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Fed’s Dual Mandate on the Table in Wake of QE3

WASHINGTON (MarketWatch) — Two top Federal Reserve officials who opposed the latest round of Fed asset purchases have waded into tricky political waters by suggesting that lawmakers could tie the Fed’s hands if they wanted to block more asset purchases.

“A future Congress might restrict us to a single mandate – like other central banks in the world operate under – focused solely on price stability,” said Richard Fisher, the president of the Dallas Federal Reserve Bank in a speech on Wednesday night in New York.

Earlier in the week, another regional Fed bank president, James Bullard of St. Louis, was even stronger, saying he supported restricting the dual mandate to a single inflation-fighting goal.

Bullard said supporters of QE3 had placed too much emphasis on the Fed’s ability to bring down unemployment. He said monetary policy, in reality, could only have temporary effects on the jobless rate. His comments came in an interview with Reuters.

At stake is the Fed’s operating charter that calls for the central bank to conduct policy with two goals, or mandates: keeping unemployment low and inflation stable.

Continue at M a r k e t W a t c h



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"Price stability" is an excuse

"Price stability" is an excuse to rip off the workers. With increased productivity the workers SHOULD be able to purchase more with their wages as a result of having PRODUCED more with their work under the new conditions. If the value of money to purchase labor remains stable the value of money to purchase manufactured goods should deflate, drastically, in proportion to productivity increase. The price of manufactured goods and many services should NOT be stable, but should drop. The workers should have a progressively higher standard of living, roughly commensurate with their higher standard of production.

Note that the second mandate these people are proposing to drop is near-full employment. Oops! That means they're throwing in the towel on ending the depression in order to preserve the progressive increase in the fraction of the value of the (remaining) workers' labor that goes to someone other than the workers. With improved productivity they don't need as many workers to keep their own standard of living up. The rest can starve and freeze in the dark - or go on the dole and vote Democrat.

Note also that there are no consequences to the Fed for failing to meet either of these alleged "mandates" but there ARE consequences to them for making, or failing to make, a profit on their operations. So the ACTUAL incentive is for the Fed to adjust interest rates to maximize the long-term transfer of wealth from the general economy to the member banks and their close associates. The only thing mitigating their operations is the need to keep the economy running well enough to produce more wealth for them to appropriate.

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Mandate? You jest. Truth or Consequences?

Truth? You want truth? ... Perhaps we might try consequences. How about some consequences. The First National Bank could not renew its charter at 20 years. Roughly speaking, President Andrew Jackson stopped the Second National Bank charter charade after about 20 years. The consequence for debasement of United States coin is death. Coinage Act, 1792.

Let the Fed stop pretending it is independent, stable or truthful. Lies! Mandates? One if by land, two if by sea? Let Paul Revere & John Dawes ride. One is a silversmith, the other... But I digress.

Where oh where has the Fed Reserve gone?
Where oh where could it be?
With Dollar cut short.
And National Debt cut long.
Where oh where could it be?

    "It is a mistake that there is no bath that will cure people's manners. But drowning would help."
    - "Marienbad--A Health Factory," Europe and Elsewhere, 1923

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

US Treasury can also create money

President Kennedy issued the Silver Certificate through executive order in 1963. It was a strong currency & anti-inflationary move.

Some say it was a factor in his death. The order was reversed in 1964 in order to balloon the defense budget for the Vietnam War ramp up.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Richard Gilbert Takes On Romney's Kidnapping!

http://www.youtube.com/watch?v=UTcHRHcbBq8&feature=plcp

I dont know if this has been posted here yet.

Tin Pan

The gibberish

of the bank executives comes from the fact that they (mostly managers rater than good economists) try hard to concentrate their little mind on economics, while the FED function nowadays is more political - give paper money to the government unbalanced budget, give extra money to off budget CIA and Pentagon expenses, keep "mixed economy" rolling by means of inflation (preventing capitalism, competition & bankcruptcies.)

Keep in mind that contrary to the youtube shrieks about Rotshchild and other plots, the FED founders were the ones who instituted the gold standard. The original version of the FED was not supposed to take care of government budget or employment. The original goal was to protect banks from run on, while the banks give LARGE loans to monopolies the founders themselves controlled.

But the FED founders miscalculated - government tyranny always has the upper hand. Thus, after 100 years, private banks cannot withstand a 5% run on their deposits. Their interest is less than the rate of inflation. They have no gold and only 5% paper cash. They are totally dependent on the FED's whims.

Gibberish? The Fed spirited away our whole economy.

Where they hid our economy, I don't know. The last remnant of our monetary system in common circulation worth its weight is our lowly US nickel.

Go and check out the metal value of our US 1&ent; & 5&ent; coins. http://www.coinflation.com/coins/basemetal_coin_calculator.html

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

QE INFINITY---> the beginning of Agenda 21 sustainable

development program will start in Texas on the Rio, according to Lord Monckton

A true flower can not blossom without sunlight and a true man can not live without love.

Google Trends: Central Bank vs The Fd

Trending now at Daily Paul & Google. http://www.google.com/trends/?q=Central+Bank,+the+fed&ctab=0...

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

Dudes, it appears the Chicagoans have split some hairs

on the head of the creature from jekyll island

A true flower can not blossom without sunlight and a true man can not live without love.

Even these top criminals know

that the jig is up. The criminal false debt scam is near at an end.

sovereign

Ill belive it

When I see it, Besides a "future" congress will most likely end the fed. :)

Bob and Bill stumble on a bear. How fast does Bob have to be?

This is an old economic joke explaining a simple concept:

Bob doesn't have to be faster than the bear. Bob has to be faster than Bill.

By doing QE3, indeed they are raising inflation and other nasty things. But they are also making sure the bear (depression, upheaval, etc.) only catches Europe and other parts of the world.

To be sure, there is a global financial system controlled by an oligarchy; however, they are protecting the United States of America. The USA simply is WAY too big to fail.

The USA is the core of Western infrastructure: military, justice, education, technology, religion, media. Plus, its people have been trained to be the most patriotic and productive workforce that ever existed on such a big scale.

Sorry conspiracy folk. The US dollar will not implode. The sky will not fall. At least, not as long as there isn't something to replace the USA, which won't happen in our lifetime.

=============================================

However, certain things WILL change. The US market is quite saturated, thus, business growth will come from emerging markets in foreign lands. Thus, you will either be part of the effort to maintain the US saturation (which will be under constant scutiny to become more efficient, see WalMart) or out run it.

Efforts to increase efficiency in the "WalMart" work place (nearly every US business and profession) will pinch workers in every way. We are feeling this already. It is already producing lots of frustration in the workforce as the bear rips into their salary, their 401Ks, their free time, etc...leading to conspiracy theories, occupy movement, etc. This frustration will only increase.

How to avoid it? Per the bear metaphor, you have to outrun the WalMart work lifestyle:

-make money off of the frustration and hopelessness (politics [including political boards], pop psychologists, religion, get rich quick [lotto, gold, stock market], stress-relief products, etc.)

-be an efficiency consultant

-be part of the pioneering lifestyle in emerging markets

-etc

Lesson: Don't be the one left behind.

so said the roman empire

so said the roman empire ^^^^^^^^^^^^^

Ron Paul 2016

the roman empire didn't fall

It evolved.

So too will USA...it already has.

Wile E. Coyote

Road Runner & Wile E. Coyote cartoon collection - Zoom at the Top Less than 7 minutes.

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

♞ Fall Of Roman Empire! ♞ Mandates Broke Silver.

Unfunded Mandates broke the Roman Empire. Brief summary of how quickly the Roman Empire crumbled. Beautifully decorated showing 4 artifacts & 2 stylish charts. Silver treasury statehouse went to zero. Gone went their silver military pensions; gone went their soldiers; & gone went their Empire.

This tale brilliantly & briefly makes Dr Ron Paul's point about Empires destroying themselves by mandating & mismanaging money.

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

China, will replace America

China, will replace America as the next super power. Just look, all corporations are moving over to China from the US. I was listening to the QE3 speech of Bernanke on Bloomberg and they kept having commercials about China, how Intel produce their chips in China, China this China that. China is also sending many corporations here taking over many areas of business.

if china gets uppity, us gov puts tariff on them

If china had any power, they'd take tawain.

The only past of China that is industrialized is simply a supplier to an international market...and their supplier power isn't like an oil supplier which we are dependent on. Wal-Mart bitch slaps China suppliers on a daily basis.

Further most of China is 18th century. They will have to invest huge amounts to get just a 20th century infrastructure.

In short, the Chinese threat is just another boogeyman.

Lol...remember the 80s? Japan was reported to be taking over the usa so much, companies were making their employees learn Japanese to please their near future masters.

45 signs that China is colonizing America

http://endoftheamericandream.com/archives/45-signs-that-chin...

These two "companion piece" articles perfectly reflect your point:
1) [Freeport, Illinois] As the American factory is shipped piece by piece to China, workers have to train their Chinese counterparts how to do their jobs. As one worker said, it's "surreal." (That means "marked by the intense irrational reality of a dream." Mirriam-Webster)
http://www.guardian.co.uk/business/2012/aug/10/illinois-work...
2) [Saginaw, Michigan] Nexteer Automotive largest employer http://www.saginawfuture.com/Living-in-Saginaw-Primary-Emplo...
(Who owns Nexteer? http://www.nytimes.com/2010/11/30/business/30gm.html)

See also:
- GM = China Motors (speech by GM CEO - see statement at 2:25 mark)
http://www.youtube.com/watch?v=r19LxtnzCIQ
- Toledo, Ohio = First American Chinese city? http://theeconomiccollapseblog.com/archives/will-toledo-ohio...

When we try to pick out anything by itself, we find it hitched to everything else in the Universe.
~ John Muir

SteveMT's picture

Innuendo and lies in this story.

“A future Congress might restrict us to a single mandate..."
How about the People restricting them to one hour of sunlight per day and the rest from behind bars.

"Many Congressional Republicans seem eager to tie the Fed’s hands"
That should literally be done, and how!

And the worse quote:

"With the base of the Republican Party this year very anti-Fed,.."

What!! The republican party tore away the base in Tampa, IMO. The author is also attempting to say that WE are the base of the republican party after what the RNC did. The republicans are not anti-fed, we are, but they definitely are not.

Hangtown, California. Rope: useful restricting, constricting...

... & other useful purposes.

Opening line in the Fed, a Christmas Story. "An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

-Federal Reserve Act Public—No. 43—63d Congress.] [H. R. 7837.] Cast in order of appearance. Elastic casting? A staged event without a stage?
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf Script of the act. Screen play coming soon?.

December 23, 1913. The Eve before Christmas Eve. Twas a darl. darl night. Not a creature was stiring... Thus begins the act to eviscerate United States Banking. Money of the United States has left this supposed "Reserve System" decades ago. Our gold is gone. It is a hollow promissory note system. Vacuous & void.

An ”elastic currency” is a measure of what? Elastic ruler to measure a ruler? Make-believe?

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

Assigning the Fed the goal of

Assigning the Fed the goal of fighting inflation, is like giving a notorious robber the job of guarding your property.

To me it sounds like

They are supporting audit the fed ;) or possibly just skating around it and asking for another way to solve the "problem".

Homeland security statement: patriotism is now considered terrorism.
I love www.isidewith.com shared it with everyone I know. If anything they realize its not just a red and blue idiot running for reelection.

Good article by Jeffrey Tucker

on the central management of the monetary system (QE3).
http://lfb.org/today/five-deadly-effects-of-qe3/

reedr3v's picture

thanks, that is a great article. Tucker is an

invaluable intellectual contributor to the Liberty movement.

"...saying he supported

"...saying he supported restricting the dual mandate to a single inflation-fighting goal."

So the mandate of the Fed should be fighting inflation. It would be nice to hear from this guy how somebody should "fight inflation". Empty talk in its purity...

I "fight" inflation everyday, because I just don't print money.

This is just an example of

This is just an example of the elite and their mechanisms trying to reconfigure the question from, Is central banking morally right ? To, Does central banking just have the wrong directive?

"Price stability"...

like those yahoos can "manage" prices, the cost of money, resources, ANYTHING. The old central planners had to look to the freer economies of the West to set prices. Central planning is a proven failure, it CANNOT be done, it is a utopian scheme, even if the planners were not corrupt power grasping psycho paths, which they are. Even if these self appointed gods were the smartest and most moral men in the world they could not produce or distribute as efficiently and fairly as free humans in a free market.

TwelveOhOne's picture

Like ants?

Your comment reminds me of ant colonies. Sure, the queen controls to a certain extent; however, mostly it's the ants' innate programming that keeps them going. Not a central planner.

Now, I've heard that humans are different in this regard, that the only intuitive interface is the nipple -- after that, everything is learned.

But still, left to our own devices, we're more efficient than top-down programming. That's pretty neat, and worth sharing.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

Government schooling

does its best to turn us into ants, herd animals, sub-human animals operating on feelings and unable to think with any kind of logic but we are so much more than that. This reminds me of that scene in the movie "Contact" where Jodie Foster is forced by the bureaucrats to sit strapped in a chair in the space travel machine that was not in the specs, added for her safety. The chair shakes and jerks and finally rips loose and hits the ceiling only seconds after Jodie gets out of it. Very metaphorical, I think. We are constantly told how "we" have to live as one borg, conniving and battling over pieces of a "pie" (the excess production of hard working people) divvied up by corrupt men, everyone forced to live according to the majority vote, or what we are TOLD is the vote.
The market does a much better job.