To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Board Abolition Act’.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) Disposition of Affairs-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System–
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks–
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.”
dime – I’m no strategist, I’ve just been noticing that Bill is looking increasingly gloomy. I’ve known him personally in brighter times and feel for him, now that he’s under a cloud.
Personal attacks? Hardly. Gentle ribbing is how I see it. Y’all are so sensitive when your stars are lampooned.
dime – I’d like to see Bill in the bloom of good health. He’s got an important job to do. If he’s all morose and thinking “GULP!” at every turn, his health will suffer. We need him to be on top of his game when he’s labouring under a leaden economic sky. He described Key as ‘bouncing from cloud to cloud’- perhaps he could do with a little ‘bounce’ himself.
Stuff the negative karma, I agree with Mattyroo and Ron Paul and the Ludwig Von Mises school of economics. A gold standard and a completely free market in legal tender is the way to go. The origins of this crisis are in fact political monopoly central reserve banking and the abandonment of the gold standard.
Follow Peter Cresswell’s “Not PC” site for a while, (included in DPF’s “must read” blog list), check out everything he links to. You’ll get a b. good economic education.
I received the following in a FW e mail this morning:
The Urine test
THIS GUY MAKES A GOOD POINT.
This was written by a rigworker off the Taranaki Coast – I think he makes a lot of sense!
I work, they pay me. I pay my taxes and the government distributes my taxes as it sees fit.
In order to earn that pay cheque, I work on a rig for a drilling contractor.
I am required to pass a random urine test, with which I have no problem.
What I do have a problem with is the distribution of my taxes to people who don’t have to pass a urine test.
Shouldn’t one have to pass a urine test to get a welfare cheque because I have to pass one to earn it for them?
Please understand that I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sit on their ass drinking beer and smoking dope.
Could you imagine how much money the government would save if people had to pass a urine test to get a welfare cheque?
Please pass this along if you agree or simply delete if you don’t.
Hope you will pass it along though, because something has to change in NZ, and soon
Shit Ratty either you are talking more sense or I have been misunderstanding you in the past, as for the second time today I have to totally agree with you and wouldn’t that plan just increase the employment of Urine testers and cause the unemployemt of the drug dealers – wow what a win win.
OBAMA’s promise to to reduce the US deficit by half in his first term reminds me of the statements of similar credibility by a former leader of this country who promised to propel N.Z. into the top half of the OECD ( in fact NZ slipped several places) and also that she would lead the country to carbon neutral status, in fact carbon emissions grew annually. Strangely her promises enabled her to win two further elections and a special medal as a saviour of the planet…I wonder if the American voters are as naive and stupid as the Kiwi ones.
RATTY that rig worker should be at the jobs talkfest tomorrow
DPF….I hope you are charging that BROWN troll for the advertising.
dime – then you have misread everything I’ve ever posted. I would never wish a government to fail. We’re all in this together etc. I am dissapointed though, that this is the only comment of mine that you’ve thought decent Must be grateful for small mercies I suppose.
Freethinker – even lefties like me don’t necessarily want to pay bums for sitting around smoking dope and drinking beer when there’s no reason for them not to be working. Amazing huh? Who would have thought…
virtualmark (621) Vote: Add rating 0 Subtract rating 0 Says: (From earlier thread)
February 25th, 2009 at 5:50 pm
“PhilBest … I’d caution against seeing derivatives as the bogeyman. My experience is that the people railing against derivatives don’t fully understand how they’re used. I think it’s important to keep in mind a few things:
First, a derivative does not directly affect the underlying asset. Just because the derivatives become worthless doesn’t mean the underlying company/commodity has changed value at all.
Second, I’d caution against the idea that “the value of all the derivatives of, say, Microsoft, is worth far more than the value of all Microsoft’s shares, so how can all the derivatives ever be honoured”. The straightforward answer is that they are never expected to all be honoured. Many of them will end up with zero values.
Third, remember that while investors have overall payed billions for derivatives they paid that money to someone. The money didn’t disappear. It’s still in circulation. It’s just that some people made a bad bet and lost their money to someone else. Or, more sophisticated terms, they paid an insurance premium and didn’t need to claim…..”
Yes, that agrees with what I have been saying. The point I have been trying to make, is that there will be derivatives that “…are never expected to all be honoured….” (as you so admirably put it) that ARE being honoured, on the taxpayers dime, as the bailouts and recapitalisations and the state of the institutions being bailed out are so opaque. I honestly think that this is fraud on the taxpayer, for which I blame the politicians who so blithely commit taxpayers money in such huge swaths, so deep in their conceits about “saving the people from capitalism”. This is not capitalism, it is very clever “capitalists” exploiting the opportunities presented by socialist politics yet again. I always believed that George Soros has liberally bankrolled Leftwing politics all over the world for years now, having his eye on these sort of advantages.
Sorry, I should have included the question, what if the liabilities of these financial institutions that are swallowing taxpayers money are so great under derivatives exposure and the like, that they are going to fail anyway and the only question is how many trillions of taxpayers money the clever uber-investors will have bled out of the system before the American people demand a halt?
“…… The speech made it apparent that the Obama administration’s response to this crisis will either go down in history as a success that Americans will admire for decades, or become a case study in economic failure that students and scholars will study and pick apart for generations.
The speech began where it needed to begin, with a bold affirmation of faith in the rebuilding and recovery of America. Then Obama listed some of the more popular parts of his spending-stimulus program.
The specific items he recalled from the package were attractive. But Americans know, by now, that much of the program (largely unmentioned last night) is a mountain of pork – money spent for the sake of spending it to spur recovery, not to achieve particularly important ends.
Obama did not seek to justify the spending for the specific purposes to which it is dedicated. Courageously, he said that he passed it because it will work. For his sake, it better. But I doubt it.
Then he spoke unconvincingly about his bank-rescue plan…..
“……. Can all this work? Can Obama get banks to lend even as he terrorizes them? Can he get the engines of our economy back to work even as he announces that he’ll be taking away more of their earnings? Can he persuade the American people to accept bureaucrats deciding their health-care choices? And can his economic stimulus survive a huge increase in the payroll tax on the most productive citizens?
Probably not;Obama likely won’t succeed. This speech will be viewed as his high-water mark – the time before we came to realize how flawed is his understanding of economics and how supreme is his commitment to expanded spending. It will be seen as a sort of age of innocence before we realized…..”
Drawn by a strange force they could neither resist nor describe, millions of Americans reportedly dropped what they were doing Tuesday and, acting as if by instinct alone, gathered into one massive nationwide breadline.
According to witnesses, citizens across the country exited their homes in near unison, leaving behind growing stacks of bills, empty kitchen cupboards, and what was once a life of comfort to form the spontaneous, 2,000-mile-long queue.
Lately, Bill English is looking like the ‘Prince of Doom’. Lighten up Bill, you wanted the job!
[DPF: Almost anything goes in general debate, but this is a blatant troll. Next time is demerits]
Almost anything goes in general debate … except lighthearted digs at your friends David? Are you losing your sense of perspective? Bill (whom I know quite well, you’d be surprised to know) does look glum at the moment! I care not one wit for your demerits, but you’d plummet in my estimation if you started to through your weight around for such trifles.
[DPF: Actually I saw Bill today, and he looked no such thing. And as I said, you are showing all the behaviour of being here just to troll, and disrupt threads. You should not be worried about just getting demerits. I can short circuit my own system and just boot you for good. I'd just have to somehow live with your disappointment. ]
Probably not;Obama likely won’t succeed. This speech will be viewed as his high-water mark”
I agree. If Obama’s impetus runs out, it will be after this quarter.
I also wonder if the military weren’t surprised they received no attention. Not a jot to my understanding. Haven’t finished taped speech yet.
They were the first sector I was thinking of and wouldn’t it be a pardigm in the US when the military are ignored.
There’s really nothing to add about that. Except the l;ack of smiles back in the officers club, but surely not unexpected.
Govt pay cuts would’ve affected top brass as well.
I would think the Obama administration’s aim is to whittle foreign affairs right back to Israel and Palestine, like the good old days.
Greenfly, Bill is smiling inside, like most New Zealanders. After all we’re rid of Labour and your party is about to vote in an extremist as co-leader. Note I say extremist without saying who will be elected – as they all seem to fit into the category well.