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Topics in the News: Federal Reserve


Bernie Sanders on Federal Reserve: (Free Trade Aug 25, 2019)
Trump's actions on trade destabilizing world economy

What the president is doing is totally irrational, and it is destabilizing the entire world economy. You do not make trade policy by announcing today that you're going to raise tariffs by X-%, and the next day by Y-%, by attacking the person you appointed as head of the Federal Reserve as an enemy of the American people, by denouncing the president of China, who last year you really loved as a great leader. This kind of instability causing very serious harm to the entire world economy.
Click for Bernie Sanders on other issues.   Source: CNN State of the Union interview for 2019 Democratic primary

Donald Trump on Federal Reserve: (Budget & Economy Jun 23, 2019)
Economy was ready to collapse in 2016; now it's the best

Obama had somebody that kept the [Federal Reserve interest] rates very low. I had somebody that raised the rates very rapidly. Too much. He made a mistake. That's been proven. And yet my economy is phenomenal. We have now the best economy, maybe in the history of our country. When I took over, this country, the economy was ready to collapse.
Click for Donald Trump on other issues.   Source: Meet the Press 2019 interview series

Howie Hawkins on Federal Reserve: (Budget & Economy May 19, 2019)
Socialize big banks; manage the national currency

The national currency is a vital common resource that should be managed in the public interest. We must nationalize the Federal Reserve System as a Monetary Authority in the Treasury Department. The Monetary Authority will create all national currency (cash and electronic) free of any associated debt. New money will be credited to the account of the federal government as additional revenue to be spent into circulation in the economy in accordance with the federal budget. Banks will be prohibited from creating new money as loans. Banks will borrow or raise money for lending from savers and investors, including the Monetary Authority. People and businesses will borrow from funds in the banks' accounts.

Socialize the big banks: The allocation of investments according to an economic plan requires a significant sector of public banks.

Click for Howie Hawkins on other issues.   Source: 2020 Presidential Campaign website HowieHawkins.us

Arvin Vohra on Federal Reserve: (Corporations Feb 22, 2018)
End the Fed, to prevent irresponsible cash-negative business

When we eliminate legal tender laws, we allow Americans to spend money and accept payments in any form of currency they choose. This destroys the monopoly the Federal Reserve currently has, and abuses, on currency.

When Americans can choose their preferred currency, they are free to choose to store their money in a form that won't depreciate wildly whenever the government decides to spend more money. That means your savings will still mean much more years later when you go to use them.

Ending the Federal Reserve also prevents irresponsible, cash-negative businesses from entering the market, making (fully expected) irresponsible decisions, and creating more frequent and more severe business cycles. When the Federal Reserve is not allowed to interfere, successful business practices will prevail, business cycles will be smoother, layoffs will be massively decreased, and the economy on the whole will prosper. This means responsible business practices will drive market growth.

Click for Arvin Vohra on other issues.   Source: 2018 Maryland Senatorial campaign website VoteVohra.com

Arvin Vohra on Federal Reserve: (Budget & Economy Dec 12, 2017)
Remove legal tender laws & stimulate the economy

When we eliminate legal tender laws, we allow Americans to spend money and accept payments in any form of currency they choose. This destroys the monopoly the Federal Reserve currently has, and abuses, on currency. When the Federal Reserve is not allowed to interfere, successful business practices will prevail, business cycles will be smoother, layoffs will be massively decreased, and the economy on the whole will prosper.˙I want to make this country fiscally responsible.˙
Click for Arvin Vohra on other issues.   Source: 2018 Maryland Senate campaign website VoteVohra.com

Donald Trump on Federal Reserve: (Budget & Economy May 6, 2016)
The Fed should refinance debt to reduce interest payments

Trump boasted how "I would borrow, knowing that if the economy crashed, you could make a deal." When pressed, though, he said a country is different and he didn't mean to renegotiate the U.S. debt, only to "refinance" existing debt. Of course, refinancing debt saves money only when rates go down, which raises the question of what the Fed should do with rates.

Trump wants rates to remain low to prevent the dollar from appreciating, which would bring "major problems." But another consideration, he noted, was the [interest payments on the] national debt: "What do we do with all of the money that we owe everybody when rates go up and now all of a sudden we have to borrow at two points more? One point more, even, is devastating. It has to be handled very, very carefully." For the Fed to base interest-rate decisions on the national debt would blur the lines between monetary and fiscal policy. It's heresy by today's standards, but [was done in the 1960s].

Click for Donald Trump on other issues.   Source: Wall Street Journal, "Lean on the Fed?", by Greg Ip

Bernie Sanders on Federal Reserve: (Budget & Economy Apr 30, 2015)
Break up large banks; add fees for high-risk investments

Sanders would divide large banks into smaller entities and charge a new fee for high-risk investment practices, including credit default swaps. In addition, he believes the Federal Reserve is an opaque organization which gives too much support to large corporations. His pushed for a 2011 audit of the Fed and he would use the Fed to force banks into loaning more money to small businesses. Finally, he would ban financial industry executives from serving on the 12 regional boards of directors.
Click for Bernie Sanders on other issues.   Source: PBS News Hour "2016 Candidate Stands" series

Bernie Sanders on Federal Reserve: (Corporations Feb 10, 2015)
Bank bailout was socialism for the rich

After the banking crisis of 2008, we got alarmed and we passed regulations. The only problem is, we passed regulations on the banks that weren't involved and gave more power to the bank that was involved--the Fed. No bank in Kentucky failed during this crisis, yet Dodd-Frank pummeled our small community banks with crippling regulations. What we really needed was more oversight of the Fed, not small community banks.

Sen. Bernie Sanders (I-VT) and I don't agree on much, but I thought he did a great job of describing the Fed and the bank bailouts as: "A clear case of socialism for the rich; and rugged-you're-on-your-own-individualism for everyone else."

The Fed, with unlimited ability to print money, now prints that money to lobby against Congressional oversight. It is a disgrace and every citizen in the land should rise up and say: We the people are in charge and we demand an audit!

Click for Bernie Sanders on other issues.   Source: Article: Audit/End the Fed, by Rand Paul, on Breitbart.com

Joe Biden on Federal Reserve: (Budget & Economy Sep 20, 2011)
As banks become profitable, start fundamental reforms

Obama began to double back, wondering what his team thought of [Federal Reserve chair] Volcker's idea. Biden, who was an old friend of Volcker's, stepped in during a White House meeting and said that the banks were strong enough to take some medicine now, even if it wasn't fundamental change. They were making money again, gambling with depositors' funds and with implicit, or explicit, support of the taxpayer. It wasn't right. Obama nodded. Joe had said it, straight and true.
Click for Joe Biden on other issues.   Source: Confidence Men, by Ron Suskind, p.349-350

Bernie Sanders on Federal Reserve: (Budget & Economy Dec 10, 2010)
Why did we bail out South Korea?

I think the American people are interested to know that the Fed bailed out the Korea Development Bank, the wholly owned, state-owned Bank of South Korea, by purchasing over $2 billion of its commercial paper. The sole purpose of the Korea Development Bank is to finance and manage major industrial projects to enhance the national economy not of the United States of America but of South Korea. I am not against South Korea. I wish the South Koreans all the luck in the world. But it should not be the taxpayers of the United States lending their banks' money to create jobs in South Korea. I would suggest maybe we want to create jobs in the United States of America. At the same time, the Fed also extended over $40 billion for the Central Bank of South Korea so that it had enough money to bail out its own banks.
Click for Bernie Sanders on other issues.   Source: The Speech: A Historic Filibuster, by Bernie Sanders

Bernie Sanders on Federal Reserve: (Government Reform Sep 29, 2010)
Introduced Federal Reserve Transparency Act with Ron Paul

When Fed Chair Ben Bernanke refuses to give us information about the trillions of dollars of credit that he recently passed out in the bailout process because that would be "counterproductive," he is really saying, "It's none of your business."

He may well be protected by the law, but he is in defiance of the Constitution. The courts, under today's circumstances, will never rule that the Federal Reserve Bank chairman must reveal the information that the Congress or the people seek.

One thing I have noticed in studying the issue is that the more power the Fed has gained, the greater the secrecy they demand. Transparency is currently a hot issue in Congress because the people have awoken and have sent a message. This is not a conservative or liberal issue; it's not a Republican or Democratic issue. It is pervasive, across the political spectrum.

I introduced a Federal Reserve audit bill the Federal Reserve Transparency Act, HR 1207, which Bernie Sanders introduced in the Senate.

Click for Bernie Sanders on other issues.   Source: End the Fed, by Rep. Ron Paul, p.174-175

Barack Obama on Federal Reserve: (Budget & Economy Sep 16, 2009)
Some wealth of the last economic boom was illusory

The Fed has one power that is unique to it alone: it enables the creation of money out of thin air. We are talking about an awesome power. It is the power to weave illusions that appear real as long as they last. That is the very core of the Fed's power.

As Pres. Obama said of the economic boom that went bust: "I think it's important to understand that some of that wealth was illusory in the first place."

Exactly. But let's also understand the source of the illusion and what to do about it. Of course not everyone is instinctively against this illusion-weaving power, and many even welcome it. They just want to get back to the times when "everything was good" even though it was all just a mirage--a creation of the appearance of wealth by the Fed.

Tragically, the innocent who understand little about the complexity of the monetary system suffer the most, while those who are in the know reap great profit whether the market is going up or down.

Click for Barack Obama on other issues.   Source: End the Fed, by Rep. Ron Paul, p. 2-3

Joe Biden on Federal Reserve: (Budget & Economy Aug 19, 2007)
More transparency for hedge funds and private equity funds

Q: The Fed lowered the discount rate for banks to address the mortgage crisis. Should they lower rates for everyone else?

A: The answer is yes. But we need more transparency, particularly with regard to hedge funds and private equity funds. They are the ones that are causing this thing to go under. And there’s no transparency, no accountability. We don’t know how deep this problem is. I think it’s almost as deep in terms of dollars, not liability, as the savings and loan crisis.

Click for Joe Biden on other issues.   Source: 2007 Democratic primary debate on “This Week”

  • Additional quotations related to Federal Reserve issues can be found under Budget & Economy.
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Mayor Pete Buttigieg (D-IN)
Sen.Cory Booker (D-NJ)
Secy.Julian Castro (D-TX)
Rep.Tulsi Gabbard (D-HI)
Sen.Kirsten Gillibrand (D-NY)
Gov.John Hickenlooper (D-CO)
Sen.Amy Klobuchar (D-MN)
Rep.Beto O`Rourke (D-TX)
Sen.Bernie Sanders (I-VT)
Rep.Joe Walsh (R-IL)
Sen.Elizabeth Warren (D-MA)
Gov.Bill Weld (R-MA&L-NY)
CEO Andrew Yang (D-NY)
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V.P.Joe Biden (D-DE for President)
CEO Don Blankenship (Constitution Party)
Rocky De La Fuente (Alliance/Reform Party)
Howie Hawkins (Green Party)
Sen.Kamala Harris (D-CA for V.P.)
Jo Jorgensen (Libertarian Party)
V.P.Mike Pence (R-IN for re-election)
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Page last updated: Dec 08, 2020