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Transparency At The Fed - Why Is Janet Panicked About The House's FORM Act?
Janet Yellen’s astonishing letter to the Speaker of the House, Paul Ryan, is a sign that the central bank is panicking over the fact that Congress is unhappy with the job the central bank has been doing. Mrs. Yellen’s letter, sent also to the minority leader, Nancy Pelosi, is a protest against a bill known as the Fed Oversight Modernization and Reform Act, which passed a vote in the House and would require the Fed to choose a rules for the formation of monetary policy and let the Congress and the public know what they are.
That has got to be one of the most gentle, democratic, transparent reforms in the history of democracy. It doesn’t require the Fed to stick to its monetary rules, just develop a set of guidelines and let the Congress know what they are. Yet Mrs. Yellen suggests that this mild measure would breach the Fed’s independence from the Congress that created it. Her letter is whiny, inaccurate, and threatening all at once, evincing an “it’s my ball and you can’t play with it” attitude.
One would think the FORM Act would be a lead pipe cinch in a democracy. Mrs. Yellen’s letter is particularly shocking given that it is precisely to the Congress that the Constitution grants the monetary powers. These include the power to borrow money on the credit of the United States, to coin money and regulate the value thereof, to provide for punishment of counterfeiting, to regulate commerce, and to fix the standard of weights and measures.
Congress could, if it wanted, dismantle the Federal Reserve entirely. It could refuse to confirm its governors. It could require that dollars be redeemed in gold. If the Fed doesn’t want to establish a voluntary, non-binding monetary guideline, the Congress could turn around and legislate a binding one. The Congress hasn’t — at least not yet — done any of those things. It is merely considering a bill requiring the Fed to establish its own rules and let the rest of us know what it is doing.
This, incidentally, has already passed the House Financial Services Committee, albeit on a party line vote, the way, say, Obamacare passed the Congress. Support for more oversight of the Fed, though, is far more bipartisan than Obamacare and the reforms are relatively mild. Audit the Fed, which would give Congress an on-going look at what the Fed is doing on monetary policy and is now a part of this bill, passed the House in September 2014 by a vote of 333 to 92, with something like 109 Democrats voting for the measure.
Why is Congress itching for more oversight of the Fed? The reason is that the Fed was culpable in the crisis of 2008. And there is a growing sense that errors by the Fed itself — with quantitative easing and zero interest rates — have retarded the recovery, turning the crisis into the Great Recession. The recession became a cruel jobs drought; the unemployment rate is still above the average through the whole generation of Bretton Woods; the employment participation rate is at a decades long low.
Mrs. Yellen’s predecessor, Ben Bernanke, may have written a memoir about his own courage to act, but Congress’s admiration of Mr. Bernanke’s courage isn’t as unalloyed as Mr. Bernanke’s admiration for his own courage (a federal court found he violated the Fifth Amendment in the AIG case). Given all this — and the fact that the Federal Reserve is beginning its second century — it is only natural that Congress start stepping up, a view supported by an array of distinguished figures.
A number of them — including Secretary of State George Shultz and Stanford economist John Taylor — were quoted last week in a press release of the House Financial Services Committee as supporting the measure and denying it would compromise the Fed’s position. But the most newsworthy quote was the one from a former Fed chairman, Paul Volcker, who doesn’t support the bill but nonetheless articulates the logic of it.
“By now I think we can agree that the absence of an official, rules-based cooperatively managed, monetary policy system has not been a great success,” the committee quotes the sage as saying (he made the remark in 2014). If the Fed does not want to reform itself — which is what the Congress is asking it to do — the result will eventually be less voluntary. Or maybe the Congress will start looking at the most logical and radical reform, the gold standard. Mrs. Yellen’s letter on that should be quite something.
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Me thinks she doth protest too much.
sschu
They must resist any and all attempts at anyone getting into their gig. period.
Regardless of it being a mega-messed-up place, the Fed, who in their right mind wants Congress to be at the helm of monetary policy.
Just think, Maxine Waters Chairperson of the Fed Governance and Policy Committee.
No fucking way. Not a good idea.
Audit them, the numbers, etc., the accounts, etc., but no Congressional Nose Under the Decision-Making Tent.
Any way you slice it debt has become necessary for the Gov'ts operating budget (huge mistake). You used to only barrow for capital projects that is no longer the case and its nuts that they barrow for operations. As we all know the Fed is nothing but the operators for people that own the actual international banks. The elite bankers say Jump and they say how high. Nothing more nothing less, puppets acting independent.
This is all because of the 2012 Ron Paul campaign. Ron truly changed the conversation.
+1.
For whatever flaws Ron Paul has, he is the only reason that I am even aware of the creature from Jekyll Island.
Great book. END THE FED!
Word up! I like the reading of it by Mr. Griffin on Youtube. He also introduced me to vitamin b-17 as an anti cancer vitamin.
Yes to RP, and the grand Senator from the Great State of Alabama, Chair of the Senate Finance Com., the Hon. Richard Shelby, only jacks off and stutters while Rome is burning.
Where are those bold Republicans, even Homobama Care is still in force, the Republicans are all pussies.
Na its because the Fed is looking at a wall of exponants that has gone vertical.
As opposed to the money masters we have now? Bullshit. We don't even know who really owns and controls the Fed and the Central banks, or what country they reside in, but some foreign ownership is virtually certain.
So true. The question is could Congress be worse that what we have now?
Right now their actions are veiled in secrecy. Maybe bringing monetary policy into the light will provide an opportunity for change.
Perhaps this is wishful thinking.
sschu
Right now they operate in total secrecy and that always leads to corruption. So what do we have to lose if we lose the FED?
USA should never ever ever ever have allowed the FED to begin with. Little late now. USA and many other countries handed over money creation and policy to private banks decades ago. Was wrong then and is wrong now. And one reason why US wages war on any country without a controlled Central Bank. And throws hissy fits and bombs at any country that threatens to disconnect from USD. You can look at the ME through oil control eyeballs of hegemony but it is also about the desire of nations there to institute independent currency away from fiat, usd control.
She doesn't want us to learn that she has a dick.
Call her what you will but she isn't Hillary. She knows she is a woman and my guess she is proud of it as she should be.
Or that her bitch buddy Hillary has balls...
If you all hear Janet Yellin',
Then something at the Fed is smellin',
That's what Zero Hedger's been tellin'
But, gooberment has problems with spellin'.
Fuck the Fed with a barbed wire wrapped baseball bat lubed with flaming napalm.
Sorta like they been doing to us with " monetary policy " since they crawled out of the primordial ooze on to Jekyll Island way back when.
Be interesting if they let us know what they do....
Monday ....slammed VIX
Tuesday....2:15 a.m. EST had 2 bullion banks naked short 500k ounces of gold
Wednesday....bought S & P
Thursday....another "we're abut to raise" speech
Friday.....again slammed VIX, took off at lunch for a long weekend
i WOULD TOO if I was unconstitutional. And riding high on imminent failure. If my books were threatened to be opened and the true state of manipulation of all markets exposed.
"It is a tangled web we weave'
USA was warned against this 100 years ago.
Kabuki theater
With a dash of CYA mixed in.
Like congress hasn't witnessed the last 15 years.
Congress is concerned about the Fed because congress members are being blamed for what the Fed is doing.
Seeing that they're supposed enforce oversight and don't....THEY ARE TO BLAME.
Congress does enough of creating its own problems. The FED is the 4th branch of government that appears to be left out of the constitution
What say you Janet?
Whoff, whoff, whoff, and whoff whoff.
Thank you Janet for clearly stating what needed to be said in real Frontier FED speak,...ok Tyler back to you...
answer = corruption
Janet is a mini stroke away from being able to function. FED is nothing but smoke and mirrors and only have one button to push........ "PRINT"
Actually, the only button they have to push is "Enrich the Oligarchy by any means necessary".
Yea Ill be cashing my check today. Just guessing it will be all new 100 fiat bills. Just like it was last week.
That is a tell. The 20s will all be old ones.
Thats what ol Yellen has her panties in a twist over. Dance bitch!
It should be apparent to all by now that the fed controls nothing, determines no outcome and performs no useful purpose.
The reason for a lower level of activity in any country rests on the ability of its people to be proud enough to provide for themselves, trade fairly using their skills, invest without prejudice and not to beg from others via a totally screwed up democratic process.
The Fed is a glove puppet and the government is the drunken sailor with an AK47 and limited remaining bullets to eliminage those who prevent its feedint at the trough.
No representation without taxation! This "pay no tax, print money" dogma remains a total farce.
Yep.
But if we persevere a bit,
We really get quite good at it!
Are you saying you want to pay taxes or something?
ha ha, yes!
I confess I would willingly pay taxes if it was clear the money was not going to sickness benefit fraudsters, social media users without jobs, jewish/christian/catholic based "anti-sin" fuck fests for free will censorship, space programs to the wrong places (like throwing darts in aroom where a dart board might exisit ..or not) and blowing the shit up out of people i have never met (and will likely never ever be given the chance to meet).
heaven forbid taxes go on better (free-er web based) education, ""unprice gouged" medical treatment, upgrades to transport infrastrcutre, the recylcing of human waste into energy etc etc - for starters anyway, don't get me started on the benefits of gobal technologial colonizatin (as opposed to colon blocking)!
Why Is Janet Panicked About The House's FORM Act?
because then we get to find out how many QQQs, SPYs, and DIAs she's long
Here is an appropriate response to the Chairsatan gnome:
https://www.youtube.com/watch?v=Pt2uIYbEYjg
ha ha....excellent..
your pic says this https://en.wikipedia.org/wiki/John_Law_%28economist%29 (he looks like a smart bastard), though he and Keynes look like theoretical collaborators
http://www.cato.org/publications/commentary/john-law-john-maynard-keynes
but maybe your youtube link has more in common with this!
(reposted, as caught by ad choice stutter!) https://en.wikipedia.org/wiki/John_Law_%28Burning_Man%29
:>)
end the fed with a bang
Boxes of Depends are piled up at Jumbo Jet Janet's front door...
They eliminated the debt ceiling.
We all know we're going into the final phase with endless printing. Knowing that, of what real use is the Fed, and why should the elected grifters give the unelected grifters a 6% cut for doing what everyone knows will be done?
This is the groundwork to set the Fed up as a the fall guy. The Fed is going to be the bad bank that goes away with the reset. We both know that the Fed and congress are responsible for this mess, but the Fed doesn't have to worry about re-election and lynch mobs back home.
Most folks don't have a clue as to why things cost more. Article at the St. Louis Fed taks about how much we've enjoyed "price stability" over the last 30 years.
Bernanke will solve this in 15 minutes no need to get your pantaloons in a bunch Old Yeller. Chuck Schumer is on this!
Time for a sharp black swan financial meltdown, ASAP, somewhere -- anywhere -- to take this subject off the table. Something that will permit the Fed to appear to ride to the rescue and look like a hero.
Janet: What panick me? Obama has my back with his veto power! LOL
Corrupt officials will never want any supervision or audit.. The Fed has been feeding the crony with fat profits and then join them after they leave.. This is bribery in another form. fed has 4.4 trillion of assets and borrowed more than 2.4 trillion from the banks to finance the positions. How can Congress allow the Fed to run the largest hedge fund in the world and yet control monetary policy - huge huge conflict of interest
They won't ever let anyone even breathe near their house of cards.
What else kid the letter say?? Did it say "What difference does it make?" Just wondering.
It's are pure bullshit!
Con-gress is a group of paid off nut-less pussy boy assholes.
They toss shit like this out to give the impression that they are tough and on the job.
They lie, lie and lie some more! Screw every last one of them!
Still trying to figure this out. Based on the Federal Reserve Act of 1913 and amendments...
It appears that members of the Federal Reserve are required to be banks.
I've been trying to find a Goldman Sachs bank but have been unsuccessful. Don't think I would want to make a deposit there, but just interested in what the law appears to say and reality...
http://www.goldmansachs.com/what-we-do/investing-and-lending/banking/?ci... Goldman Sachs Bank USA is a New York State-chartered bank and supervised by the New York State Department of Financial Services. GS Bank USA is also a member of the Federal Reserve System and the FDIC and is supervised by the Federal Reserve Bank of New York and the Consumer Financial Protection Bureau. Some of our businesses are supervised by other regulatory bodies as well; see page 6 of our 2014 financials for more information.
When looking into the FED, it is wise to know what is it that the FED is trying to keep alive. It is naïve to think it is economic in nature and not more basic to maintaining a political, cultural, societal grip upon nations.
The FED could best be served by no longer allowing it to be a fraternity of racial and religious rights, wherein the governors and chairpersons pass the baton of power among themselves.
It is beyond logic that conformity of cultural, religious, and racial similarities don’t lead to common thoughts and goals among like minds.
A myopic agenda can easily be initiated which is best for all – but better for some.
I maintain that it is the better for some that the FED is trying to keep alive.
It has little to do with money.
Yellen is afraid people will find out about the STOCK BUYING PROGRAM.
That companies are really buying back their stock, the FED is doing it for them.
"Yellen is afraid people will find out about the STOCK BUYING PROGRAM.
That companies are really buying back their stock, the FED is doing it for them."
Just as more and more people died in Mali this morning, black people I might add, the S&P roared. This is not "norma"l price discovery during a terrorized marketplace. This is the FED buying the crap out of the market. Audit them now.
Wait till Janet and her FED buddies see the pitchforks, lamp post and rope. She will really freak out then.
Grimaldus
The Fed has the power, not Congress. The Fed has the greatest power in the world, the power to create immense asset bubbles, profiting all the way to the top. Then it pops the asset bubble(s), after they've withdrawn their profits, and later buys those assets back their bankrupt AND amazingly thankful owners for pennies on the dollar.
ZIRP takes money off Main Street and deposits it on Wall Street.
The whole goddamned FED strategy is currently about saving Wall Street.
The stock market is NOT the economy. It's a casino, a very crooked casino.
Why is the FED operating to benefit a goddamned casino? Fuck that.
The bedrock of a solid economy are its savers and its small businesses, neither of which benefit at all from the casino.
ZIRP should be reversed in favor of markets setting interest rates, bank-to-bank in competition with each other for our money! And the casino should be chained and muzzled, if not burned to the ground.
Of course Yellen and the Fed are going to fight this, just like the TBTF banks fought to repeal Glass Stegal and then fought against Dodd Frank and the Volker Rule. Who are the controlling voting members of the Fed? Do you think they give a shit about the little guy who is takingit in the ass right now in greater numbers than ever before? There is no institution in our country that has as much power as the Fed which is NOT subject to oversight. Fuck me, you have criminal bankers running this shit and no one is watching over them....Fuck Yellen and her corrupt crony buddies.
One of the foundational beliefs of Neo Keynesianism is that the economy is a huge scam that only exists because of people's false belief in the system. If people see behind the curtain, then the jig is up.
This is how you know that Neo Keynesianism is the psych warfare arm of the totalitarian State. Real economists believe the economy is people freely exchanging goods and services. The cult that currently claims to be The One True Economic Faith, Neo Keynesians, is nothing more than an apologist cult for the oligarchy.
The Wizard of Oz was not truly a wizard...
If they are questioning Yellen then obvioiusly congress is a sexist against men
Maybe the US should be more like Syria and not have a BIS affiliated central bank. Maybe our central bank should be run by Congress, the way it was designed to be by the US Constitution... but then we would have to create, train and arm mercenary armies to throw our own government out of power so that the BIS banks could get power over our money supply and thereby corrupt us and indirectly control all laws, politicians banks and media (like the Fed does now).
I believe the Fed's actions make sense if one believes the dollar is in terminal decline and the Fed's is trying to save it from a hyperinflationary collapse. Such a collapse will be a disaster for most of the world at least for a time. The Fed likely views its actions as a struggle to keep the currency alive at least long enough to do some preparation for such a collapse.
As for the gold standard...well no one...probably not even Volker, believe the world is returning to a gold standard as we have had in the past.
A new way of using gold however has been developed. The Euro uses gold as its main asset. It holds 10,800 tons as reported on its Consolidated Financial Statement. This means all central banks in the ECB system. It marks gold to market. In essense it allows the world to declare the value of the Euro through its actions in buying gold.
This is actually a powerful use of gold. The central bank could use gold to control the value of the Euro in the FX markets and to do regular settlement. This use is not at all obvious now but in a future environment of free floating currencies and a 'physical only' (no gold derivatives) market it could work quite well.
Many of us believe this is one of the primary reasons for the existence of the Euro. It was created to provide a currecny for international trade when the dollar failed.
Some thought on this matter is required but as we see it this is a very solid use of gold which removes the need for a single reserve currency, eliminates the store of value function for all currencies and promises a very much higher price for physical gold.
Gold rose 24x from 1971 to 1979. We see this process repeating in the near future as the gold derivative market seems to be under some pressure as physical demand accelerates while the paper price drops to below the cost of production. This simply can't go on long term.
At any rate the structure of the Euro is a topic worth exploration. I do not see anyone but Fofoa doing it and it leads to some very interesting actions and conclusions.
They should pass this bill in the middle of the night on Christmas eve just to stick a hard one through that gap in her teeth.
Fed officials don't celebrate Christmas. They killed Jesus. Everybody knows that.
Fed does not want the Congress to control its policies.
Fed wants the policies to be controlled by a few key members, who coordinate their decisions with a few others.
Would make a lot of sense in Soviet union, as the parliament, Duma, was full of jokers then.
Oops, maybe we have the same in Congress today.
People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a
conspiracy against the public, or in some contrivance to raise prices….
But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies, much less to render them necessary.
Adam Smiith The Wealth Of Nations 1776
Of course the Fedsters should be subject to full disclosure and be arms length from the Goldmanites, God's work or not
Gee I wonder - most transparent admin ever WTF
Can't some bitch from a dirt farm in Kansas just drop a house on her already?
This shit is getting old and worn out.