By now we all know the story. Mel Watt introduced an amendment on the big financial regulatory reform bill that “gutted” Ron Paul’s HR.1207 Fed audit bill. Today, Ron Paul introduced a substitute amendment to that amendment that puts the “guts” back in to the audit. Effectively, Paul’s amendment is HR.1207 with a bit more detailed language regarding monetary policy oversight.
Paul’s amendment passed, first by voice vote, and then by roll call vote later in the day. The final tally was 43 for Paul’s bill and 26 against.
First up is Ron Paul arguing (yet again) why Fed transparency is not a call for injecting Congress into Fed policy decisions.
Next we have Barney Frank patting himself on the back again for bringing Ron Paul’s Fed audit legislation up in the committee. There’s a bit of humorous back and forth then Congressman Hensarling rips Frank for his comments a bit by calling them “irrelevant”.
Here are the leadup comments from Alan Grayson and co., then the voice vote on adopting Ron Paul’s substitute amendment.
And finally, the official roll call vote of Ron Paul’s substitute amendment. Ron Paul wins!
The House Financial Services committee began debating Mel Watt’s amendment to Ron Paul’s HR.1207 bill to audit the Federal Reserve today. Watt’s bill is said to strip HR.1207 of it’s original purpose.
The clip below shows Alan Grayson arguing against Mel Watt’s amendment and then Watt’s rather angry response. Stay tuned for more clips…
Ron Paul took his anti-Fed, anti-regulatory, pro-transparency message to the CNBC Squawk Box crew today. This is another winning appearance from Ron Paul. He outlines his views fairly well and makes extremely good arguments for his side of the Fed transparency debate.
His appearance was so positive that they end up telling him that he should come on the show as a special guest (as they have from time to time) for the full 2 hours of the show. Paul makes a joke in response. Check it out below.
by John Browne – Senior Market Strategist, Euro Pacific Capital
Last week, the Fed extended its emergency economic powers, which include lending to the money center banks at zero interest. A few days later, the Fed’s plan was reinforced by similar announcements from the rest of the G-20. The road map the authorities are providing for the near-term global economy can’t be much clearer. There will be no cessation of the seemingly endless supply of cheap dollars being pumped into the financial system. With the world apparently in complete accord on the need for ever more liquidity, stock markets are staging an easy-money rally. The main line media is almost euphoric. But what should investors make of this seemingly good news?
This time last year, the world faced a meltdown of its financial systems and a potential depression. Fed Chairman Ben Bernanke, a renowned expert on the Great Depression, coordinated an international rescue of the toxic financial system. Although the bill for these operations has yet to come due, almost all agree it will prove costly to present and future generations. For now at least, the most significant impact of these policies has been the creation of a liquidity bubble in stocks and a surge in commodities.
However, any efforts to reduce these stimuli will result in an immediate correction toward our previous depressionary trajectory. Acceptance of this uncomfortable truth is a political third rail. Therefore, it is highly unlikely that any major government will change course. Rather, the change will be thrust upon them.
It could have been argued that some of the actions taken last year were worth the cost if they had corrected the dangerous deficiencies in the financial system. But after a year, what has changed? The same behemoth banks remain, but even larger and yet more demanding of federal salvation. That particular risk has been increased rather than reduced.
Yesterday I gave a fast-paced lecture on constitutional money and the Federal Reserve to the Lehigh Valley Tea Party. The playlist can be found below, and the PDF of the presentation here. I am also available to present this material at a much slower rate, with plenty of time for Q&A to groups. Monetary economics is very crucial to understand as it underlies EVERYTHING that is going on with the economy.
Earlier today Judge Andrew Napolitano was the guest host on the Glenn Beck show. Four liberty-loving guests appeared on the show with the Judge. Peter Schiff, John Stossel, Ron Paul, and Rand Paul all appeared. When the Judge hosts Beck’s show it almost turns into an episode of Freedom Watch.
If you don’t know what Freedom Watch is then please check out http://freedomwatchonfox.com/. It’s an online only show hosted by the Judge catering to freedom-loving people everywhere.
Check out the excellent discussions from the show today below.
Ron Paul appeared on Fox Business News tonight with David Asman on the “Nightly Scoreboard”. They discussed several topics in a nearly 10 minute segment. As usual, Ron Paul just delivers the truth.
In defense of Rep. Watt, however, it’s not totally his fault. His district is the most obviously gerrymandered in North Carolina, following I-85 like a snake from Charlotte to Winston Salem. It is overwhelmingly Democratic, and his re-election has never been seriously challenged. Why should he represent the people when he is electorally invincible?
While we may not be able to hold Rep. Watt accountable, we can fight back. His attempt to eviscerate HR 1207 must be approved by the full Financial Services committee.
We can block that approval, and restore the original bill. It is especially important that each member of the Financial Services committee hear from their constituents the clear message that Rep. Watt’s proposed changes are unacceptable. And you must act now because . . .
The GDP numbers out yesterday, which showed economic growth at 3.5% in the third quarter, brought a deafening chorus from public and private economists who all agreed that the recession is officially over. With such a strong report, they are happy to tell us that not only has the Fat Lady finished her aria, but she has left the building and is sipping champagne in the bath. As usual, it falls on me to rain on the parade.
Even the giddiest commentators admit that the upside GDP surprise resulted almost entirely from government interventions. But, by pushing up public and private debt, expanding government, deepening trade deficits, and pushing down savings rates, these interventions have succeeded only in putting our economy back on an unsustainable path of borrowing and spending. Accordingly, they have prevented the rebalancing necessary for long-term health. Could there be a simpler illustration of trading long-term pain for short-term gain?
Rather than asking these pre-K economists to make such a three dimensional leap, it may be easier just to give them a brief history lesson.
During the decade that corresponds to the Great Depression, annual GNP expanded for six years and contracted for four. After nose-diving in the early years of the decade, GNP turned positive in 1934 and then logged three more years of solid growth (the four year average annual growth rate was 8.5%). But does anyone really believe the Great Depression ended in 1934, when the economy first stopped contracting? Unemployment reached 19% in 1938, nearly the peak of the entire Depression, almost a full decade after the stock market crashed! Why will we be so much luckier this time around?
Ron Paul questioned Treasury Secretary Timothy Geithner today on Capitol Hill. Both men seemed to be talking past each other a bit. Geithner reminds me of a friend who never gives you a concrete answer; thus, he is perfect for his position as tax collector. I cannot resist asking the question… what is going on with his hair? Did it always look like that or is it just due to poor video quality?
Liberty Maven
by John Browne – Senior Market Strategist, Euro Pacific Capital
by Peter Schiff, president of Euro Pacific Capital and author of 
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