Bill to abolish the Federal Reserve submitted to the Senate
Republican Senator Mike Lee has submitted the bill to abolish the Federal Reserve (Fed) to the Senate. The "Federal Reserve Abolition Act" aims to abolish the Board of Governors of the US central bank and undo the Federal Reserve Act of 1913.
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.
The title of the bill
As early as mid-May, Congressman Thomas Massie presented such a bill in the US House of Representatives and garnered great support - Blocktrainer.de reported. With its submission to the Senate, the Federal Reserve Abolition Act is now before both chambers of the US Congress.
Act to abolish the Federal Reserve
In the past, there have been several bills aimed at abolishing the US Federal Reserve. However, following the repeated efforts of libertarian presidential candidate Ron Paul, this project has become quieter since 2013.
Due to the hyperinflation that set in immediately after the orgies of money printing in response to the coronavirus pandemic, resentment towards the Fed has grown significantly again. Not only because they flooded the markets with fresh money and lowered interest rates, thus directly contributing to inflation, but also because the monetary guardians did not see the sharp increases in consumer goods prices coming until it was far too late.
Mike Lee, the Republican Senator from the US state of Utah, who has now submitted the Federal Reserve Abolition Act to the US Senate, criticizes the US Federal Reserve for failing to fulfil its mandate of price stability and for contributing to the escalating government spending and debt in the USA.
The Federal Reserve has overstepped its purview, repeatedly failed to achieve its mandate, and has become an economic manipulator that has directly contributed to the financial instability many Americans face today. This legislation aims to protect our economic future by eliminating a system that allows unchecked government spending, the monetization of government debt that fuels it, and widespread economic disruption. It's time to end the Fed.
Mike Lee in the press release
The press release also quotes his Republican colleague Thomas Massie, who is leading the corresponding bill in the House of Representatives. The Congressman already made this statement when the Federal Reserve Abolition Act was submitted a few weeks ago.
Americans are suffering from crippling inflation and the Federal Reserve is to blame. During COVID, the Federal Reserve created trillions of dollars out of thin air and loaned it to the Treasury Department to enable unprecedented deficit spending. By monetizing the debt, the Federal Reserve devalued the dollar and enabled a free-money policy that led to the high inflation we are experiencing today.
Thomas Massie in the press release
Criticism of central banks on the rise
Even though official inflation rates have now fallen back significantly, this does not mean that goods and services are becoming cheaper again - they are just rising less sharply than in previous months. With the current US inflation rate of 3.4%, the US Federal Reserve is once again satisfied that it is heading towards its 2% target and is holding out the prospect of interest rate cuts in the near future.
The problem here is that the sharp rise in prices during the coronavirus pandemic is not being cushioned by the official inflation rate moving back towards the target. People are still struggling with the significantly higher and rising cost of living, as very few, if any, have seen a similar increase in income. But the central banks' panicked fear of deflation ensures that prices - no matter how much they have risen before - are never allowed to fall again.
Even if more and more voices are being raised in favor of abolishing the Federal Reserve, it is highly unlikely that both chambers of Congress will vote in favor of it and that the US president will then sign the law. Even if Donald Trump, who is currently campaigning for Bitcoin and Co. as part of the election campaign, were to become the next US president, the passing of such a law is unthinkable. Trump himself would like to reorganize the Federal Reserve, but by no means abolish it. The ex-president also cares a great deal about the power of the US dollar.
Accordingly, some Americans criticize this bill in the comments under Mike Lee's post on the 𝕏 platform. They describe the project as a waste of time and claim that it can no longer be taken seriously.
Just wasting everyone's time on a useless bill that has zero chance of passing, just for the sake of political grandstanding. This is exactly what I expect out of you so nice work.
" - Steve Otteson 🇺🇸🇩🇪🇺🇦 (@sotteson) June 7, 2024
Even if the US Federal Reserve is likely to remain in place for many years to come, such draft legislation will trigger a discussion in which more and more people may ask themselves whether central banks are fulfilling their tasks and whether they are even needed for a functioning economy. It is therefore positive that politicians and citizens are increasingly looking at the current monetary system and potentially considering alternatives such as Bitcoin.
