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Goldman Warns, Congress Is Preparing To Tame The Fed

Tyler Durden's picture


Having already warned that looming political uncertainty is not at all priced-in to US equities, Goldman's Alec Phillips points out that legislation was introduced earlier this week (July 7) in the US House that would attempt to revamp the FOMC's monetary policy process. The bill would require the FOMC to justify to Congress each policy decision relative to a Taylor rule specified in the legislation. While Goldman, do not expect the bill to get very far, but the issue does appear to be a growing focus for some lawmakers and we expect further action on it in the near term.

Via Goldman Sachs,

  • Legislation was introduced earlier this week (July 7) in the US House that would attempt to revamp the FOMC's monetary policy process. The bill would require the FOMC to justify to Congress each policy decision relative to a Taylor rule specified in the legislation.
  • These proposals may attract some attention as they make their way through the legislative process, particularly since the House committee seems likely to pass the bill in the next few weeks. However, the bill is less likely to pass in the full House of Representatives before the November election, and it seems to us very unlikely that the Senate would consider it this year so the probability of enactment appears very low.
  • Earlier this week, two members of the House Financial Services Committee, Reps. Huizenga (R-MI) and Garrett (R-NJ), introduced legislation that would impose new requirements on the Federal Reserve and the FOMC. We do not expect the bill to get very far, but the issue does appear to be a growing focus for some lawmakers and we expect further action on it in the near term.

The bill presumes a Taylor rule for the Fed

The most important change the bill proposes would be to require the FOMC justify its policy decisions to Congress with reference to a Taylor rule. Specifically, the bill would establish a new requirement that the FOMC submit to Congress a report on monetary policy within two days after each FOMC meeting. The report would include a detailed quantitative description of the policy rule the FOMC is following, including whether the fed funds rate, the rate of interest on excess reserves, and/or the discount rate is being targeted, and how the targeted values would change under different inflation and GDP assumptions.

The bill would require the FOMC to explain its own policy rule in relation to a rule like the one Stanford Professor John Taylor described in 1993, where the nominal federal funds rate equals 2% plus the sum of (a) the inflation rate over the prior 4 quarters, (b) one-half of the estimated output gap in percentage terms, and (c) one-half of the difference between the rate of inflation over the prior 4 quarters and 2%. To the extent that the policy rule the FOMC submits under the requirement does not conform to this reference rule, the FOMC would be required to submit a "detailed justification" of the departure from the rule. The legislation would require the Government Accountability Office (GAO) to conduct an analysis and report to Congress on whether the FOMC had complied with the requirements laid out in the legislation. If the FOMC were found to be out of compliance with these requirements, the Federal Reserve Chair would be required to testify in Congress and the FOMC would be subject to an audit by the GAO.

The practical implication of the bill would be that while the FOMC could continue to operate as it currently does, if it opted out of the process established in the bill it could become subject to periodic audits and the Fed chair would have to testify before Congress quite often, potentially after each FOMC meeting (the bill, in a separate section, would increase the semi-annual Humphrey Hawkins testimony to four times a year in any case). In the past, Fed officials have been clear in their opposition to prior proposals to require an audit of monetary policy decisions and we assume the Fed would oppose the recently introduced legislation though we are not aware of any specific comments from the Fed on it.

Further near term action seems likely but enactment is unlikely

The Committee held a hearing on the legislation today (July 10). No vote has been scheduled yet, but we expect the House Financial Services Committee to vote on the bill in the next few weeks. We assume it will pass along mostly party lines. Whether it will receive a vote on the House floor is less clear, since the legislative agenda will be crowded during the limited time Congress will be in session in July and September (the House will be in session for only 25 days between now and the midterm election on November 4). More importantly, regardless of whether the House passes the bill or not, there appears to be very little chance that the Senate would consider, let alone pass, the bill this year.

Next year, if the Republicans manage to take the Senate majority following the midterm election, there might be somewhat greater pressure to hold a vote in that chamber if the House were to pass the legislation. However, even in this case it is far from clear that there would be sufficient support in the Senate, where 60 votes are normally required. Moreover, in the unlikely event that such legislation managed to pass in the Senate, we would expect President Obama to veto it.

Of course, it would not be unprecedented for Congress to amend the Federal Reserve's mandate regarding monetary policy, though it happened only rarely. The last time Congress enacted significant new monetary policy-related requirements was in 1977 and 1978, when Congress reworked the Fed's mandate, required the Federal Reserve Chair to testify semiannually to House and Senate Banking Committees, and established a four-year term, confirmed by the Senate, for the Federal Reserve Chairman and Vice Chairman, among other changes. However, not only was the economic situation different at that point, the political situation at the time very different from the current one as well: both chambers of Congress were controlled by the recently elected President's party, while the Fed Chairman had been appointed by the prior administration.

There has in fact been some bipartisan support over the past few years for much simpler legislation first offered by Rep. Ron Paul (R-TX) to remove the prohibition on GAO audits of monetary policy deliberations. That said, support for more recent efforts appears to be falling along party lines more than it used to. For example, while Rep. Paul's legislation passed the House in 2012 by a vote of 328 to 98, a nearly identical version of that legislation in the current Congress has been co-sponsored mainly by Republicans. The upshot is that while the issue seems likely to remain a subject of political interest among lawmakers, these sorts of policy changes appear unlikely to be enacted into law in the foreseeable future.

*  *  *

The simple question we have is - why is Goldman Sachs bringing this up now?


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Fri, 07/11/2014 - 20:05 | 4948795 TeamDepends
TeamDepends's picture

Sure, and we're going to have a positive GDP this year!

Fri, 07/11/2014 - 20:15 | 4948823 ultimate warrior
ultimate warrior's picture

I miss Ron Paul verbally bitch slapping Ben Bernanke.



Fri, 07/11/2014 - 20:17 | 4948829 CH1
CH1's picture

Will never happen, unless they have an even worse monstrosity ready to roll out.

Fri, 07/11/2014 - 20:23 | 4948844 ZerOhead
ZerOhead's picture

The Congressional Reserve Bank...

Fri, 07/11/2014 - 20:27 | 4948850 Slave
Slave's picture

If by "tame" you mean trick everybody into giving it EVEN more power. Then yes.

Fri, 07/11/2014 - 20:28 | 4948856 ZerOhead
ZerOhead's picture

That's unpossible...

Fri, 07/11/2014 - 20:34 | 4948873 TeamDepends
TeamDepends's picture

Grab yer shitgums, boys.  The time is now!

Fri, 07/11/2014 - 20:57 | 4948948 CrazyCooter
CrazyCooter's picture

Well, now that the fed is loaded to the gills with worthless shit all the TBTF banks didn't want, its high time to nationalize the Fed and FUCK THE TAXPAYER!

Can't we just shoot em all and declare sovereignty?



Fri, 07/11/2014 - 21:27 | 4949019 cifo
cifo's picture

The bill would require the FOMC to justify to Congress each policy decision relative to a Taylor rule specified in the legislation.

Makes for safer and more profitable insider trading.

Sat, 07/12/2014 - 09:38 | 4949247 Pinto Currency
Pinto Currency's picture



That would be like Congress.

After the Fed has inevitably run the debt-backed fiat Fed 'Note' USD and US economy off a cliff, then Congress should start to try to modulate the uncontrollable inferno.

Fri, 07/11/2014 - 20:35 | 4948875 wee-weed up
wee-weed up's picture

Ha! What if Janet Ben Yellen decides to just say...

"Fuck You!" to Congress?

Hell, the lawless Obozo does it all the time!

Fri, 07/11/2014 - 21:21 | 4949004 booboo
booboo's picture

"Ha! What if Janet Ben Yellen decides to just say...

"Fuck You!" to Congress?

Hell, the lawless Obozo does it all the time!"

Where the hell did you think Barry got his " I got a ink machine and a phone" idea from, you didn't think that dope thought up that all by himself did you?

Fri, 07/11/2014 - 22:47 | 4949196 max2205
max2205's picture

How a bout nationalizing the banks and give us some fucking interest intstead of feeding it to said banks....

Fri, 07/11/2014 - 23:45 | 4949286 Crawdaddy
Crawdaddy's picture

Nationalizing worked, umm, when?

Fri, 07/11/2014 - 20:40 | 4948887 ebworthen
ebworthen's picture


Suitcases of cash and diamonds, and a bill called "Federal Reserve Control Act" that gives the FED more control over rewarding banks/corporations/insurers while punishing savers and citizens - if history is any guide.

Fri, 07/11/2014 - 21:52 | 4949070 August
August's picture

Following in the footsteps of the Congressional Post Office.

Fri, 07/11/2014 - 23:50 | 4949290 Crawdaddy
Crawdaddy's picture

Franking privelidges are priced in. We should all call congress Monday and ask to speak with Mr/Mrs Soon To Be In A Noose.

Fri, 07/11/2014 - 21:22 | 4949010 jaxville
jaxville's picture

 What do you think the monetary order behind a unified North American currency will be?  It's time to roll out a new system because the old one is so bad.  No that bad though that we can't employ/empower the same scoundrels who were responsible for the old system.

  Unless there are many swinging from lamp poles, any change in the current monetary order will be mere window dressing.


Fri, 07/11/2014 - 23:17 | 4949249 ejmoosa
ejmoosa's picture

Too little. too late....

Fri, 07/11/2014 - 20:25 | 4948830 El Oregonian
El Oregonian's picture

If you want to "Correct" this whole global criminal enterprise, first, you have to arrest ALL the Jesuit Order, ALL of them, and their satellite organizations, then you would be on the right track.

Starting with the black pope, Adolfo Nicolás.

Fri, 07/11/2014 - 21:09 | 4948976 jaxville
jaxville's picture

Wow!  Way to get people from focusing on the real "group" behind all this financial terrorism taking place. Max Keiser would be proud of you.

Fri, 07/11/2014 - 22:16 | 4949126 El Oregonian
El Oregonian's picture

They are behind the "Real" group. They've been consolidating their power since 1534.

Sat, 07/12/2014 - 00:08 | 4949310 Crawdaddy
Crawdaddy's picture

Jesuits are scum. They are the biggest shit disturbers on the face of the planet. Sadly, few are willing to investigate for themselves and see actual evidence. Religious and non-religious are both easily led to believe the magical Joo is the prime world shit disturber. The Jesuits and their satellites created the UN and the UN created te latest incantation of Israel so how can the magic Joo be in charge? These powerful rich guys all sat on the sidelines for over 1900 years? Did the Joos run the Dark Ages and the inquisition? But most don't let facts get in a way of a good story. By the time everyone figures it out, maybe a few good ZH souls will remember these posts and think things through and put the puzzle together.

Sat, 07/12/2014 - 01:11 | 4949363 Da Yooper
Da Yooper's picture

From wikipedia

crawdaddy you are wrong & a troll

how much are you paid to spred your filth ?

The United Nations Headquarters complex was constructed in stages with the core complex completed between 1948 and 1952. The Headquarters occupies a site beside the East River, on 17 acres (69,000 m2) of land purchased from the foremost New York real estate developer of the time, William Zeckendorf, Sr. Nelson Rockefeller arranged this purchase, after an initial offer to locate it on the Rockefeller family estate of Kykuit was rejected as being too isolated from Manhattan.


The US$8.5 million (adjusted by inflation US$83.4 million) purchase was then funded by his father, John D. Rockefeller, Jr., who donated it to the city.[6] Wallace Harrison, the personal architectural adviser for the Rockefeller family, and a prominent corporate architect, served as the Director of Planning for the United Nations Headquarters. His firm, Harrison and Abramovitz, oversaw the execution of the design.[7]


Yep you are right christans had a hand in this .....NOT

piss off TROLL

Sat, 07/12/2014 - 01:24 | 4949373 Crawdaddy
Crawdaddy's picture

Dude you must be a walk-on because that is one lame assed reply.

Sat, 07/12/2014 - 10:12 | 4949718 fervent in spirit
fervent in spirit's picture

El Oregonian and Crawdaddy have proved one thing at least. When you start to unmask the faces of those who are behind those who are behind the general chaos and disintegration of society at all levels, be ready for heated opposition by those who are either ignorant of the facts, deceived by the lies, or both.

The papacy has hated the protestants with a venomous hatred, and thus has hated the United States which was the great bastion of freedom from Rome's tyrannical persecution. Due to their subterfuge, the Jesuits have been expelled from practically every country in Europe at one time or another. For anyone interested in taking the time to look into it there are interesting articles linking together Rome, Jesuits, Rockefellers, hatred of Protestant America, oil and money.

"Ye shall know the truth and the truth shall make you free" (Jesus' words in John 8:32)

Sat, 07/12/2014 - 12:19 | 4949922 logicalman
logicalman's picture

Keep it simple.

Greedy parasites are the problem.

It matters not what masks they hide behind.


Fri, 07/11/2014 - 21:54 | 4949080 Freddie
Freddie's picture

Congress is doing dick to stop the dick-tater from allowing a full invasion of Amerika.  Matt Salmon (R) at least put up a bill to spend the money to send these people back to their families in their home countries.

Fri, 07/11/2014 - 20:06 | 4948796 world_debt_slave
world_debt_slave's picture

CON-gress only knows how to screw

Fri, 07/11/2014 - 20:23 | 4948840 Da Yooper
Da Yooper's picture

The bankers  own the gutless US dual citizen congress this will go no where.

They will get their sheckles worth count on it.

Fri, 07/11/2014 - 20:07 | 4948802 Idaho potato head
Idaho potato head's picture

Heh, hehheh, ha ha haha, um right.

Fri, 07/11/2014 - 20:09 | 4948806 messystateofaffairs
messystateofaffairs's picture

Yawn. When they end the fed let me know, everything else is theatre.

Fri, 07/11/2014 - 20:09 | 4948807 kliguy38
kliguy38's picture

Too funny

Fri, 07/11/2014 - 21:12 | 4948972 TeamDepends
TeamDepends's picture

But devoid of humor, yes?

Fri, 07/11/2014 - 21:13 | 4948983 TeamDepends
TeamDepends's picture

THEY will never end the FED.  WE will end the FED or it will end us.

Sat, 07/12/2014 - 01:16 | 4949369 Otto Zitte
Otto Zitte's picture

In his time Andrew Jackson ended the Fed.

Step up and if you can't do it alone, FIND THE OTHERS.

Without than the legalese bullshit, they are surrounded and outnumbered. 

Do It.

Sat, 07/12/2014 - 09:48 | 4949710 Took Red Pill
Took Red Pill's picture

You're correct! This is just a way of calming down the people and make it look like they're doing something.

Fri, 07/11/2014 - 20:12 | 4948811 BrigstockBoy
BrigstockBoy's picture

This is when it gets fun because it will be apparent that neither the red team nor the blue team will want to tell the Fed what to do. Expect the word "independence" to be thrown around liberally (pun intended).

Fri, 07/11/2014 - 20:20 | 4948815 royal
royal's picture

The Fed doesn't need to be reformed, it needs to be outright abolished, and the US returned to a sound monetary system backed by Gold.

...unless of course, you're the masochistic type who enjoys losing 10% of the value of your money every year...


If so, Gold isn't for you, because AU delivers what the Fed can only claim -- true price stability and maximum employemnt.


Fuck the Fed. End the Fed.

Fri, 07/11/2014 - 20:16 | 4948821 kill switch
kill switch's picture


This is quaint..

The NSA will expose these congress critters,,,,,wife swapping,,pedophilia,,,sucking dick...this will end in a fast pace...Without the tame FED BS!!!

Fri, 07/11/2014 - 20:16 | 4948826 hobopants
hobopants's picture

Ya, one look at who the major campaign contributors are says this isn't going to happen.

Fri, 07/11/2014 - 20:22 | 4948841 GrinandBearit
GrinandBearit's picture


Fri, 07/11/2014 - 20:23 | 4948842 robertocarlos
robertocarlos's picture

How do you get 500 Congressmen to leave DC? He asks while shaving.

Fri, 07/11/2014 - 20:26 | 4948845 Kaiser Sousa
Kaiser Sousa's picture

Fuck the Fed...
and fuck the politicians they command...
if we turn our back on the MoneyChangers worthless script and ignore the government they control they both will fade away...
we give them relevance and power by honoring their farce...
and we can remove it and them via withdrawing from the debt and death paradigm that has ruined humankind...
it can be done starting with saving in real money and starving the banks...

Fri, 07/11/2014 - 20:33 | 4948871 Seize Mars
Seize Mars's picture

If you turn your back on playing the game they will put you in a cage. If you resist they will kill you. Dead.
Do you now understand the problem here?

Fri, 07/11/2014 - 20:55 | 4948931 Kaiser Sousa
Kaiser Sousa's picture

no i dont because your statement is of fear and at this stage of the war i have none...
therefore, the prospects you mention above r of no consequence...
that is why most will remain slaves of the bankers and their government....
do you understand YOUR problem now?

Sat, 07/12/2014 - 00:19 | 4949318 MatrixLinx
MatrixLinx's picture

Here is something positive anyone can do

Sat, 07/12/2014 - 05:19 | 4949547 barre-de-rire
barre-de-rire's picture

only fools are fearless. fear is usefull,and a dangerous friend for who know how to control it :)

Fri, 07/11/2014 - 21:39 | 4949044 Tall Tom
Tall Tom's picture

I am not in a cage...

I am not dead...


Are you?

Sat, 07/12/2014 - 05:20 | 4949548 barre-de-rire
barre-de-rire's picture

keep watching.

Fri, 07/11/2014 - 23:23 | 4948848 TomGa
TomGa's picture

It's funny because for years (since 1987), it was Harry Reid who sponsored and supported legislation to "audit the Fed" and lambasted Republicans for railroading it.  Then the winds of politics shifted....


Harry Reid: Audit the Fed  (the first one is his '95 Senate floor speech - and he makes a damn good case):


Harry Reid Flip Flops on Ron Paul Audit the Fed Bill, Used to Support It:

Fri, 07/11/2014 - 20:28 | 4948858 Yes_Questions
Yes_Questions's picture



all of your money is belong to us


two men enter, one man leaves



Fri, 07/11/2014 - 20:29 | 4948860 Seize Mars
Seize Mars's picture

M'kay. Then can we audit the fuckers?
Or is that still a no-go?

Fri, 07/11/2014 - 20:31 | 4948866 Atomizer
Atomizer's picture

Doing God's work while holding a AK 47 at Congress. Hang these banking motherfuckers. 

Fri, 07/11/2014 - 20:43 | 4948898 rsnoble
rsnoble's picture

No AK 47's.  More like bags of cash.

Sat, 07/12/2014 - 08:49 | 4949647 TBT or not TBT
TBT or not TBT's picture

President Goldman Sachs did appreciate monster campaign contributions for his 08 run, you know, after breaking His promise to run on public funds. 

Fri, 07/11/2014 - 20:39 | 4948886 rsnoble
rsnoble's picture

Talk about it and do nothing or do something when it's too late.

Just like immigration.  They're already here.

Fri, 07/11/2014 - 20:40 | 4948892 rsnoble
rsnoble's picture

LOL........getting our criminal bankster bought off politicians to do something about their main source of wealth and power. LOL once again.

Fri, 07/11/2014 - 20:45 | 4948903 yogibear
yogibear's picture

Political members that are a real threat to the Federal Reserve and the banksters end up dead. 

The evil empire survives at all cost.

Fri, 07/11/2014 - 20:48 | 4948915 BeetleBailey
BeetleBailey's picture

Oh this is rich...

cunts calling out other cunts...

we need a super Katrina like hurricane to blow the fucking shit out of D.C. and the surrounding areas....and douche out every single stinking motherfukcing political and lobbyist cabal, along with the MIC pricks sucking the marrow out of the taxpayers....and swamp them out to sea....





Fri, 07/11/2014 - 21:00 | 4948955 Atomizer
Atomizer's picture

Don't forget K-Street. The assholes are out of control. 

Fri, 07/11/2014 - 20:49 | 4948921 seabiscuit
seabiscuit's picture

Here is a fantastic new video -

Century of Enslavement: The History of The Federal Reserve

That's right folks, it's Andrew Jackson's old nemesis. Or you spend your FRNs this weekend on a film with monkeys and continue to feed the system.


Safe boating!



Fri, 07/11/2014 - 20:54 | 4948941 Coletrane
Coletrane's picture

they're goin in dry !!!!!!

Fri, 07/11/2014 - 21:04 | 4948960 Atomizer
Atomizer's picture

Reggie will bring the KY jelly. 

Fri, 07/11/2014 - 21:22 | 4948971 Yes_Questions
Yes_Questions's picture




nothing will come from this.  stay still and and keep your attention to the same spots. it'll move into nothingness as is the plan.


this is nothing from a bunch of nothings who have nothing to offer for trade with the banksters, who have it all at this stage of their game.


we have something the nothings fear but as long as they can keep their nothing happening,.


something is wrong.


Fri, 07/11/2014 - 21:11 | 4948978 bubblemania
bubblemania's picture

Nothing to see here, move on and buy the fucking dip.

Fri, 07/11/2014 - 21:14 | 4948987 Freedumb
Freedumb's picture

Oh god, Krugman's latest NYT piece claims easy money policies HURT the 0.01% and that's the root of criticism against QE. I think Krugman is actually trying to troll us.

Fri, 07/11/2014 - 22:15 | 4949101 Chief Wonder Bread
Chief Wonder Bread's picture

That was hard to believe until I read it with my own eyes. Krugman is a study in evil, removed from the human condition across an immeasurable abyss of flaming perdition, leading astray the feeble-minded and foolish alike.


Fri, 07/11/2014 - 21:17 | 4948994 MrTouchdown
MrTouchdown's picture

Foreplay is over. Now the Fed will be officially controlled by the gov't. The Fed can have their minutes, they can have their opinions, but in the end they will do what big daddy gov't tells them. The only thing new is that it will be a bit more out in the open.

Fri, 07/11/2014 - 21:19 | 4948998 joego1
joego1's picture

When the whole mess blows itself to hell they will be ready for reform.

Fri, 07/11/2014 - 21:21 | 4949000 One of We
One of We's picture

I can see Boner and McCain telling Dimon and Blankfiend to clean up their act or they'll stop picking up their campaign donations lol...

Something along the lines of "Nobody move or the nigger gets it!"

Sat, 07/12/2014 - 08:56 | 4949651 TBT or not TBT
TBT or not TBT's picture

The TBTF bankroll Dems more generously than Republicans, but yeah.  

Sat, 07/12/2014 - 12:27 | 4949937 logicalman
logicalman's picture

The banks bankroll anyone they know will help them.

They are red-blue colour blind.

Trouble is, the majority NOT being red-blue colour blind is what keeps the thing going.


Fri, 07/11/2014 - 21:33 | 4949034 Eyeroller
Eyeroller's picture

"We don't expect the bill to get very far, but..."

Stopped reading after that.

Fri, 07/11/2014 - 21:35 | 4949039 buzzsaw99
buzzsaw99's picture


Fri, 07/11/2014 - 21:39 | 4949045 NoWayJose
NoWayJose's picture

After a sudden 'rush' from seeing the headline, I quickly said 'meh' as I read and saw the Taylor rule.  Mr. Yellen will simply invent some economic gibberish and say 'that's it".  There are a couple of things that Congress could do that would make a difference, but you are not likely to ever see them:

1.  Remove the 'employment' co-mandate that lets the Fed meddle in the economy -- instead tell them to keep the currency strong.

2.  Audit the Fed - let's see what crap they bought

3.  Let's peek in Fort Knox.

4.  Restrict the assets that the Fed can hold

And while these assume the Fed is still around, the best choice would be:

5.  Abolish the Fed

Fri, 07/11/2014 - 22:13 | 4949099 TeethVillage88s
TeethVillage88s's picture

Fuck me. Where is the Taylor Rule. I notice that authors of Articles in ZH are Capitalist that never post original Primary Source Info.

I found a Federal Reserve Bill below: H.R. 5018

Sat, 07/12/2014 - 15:13 | 4949256 TeethVillage88s
TeethVillage88s's picture


Sat, 07/12/2014 - 12:05 | 4949884 earleflorida
earleflorida's picture

good digging :-))

'stand your ground!!!'

all good comments 'TeethVillage88s', but with a

word of caution on ZH... if you go against some of the comical posters that seem to all know each other, they'll gang up on ya

fuck the arrows, they mean absolutely shit, it's the audience that reads from the outside that's looking for insight, knowledge, and truth


Sat, 07/12/2014 - 15:15 | 4950431 TeethVillage88s
TeethVillage88s's picture

Thanks. I thought it was a good gimmick to use the "F Bomb" a couple time to show the actual legislation link.

Fri, 07/11/2014 - 21:49 | 4949059 Otto Zitte
Otto Zitte's picture

Brer Fox & Brer Rooster deciding how to 'serve' Ms Chicken.

Fri, 07/11/2014 - 21:54 | 4949060 earleflorida
earleflorida's picture

Here's a novel ideal? How about we reeducate the schools with a fast-track empirical? scholastic pamphlet (a text book for grades 3-7, if they havn't already burned them all with the .00001% blessings [oligarchy]!)about savings, and compound interest!

Shit, I can remember as if it were yesterday... how, in 2nd or 3rd grade they (the banking community came to lecture) gave us all passbooks for savings, which we brought home and had our parents sign-off on.

Every tuesday was deposit day of a dime, quarter, or, if you were a well-2-doo, you had a buck. But, mostly all us kids got two-bits. The text books also taught us how to be young entrepreneur's, such as purchasing a snowblower, or a good a snow-shovel and/ or lawnmower {(geography)(having and knowing the basics [pitfalls/profits] for realizing a substantial gain from your initial investment [via, hard manual labor] as a bonifide capitalist)} investment for a family (the key was to kiss-up to your neighbors and not get greedy--  asking to much for your services) orientated clientel in your neck-of-the-woods neighborhood. Or, even a paper route!

Currently: The Rothschild family owned or had ownership of all textbooks in the USSA, via the (MHP) Texas Scolastic Assoc. for Public School Literature & Learning.

I'm not sure if I have the name above correct, but the publicly-traded name of the publisher is 'McGraw-Hill' (MPH). 

Botom Line:  educate, education, moar re`education, starting when the kid's are young so mom and dad will have to answer some tough questions when these kids start wondering how to buy and purchase,... as future consumers?

Ps. There's still tyme.


Fri, 07/11/2014 - 21:52 | 4949072 aka_ces
aka_ces's picture

Wait, don't the banks also own Congress ?

Fri, 07/11/2014 - 22:11 | 4949084 TeethVillage88s
TeethVillage88s's picture

Legislative Opportunity?

H.R. 5018: Federal Reserve Accountability and Transparency Act of 2014

To amend the Federal Reserve Act to establish requirements for policy rules and blackout periods of the Federal Open Market Committee, to establish requirements for certain activities of the Board of Governors of the Federal Reserve System, and for other purposes.

5. Frequency of testimony of the Chairman of the Board of Governors of the Federal Reserve System to Congress
(a) In general

Section 2B of the Federal Reserve Act (12 U.S.C. 225b) is amended—
(1) by striking "semi-annual" each place it appears and inserting "quarterly"

7. Economic analysis of regulations of the Board of Governors of the Federal Reserve System

(B) Additional considerations

In addition, in making a reasoned determination of the costs and benefits of a proposed regulation, the Board shall, to the extent that each is relevant to the particular proposed regulation, take into consideration the impact of the regulation, including secondary costs such as an increase in the cost or a reduction in the availability of credit or investment services or products, on—
(i) the safety and soundness of the United States banking system;
(ii) market liquidity in securities markets;
(iii) small businesses;
(iv) community banks;
(v) economic growth;
(vi) cost and access to capital;
(vii) market stability;
(viii) global competitiveness;
(ix) job creation;
(x) the effectiveness of the monetary policy transmission mechanism; and
(xi) employment levels.

Introduced: Jul 07, 2014
Status: Referred to Committee on Jul 07, 2014
Prognosis 5% chance of being enacted

LOL, This ain't it

S. 1681


To authorize appropriations for fiscal year 2014 for intelligence and intelligence-related activities of the United States Government and the Office of the Director of National Intelligence, the Central Intelligence Agency Retirement and Disability System, and for other purposes.

Related Bills

[H.R. 3381: Intelligence Authorization Act for Fiscal Year 2014]

[H.R. 4681: Intelligence Authorization Act for Fiscal Years 2014 and 2015]

[S. 1035: Targeted Strike Oversight Reform Act of 2013]

Fri, 07/11/2014 - 23:29 | 4949267 TeethVillage88s
TeethVillage88s's picture

Bump Where is the link to any so called Taylor Bill or Taylor Reform or whatever?

Fri, 07/11/2014 - 22:30 | 4949153 CoastalCowboy
CoastalCowboy's picture

Somehow I see a tragedy involving an Airbus A380 with all the members aboard, and some of those Stinger Missiles we gave to ISIS if they were even to even think about doing it.

Only the Banksters could JFK them and get away with it starring ISIS as the patsies.

Fri, 07/11/2014 - 23:32 | 4949269 TeethVillage88s
TeethVillage88s's picture

Check Video 37 Minutes thru 39 Minutes.

Fri, 07/11/2014 - 23:47 | 4949288 Morla
Morla's picture

Shouldn't this read "Congress prepares to be the scapegoat for the consequences of the Fed's failed/malicious policies over the last several decades"?

The Bankster's Guild (Fed) can claim "the recovery was going great if only those meddling congressmen hadn't come along", and since everyone hates congress anyway maybe they'll buy it.

Sat, 07/12/2014 - 03:43 | 4949488 Ckierst1
Ckierst1's picture

If Congress is guilty of anything, it is that it fiddled while Rome burned - but only with a level of guilt commensurate with that of Nero.

Sat, 07/12/2014 - 09:06 | 4949666 TBT or not TBT
TBT or not TBT's picture

Maxine Waters et al didn't end up in their seats in Congress accidentally.   Taken individually, Americans like their congresscritter a lot better than they like Congress.  Actual morons, alongside cleverer sociopaths, stay in office for decades, with a paid entourage of servants and wonks with lobbies a mile deep doing their work, such as it is.   

Sat, 07/12/2014 - 10:09 | 4949722 WillyGroper
WillyGroper's picture

Maxine is an endless source of comedy. She's the ONLY one I can stand to listen to anymore for just that. Comedy!

I do give her credit for validating Michael Ruppert & Gary Webb. 

Sat, 07/12/2014 - 10:56 | 4949319 MatrixLinx
MatrixLinx's picture

If you want to tame Congress here is something positive we can all get behind

Sat, 07/12/2014 - 14:56 | 4950368 TeethVillage88s
TeethVillage88s's picture

Just Realized.

If US States tried to Secede from the Union, the Federal Reserve and TBTF Banks would have to Induce the US Congress & US President to go to War with Full Military Equipment.

The Reason is that the Credit and Expansion of US Public Debt and Wall Street's Financial Products would be devalued or down graded by international banking. They would have to slow down the expansion of US Dollars globally.

They could not accept that.

The reason this is a big deal is that I was thinking that US Citizen Soldiers & Private Military Contractors that are US Citizens would not fight "Our Own People" with Military Force.

But I think I am wrong on that first thought I had.

Good Link!

Sat, 07/12/2014 - 00:22 | 4949324 robnume
robnume's picture

Yeah, right, CONgress is gonna reign in the Feral Reserve System. I swear I'll cut my hip length hair when that day comes.

Sat, 07/12/2014 - 01:25 | 4949374 lasvegaspersona
lasvegaspersona's picture

Policy regarding the dollar is now in the hands of those who must accept it. It is no longer in the control of those who would spend it.

I suspect any US action toward the Fed would be more 'butt covering' than improvements to the dollar's longevity.

The changes needed to save the currency are beyond any possible political agreement. is just a currency...

Sat, 07/12/2014 - 01:29 | 4949377 user2011
user2011's picture

don't bite the hands that feed you !   

Sat, 07/12/2014 - 06:30 | 4949571 Otto Zitte
Otto Zitte's picture

Don't feed the hands that bite you, Betty!

Sat, 07/12/2014 - 02:10 | 4949400 napper
napper's picture

Can a bunch of brainless, spineless, penniless, defenseless puppets turn against their Trillionaire puppeteers armed with their own printing press, private assassins (Mossad, CIA, MI6, Navy ...) , intelligence networks (NSA, CIA, FBI), private courts (including the Supreme Court and circuit courts), ....????


Get real.


JFK, Lincoln, Garfield etc tried. Didn't work out very well, did it?

Andrew Jackson was the only one who had escaped with the help of seemingly divine intervention.

Sat, 07/12/2014 - 10:11 | 4949724 WillyGroper
WillyGroper's picture

AJ was also guilty of genocide.

Sat, 07/12/2014 - 18:43 | 4950938 napper
napper's picture

I am aware of his reputation as a "sharp knife" against the natives. Wish he would have been less severe on them and instead used the same m.o. against the money changers.

Sat, 07/12/2014 - 03:10 | 4949453 kurt
kurt's picture

This is all stage setting for a lovely shadow puppet show fantasy.

Sleep now  by the flickering light, how warm, how comforting.

Sat, 07/12/2014 - 05:00 | 4949538 Aussiekiwi
Aussiekiwi's picture

Spot on kurt.

Sat, 07/12/2014 - 06:32 | 4949573 Lanka
Lanka's picture

An audit is meaningless, like the stress tests.  It would take a military coup to end the Fed.  All Fed institutions, their owning banks and their primary dealers would need to be "retired".

Sat, 07/12/2014 - 06:39 | 4949577 paint it red ca...
paint it red call it hell's picture


Sat, 07/12/2014 - 09:20 | 4949679 buzzsaw99
buzzsaw99's picture

congress can't even write a budget or do their constitional duty to coin money. they like their banker overlords. nothing will change.

Sat, 07/12/2014 - 11:14 | 4949808 the grateful un...
the grateful unemployed's picture

the american people despise feckless and irresolute politicians. once congress is restored to at least some of the powers granted by the constitution, their popularity will rise as well.

Sat, 07/12/2014 - 12:33 | 4949945 logicalman
logicalman's picture


the american people despise feckless and irresolute politicians.

Problem is, feckless and irresolute is what politicians ARE.

Sat, 07/12/2014 - 11:13 | 4949806 the grateful un...
the grateful unemployed's picture

and janet yellen is looking a bit like the woman at GM, there to put a soft face on a brutal hatchet job, in the case of GM the stock says MOAR, and no matter what happens the fed isn't going anywhere, or at least the illegal and immoral policies, though some of them may actually come up for review, such as the lets rob the savers and expand credit for subsubprime borrowers policy, and run a trickle down economy of free and easy money filtered through the 1%. as Hussman cried, the fed is making fiscal policy, barely had he spoken than the EU IMF and Fed allied forces moved on to foreign policy, (in Ukraine) the fed may be leaving but the fed policies are still in ascendency. nothing we can do about that really, its like watching a world war develop. the biggest lie anyone has ever told, as members of a democracy we shape our own destiny.

Sat, 07/12/2014 - 15:10 | 4950412 TeethVillage88s
TeethVillage88s's picture

De-mocracy is a fairy tale we tell to our Children.

Just like the Easter Bunny or Santa Claus.

The Reason we let the Elites Rule is partly the old meme from the Cold War and the Memory of WWII. We have the Russian Communists and Chinese Communist Terrors who are trying to take over the world, make the USA a communist country, and Destroy our Freedom.

Therefore, we have to have Strong Intelligence Operations, Many Intelligence Agencies, Strong Naval, Air, and Land Forces, a strong Network of Allies, the most devastating weapons, active and rigorous military training programs, wars every 20 years to test our men and teach our children our doctrine.

We can't trust "Joe the Plumber" to lead this nation in war against the Commies.

Well...after GWB & Obama, 16 years of failures, maybe Joe the Plumber would save us from total destruction.

After the British Military Empire ended, it seems the US Military Empire started with more emphasis on spying, proxies, and finance. We can buy our allies and even train them as young officers before we put them in power.

Sat, 07/12/2014 - 13:00 | 4950011 trutalk
trutalk's picture

Setting the stage to blame the crash on the Republicans.

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