16 votes

Repudiate the Debt? To the Federal Reserve, yes.

by Mary Stegmeir | Des Moines Register

Marshalltown, Ia. — Raising the debt ceiling would only weaken the nation’s economy, Ron Paul said during a campaign stop here on Wednesday.

Republicans and Democrats were scheduled to meet today during a White House summit devoted to the issue, but the Texas congressman has spent the last week touting his own solution to the government’s money woes: Forgive the debt the U.S. Treasury owes the Federal Reserve and chop $1.7 trillion from the nation’s sizable $14.4 trillion debt.

“It’s not the ultimate reform that’s needed, but it’s a start,” Paul told The Des Moines Register. “What we have is a situation where we essentially have a debt to ourselves. It doesn’t make a lot of sense, but it is counted in our deficit.”

Paul said Wednesday he had received little response from his peers in Congress about the idea, and economists are split on the proposal.

Continued...

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Certainly Paul has thought this thru...

There must be good reason for Paul proposing this. As I understand how things are 'supposed' to work, the concept is that when the Treasury pays the fed back, that money should then be 'out of the system' - and, in theory, should not (continue) to affect inflation... Obviously, this is counter to what Paul would want.

So - there must be more to it.

First, I think it shines a light on the Treasury and Fed - and how these bonds work. People will be scratching their heads "We borrow money from the Fed... pay interest to the Fed, the fed refunds most of this interest... what?? Wait... who runs the Fed?"

Also... might this not hinder the Treasury/Fed from doing this again?

So, Paul might know this proposal won't go anywhere - but will alter the debate. (Like the marijuana legislation - it REALLY made headlines).

Gold Audit? You want a gold audit? You can't handle the....

Gold Audit? You want a gold audit? You can't handle a gold audit! ...

[Ramble until, "Sell By" date.]

Repudiate what? Thin air?

[Tirade until "Expiration" date.]

I make you believe the very cash you hold dear. You should just say thank you.

- Jack the Nickel, 2011

Paper Audit of Gold Ain't worth Paper! 7/8/2011

The Fed: Loaning you blind, since 1913.

The Iris (little sis): Taxing you blind, since 1913.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

What a great idea from Ron

What a great idea from Ron Paul. Another smart idea from Paul was using gold reserves for paying towards debt.

maybe...

Treasury claims there is about $400B in gold reserves. But at Paul's hearing on the gold reserve, the Treasury guy had no idea how much of the gold has been committed. He couldn't answer the question from one Congressman as to how much the Feds have given to the IMF. The Treasury guy said they'd get back to him on that...

and he should know...

"On Sunday, Greg Mankiw, a professor of economics at Harvard University, slammed the proposal on his blog devoted to economic issues, calling it little more than an “accounting gimmick.”"

Mankiw also said (from Wikipedia)...

"If you were going to turn to only one economist to understand the problems facing the economy, there is little doubt that the economist would be John Maynard Keynes."

Just because Keynes caused the problems, doesn't mean he'd have understood them... lol.

why would he expect

a responce from a group of brain dead people?

""""""Paul said Wednesday he had received little response from his peers in Congress about the idea, and economists are split on the proposal.""""

Debate Repudiate ? Absurd! Those Jesters owe US gift tax!

The US Treasury gifts "legal tender notes" to the Fed. Gift tax? No gift tax?

The US Bureau of Printing & Engraving prints green cash for the Fed, a private corporation. See their property tax record for their buildings for proof. See their business listing in phone books. Listen to their own statements in court.

It is a racket. Do they pay the 4¢ cost-of-printing each note as a way to pretend our cash is not a gift to a private corporation? Then that said same private corporation has their twin sister collect tithes for them? But their twin sister collects no income nor gift tax from them?

The Fed: Loaning you blind, since 1913.

The Iris (Fed twin sister): Collecting you blind, since 1913.

Fed & sister Iris, get thee gone!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

They actually pay a

They actually pay a "franchise tax" equal to all the Fed's earnings less a 6% return on stockholder capital (which does not amount to much). It is called a tax, because the Federal Reserve Act stipulated that all earnings had to be retained, in order to keep the Fed solvent. No one cares about that any more. They make up the accounting rules to show they are "solvent."

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Never Audited. They Redistribute their gift as they see fit.

Their payments of return on investment imply they invested. Invested what? Thin air?

Pause. Reflect.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

I am frankly flabbergasted.

I am frankly flabbergasted. What is Ron Paul thinking? The proposal ONLY makes sense if the Fed is dissolved as part of the deal, or at least is permanently enjoined against buying any more US bonds. Even at that, it would still bring a one-off inflation surge.

If the Fed lives on, what is to prevent it from buying more bonds with newly printed money, then tearing up the bonds, then buying more, ad nauseum? If the bonds mean nothing, that is the Greenbackers' glorious fantasy of perpetual money printing with nothing to check it.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Wicked Witch of the West, water dissolved her. Liquidity!

Spray this wicked pillar of salt! Dissolve it!

Spray it with what it sparys on us... Liquidity.

Roman Empire reigned with salt. Salt was a common way to improve flavor & ward of infestations. Roman soldiers were given a sum of coins of the realm as a salarium – with which to purchase salt.. from Roman merchants. Over time, salarium (from the Latin salarius, 'of salt') came to be like money paid the soldiers, and then to monies paid to any official of the Roman Empire, and eventually to wages in general. As in, Roman Generals wage war with a salt based economy.
♞ Fall Of Roman Empire! ♞ Mandates Broke Silver. 05/21/2011

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Mary Stegmeir writes many nice articles about RP campaign

Thanks for posting Michael.

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