"And you're not going to tell the homeowners?" Elizabeth Warren to Fed and OCC, Senate hearing highlights
Elizabeth Warren, yesterday:
Hearing: Outsourcing Accountability? Examining the Role of Independent Consultants
Senate Committee on Banking, Housing and Urban Affairs, Subcommittee on Financial Institutions and Consumer Protection
Hearing info here.
The 2-1/2 hour hearing video is here.
Two videos, with transcripts, below: Read below the fold...
Can the Federal Reserve Really Refuse To Accept and To Credit A Platinum Coin Deposited By the US Mint?
The issue of whether the Fed can really refuse to accept and credit a deposit of a platinum coin with its face value, is being raised frequently on blog posts about Platinum Coin Seigniorage (PCS) and the Trillion Dollar Coin (TDC). In the past, I've argued that the Fed cannot; and the final decision on taking the TDC off the table was actually made by the President, and not by Chairman Bernanke.
Ellen Brown, the well-known author of The Web of Debt, and also of this recent post on fiat money, direct financing of federal spending, and using platinum coin seigniorage made this comment in a discussion thread at Monetary Realism: Read below the fold...
(Editor's Note: This post is being re-published with the permission of the author, Scott Fullwiler)
Cullen Roche’s excellent post at Pragmatic Capitalism explains—via comments from frequent MMT commentator Beowulf and several previous posts by fellow MMT blogger Joe Firestone (see the links at the end of Cullen’s post and also here)—that the debt ceiling debate could be ended right now given that the US Constitution bestows upon the US Treasury the authority to mint coins. Further, this simple change would lift the veil on how current monetary operations work and thereby demonstrate clearly that a currency-issuing government under flexible exchange rates cannot be forced into default against its will and is not beholden to “vigilante” bond markets. As Beowulf explains in a later comment, “The anomaly it addresses is that the US Govt has a debt limit yet an agency of the US Govt (the Federal Reserve) does not have a debt limit. Clearly this is a structural defect.”
The following is a description of how the process would work and the implications for monetary operations: Read below the fold...
Earlier this month, Thomas Geoghegan wrote a piece for The Nation telling the Democrats the ten things they could do to really get the base excited, and at the same time do good things for the country. Here's his list.
1. Raise Social Security to 50 percent of working income.
2. Let's extend Medicare to people 55 to 65.
3. Make it a civil right to join, or not to join, a labor union.
4. Put in a usury cap of 16 percent.
5. Set up small government banks like the German Sparkasse.
6. Give everyone the right to six days of vacation -- six consecutive paid working days.Read below the fold...
This is Part Two of a critical review of The National Journal's Debate on "Our Fiscal Future" between John Podesta and Douglas Holtz-Eakin with Jim Tankersley moderating, at The George Washington University's Jack Morton Auditorium. This part provides more observations and evaluation on some of the propositions offered by Holtz-Eakin and Podesta.
H-E: Eliminating tax cuts for the rich will cost 1.5% to 2% GDP annually. Read below the fold...
There is a war in finance. This war is not a war of a good guy versus a bad guy. This is a war of two bad guys, a war of Titans who could destroy each other and the financial system.
The old world European Titan is the central bank complex, made up of the Fed, the central banks of Europe, and the Bank of International Settlements/IMF/World Bank.
The new Titans are the hedge funds and Goldman Sachs, who seek to profit in good times and bad. These do not war against the central banks out of a sense of right and wrong, but rather out of a sense of greed. Read below the fold...
Besides Yellen, who would be vice chairman replacing outgoing No. 2 Donald Kohn, Obama will tap Sarah Raskin, a top banking supervisor for the state of Maryland, and economist Peter Diamond, who has written extensively about the government-run Social Security program, to fill Fed vacancies.Read below the fold...
Bernie Sanders has used a bit of Senate finesse to block the renomination of Ben Bernanke to head the Federal Reserve. Chris Bowers over at Closed Left explains what's happening, but what it all boils down to is that Sanders has managed to hold up the renomination of one of Bush's creatures to a hugely important office. Obama and Wall Street want Bernanke to stay and keep fucking up the economy. Sanders is looking like one of the only senators willing to go on record and try to stop this from happening. Read below the fold...
The President has reached his decision on Afghanistan, and given his speech. There’s nothing much that can be done about this military escalation issue right now. It may make you feel better to gripe, kvetch, and moan on the tubez about the Afghanistan policy, but there are two big events coming up in the next 48 hours that perhaps we can still impact. President Obama’s jobs summit, in honor of which I've blogged an infrastructure repair and building program of oh, around 19 million new jobs.
And the confirmation hearing to re-appoint Ben Bernanke as chairman of the Federal Reserve System, before the Senate Banking Committee.
Do you want to try and make a difference? Then NOW is the time to raise a mighty shout across the land. Read below the fold...