ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited government, free markets, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru] - editor@arranewsservice.com (Pub. Since July, 2006)
Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Monday, April 09, 2012

Good Money: Why Kevin Brady's Sound Dollar Act Worries Barney Frank

Rep. Kevin Brady (R-TX)
by Ralph Benko, Contributing Author: Why is Rep. Barney Frank rounding up his liberal legislative militia to oppose the Sound Dollar Act of 2012? This is a bill recently introduced by Rep. Kevin Brady, top Republican on the Congressional Joint Economic Committee. It is co-sponsored by 31 of his House colleagues and has a Senate counterpart from Utah’s Mike Lee.

A panicked Rep. Frank snapped to immediately. He rounded up 26 liberal democrats to sign a letter of opposition. “We believe strongly that the dual mandate should be maintained, and we believe that the Federal Reserve’s actions in pursuit of that mandate have been helpful in dealing with our unemployment problem,” wrote Frank and fellow liberals to committee chairman Spencer Bachus.

Believe it or not, Frank’s beliefs do not always coincide with common sense reality. As Boston Globe columnist Jeff Jacoby wrote in 2008:

“Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that “these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.” When the White House warned of “systemic risk for our financial system” unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing.

“Now that the bubble has burst and the “systemic risk” is apparent to all, Frank blithely declares: ‘The private sector got us into this mess.” Well, give the congressman points for gall.

Frank and other liberals are hostile to legislation that constrains the Fed’s “discretionary activism.” Discretionary activism is what Columbia dean (and key Romney economic policy advisor) R. Glenn Hubbard indicts in Seeds of Destruction: Why the Path to Economic Ruin Runs Through Washington, and How to Reclaim American Prosperity. This book contains a chapter entitled “Why an Easy-Money Street is a Dead End” and a subchapter “The Road to American Prosperity Cannot Be Paved with a Cheap Dollar.”

Brady’s legislation plays a major role in helping the GOP formulate a crucial plank in its economic platform: good money. Even more potent is this bill’s extraordinary emphasis on gold. In its findings, the Act directs the Federal Reserve to monitor prices in three sectors. One is, exclusively, gold: The “Federal Reserve should monitor … the value of the United States dollar relative to gold… to determine whether the Federal Reserve’s monetary policy is consistent with long term price stability.” Another section directs the Fed to monitor the prices of “major asset classes (including… gold and other commodities…).”

Gold alone thus occurs in two of the three directives to the Fed. This appears by no means accidental. Brady elegantly has structured this legislation in a way that gives space both to the conservatives (supply side, movement, libertarian, and constitutionalist Tea Party) and Establishment Republicans (and conservative Democrats) to come together to work out what good money looks like.

The overwhelming conservative consensus is for the dollar, whether issued by the government or the private sector, to be defined as a fixed weight of gold and for currency convertibility. Intramural differences among conservatives, and between conservatives and Republicans (and, for that matter, Blue Dog Democrats who are attuned to the popularity of the gold standard with voters) are far narrower than the differences between conservatives and liberals. The Weekly Standard.com, reports Brady’s position: “Our goal today…is to start a thoughtful debate….” He succeeds.

A highly respected member of the Republican policy establishment, Stanford University professor of economics John Taylor, recently testified before the Joint Economic Committee in favor of the Sound Dollar Act re-enforcing Dean Hubbard’s key point. Prof. Taylor then wrote a Wall Street Journal op-ed entitled The Dangers of an Interventionist Fed: A century of experience shows that rules lead to prosperity and discretion leads to trouble.

The conservative policy establishment view is exemplified by the Conservative Action Project chaired by President Reagan’s counselor and attorney general Edwin Meese III in its Conservative Consensus For 2012 issued last December. This important document firmly placed sound monetary policy in the top of the conservative agenda. The conservative policy establishment consensus also is exemplified by two nonprofit groups professionally advised by this writer, the American Principles Project and the Lehrman Institute’s monetary policy site, and by Atlas Economic Research Foundation’s Sound Money Project. These thought leaders, and many others, teach about a dollar defined as a fixed weight of gold and currency legally convertible at that weight.

The hard left reacts to monetary reform and the gold standard as a vampire does to a crucifix. Astute Roosevelt Institute fellow Mike Konczal, blogging at Rortybomb last April 2011 began the litany: “Conservatives are organizing against a full employment mandate and rallying around the gold standard wing of their party.” Since then, Think Progress’  Marie Diamond has stated that “Tea Party groups are determined to make returning to the gold standard a litmus test for GOP presidential candidates.” Paul Krugman warned in the New York Times that “Gold bugs have taken over the GOP.” Thomas Frank, in Harper’s Magazine, called gold “yet another eccentricity of the right-wing fringe… into the mainstream of American life.” Nouriel Roubini slurred supporters of gold as “lunatics and hacks.” Former Clinton Treasury Secretary and chair of Obama’s National Economic Council Larry Summers called the gold standard “the creationism of economics.”

Yet so bad has discretionary activism proved that even the center-left New York Times could headline, last August, a column A Gold Standard is Unthinkable No More. The sober, certainly not right wing, Bank of England issued a report last December which Bloomberg headlined as Global Economy Worked Better With Bretton Woods Currency System, BOE Says — Bretton Woods being a dilute gold standard.

Outside the cozy precincts of the hard left the gold standard has been rehabilitated. Clearly there is a productive conversation to be had between gold’s distinguished conservative and classical liberal proponents — such as Steve Forbes, Lewis Lehrman, Sean Fieler, James Grant, Judy Shelton, Brian Domitrovic, Lawrence White, Charles Kadlec, John Allison, John Tamny, James Rickards, and other respected figures who support gold convertibility — and the many distinguished mainstream economists who lean toward the something like the Taylor Rule. Brady has created a context for that thoughtful debate.

Since monetary reform is crucial to robust job creation Brady performs an invaluable public service by putting it front and center. The sponsors of the Sound Dollar Act demonstrate genuine statesmanship in moving the conversation forward in such a way as to allow everyone who believes in prosperity, with equity, through good money to unite behind Taylor’s axiom: “[T]he Federal Reserve should move to a … more rules-based policy of the kind that has worked in the past.” Rep. Brady and Sen. Lee have introduced legislation that represents a mortal threat to the practice of central planning that lingers on at full strength in just three capitals, Pyongyang, Havana, and Washington, DC … panicking Barney Frank.
------------
Ralph Benko is senior advisor, economics, to American Principles in Action’s Gold Standard 2012 Initiative, and a contributor to he ARRA News Service. The article which first appeared in Forbes was submitted for reprint by the author.

Tags: Ralph Benko, Federal Government, Rep. Kevin Brady, Sound Dollar Act, Rep. Barney Frank To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Posted by Bill Smith at 5:17 PM - Post Link

0 Comments:

Post a Comment

<< Home




Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You Receive One Email Each Morning
With Prior Days Articles / Toons / More


Also, Join us at:
Facebook.com/ARRANewsService


Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru
Married 48yr #Conservative #Constitution #NRALife #GunRights #USAF 22yr #military #veteran #Christian #CCOT #ProLife #TEAParty #GOP #TCOT #SGP #schoolchoice



Republican Links (*links back)
AR Republican Assembly *
AR Republican Leg. Caucus
AR Republican Party *
AR GOP Hispanic Assembly
AR Young Republicans
Baxter Co. GOP Assembly *
Baxter County Republicans *
Benton Co. GOP Assembly *
College GOP Nat'l Comm
Garland County Republicans *
Nat'l Black Republican Assoc.
Nat'l Fed. Republican Assemblies
Natl Repub. Cong. Comm.
Natl Repub. Senate Comm.
Republican Jewish Coalition
Republican Liberty Caucus
Repub. Natl Comm (RNC)
Repub. Nat'l Hispanic Assembly
AR Repub Hispanic Assembly
Senate Repub. Caucus
US House Republicans
IRAQ Vets for Congress
Arkansas GOP

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
GrassFire
NumbersUSA
Ballotpedia
Judgepedia
Sunshine Review


Facebook Accts - Dr. Bill Smith
Fan Pages:
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
End Taxpayer Funding of NPR
Nelda Speaks for State Rep. ...
Prolife Soldiers
Project Wildfire
Republican Liberty Caucus of Arkansas
Sarah Palin for President 2016
US for Sarah Palin
The Gold Standard
Twin Lakes Republican Women
US Atty Gen Eric Holder Must Go
Veterans for Sarah Palin
Misc: Networked Blogs On FB:
ARRA News Service
Blogs For Borders
Conservative Voices
FairTax Nation
Greater Fitchburg For Life
Bill Smith / Ozark Guru
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Arkansas Twin Lakes Area Tea Party
Baxter County Republicans, AR
Blogs for Borders
Bradley County Republicans, AR
#CanISee
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas/
Let's Mine AR Lignite NOW!
Mississippi County Republican Comm, AR
Personhood Initiative
Pro-Life Rocks - Arkansas
Pro Life America 4 Sarah
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.
Save the Nation

Patriots
Exchange
Links

Links to ARRA News
A Patriotic Nurse
Agora Associates
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Black & Right
Blogs For Borders
Blow the Trumpet Ministry
Boot Berryism
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
For God and Liberty
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
ProLifeBlogs
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Teresamerica
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
TOTUS
Twitter ARRA
Warning Signs
Women's Prayer & Action
WyBlog
---------------
Twitter Dr. Bill Smith
Twitter Arkansas GOPNetwork
Twitter Boot Berryism
Twitter Sovereignty Alliance


Editor Recommended OrgsPicks
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Curtis Coleman Institute for Constitutional Policy
Declaration of Am. Renewal
Eagle Forum
FairTax
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Institute For Justice
Institute for Truth in Accounting
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist Today
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts



Blogs 4 Palin

ARRA News Service
Frugal Café Blog Zone
House of Eratosthenes
Jefferson's Rebels
MJ Sheppard's 'A Point of View'
Motivation Truth
Motor City Times
My Two Cents Worth
National Tea Party
Palin 4 America
Palin 4 President 2016
Patrick's World USA
NJ for Sarah Palin
Roderic Deane
Sarah Palin Blog
US for Palin
Vets4Sarah.net

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer


Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to netvibes

Subscribe in Bloglines

Add to Bitty Brouser

Add to The Free Dictionary

Add to Excite MIX

Add to Webwag

Powered by FeedBurner

Powered by Blogger

Politics Blogs
Politics blog


  • How To Exchange Links!
  • Comments by contributors or sources do not necessarily reflect the position of ARRA, its Officers, memberships or the Editors.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2013 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.