Monetary Reform Task Force

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Sequestration Cuts Cancelled

Posted by dr.ron45 on October 24, 2012 at 2:25 PM

When I first wrote the Greenback Renewal Act, my focus was on the threat of a national debt default coming in February next year when the authorization for borrowing runs out. Now it is clear that the threat of sequestration budget cuts is much more worrisome to those who might be affected as early as January. Hence I have just now posted a revision of the Act which puts elimination of the sequestration budget cuts up front and center in the focus of the bill, thereby enhancing its relevance to the perceived economic problems of the day. So even if you downloaded it before, download the Greenback Renewal Act again to see these enhancements. Cancelation of sequestration budget cuts is now explicit in Title II of the revisted draft.

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Another change made, in order to make it easier to pass the bill through Congress rapidly, is to exempt the Federal Open Market Committee (FOMC) and the Federal Advisory Council from the annual Fed audits, since the Fed will almost certainly move to kill the bill if they are included. Congressmen have been trying to audit those parts of the Fed almost since the Fed was created 99 years ago, and each time the legislation has been derailed somewhere along the line. We don't know exactly how they do it, but perhaps by bribes, perhaps by blackmail, and perhaps even by babes, the Fed has always been successful in stopping the audit legislation. Since the urgency of passage of the Greenback Renewal Act is so high, I feel it best to let the Fed have its secrecy with respect to the detailed policy makibng processes, at leat for the time being. Also, if things are found to be amiss in the partial audits that are conducted on the rest of the Fed, including the Federal Reserve Board and Federal Reserve Banks, the Act can be amended to include the policy making groups at that time when there is a clear justification for doing so. Of course Ron Paul's HR 459 has passed in the House, and if that is approved by the Senate (S 202) then we will have the complete audits. But it is important that we have the greenbacks flowing even if Paul's audit bill fails. Hence the exemption of the FOMC and the Federal Advisory Council from the partial audit plan.

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I also changed the budget defit fortecast from $1.3 Trillion to $1.2 Trillion to make the numbers come out rounder, and to reflect the fact that the most recent deficit number was slightly less than this. I also added a $ column in the table showing the ramping up of greenback issue so that the percentage numbers could be more easily interpreted in absolute $ values.

Categories: Greenback Renewal Act

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