Don’t you love the way congress can editorialize in what is supposed to be serious laws?
But wait, there’s more!
The bill is essentially the same as the Senate version. However, in an attempt to become managers of the Federal Reserve coin rooms, Reps. Speier and Polis has added a new section to their version of the bill:
SEC. 3. RESTRICTION ON OVERPRODUCTION OF $1 COINS.
Section 5112 of title 31, United States Code, is amended by adding at the end the following new subsection:
`(w) Restriction on Overproduction of $1 Coins- Notwithstanding any other provision of this section, no $1 coin may be minted or issued under this section during any period in which the number of $1 coins issued, but not in circulation, is more than 10 percent of the number of $1 coins in circulation.'.
Section 5112 of title 31, United States Code, is amended by adding at the end the following new subsection:
`(w) Restriction on Overproduction of $1 Coins- Notwithstanding any other provision of this section, no $1 coin may be minted or issued under this section during any period in which the number of $1 coins issued, but not in circulation, is more than 10 percent of the number of $1 coins in circulation.'.
What Speier and Polis is saying is that they know better than the Federal Reserve on how to manage the coins in their possession. Should the Federal Reserve find that in the future they want to add stock to their coin rooms, like when congress actually does the right thing and end the printing of the $1 federal reserve note, the Federal Reserve could find itself in a shortage situation in trying to comply with the law.
This is the type of legal provision that has the potential to create unintended consequences. Further, I do not think that congress should manage the cash operations of the Federal Reserve. They can barely manage the nation’s budget, I do not want these people trying to manage the Fed.
6 comments:
While I agree with the spirit of what you are saying, I disagree regarding the need for Fed management. Somebody needs to reign in the Fed, who has the ability to unilaterally print money (aka, QE1, QE2, and soon to be QE3) without any accountability (and those stupid hearings in congress don't count as nothing ever comes from them). The Fed is a big factor in what's got us into this financial mess we're currently in. Guys like helicopter Ben Bernanke are in way over their heads, and congress will only take this seriously when hyperinflation strikes.
But yes, I agree that congressman have no clue about monetary policy, money printing, or economics in general.
Ah yes, good ol' Anonymous. Another Fed bashing John Bircher like the author of "The Cretaure From....", I suppose.
Hey Anonymous, you economic Einstein, how much faster than the31 year average did the money supply grow during QE2? Trick question, because it DIDN'T!!!
The 31 year average is 6% per annum, and the year ended June 30, 2011 was......wait for it.....6%.
TADA! That's why there's no inflation showing up. It's a figment of the "hard money" crowd's imagination, nothing more!
Ah yes, good ol' Anonymous. Another Fed bashing John Bircher like the author of "The Cretaure From....", I suppose.
Hey Anonymous, you economic Einstein, how much faster than the31 year average did the money supply grow during QE2? Trick question, because it DIDN'T!!!
The 31 year average is 6% per annum, and the year ended June 30, 2011 was......wait for it.....6%.
TADA! That's why there's no inflation showing up. It's a figment of the "hard money" crowd's imagination, nothing more!
Hey VKurtB...ahhh...good old sycophant for the insane asylum running the Fed.
No inflation showing up???? Are you still smoking that stuff from the 60s? Obviously, your wife does the shopping with the money you make by working for the Federal government...e.g., the people's money. You're using the numbers given out by the obama administration which excludes food, gasoline, etc. and only includes dishwashers and plastic trash cans.
No inflation??? Get a life VKurtB. Sorry, but I ain't buying what you are selling (for the Feds).
Ok... no more comments.
I want to keep allowing anonymous responses, but let's not get personal. PLEASE!
The ONLY secotrs of our economy exhibiting inflation are those under the influence of speculators. Where real suppliers and real consumers meet to transact, there simply IS NO INFLATION, perhaps DEFLATION. Speculators do NOT get to gripe about something THEY CAUSED!
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