When all the high-fives, handshakes, and hip-hip hoorays finish dying down a bit of reality overcomes the Ron Paul, anti-Fed faithful. In order for Ron Paul’s full Federal Reserve audit to become law it requires Paul to swim in uncomfortable waters. He must compromise his principles. So the celebrations must be tempered with the hard truth that is DC politics. It is indeed a bittersweet symphony.
Ron Paul’s efforts at having HR.1207 voted on as a standalone bill never really had a chance. Instead, it will arrive to the House floor attached to Barney Frank’s little boy, his comprehensive financial regulatory reform bill. The draft legislation grants new powers to the Federal Reserve and creates more regulatory controls over the market. If the free market is god, this bill is the devil. However, the bill will now have something good attached to it now that HR.1207 was added to it as an amendment.
Ron Paul makes a name for himself by always considering the Constitution while weighing his votes. Should Paul supporters expect him to don his Dr. No mask when his 30+ year fight against the central bank finally comes to a vote on the House floor? Will Paul vote against auditing the Fed because it is attached to an obviously unconstitutional bill? The libertarian purists among us may expect him to do so, but I expect him to vote for the evil to get the good. In fact, I would expect most if not all Paul supporters will give him a pass on this one. Tell us what you think in the comments section to this article.
“While HR 3996, if passed, will grant sweeping new powers to the Federal Reserve, at least with this amendment attached, it won’t be acting in secret anymore. This is a major victory for Federal Reserve transparency and government accountability. I am very grateful to Congressman Bachus and all the other Members who were so supportive and helpful in this effort,” stated Congressman Paul.
An argument could be made (and Paul seems to be implying it by his quote) that the financial regulatory reform bill is going to pass anyway and with Paul’s audit included in it, the bill’s attack on the free market will be softened. If they gut Paul’s amendment (like Mel Watt and Barney Frank tried to do in committee) as it moves closer to a floor vote it wouldn’t be shocking to see Dr. Paul morph into Dr. No once again.
So it is certainly bittersweet, but at least it’s not all bitter and no sweet.
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UPDATE: It looks like Paul will still push for a separate vote on HR.1207 as a standalone bill. I don’t think those in power will let it happen, but I never thought his bill would get as far as it has already, so we’ll see.
Below is a link to the list of House Financial Committee members and how they voted on the Paul-Grayson amendment which passed committee earlier today. The amendment was a substitute for the evil Watt amendment. Paul’s amendment will now move forward along with the financial regulatory reform bill instead of Watt’s bill.
Of course, there is still ample opportunity for Paul’s bill to be gutted once again, but for now liberty-lovers should be quite happy that a big hurdle has been cleared.
Vote totals and details:
43 yeas / 26 nays
15 Democrats and 28 Republicans voted YES.
All 26 nay votes were from Democrats. No Republicans voted NO.
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!
Ron Paul introduced a substitute amendment to replace Mel Watt’s amendment that would have “gutted” HR.1207’s intent. Dr. Paul’s substitute was later passed by the committee over the ‘nay’ votes of both Barney Frank and Mel Watt. It was passed by voice vote. The roll call vote is scheduled for this afternoon.
This was an important step in the process, but the amendment is going to be tacked on to the larger regulatory reform bill being deliberated now.
Watch Ron Paul introduce the bill earlier today in the committee in the video below.
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…
Kentucky Republicans should be asking themselves if they want another Lindsey Graham who compromises and capitulates to the Left in the name of big government bipartisanship or if they’d like a true conservative Senator who will fight for low taxes and free markets? It’s still quite early but judging from recent comments it seems Trey Grayson is sounding more and more like Graham and Rand Paul is sounding more and more like a Republican.
A few weeks ago at a Town Hall meeting Lindsey Graham argued that he would not let Ron Paul hijack the Republican Party. Grayson seems to be taking lessons from Graham. Watch Grayson in the interview below from WHAS11 as he smugly dismisses Paul while labeling him “crazy”. Hmmm… where have we heard that tactic before?
As the news report mentions, it appears there is the potential for another establishment Republican to enter the race. That would certainly shake up the race, but I’m not sure it would be a bad thing for Paul’s chances.
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.
Ron Paul’s bill to audit the Federal Reserve (HR.1207) has over 300 cosponsors, well above 2/3rds of the House, including every single House Republican. A few days ago an opinion piece appeared in the Wall Street Journal arguing that the Federal Reserve is already transparent enough and that a full audit would be overkill and dangerous. They write:
Economic theory and massive amounts of empirical evidence make a strong case for maintaining the Fed’s independence. When central banks are subjected to political pressure, authorities often pursue excessively expansionary monetary policy in order to lower unemployment in the short run. This produces higher inflation and higher interest rates without lowering unemployment in the long term. This has happened over and over again in the past, not only in the United States but in many other countries throughout the world.
The Fed’s independence is critical to its credibility. During the financial crisis, this credibility allowed the Fed to take extraordinary action to prevent a possible depression without triggering inflation. But eventually the Fed will have to scale back its unprecedented monetary accommodation. When it does move to tighten monetary conditions, it must be allowed to do so without political interference.
This is a tired argument at this point. The bottom line, once again, is that the Fed cannot “maintain its independence” when it is not independent to begin with. It is politicized already and it is plainly obvious to most observers without an axe to grind. The fact that this opinion piece appears in the WSJ at all is evidence in itself of this. It’s always important to consider the sources. The authors of the piece are both “in bed with the Fed”, so to speak.
Anil Kashyup was “an economist for the Board of Governors for the Federal Reserve System. He currently works as a consultant for the Federal Reserve Bank of Chicago, and serves as a member of the Economic Advisory Panel of the Federal Reserve Bank of New York, and as a Research Associate for the National Bureau of Economic Research (NBER).” His faculty bio page is here.
Frederic Mishkin is a former member of the board of governors of the Federal Reserve (2006-2008). Perhaps more telling is the following juicy bit:
In 2006, Mishkin co-authored a report called “Financial Stability in Iceland”. The report maintained that Iceland’s economic fundamentals were strong. The report was commissioned by the Icelandic Chamber of Commerce in response to critical coverage of the Icelandic economy and certain Icelandic companies in the international business media.
Iceland subsequently experienced a spectacular collapse within a year of Mishkin’s good report.
So, considering the sources, this WSJ opinion piece should be ignored and ostracized as the comments on the article are already showing.
Many people just assumed that Rand Paul would be an afterthought going into the Kentucky GOP Primary against establishment favorite Trey Grayson. Many people were wrong.
Following the gigantic shift in poll numbers, showing that Paul now has a slim lead over Grayson in the contest, Dr. Paul is getting serious. He’s going to break some bread with the establishment. He’s going to meet with Senator Mitch McConnell.
(WHAS11) – The surprise candidate in Kentucky’s Republican U.S. Senate primary tells WHAS11 News he is reaching out to senior Senator, Mitch McConnell.
Rand Paul is a Bowling Green eye surgeon. His campaign’s poll numbers and fundraising success have stunned party leaders and it is early in the game.
So who is he and does he have a chance?
Most Kentucky political observers expected the democrats to duke it out in the senate primary while Republican Trey Grayson sat back and prepared for the fall campaign.
But Rand Paul and the sudden uprising of fiscal conservatism in the tea party movement appears to have changed all that.
Some people who have supported Rand Paul’s father, Ron Paul, had concerns that Rand would abandon his principles once (or if) he get to DC. Truth be told, it must be extremely difficult to resist doing so. But the younger Paul has the blood of his father coursing through his veins. He’s given no indication thus far that any liberty-loving principles will be abandoned. I expect that to continue right on through his coming 12 years in the Senate.
At this point no one except Paul and McConnell know what will be discussed at their meeting. Is Paul trying to win over the establishment to his anti-establishment ways? Was the meeting set up by McConnell to twist Paul’s arm toward the “center”, politically?
In any case, the meeting is an encouraging sign for Paul. If Paul didn’t raise over a million and follow it up with a jump in the polls this meeting would probably not be taking place. The bottom line is that Rand Paul has an “it” factor that many do not have. He’s likable. He’s pragmatic. He articulates his positions in a manner that would make his father jealous. He has the potential to take the cause of liberty to new levels of popularity.
With Ron Paul I was hoping against hope he would be our next President. With Rand Paul I am not merely hoping, I’m expecting him to win.
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.
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