Rep. Paul introduces bill to cancel $1.6T in debt held by Federal Reserve

By Pete Kasperowicz – 08/02/11 10:13 AM ET

Rep. Ron Paul on Monday introduced legislation that would lower the federal government’s debt by canceling the roughly $1.6 trillion in debt held by the Federal Reserve.

Paul has argued for the last few weeks that the idea represents a quick way to make the growing fiscal crisis more manageable. Under his bill, H.R. 2768, the $1.6 trillion that the Treasury owes to the Federal Reserve would disappear.

The Federal Reserve began buying Treasury bonds in earnest late last year as part of its effort to keep long-term interest rates down. But Paul has argued that Fed purchases of Treasury debt represent a debt that the government owes to itself, and one that also leads to an unwanted and inflationary increase in the money supply.

Paul has also said the Fed is allowing the federal government to continue a spending binge it otherwise would not be able to afford, and is forcing the Fed to print money to keep up.

“If the federal government cannot cut spending and bring the budget back into balance, the Fed undoubtedly will be forced to simply monetize trillions of dollars in Treasury debt, which is nothing more than a stealth form of default,” Paul said back in May.

Paul is highly critical of the debt-ceiling agreement that the House approved Monday, and said that rather than require real cuts in spending, the bill mostly cuts planned spending levels in the future. According to the legislation, discretionary spending in 2012 would be just $7 billion less than in 2011, and in 2013 it would be just $3 billion less than 2011 before allowing increases above 2011 levels.

In looking for this bill I found this and… “The text of H.R. 2768 has not yet been received from GPO.  Bills are generally sent to the Library of Congress from the Government Printing Office a day or two after they are introduced on the floor of the House or Senate. Delays can occur when there are a large number of bills to prepare or when a very large bill has to be printed.”

0 thoughts on “Rep. Paul introduces bill to cancel $1.6T in debt held by Federal Reserve

  1. These clowns in office are too busy worrying about their coming vacations to worry about such things. Besides, this doesn’t fit into their plans in deceiving the public. You see, they are going to cancel this debt in another way so the public doesn’t see it, so they can protect their pensions and health care.

  2. well Ron Paul had better start buying his campaign T shirts in America instead of El Salvadoor,(ABC NEWS) I’m sure that he didnt know! But with his experience he should have! Have at it .

    1. phil,
      Seeing as how Ron Paul has never stolen money, had sex with an underage girl, had any illegitimate children, cheated on his wife, or put a picture of his weaner on Twitter, if this is the worst thing they can say about him, he would have to be considered a saint in DC.
      Not to mention probably the person who ordered the tee shirts was on two payrolls at the time of the purchase and at least he didn’t bring the El Salvadorians up here to make the tee shirts.

      1. clark I know that i shouldn’t say this , and i am a firm supporter of Ron Paul But I dont think that he has a icecubes chance in hell of becoming our next president,as a mater of fact i will bet henry he will not ever get the republican nomination for president,not even in the top 5,.and i will bet henry a cold beer on that, if he is on the ballet I WILL vote for him, but the way the media ignores him and his campaign is not raiseing much money i hope that things get better for him, but at this point it is hard to compare his 5 or 10 million to obamas 80 to 100 million in election funds, and everybody knows that money buys votes and a whole bunch of other stuff that we dont like.

    1. phil,
      Simple, if there was one thing Ron Paul had done wrong, they would know, as I’m sure the CIA has spared no expense in investigating him from his birth to date. If they had anything they would have used it to take him out the first time “End the Federal Reserve” passed his lips.
      I’m really surprised you couldn’t figure that one out for yourself.

          1. You know what phil? I think you might be getting tired of commenting here.
            I don’t have to trust the fucking CIA. In fact it is my complete lack of trust in their ability to adhere to our laws that lets me know that if there was something dirty to be done it would have already been a done deal.

        1. phil,
          Sure they did. Just because you weren’t one of the people listening does not mean there were not plenty of people out there who knew exactly what Barry was and is, and were shouting it at the top of their lungs.
          Personally I knew all about old Barry, thus I did not vote for him, thus I cannot be counted among the duped, the swindled, the “I can’t believe I voted for that son of a bitch”.

          As for the bet. I will not wager on the Republican primary. But I do have an ice cold suds that says Ron Paul will run for president and win.

  3. No harm done. my point is Ron Paul needs help ! and you know from my past posts that i like his ideas for our future, as for your comment (I think you might be tired of commenting here) think again my friend and keep the suds cold !!!

    1. You’re right, he does need help and we are going to help him.
      And don’t forget how the people we are trying to reach are convinced as to who to vote for.
      Ron Paul is going to win.
      Ron Paul cannot be stopped.
      No candidate can beat Ron Paul.
      Resistance is futile.
      By the way, did I say Ron Paul is going to win?
      Is this not how it is done?

  4. Hey, Phil! Why don’t just shut up. You don’t have to have faith in Ron Paul because the mainstream media says he doesn’t. And you are entitled to your opinion. But, In my opinion, You can take your self-defeatist attitude, and post your opinions on the mainstream medias blog spots. Where, Your opinion means less! This is a Patriot website. In spirit, of the founders of our constitution, and the folks who got up and dropped thier productive lives, so they could die for us future generations to be liberated in freedom. Under the constitution, and our bill of rights. Like everyone here. I love Ron Paul! I will put a bet in as well that he will get elected, because most people don’t vote. Why, Thats simple! Nobody wants to vote for the lesser evil. And just about everyone has lost confidence in our politicians. This one is easy. If 35% of the population votes on persons who is the lesser evil. The other 65% don’t even vote. Why would they vote for the same old same old fraud. The definition of insanity. Is when a person tries something over and over again. EXPECTING DIFFERENT RESULTS IS INSANITY! Ron Paul represents something different. And that will mean that the astronomically high amount of unemployed, and people who have never voted. Probably would vote for Ron Paul! My guestimate would be about a 25% increase for Ron Paul, Because of the current conditions. However, This site, I believe is Ron Paul, or no Ron Paul. It is about TRUE PATRIOTISM! And I have kept my balls. I want to fight these bastards, I want to make them pay for thier crimes. And I will do it as long as thier agenda is just as secretive as the elite, that runs contrary to thier plans. I want to fight. And I am personally willing to take it to the wall with other like minded people.. I have been trying so hard to get people to drink the water, that you see here. I lead them there. ANd they won’t drink. ANd neither will you Phil! Face it Phil, Its not our country right now.

  5. In 2008 out of the 231,229,580 people old enough to vote 132,618,580 turned out or 56.8%.My reference was from answers.com.Corrado!

  6. I just threw it out there. The percentages in all. I didn’t do the reasearch. I was just making a damn point. I have tried so hard to get people to wake up a smell the treason. But, They we’re getting busy staying asleep watching the Caylee Anthony trial, or the New Jersey shore episodes. They’re afraid. I can go all day on my expierences. day to day. But, I won’t. I have searching long and hard for a group of Americans who are so enraged by what is going on that we HAVE TO DO SOMETHING. We cannot just sit here and take this from these elected and non-elected bullies. We have to hit em back. To sit here and talk about the statistics of Ron Paul this, and ROn Paul that. And how do you know, how accurate answers.com is anyway. What if it’s false. What if its true. Who cares! This conversation is only O.k in the dailypaul forums. Actually, If you had posted this on that site. You would have ripped to shreds. But, thats only because that is our man. But, that is your opinion. And it should be open. However, My point is you may be right. But, thats not why I come here. I come here because. I want to be part of some semblence of resistance. I want organized resitance. Not some guy computing numbers about how Ron Paul can’t win. He might not win. The people here think he will. I do as well. And, I won’t give up until the end of the bell. Right now I’m all about trying to make some friends with some other patriotic people. WHo think like me. You have a right to speak your mind, but its irratading. I think your missing the point. Of why fromthetrenchesworldreport is here. Note, fromthetrenches. Is exactly where we are as American residents. Not citizens. We are not citizens in our own country.

  7. O.k your right, but you still miss the bullseye. Sorry! Here is some simple straight talk. There are some people out here. Who believe that the eye of the pyrimad must be snatched out of existence. We know who they are! And what they are up too. It really is that simple. Elections to them are funny to them, Everything is smoke and mirrors, They lead you to believe that they reflect you, and then reflect thier corporate interests, And well that means anything. Espically to them! When we the sheep vote for them. Oh, Well. I guess Ron Paul will never win.

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