proposed Money-Supply Act of 2009
Money-Supply Act of 2009
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
( 12 USC 263 (d) )
The elasticity of the currency provided by the Federal Reserve Banks shall be
limited to variations in bank liquidity. Any operations by Federal Reserve Banks
which increase their capital funding arbitrarily are unlawful and void.
( 12 USC 321 (f) )
Monetization actions required for servicing the national debt may be entered
as credits to the accounts of the Treasury of the United States of America at
Federal Reserve Banks by the Secretary. Any such action shall be witnessed
by the Comptroller of the Currency, and immediately reported to Congress.
Any other increase in the capital monetary base of the currency of the United
States of America shall require an act of Congress.
I handed copies of the above bill to Ron Paul and several other Congressmen this evening.
What is your layman’s interpretation of this bill?
It takes the Fed’s ability to print itself money away. A bank’s capital is its property.
The supply of money is not the banks property. When the Fed prints money, it should
go in the account and possession of the US Treasury. The second paragraph is so that
if the USA is forced to monetize its debt, it can do so, but only if forced to do so, and
then it’s not a double whammy of a monetization and a new debt to a private banking
group, but it’s still a monetization. If this passed tommorow, the Fed’s program to
buy mortgage backed paper is over.
The Fed was not created to be able to print itself money. The “elastic currency” the
Federal Reserve Act talks about is liquidity, bank float, not capital money.
The FOMC’s webpage says the Fed was created to implement monetary policy.
I don’t see anything about creating money in the 1913 act. They were created to
provide flexibility with existing reserves and liquidity, i.e. interest rates and
Consider how pernicious it is for banks to be able to print themselves money. About
like Louis XVI’s France, etc. etc.
The bill closes one door to hyperinflation, but there’s still the issue of the Treasury
being forced into it by the credit situation. Consider the terror he must feel for Alan
Greenspan to say that higher taxes are essential (which, given our feckless mainstream
media, was only reported to my knowledge in a free paper in D.C.). Greenspan has thus contradicted
his entire career. He’s also correct for the first time. Volker is correct also. Re-instate Glass-Steagall.
I have now handed the bill to Reps. Paul, Brown, Kissell, Space, Meek, Hank Johnson, Snyder,
Cuellar, and counting. Please write your congresscritters.
Rick Hohensee, lay homeless author of the bill
Why not simply fire the Fed?
How is that simpler than my 2-paragraph bill? It isn’t. Not by orders of magnitude.
And by the way, US representative Virginia Foxx, Republican, North Carolina,
indicated very strongly to me in person Thursday that she might introduce the bill in question.
Hopefully she’ll also mention it to Senator Bob Corker of Tennessee, who is working on
financial regulations with Sen. Mark Warner of Va. I’m also told that NJ Governor Jon Corzine
will be getting a copy of the bill this weekend.
Back to simplicity. HR-1207 is academic hand-waving. Ron Paul is the Ralph Nader of the right.
He’s not really about DOING anything. If he is, he’ll support my bill, and as a stand-alone, BTW.
He has a copy also. Hasn’t made a peep, has he?
De-Fang the Fed.
And by the way, nobody is anywhere near firing the Fed. “End The Fed” is a religious chant.
HR-1207 is what I call slug religion.
There was a Far Side cartoon of a bunch of slugs arrayed in ranks and files before a salt shaker all
chanting EENIE OONIE WANNA EENIE OONIE WANNA before their mighty god. That’s what
HR-1207 is. Slug religion. My bill simply empties the salt, in two paragraphs, without the
toothless “End The Fed End The Fed” religious chanting.
Audit? The entire housing market is bogus, and that’s what supplanted our industrial base in the labor market,
and people are talking audits? When we can see from PeakProsperity.com what 4h1 at
federalreserve.com shows? Over a trillion in funny-money, and no sign that Berpankicky can put
down his funny-money pipe?
No, I’m not into slug religion.
The Fed has about half a Trillion to go in their mortgage backed paper purchase. If that stops,
perhaps Barry Soetoro can figure out how to do the same thing with real money, or perhaps
people will suddenly get a whiff of reality.
When the Fed prints money, there is no reason it goes to banks. The Fed was created to be
a help to banks, not Almightly EENIE OONIE WANNA. Give the Fed a monopoly on money, and
you get Monopoly money.