This page has been archived and commenting is disabled.
Reuters Confirms That Republicans Are Now Posturing Against The Fed's Dual Mandate
Once again Zero Hedge pulls a fast one on the MSM. We highlighted this earlier today, but it bears repeating: in a post yesterday we asked rhetorically: "Are republicans preparing for a push to eliminate the "maximum employment" part of the fed's dual mandate?" As of a few minutes ago, Reuters has answered: "Republicans want Fed focus solely on inflation." Those who have read us will find absolutely nothing new here, but here is the gist of the Reuters piece: "Two U.S. Republican lawmakers said on Tuesday the Federal Reserve should focus solely on inflation and ditch its "dual mandate" to promote both price stability and full employment. The pressure from Senator Bob Corker and Representative Mike Pence adds to the pile of international criticism over the central bank's plan to buy an additional $600 billion in government bonds to try to speed up a sluggish economic recovery." As we stated before, while we ridicule the fact that Bob Corker is suddenly all about curbing the Fed, despite that 5 of his top 15 contributors are banks, and last year did his best to make the Paul-Grayson "Audit the Fed" initiative disappear, the fact that this idea is finally making the rounds should be endorsed by all those who believe that a bankrupt America is a bad America. As the Fed will not cease from doing everything it can to boost banker recoveries, under the guise of stimulating employment, the only way to curb its central planning aspirations is to pass legislation that will make it focus solely trillions of excess dollars creating asset bubbles across the global economy.
More from Reuters:
"With no explicit plan for when or how this quantitative easing will be withdrawn, the Federal Reserve could do more for the American economy by focusing singularly on maintaining the value of the dollar and protecting the purchasing power of Americans," Pence wrote.
The European Central Bank is among central banks with a single mandate to focus on inflation. The Bank of England must write an explanatory letter when it misses its inflation target by too wide of a margin, and did so earlier on Tuesday.
"Providing our central bank with a clear and explicit focus on keeping inflation low will serve America better than the broader mandate approach we have today," Corker said in a statement.
Republican lawmakers, fresh off of midterm election victories that gave them control of the House of Representatives, have sharpened their criticism of the Fed in recent weeks. Some members of the Republican-heavy "Tea Party" movement have pushed for abolishing the central bank.
Yet here is the reason why at the end of the day, this is nothing but more theater from a bunch of corrupt politicians:
It was not clear whether either the House or
Senate would actually move ahead with a bill to do away with the dual
mandate. Senate Republican leader Mitch McConnell said voting on the
mandate was "just one of many issues we'll be working with and thinking
about in the coming weeks."
We can only hope that Ron or Rand Paul will "actually move ahead with a bill" and enact such a compromise solution inbetween keeping the status quo and completely eliminating the Fed, the latter outcome of which is impossible absent a complete revolution within US society.
And here is Corker delivering his rehearsed lines earlier on CNBC:
»
- 4842 reads
- Printer-friendly version
- Send to friend
- advertisements -
They are all frauds. Whoever pays more, wins.
That being said, this is not the first time I have heard about the discord. Even Fed members are split heavily, divided to chaos. A house divided can not stand.
The guy who didn't want to audit the Fed now wants to reform the Fed?
Right.
"...is to pass legislation that will make it..."
OK now what are the odds?
Zero, even without the coming gridlock. We need an effective third party in the US. The Tea Party seems to have been hijacked by the Republicans.
Agreed. This guy lobbies in open hearing against an audit of the FED, now mysteriously he and Mike Pense are simultaneously parroting the same message right after Corker spends a full day being scripted by Ben..
This is the SPIN machine in full motion. What they are angling for precisely I cannot conclude.
They are angling for plausible deniability....weasels to a man.
Usually I'm not naive, but...
The supporters of RonPaul created the [original] TeaParty (and "money bombs") during his 2008 campaign.
So I wonder... if RonPaul runs a 2012 campaign, which appears almost certain given current events (the "I told you so in the last set of debates" factor)... would all the TeaParties rally around him? Clearly, any TeaParty that does not support RonPaul is a TeaParty in name only.
Could RonPaul "take back" the TeaParty? Probably not... but just maybe.
Possible reverse flash crash on SCOK 10 minutes ago. Earnings out tomorrow.
Flash Dash?
There is no left and there is no right. The political system is cannibalizing itself, and economic policy with it. Take matters into your own hands. Please join me in buying as much silver as you can afford next Monday, November 22nd. This great day will honor the slain President JFK as he had issued a silver backed currency as an executive order only months before his death. We will bring down all those who short our standard of living. We will now buck the system.
PS if you wish to buy silver before the 22nd, consider yourself on the battlefield ;)
A big middle finger to my junker! Take your shoes and shirt off and get some!
Wait until this dump is finished. Gold touching $1264.00 should be the signal.
Then buy with both hands. BOTH HANDS.
www.TheTailDoesNotWagTheDog.blogspot.com
Now now...don't be so hard on Jamie...he's "under a bit of stress" at the moment. ;)
I suspect that the junking is coming from the Rush Limbaugh wannabees. I don't know who else might be offended, (and gutless enough not to respond).
I prefer to think of your drive-by junker as a fan of "junk silver" and spin it into a compliment?
This day makes sense given JFK's E.O. regarding silver certs. Not sure there is enough lead time for any true grassroots effort, but WTH...any excuse to buy some more junk.
Damn! Sorry, but I just went "all in" today when gold hit $1330 and silver hit $25. I literally converted all but the last $4000 of my savings to gold and silver today. Not counting that $4000 of "spending money", I've gone from 0% to 100% in gold and silver over the past 5 years.
With zero regrets... even if it pulls back a bit more.
Well, America's already bankrupt, so that horse is out of the barn. If these clowns are now agitating against QE, it's because they've looted the banks and the banks no longer represent any power at all.
It means power has gone elsewhere. Too bad we never have studied Mellonesque liquidation sufficiently to understand where it has gone now.
This abandonment of QE doesn't mean the banks are dead. It means America is dead.
Meantime, where does that get us? According to BLS, unemployment in the Bachelors class is STILL only 4.7%. If you're worried about "saving" America, that figure has to go to at least 20%.
Meaning? Meaning our fascist clerks are still nodding.
The reincarnated Jack Kennedy should write a book. Not, "Why England Slept," but instead, "Why Clerks Nodded."
ZH is my favorite haunt, and I've been reading and enjoying the refreshing truth offered up by (nearly exclusively) it for a long time, though I've just recently registered to comment.
But I have to say that whole "ZeroHedge pulled a fast one on the Main Stream Media" line had me asking: Is that akin to urinating down the back of Steve LIESman's leg and telling him it's raining?
Tho we all might like a diversionary piddle on idiots, I'm more annoyed that major outlets are reporting these things like they came up with it themselves. This is the top line story on HuffPo, and HuffPo took this item as well:
http://www.huffingtonpost.com/2010/11/16/mortgage-security-chart_n_784274.html
They did have the decency to credit ZH, but let's face it Tyler, you're one of the few doing any legwork on this stuff. Also a shout out to exiledonline.com, counterpunch.org who also make tremendous contributions to real knowledge while having sucky little budgets.
I don't think the Audit the Fed bill is necessary anymore given that Ron Paul,if chairman of the monetary subcommittee, could just Subpoena duces tecum the fed chairman.
But agreed that this is theatre. To let the doomist in me come out, the neocons are jumping ship on the fed to set up the "I told you so" moment.
Okay Corker, lets audit the Fed, the enemy within.
WRONG!
The reason to curb the dual mandate is to HIDE the Feds total ineffectiveness at anything it attempts to do for the economy...only in America can we have over 100 years of failure and "the institution" is still allowed to exist...baby steps my ass...END THE FUCKING FED NOW!
Although I agree with what you said, the optimist in me likes to think that it is a step in the right direction...
actually, the Fed's pretty effective at theft and fraud..
Yup, "theft and fraud" are its scamdates.
scamdates (n): mandate to scam.
"...and completely eliminating the Fed, the latter outcome of which is impossible absent a complete revolution within US society"...Yeah, like the bank monopoly will be mandated to be transparent as a glassed-in kitchen containing a 5 year old PC matching Domestic GNP data to the production of US National Bank notes. Truly a revolution away from Colony recapture.
ToNYC...spoken like a true carpet bagging New Yorker?
Just think of how much money printing would be required to get unemployment to less than 8%. And then think of where gold prices would be by then. Let the Fed fulfill its dual mandate so tha we can get the rally in gold back on track. I do not have a big bonus waiting for me like the pigmen do this holiday.
you are dreaming - money printing doesn't bring unemployment down; eating icecream won't cause you to lose weight if the first part is too complicated for you.
But it does cause the price of Gold to rise -- read the post again!
Just think of how much money printing would be required to get unemployment to less than 8%. And then think of where gold prices would be by then. Let the Fed fulfill its dual mandate so tha we can get the rally in gold back on track. I do not have a big bonus waiting for me like the pigmen do this holiday.
The FED is realizing that QEII is backfiring but it would lose all credibility (I use the word loosely) if they back away so soon after their announcement. They've asked their captured lawmakers to do it for them. Simple.
Or, did anyone think that Corker found religion all of a sudden?
What makes you think QE 2 is backfiring? Because the justifications given for it have not played out? Please understand that the reasons offered up to "justify" QE 2, especially that oft-repeated fave "because the Fed has decided to stimulate the economy by injecting $600 billion . . . " were alwasy complete bullshit.
Ask yourself whether anyone is profiting from the POMO/QE 2 operations? If so, QE 2 has acquitted itself admirably, and worked like a charm. Hint: Look at the p&l of a primary dealer, the "owners" of the Federal Reserve Banking system.
QE2 was too small and it is buying the wrong stuff to help the banks. That is the only problem. It needs to go more toxic.
The republicans just like the Democrats are full of shit. They hijacked the tea party,and made Sarah"Alaskan Bimbo" Palin its leader. When they call for fiscal responsiblity they do not want one cent cut from Defense and foreign aid to nations like israel,Turkey,Pakistan,Egypt,Saudi Arabia etc. Now they do not have the balls with the exception of Ron paul to end the fed. They are crooks and frauds. 2011 will be a year of gridlock and no change. There will be no major spending cuts,they will continue funding the wars,and continue the status quo to keep the federal reserve alive and well. There are no two parties but one party that is schizophrenic. If there is no change in the political spectrum there will be blood in the streets.
I'd watch Corker.....I don't trust him....remember McConnel didn't really want to give up ear-marks.
"remember McConnel didn't really want to give up ear-marks."
He was made to see the light by the Tea Party.
The Tea Party supports anyone who advocates fiscal sanity. The last election was not support for republicans.
From it's very begining it has been attacked.
The republican'ts will continue to try and co-op it...the democraps will continue to try and demonize it.
The people will continue to control it.
Observe who is standing with those who debase the currency for fun & profit now.
http://www.bloomberg.com/news/2010-11-17/fed-may-hesitate-on-more-easing-after-critics-question-employment-mandate.html
Sometimes ideology blinds people to what was, in hindsight, the right thing to do...history will show those who attacked the Tea Party were idiots just as current thinking brands those who devalue the very currency used in trade are thieves & traitors.
CURBING FED IS A ABA SCHEME TO BE REJECTED....
"The essence of the contemporary monetary system is creation of money, out of nothing, by private banks’ often foolish lending. Why is such privatisation of a public function right and proper, but action by the central bank, to meet pressing public need, a road to catastrophe?" - Marty Wolf http://www.ft.com/cms/s/0/93c4e11e-ec39-11df-9e11-00144feab49a.html#ixzz15T7hYtKV
-It's at least a reasonable question to pose to the ABA/Senate Bernank attackers. Why do they want this power exclusively in the private banking realm, whose dollars-from-helicopters brought us homeless millionaire homeowners, bank-developer kickbacks, securitizations, swaps, and insanely HIGH LEVERAGE. All that money was created too....by the banks! Isn't it interesting that they tell Ben he's going to destroy the world AFTER thy already have attack PUBLIC reflation instead of mega-PRIVATE inflation? The ABA would also LOVE to pin this economy on the Chairman. They're that mendacious.
-Isn't the concept of money creation better spent saving the taxpayer public interest payments on public debt? How does putting all the homeless in million dollar homes with bad mortgages and running up all asset values NOT create runaway inflation, but the Fed saving the taxpayer some interest and buying Treasuries does? I'm still waiting for this explanation. It's not forthcoming. Most arguments against the treasury buys are emotional. They're also based on hatred of the Fed's complicity in the run-up to 2008 and the bank bailouts after (I fully agree with the critics on this one.) But - are treasury buys different? You bet. LOOK AT THE ABA CRITICS coming out of the woodwork. What does that tell you?
Why is a "pattern" emerging (ZH noticing) of major ABA hacks like Pence and Corker, who disagreed with all readers prior to today, suddenly wanting to pressure the chairman of the Fed for challenging the PRIVATE MONOPOLY? I hope you all see that The Bernank has challenged the core principal of the PRIVATE CARTEL. (the public paying interest to privates for public debt at ALL TIMES). The ABA is anti-Greenback, obviously. It's also anti-treasury buys. The ABA's core belief is that the PUBLIC always pays INTEREST on DEBT to THEM. But - remember, it did favor EVERY PRIOR PRIVATE ASSET BAILOUT prior to treasuries, which are PUBLIC assets. So, it's NOT opposed to the FED going in debt to save THEM, is it? It is opposed to the FED going into debt to for the PUBLIC INTEREST. Get it? That's why you'll hear ANY argument thrown at the Fed by the ABA, including arguments which had the same merits for the asset bailouts! But - the ABA was QUIET as a church mouse during that happy period! Just the fact that the ABA is attacking the chairman and trying to split the FED by putting Kevin Warsh in the WSJ should tell you the story. Just look at the anatomy of this coup emerge. This is a full power struggle to control the Fed's new relationship with the PUBLIC, not to "end the Fed". The ABA end the Fed? No way.
That's why the ABA is out in force only on the treasury buys. Their real message...."Give the banks money BUT only we can be the helicopter to public. AND, we ALWAYS gets interest for public debts". That's the deal since day one. That's what drove the creation of the Federal Reserve Act. The banks were the real helicopter until 2008, always have been for each bubble. So, the ABA doesn't oppose helicopter power, it just wants it completely PRIVATIZED and MONOPOLIZED to them. Since Congress won't cross the ABA, the only institution that has the power to cross the ABA is.....the Fed itself. They only attacked The Bernank when he buys treasuries and goes outside the ABA playbook. This is a PRIVATE v. PUBLIC interest battle. Period. You can take either side for whatever reason, but you have to SEE the distinction. The distinction has ignited the ABA and has the politicos jumping through rings for them. See the headlines. But - don't stop there. Ask youself why and what this means. These same people were not against BANK BAILOUTS, they rammed them through.... only Treasury bailouts. This falls into the long American tradition of politicians and banks emptying the U.S. Treasury and putting those assets in private hands, war, government contracts, privatizing war, and banking, the linchpin of all the above. Banking is THE LINCHPIN of the whole anti-taxpayer regime. If you challenge a core public-private premise, you're starting a war. The Bernank has started a war. Is he a patriot? I doubt it. He's doing what he thinks will preserve his reputation in the eyes of the nation, that's what happens when you're names on the nations bottom line and you're no longer a faceless ABA lobbyist. I doubt he harbored these desires before 2008. But - an opportunity presents..
It will all become clear soon enough. Let the real war begin! The ABA is MORE scared of success than failure. If there is any success (or inflation is held down like prior to 2008) the Greenabackers will have an opening to challenge the PRIVATE cartel based on evidence and a specific precedence. Greenbackers haven't had this opportunity in a CENTURY. The ABA is sniffing it out and they're out in force. They even got members inside the FED, unusually, to attack the Fed while it rolls out treasury buys. WHILE. They are deliberately destabilizing an ONGOING Fed operation from inside the Fed. If it was done in reverse while they were buying BANK ASSETS, the offending outspoken party INSIDE the Fed would be considered treasonous. Yes, it's that unusual for outspoken attacks from the inside after a decision is voted on and made. What's really going on here!? A war about the nature of banking and money. Is money a private asset that generate private profits from public debt or can it be something else, like I believe it was constitutionally intended to be?
If you support Corker and the ABA, any paradigm shift of money (of which we've had at least 4 in our history) will not be allowed to proceed. If you like THIS paradigm, then support the ABA. If not, take some risks!
Be careful of economic royalists like Warsh too. His emergence is banking-media complex roll-out 101. The young, old money former Merrill M&A banker with the thinnest economic resume is the ABA's version of John Roberts. Economic revolutionaries throw their support behind ABA's Kevin Warsh, basically unknown fed member introduced through the Wall Street Journal? I highly doubt that's how you get a paradigm shift.
As I listened to the new Republican scheme, I began to wonder why? Why are they trying to cnage the FED's mandate. Who will benefit from the change? What is going on under the surface? Your ideas are very interesting and begin to explain the game.
I would be very cautious accepting their reasons for the change at face value. They are crafty politicans who work very hard for their base.
Hah!
Possibly pulling a Schumer.
Remember he introduced a bill to tax carried interest at regular rates. Raise taxes on his own fucking constituency! Then had to hold hearings, etc. Made a bloody fortune on that round of campaign contributions... and the tax change was never passed, after all.
Golly gee.
BUT.
The addition of the Fed mandate to maintain full employment was a travesty for the bank. The mandate with respect exclusively as to integrity of the dollar (ie, stable price levels) should never ever have been modified, for it is in that manner that Congress may abrogate its primary functions implicating the Fed for its failures.
Where forever would, for example, have the power to absorb assets of Bear Stearns and Lehman been found under the original, singular mandate? T'wouldn't, for doing such was within the province of fiscal policy and therefore the responsibility of Congress and Treasury. Not the Fed.
Since the FED is owned and operated by banks, why would changing their mandate matter? Won't he find another excuse to do what he wants?
Even Banksters cannot serve two masters, time to cut one loose.
When will banksters ever serve more than the only master they have ever recognized: Their own interests.
I doubt the Republicans will prevail in this insane idea...
But if they do, you can kiss your gold and silver investments goodbye for the next 20 years....
If the ABA seizes the Fed back, which is their intention, to keep private the monetary monopoly, gold/silver would look better to me in long run.
Don't forget that the Federal Government does not own a single share of stock in the Federal Reserve Corporation. Instead, shares are held by "member" financial insitutions in proportion to their capital. So, who exactly does the Fed serve? Its shareholders, and it will do so to the extent it does not raise the ire of Congress, which it seems to have come close to doing recently.
Yes, you've caught onto something. The Fed is raising the ire of private banking.
Hmmmm...
where is everyone on this??
Licking the PD's hand that feeds them.
"The Fed is raising the ire of private banking." 0% interest rates will do that. Where's the beef!
AND the taxpayers are getting interest relief! That's a double whammy. Here come the bank royalists to get things back in line...
Warsh, Corker, Pence, ABA etc..
I don't see how anyone on Congress can introduce this legislation without their opponents immediately re-spinning it as "that guy doesn't care about unemployment levels"
Seriously. This isn't going anywhere. Gridlock is the word we are looking for here.
+ 100
Bingo. This isn't about an election. Whoever helps the ABA on this will have money coming out of their ears. That is happens right AFTER an election cycle isn't an accident. This is about the ABA stopping the "public interest" Treasury buys and getting back to the old paradigm, the government ALWAYS pays interest to private banks for public debt, ALWAYS.
Let me see, the current U6 unemployment stat is at 17 %. It looks like the Fed has already failed in its maximum employment mandate. What is the point?
Well, for starters, they don't really give a shit about either employment or inflation. That is just the swill dished out for public consumption, like "we're going to war in Afghanistan to protect America," or other similar pablum. If they can even get you to start talking about the fake reasons, instead of probing further for the real reasons, they've done very well.
Chart: ES and ZB
Bonds it is.
http://99ercharts.blogspot.com/2010/11/es-zb_5335.html
http://www.zerohedge.com/forum/99er-charts
Good call you made last week.
I'm still waiting for the headline...
"Why is the ABA and every other Banker Slithering Out to attack the Fed Chairman over the Treasury buys"
"Why did the ABA begin this campaign only after the Treasury-buying curveball and not the bank asset buys or 8T in guarantees"
Why are the people who oppose Fed audits and get all their $$$ from the ABA agreeing with us now (they're not)?
Does the Fed treasury buys reduce the public interest owed on debt that usually goes to private bankers?
more later....
'scuse my ignorance, FE, but when you say ABA, is that Bar Assoc. or Bankers?
Am. Banker Assoc
Why stop at half-measures? I say cut their dual mandate to 0 mandate, disband the F*ckers, and send the top crooks to prison where they can enjoy a real man-date.
Maybe even a dual man-date.
+1
Fed WILL crash the market if this has legs....bookmark it
I am not sure, so I am holding my dollar short positions, but I totally expect them to do exactly that. And then, the masses cry for salvation, and Ben goes about his printing without any opposition. Democracy in action, baby.
Why on earth would they want to take the MO out of POMO?
yep. see above
Bullard going full retard:
11-16 13:31: Fed's Bullard says Fed could add to easing beyond USD 600bln 11-16 13:17: Fed's Bullard says he's concerned about disinflation trend 11-16 13:14: Fed's Bullard says Fed policy not directed at USD 11-16 13:09: Fed's Bullard says Fed won't monetise debtsorry about the formatting
Allow me to bring some clarity to what is apparently a subject of needless confusion: the Fed's only "Mandates" are to make sure the Big Banks continue to survive and prosper, at all costs.
The so-called dual mandates are mere pretext - the white and dark chocolate shells that surround the creamy, but foul-smelling and distasteful interiors of the Fed's dual "mandates."
+1
Outside of political propaganda of the R flavor, where did anyone get the idea that anything the Fed has done is targeted towards reducing unemployment? The idea is silly. The only thing the Fed has done about unemployment as it went from ~7% to ~10% is to talk about its being "structural" and that there's nothing much they can do about it.
The Fed is trying to (1) prop up asset prices, (2) devalue the dollar, and (3) combat deflation, and all of that is in service of his owners, the TBTF banks. Now, Bernanke probably has no objection if some of that money finds its way to reducing unemployment, so long as none of the rubes thinks they can afford a house in Princeton Borough.
But the idea that he's targeting unemployment? Nonsense. That's nothing but political PR.
Agreud.
rhymes with Freud.
I don't think this issue will get traction unless inflation really takes off. If gasoline prices reach $6/gallon in the next couple of years with little change in unemployment, I could see a lot of popular support developing for this argument. But not for a year or two, at minimum.
So really, the Republicans are just trying to distance themselves from any inflation that QE2 may produce.
I think the biggest future problems that we are facing are really due to the US government borrowing a lot of money that it cannot repay and making a lot of promises that it cannot keep. But it is easier to distract people by blaming the Fed than it is to address the fundamental issues.
Business as usual in Washington, D.C.
This issue of FED mandates means little. The FED does what it wants, when it wants, how it wants. It answers to nobody. It is accountable only to itself.
Our monetary system is a joke. These criminals own the system.
Correct. Do not allow predators to rule the earth.
End the federal reserve.
Then end governments... all of them.
How about ending the Fed's "mandate" of supporting the market...or is that what is meant by "price stability"?
The Federal Resereve has exhibitied mandate creep in the last 20 years.
They have become the economic central planners, picking winners and losers.
Bad news: We're all losers.
Wholesale replica handbags and wholeslae designer handbags online outlet,providing cheap designer handbags,high heel shoes,high heel boots,new era caps,replica designer handbags and chanel handbags online so on,wholesale handbags and wholesale sunglasses are our main businesss,enjoy buying cheap caps and handbags online from our cheap wholesale clothing store.