standard even failed the founding fathers. It can only fail us far worse today — in fact to the very degree that the sheer relative immensity of present industry exposes the faults of principles which were never justified in the first place, and were known even then. By refusing to engage in mathematically perfected economy™, I assert that Ron Paul squanders the best chance and best arguments — in fact the only irrefutable arguments — the American people (and the world) have. mike montagne

Saturday, April 26, 2008

H. R. 1148 — RON PAUL'S ATTEMPT TO RESCIND THE FEDERAL RESERVE ACT?

Many of us were under the impression that a bona fide effort existed to terminate the Federal Reserve System. If our common hope itself rests on the following bill, that hope is simply created out of thin air, because the following bill is far less than the kind of document which edifies, serves, or should be expected to prevail in the purposes we hope for. If you have not studied the exalted document which you indeed have cause to duly expect, be prepared for disappointment. It provides nothing but thin air: no cause; no reason; no demonstrable or intuited succeeding conditions, or even a reasonable facsimile of a blue-print for achieving its pitiful few objectives, which hardly can possibly account for the many questions any responsible person will ask of it.

In short, regardless of the ultimate merits and even irreversible need to terminate the false entities which are neither federal nor reserves of anything, no reasonably responsible person would pass the immature few features of this bill on any account.

While we are dangling by a thread, it simply purports to cut the thread, without even passing us the scissors or thinking there must be something real to catch our fall.

What is to be done just for instance, with all the artificial public and private debt the privatized currency has imposed upon us, regarding which there isn't even enough circulation to repay?

FULL TEXT OF THE BILL

1. IN GENERAL- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
2. REPEAL OF FEDERAL RESERVE ACT- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
3. DISPOSITION OF AFFAIRS-
   1. MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--
      1. shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--
         1. manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
         2. manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
      2. may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
   2. LIQUIDATION OF ASSETS-
      1. IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
      2. TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
   3. ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
4. REPORT- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.

end

(Yes, that's the whole bill.)

ANALYSIS OF THE ASTONISHINGLY LITTLE MATERIAL

There is astonishingly little material in the bill even upon which to comment; but nonetheless as it must answer for its ostensible purposes, we must ask the material to pass the obvious tests it will be subjected to.

RELATED PRIMARY ARTICLES

1. TEXT OF H. R. 1148 AT THE UNITED STATES HOUSE OF REPRESENTATIVES SITE

RON PAUL BACKGROUND Ron Paul will not even respond to the proposition of mathematically perfected economy™. Not a word. (Which I say speaks to the real number of alternative possible solutions to inflation, deflation, and inherent multiplication of debt by interest. Evasion is a choke of the most prominent kind.)	mike montagne BACKGROUND a) I profess a.1) that the gold standard cannot sustain commerce exceeding monetary reserves without injustice and instability, a.2) that the gold standard is inflationary and deflationary in the sense that it is powerless to provide a consistent ratio of circulation to new and depreciating wealth exceeding the sum of monetary substance, and a.3) that the gold standard is powerless to avert our most damaging problem — inherent multiplication of debt by interest. Moreover, we hardly have certified we have the gold to revert to the gold standard even in a far diminished form. Neither have we certified how we are to retain "our" gold should we attempt to do so, given our status as the most indebted nation on earth. "Our money" in fact represents obligations to pay far more "money" than is even in existence — and most certainly far more monetary gold and silver than is in existence. What comprehensive bill then, and what *executable* bill even, can fail to prescribe how exactly to attend to these issues? b) I further profess that any purported economy subject to interest ultimately terminates itself under insoluble debt: Merely to maintain a vital circulation subject to interest, it is necessary to perpetually re-borrow whatever we pay against principal and interest obligations as subsequent sums of debt, increased so much as periodic interest. This process thus inherently results in "economic collapse" — which of course is our principal and most imperative present problem. c) I further profess that there is one and one only integral solution to c.1) inflation and deflation, c.2) systemic manipulation of the cost or value of money or property, and c.3) inherent, irreversible multiplication of debt by interest in proportion to a circulation. d) Particularly then, because inherent multiplication of debt in proportion to a circulation eventually culminates in a terminal sum of debt, the matters of this one and one only solution, which are matters not addressed by this bill, are of the utmost seriousness.
a. IN GENERAL Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished. b. REPEAL OF FEDERAL RESERVE ACT Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.	My objects too. But what then? The whole *reason* I have *always* had for dissolving the so called Federal Reserve System remains: Identification of its injustices sufficient from which to develop solution. The development of that solution. And the pre-determined non-injurious means to transition from the unjust state to the just, solvent, sustainable condition. Why aren't these things here?
c.1.A. The Chairman Shall... The Chairman Shall... manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and	Trivia. But I would be concerned about the granted power to "manage" the assets and liabilities. What does it even mean, this leeway to "manage" assets and liabilities?
c.2.A IN GENERAL The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.	Shall liquidate "all" [unspecified] assets? "Of the board?" [Can the board possibly hold assets of the so called Federal Reserve Banks? (Which, even if those assets were/are stock, might be treated in whatever uniform way is to apply to stock holders.)] In *what* is an orderly manner? [There are convoluted issues to address; and the bill simply passes those issues off onto others.] "While maximizing *return* to the Treasury?" [What is "return" to the Treasury?] This is the scantest facsimile of a directive. Would it be possible for instance that as the money loaned into circulation by intermediate banks is borrowed from the so called Federal Reserve Banks, that our homes might be considered assets of the so called Federal Reserve Banks; and if so, how specifically would such an asset be "liquidated"?
c.2.B TRANSFER TO TREASURY After satisfying all claims against the Board and any Federal reserve bank (sic) which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.	Do you mean, particularly since Mr. Paul has raised no objection to interest (which is advocated by fellow "Austrian Economists"), that all the costs in interest, however immense to the American people, are to be subject to undefined standards to be decided by the OMB? What for instance if there are far less "proceeds" than can possibly satisfy "all [such] claims" against the Federal Reserve Banks?
c.2.3 ASSUMPTION OF LIABILITIES All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.	Might then liabilities to the American people be made liabilities *of* the American people?
d. REPORT At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.	The executors of the bill are to engage in some undefined activity; then are bound to report on what they did or did not get accomplished of that?

Summary — *MY* REPORT

Mind-bogglingly sparse, trivial, and simplistic, particularly given the obvious issues it must contend with. Vague. Abusable. Conspicuously lacking an explanation of cause or objective or a satisfactory explanation or embodiment of a monetary replacement, without even addressing the idea of an approvable replacement, or even the principles which are to make it all work. Irresponsible. It leaves it to others to determine how to do, what to do, whether they may or may not be in compliance; and even where the intentions of the bill are to head them, or us.

This "bill" is no more than to wave a red scarf at a bull — the very people who may rightly rush to a cause they will, can, and must eventually understand... only to be dismantled by the intellectual and administrative void of this proposition.

Anyone supposing this bill is a worthy effort toward what it purports to accomplish cannot possibly be serious. It isn't happening. If you were a fellow congressman, how would you explain to your constituents that there is even sufficient instruction or justification of any of the few objects of the bill, regardless how justifiable it may indeed be that we terminate the so called Federal Reserve?

I have advocated terminating the Federal Reserve for 35 years. The very danger we are attempting to leave behind was a monetary system of undetermined consequences. Where are the consequences we desire determined here? If we were sending men into space and realized the spaceship was ill conceived, would we simply remove them from it?

On the bill which serves our interests, we want to know what the assets are; we want to stipulate what different things might be done with the (our?) different assets; we want to prescribe exactly what monetary system is to replace the privatized currency; and we want to prescribe exactly how to transition from the one spaceship to the next... because there is the potential for great injury all along the way.

What even is Ron Paul proposing to do about interest; and if we are to be subject to other private banks imposing interest, what is even to be any different from the inherent consequences of the so called Federal Reserve System?

If we are expiring from irreversible multiplication of debt, what is to be done about that; specifically, how does this bill avert catastrophe?

We need a real bill; we need a real identification of the problems; we need a real solution; and we need a real prescription for getting there.

A real revolution, and a revolution deserving to succeed, deserve and require more. The gold standard even failed the founding fathers. It can only fail us far worse today — in fact to the very degree that the sheer relative immensity of present industry exposes the faults of principles which were never justified in the first place, and were known even then. By refusing to engage in mathematically perfected economy™, I assert that Ron Paul squanders the best chance and best arguments — in fact the only irrefutable arguments — the American people (and the world) have.

Real hope is real hope. Solution is no mere matter of loose or sloppily administered opinion; and certainly solution is not a matter of unqualifiable opinion which has already been disproven. The very perception of solution is no less than to understand the proof of a theorem. Each are the same; and revolutions with such reasons behind their cause alone can inevitably succeed on the truth if ever the truth can prevail, because nothing — nothing whatever — can defeat the truth in the arena of the (whole) truth.

Which of course is why neither Ron Paul or any of your other purported representatives dare respond to the proposition of mathematically perfected economy™.

RELATED EXTERNAL MATERIAL

1. Austrian School (Wikipedia)
2. Mathematics and Economic Analysis
   William L. Anderson, 4/2/2002, Ludwig von Mises Institute
3. Nikolai Kondratiev, Author of the Kondratiev Wave or Long Wave, at ANSWERS.COM
4. Kondratiev Wave or Long Wave, at ANSWERS.COM
5. Austrian Economics
   Deborah L. Walker, Library of Economics and Liberty, Concise Encyclopedia of Economics
6. Capital and Interest: A Critical History of Economical Theory
   Böhm-Bawerk, Eugen von (1851-1914)
   1. The Opposition to Interest in Classical and Medieval Times
   2. The Defence of Interest From the Sixteenth Till the Eighteenth Century
   3. Turgot's Fructification Theory
   4. Adam Smith and the Development of the Problem
7. Google Austrian School Economics in a separate tab or window

RELATED PRIMARY ARTICLES

• PROBABILITY AND TIMELINE FOR WORLD-WIDE ECONOMIC COLLAPSE AS A CONSEQUENCE OF INTEREST
• WHAT IS Mathematically Perfected Economy™?
• WHY AND HOW USURY HAS BEEN IMPOSED ACROSS THE WORLD
• [ VITAL MODEL ]  PARABLE OF PERFECT ECONOMY — HOW USURY COMPELLED THE AMERICAN REVOLUTION
  42. HOW MATHEMATICALLY PERFECTED CURRENCY™ EXTENDS THE INDIVIDUALISM OF THE PARABLE
• PURPOSES OF THE DECEPTION THAT INFLATION IS CONTROLLED BY INTEREST (USURY)
• WHY INFLATION ITSELF IS A LIE; WHY IT IS IMPOSSIBLE TO SOLVE THE REAL CONSEQUENCES OF A CURRENCY SUBJECT TO INTEREST
• RELEVANT HISTORIC QUOTES
• [ KEY ]  DOES RISK JUSTIFY SUBJECTING THE FEDERAL RESERVE NOTE TO INTEREST (USURY)?
• WHAT IS FREE ENTERPRISE?
• DETERMINING THE VALUE OF MONEY, PROPERTY, AND PRODUCTION
• [ KEY ]  WHY AND HOW PRECIOUS METAL MONETARY STANDARDS [THE GOLD STANDARD] CAN ONLY FAIL. WHAT IS SOUND MONEY?
• WHAT IS USURY?

RELATED REFUTATIONS/REVIEWS OF CONTROVERSIAL MONETARY PROPOSITIONS

61. Why Invalidate All Contending Monetary Propositions?
62. Why Pre-MPE™ Austrian School Dogma Can Never Solve Our Issues
    63. FATAL FLAW OF AUSTRIAN SCHOOL ECONOMICS — COMPLETE REJECTION OF MATHEMATICS?
    64. REGARDING INTEREST THEN, DOES AUSTRIAN SCHOOL ECONOMICS NOT HAVE TITLE TO LIBERTY AND RIGHT REVERSED?
    65. [ POPULAR EXAMPLE ]  William B. Ryan Kent State University Capital Ownership Group Forum Ad Hominems Disprove Mathematically Perfected Economy™?
        
        Or Academia Inadvertently Validates Mathematically Perfected Economy™?
    66. Example Austrian School Rejections of Mathematically Perfected Economy™
    67. VICIOUSNESS AND EVASION AS THE REGULAR DEFENSE OF THE AUSTRIAN SCHOOL
68. What's Wrong With Ron Paul and Milton Friedman's Idea To Stop Expanding The Money Supply?
69. [ NEW ]  Friedman Never Solved the Cause of the First Great Depression
70. [ NEW ]  Calling Out Ron Paul Supporters to Qualify the Gold Standard
71. What's Wrong With Social Credit and Douglas' A + B Theorem?
72. Why Have Benjamin Franklin, Thomas Jefferson, Ron Paul, Edwin Vieira and So Many Others Failed to Deliver Solution?
    73. WHY RON PAUL AND EDWIN VIEIRA HAVE FAILED TO DELIVER SOLUTION
    74. H. R. 1148 — RON PAUL'S ATTEMPT TO RESCIND THE FEDERAL RESERVE ACT?
    75. EDWIN VIEIRA DISCLAIMS AUTHORSHIP OF THE FANTASIES IN THE ORIGINAL DRAFT OF NEW HAMPSHIRE HB 1342, PURPORTEDLY TO ENDORSE CONSTITUTIONAL MONEY
    76. HR 2779 — RON PAUL AND EDWIN VIEIRA'S SO CALLED HONEST MONEY ACT
    77. BANAL FAULTS OF THE SO CALLED AMERICAN MONETARY ACT OF THE SO CALLED AMERICAN MONETARY INSTITUTE
    78. Invalidation of G. Edward Griffin's Creature From Jekyll Island Obfuscation Of The Need To Re-borrow Interest To Maintain A Circulation
        79. USURY OR MATHEMATICALLY PERFECTED ECONOMY™ — WHICH PRESERVES 'COLLECTIVISM' OR 'INDIVIDUALISM'?
    80. GARY NORTH PRETENDS THE ORIGINS AND FAULTS OF MATHEMATICALLY PERFECTED ECONOMY™
81. The Broken Ideology: Monetary Narcissism Condemns Its Own Progeny To Destruction
82. THE COUNTER-PRODUCTIVE FANTASY OF A DEBT FREE MONETARY SYSTEM
83. AXIOMATIC ECONOMICS? VICTOR AGUILAR'S PURPORTED REVIEW OF MATHEMATICALLY PERFECTED ECONOMY™
84. Margrit Kennedy's Essays On Interest and Inflation Free Money
85. OPINION ON THE PENNSYLVANIA CURRENCY ADVOCATED BY ELLEN HODGSON BROWN IN 'WEB OF DEBT'
    86. [ NEW ]  NO, ELLEN. 'IT'S NOT THE DERIVATIVES, STUPID'
87. EDWARD FLAHERTY'S PURPORTED DEBUNKING OF JAIKARAN'S STOLEN DEBT VIRUS THESIS
88. REAL OPTIONS OF 'TRADERS,' TRAITORS AND LOOTERS IN THE LAST DAYS OF THE REPUBLIC
89. Has Anyone Ever Disproven Mathematically Perfected Economy™?
90. How Mathematically Perfected Economy™ Solves The Faults Of All Alternate Propositions

"To find the players in all the corruption of the world, 'Follow the money.' To find the captains of world corruption, follow the money all the way."

mike montagne — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1979)