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THE NATION: Calling Ron Paul! Calling Ron Paul! Fed Alert! Fed Alert!

The word on Capitol Hill is that Senators Chris Dodd, D-Connecticut, and Bob Corker, R-Tennessee, are scheming to lose the proposed Consumer Financial Protection Agency (CFPA) -- the office that President Obama and progressive reformers have proposed to protect Americans from the rapacious abuses of big banks and credit card companies -- within the Federal Reserve bureaucracy.

That would be a little like placing chicken protective services under the aegis of Reynard the Fox -- although, in fairness to carnivorous mammals, foxes pose far less of a threat to chickens than the banker-friendly Fed does to working Americans who might be trying to pay off a home loan or avoid a hidden credit-card fee.

According to The Hill newspaper, Dodd, the Senate Banking Committee chair, is seriously considering a plan to overcome partisan gridlock that has held up an overhaul of the financial-services industry by handing off consumer protection to the Fed.

Needless to say, Corker, the Republican Senate Campaign Committee chair who has made it his business to protect big banks and credit card companies, would find the idea attractive. So, too, will those Democratic Leadership Council Democrats who try to out-Republican the Republicans when it comes to currying the favor of industries that prey on consumers.
The White House is still "strongly committed," according to a spokesperson, "to an effective and independent consumer agency, with real accountability for setting and enforcing clear rules of the road in the financial services marketplace."

Consumer groups share that position.

But the banking industry and its allies in Congress are determined to take the teeth out of proposed consumer protections and their enforcement. And it is difficult to think of a better way to do that than by burying the new agency in the bowels of the Fed.

As Congressman Ron Paul, the Texas Republican who has for years led the fight to make the Fed more transparent and responsible, notes: "Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations. While the conventional excuse is that this is intended to reduce the Fed's susceptibility to political pressures, the reality is that the Fed acts as a foil for the government. Whenever you question the Fed about the strength of the dollar, they will refer you to the Treasury, and vice versa. The Federal Reserve has, on the one hand, many of the privileges of government agencies, while retaining benefits of private organizations, such as being insulated from Freedom of Information Act requests."

Paul's ally in fighting for Fed accountability, Vermont Senator Bernie Sanders, properly portrays the central bank as defender of Wall Street's interests -- not a friend to Americans who are wrangling with lenders.

Says Sanders:


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reedr3v's picture

A good comment from the Nation --

the tectonic plates are rumbling.

That's right

That's right

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I have said it before, and I

I have said it before, and I will say it again. Get rid of your credit cards. By spending money that you don't have, you follow the leadership of our public servants.

Credit cards enable you to make purchases with money that you don't have - and then pay usurious interest! Credit cards also open you up to identity theft. Finally, credit cards destroy your financial privacy.

There is NO good reason to use credit cards - I don't.

I agree.

If you have the money to pay for something, then you don't need the credit card.

If you don't then you shouldn't be buying whatever it is you are interested in at the moment.

Of course, people will holler and cry, "but what about in an emergency?!"

To that I say, "people survived in emergencies for many many years before credit cards were invented. Learn how to be self reliant. Do not put yourself in a position that leaves you vulnerable to such "emergencies." Make sure to plan for known likely contingencies. In short, stop being lazy and stupid. Take responsibility for yourself and your actions. Plan ahead. Know and commit the plan to memory. Would you suggest a family NOT prepare for hurricane season (not knowing if or where one will hit) but instead rely on a credit card to see them through at the moment of the emergency itself? How absurd isn't it?

The same goes for every other conceivable "emergency." Planning, self-sufficiency, preparation, and being aware of your surroundings, your actions and their consequences, will all help you ensure that any harm or damage caused when faced with an "emergency" will be minimal if any.

I haven't had a credit card in 15 years. And I don't miss it and can get along in life just fine without it.

You DON'T need it.

p.s. - just like you don't need a bank account or a social security number either. But that's for another topic.

You are right. It's even

You are right.
It's even easier these days to rent a car with a debit card too

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