1st Session
H. R. 2755
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 15, 2007
Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Reserve Board Abolition Act'.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) Disposition of Affairs-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.
End Text
I for one, wholeheartedly support this bill in its entirety and ask that anyone else who supports this bill contact their respective representatives and urge them to support and co-sponsor this bill. What a sense of timing! If enough support can be rallied behind this momentous Act, especially at this moment in time, it may be possible to completely remove the Federal Reserve from our lives for once and for all.
Reader Comments:
Posted By: Master C
Date: 2008-09-29 10:42:16
Dear Larry,
Mr. Paul is well-intentioned, but misguided. To ABOLISH the Federal Reserve will cause so much chaos ~ nationally and internationally ~ that we will be in worse shape than if he just left everything alone.
What should be done is for the Federal Government to NATIONALIZE, that is, TAKE OVER the Federal Reserve so that our government will control the issuance of cash and credit rather than this group of elite monetarists. Then, if we wanted to go farther, a new monetary system could be established with much more orderliness.
Master C
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Posted By: Rusty Sullivan
Date: 2008-09-29 11:44:03
Hallelujah, the bailout bill failed in the first vote in the House. Hopefully, Paul and other intelligent members of the House will keep their heads ringing with common sense legislation to bring things in line with reality.
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Posted By: Walt Thiessen
Date: 2008-09-29 14:52:27
I agree that the Fed must be abolished, but it's also vitally important to provide an alternative currency for people to run to. This bill needs to be amended to include a change to allow hard metals, gold and silver, to be used as a currency. It does NOT have to require that the government issue a new currency, merely that the public be permitted to use gold and silver as currency.
Master C's solution would do nothing to change the mess and would actually make it worse in the long run. The Fed is an unholy partnership between the big banks and the Federal government to create huge amounts of money for the government's use by issuing debt and allowing the banks to collect huge amounts of interest from that debt whose creation thereby creates the new money. Up until now, the banks have been running the show with the government being the beneficiary. All Master C's solution would do is to have the government run the show for the banks' benefit. There would be no substantive change. The same inherent flaws would remain, but now they'd become politicized. That's not even a stop in the wrong direction. More accurately, it's a giant leap in the wrong direction.
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Posted By: Rusty Sullivan
Date: 2008-09-29 15:38:09
"Master C's solution would do nothing to change the mess and would actually make it worse in the long run."
This is the mantra that runs through my mind every time I read one of Master C's articles...but that is nothing against Master C, just the philosophy he subscribes to.
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Posted By: Larry
Date: 2008-09-29 15:39:41
Thanks Walt, of course you're correct. Master C, for more information on the nationalization issue, go here:
[link edited for length]
I believe the fifth plank covers it nicely.
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Posted By: Jake, the champion of the constitution
Date: 2008-09-29 16:22:27
Dear Larry,
I wonder what Paul and you think of the Monetary Reform Act, which cuts the balls off the Fed first, then could be followed by abolition.
The act 1) makes mandatory increases in bank reserves every month until its at 100% - I am not sure of its effects at this point in time, but I certainly support increasing the reserve ratio up from 10%, even if in small increments
and 2) issues US notes, stops the issuing of FRNs - so the US govt doesnt have to pay interest on its own damn money
Good article
Jake
http://www.themoneymasters.com/mra.htm
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Posted By: David S
Date: 2008-09-29 21:04:49
Master C, turning the Federal Reserve's powers over to government would mean taking the powers from the smart crooks in the fed and giving them to the dumb crooks in government.
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Posted By: David S
Date: 2008-09-29 21:16:59
Ron Paul introduced this bill over one year ago. [link edited for length]:
It was referred to the Committee on Financial Services, and apparently died there. Wouldn't it have to be reintroduced this year?
There might be more support for it now in view of the current financial fisaco.
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Posted By: Terryeo
Date: 2008-09-29 21:53:05
Under Alan Greenspan's oversight, the Federal Reserve Board gently nudged America's economy. That result was a more stable economy and he did it during a time of significant economic difficulty. This all indicates the system in place, when done well, works. I think it would be the greatest foolishness to abolish the present system without very, very good reason. And without a better system, a system that has worked historically elsewhere, in the wings and ready to drop into place.
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Posted By: Rusty Sullivan
Date: 2008-09-30 03:32:03
Terryeo, you're right. The strange thing is that the Fed is rarely "done right". Greenspan helped to create the bubble (long-lasting bubbles do not denote stability, only the ability of the Fed chairperson to cover up the existence of said bubble, as Greenspan did).
Prior to the inception of the Fed, there were some financial crises, panics and depressions. The difference is that the government didn't feel the need to "do something", letting the capitalist system correct itself. As a result, recovery was swift and predictable. The Fed and other means of artificially controlling the economy results in much larger bubbles, corruption, and the propping up of businesses and institutions that should have, by their very inability to operate efficiently, failed and faded into history. Not to mention, the destruction of the dollar's value, the over-taxation of the populace, and the ludicrosity of legislature such as the Bailout Bullshit Bill of 2008.
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Posted By: Mike320th
Date: 2008-09-30 05:32:45
Actually, the HR bill to abolish the FED is HR5356. Don't believe me, check out this link,
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Posted By: Mike320th
Date: 2008-09-30 05:33:39
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Posted By: Mike320th
Date: 2008-09-30 05:35:56
Sorry guys, the link I paste will not work. If you want to verify what I previously posted, just go the the library of congress and type in HR 5356. Sorry again for the failed link.
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Posted By: daddysteve
Date: 2008-09-30 13:13:02
@terryeo- Greenspan gently nudged the economy? Much more nudging and we'll be nudged right off the cliff.
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