Former Fed Staffer, Activists Detail Plan to Overhaul Central Bank
Former Fed Staffer, Activists Detail Plan to Overhaul Central Bank
A former top Federal Reserve staffer joined with activists on Monday to lay out the mechanics of a plan to overhaul the...
A former top Federal Reserve staffer joined with activists on Monday to lay out the mechanics of a plan to overhaul the structure of the U.S. central bank.
Dartmouth College’s Andrew Levin, who was a top adviser to former Fed Chairman Ben Bernanke, Jordan Haedtler of the left-leaning Center for Popular Democracy’s Fed Up campaign and the Economic Policy Institute’s Valerie Wilson say in a paper that their proposals amount to an important modernization of the Fed.
“The Fed’s structure is simply outdated, and that makes it harder for its decisions to serve the public,” Ms. Wilson said in a press call. “We are well aware we can’t create a dramatic shake-up” of the Fed, she said, explaining what she and her colleagues are calling for is “pragmatic and nonpartisan.”
The linchpin of the overhaul is bringing the 12 quasi-private regional Fed banks fully into government. The paper’s authors also repeated calls for bankers to be removed from regional Fed bank boards of directors, while proposing nonrenewable terms for top central bank officials and greater government oversight over Fed actions.
The paper Monday fleshed out the specifics of how the overhaul would happen, building on ideas first made public in April. “We had a ‘why,’ and now we have a ‘how,’” Mr. Levin told reporters.
Mr. Levin and Fed Up have seen successes in their campaign to overhaul the central bank. Earlier this year, congressional Democrats and the campaign of Democratic presidential nominee Hillary Clinton endorsed their push to remove bankers from the boards overseeing the 12 regional Fed banks. Fed Up’s effort to promote diversity in a central bank that is still dominated largely by white males, not withstanding the current leadership of Chairwoman Janet Yellen, also has gained traction among Democrats.
The regional Fed banks are unique among major central banks for being owned by local banks. Some fear this structure gives financial institutions undue sway over policy decisions. Fed bank presidents have countered this isn’t the case.
Regional Fed officials have acknowledged that more diversity within the central bank system would be welcome, but they have been reluctant to tinker with the current structure. The paper also proposes auditing the Fed’s monetary-policy-making functions, and that has been something officials have fought hard against, believing it will lead to bad economic outcomes.
The authors say regional Fed banks can easily be made public by canceling the shares of the member banks and refunding the capital these banks were required to keep with the Fed.
The money to do this can be created by the Fed, and the paper says the fact that the central bank no longer would have to pay dividends to the banks would help it return more of its profit to the government. Over the next decade, that could mean the Fed might return as much as $3 billion more in excess profit, helping reducing the government’s budget deficit.
A number of regional Fed bank leaders have pushed back at being made fully public. In May, New York Fed President William Dudley said “the current arrangements are actually working quite well, both in terms of preserving the Federal Reserve’s independence with respect to the conduct of monetary policy and actually leading to pretty, you know, successful outcomes.”
The paper’s authors said making the Fed fully public also would allow it to remove bankers and other financial-sector members from the boards that oversee each regional Fed bank. The authors said directors should be nominated by either a member of Congress or a state governor, subject to approval by the Fed boards.
None of these directors should be from the financial sector, to prevent the conflict of interest created by a member of a regulated financial institution overseeing the operations of their own regulator.
This, too, has drawn pushback from some on the Fed. Philadelphia Fed leader Patrick Harker said in July that “the banker from a small town in Pennsylvania provides incredibly important insight,” and he wants people like that on his board.
New bank leaders should be selected by an open process in which candidates are named publicly, with a formal mechanism for public input. All Fed officials also should serve single staggered seven-year terms, which the paper says would help insulate central bankers from political interference. The selection process of regional Fed bank leaders has long been a secretive affair. Meanwhile, the leaders of the Dallas, Minneapolis and Philadelphia Fed banks, who all took their posts since 2015, have had connections to Goldman Sachs, which has drawn criticism from the Fed Up campaign. Mr. Dudley at the New York Fed was once that firm’s chief economist.
The authors also would like to subject Fed monetary policy decisions to Government Accountability Office audits. To ensure this oversight doesn’t interfere with Fed decision-making, the paper calls for the audits to be done annually and not at the request of a member of Congress, and the GAO shouldn’t be able to comment on any given interest-rate decision.
The paper calls for the Fed to release a quarterly monetary policy report that describes officials’ views on policy, the economy’s performance relative to the Fed’s official price and job mandates, forecasts and a description of risks, and a description of any models driving policy-making.
Any changes to the Fed are ultimately up to elected officials. In February, Ms. Yellen told legislators “the structure could be something different and it’s up to Congress to decide that—I certainly respect that.”
By Michael S. Derby
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Epic Charter School Fail Exposed
Capital & Main - October 2, 2014, by David Cohen - A $300,000 plane; $861,000 to pay off personal debts and keep...
Capital & Main - October 2, 2014, by David Cohen - A $300,000 plane; $861,000 to pay off personal debts and keep open a struggling restaurant. A down payment on a house and an office flush with flat-screen televisions, executive bathrooms and granite counter tops. This isn’t a list of expenditures from Lifestyles of the Rich and Famous, this represents a small slice of the more than $30 million of taxpayer funds that have been wasted through fraud and abuse in Pennsylvania’s charter schools since they first opened in 1997.
A new report from the Center for Popular Democracy, Integrity in Education, and Action United is blowing the lid off the lack of public oversight at Pennsylvania’s 186 charter schools.
Inadequate audit techniques, insufficient oversight staff and a lack of basic transparency have created a charter system that is ripe for abuse in the Keystone State. But there is hope. The report provides a detailed roadmap for Pennsylvania to create an effective oversight structure and provide meaningful protections that can curtail endemic fraud and waste.
The report calls for an immediate moratorium on new charters until the inadequate oversight system can be replaced with rigorous and transparent oversight. That’s the right first step.
According to the authors, charter school enrollment in the state has doubled three times since 2000 and Pennsylvania’s students, their families and taxpayers cannot afford to lose another $30 million. Pennsylvania’s students and taxpayers deserve better.
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Let's Choose Children Over the Charter Industry
Roll Call - May 14, 2014, by Kyle Serrette and Sabrina Joy Stevens - Our children are too precious, and education...
Roll Call - May 14, 2014, by Kyle Serrette and Sabrina Joy Stevens - Our children are too precious, and education funding too scarce, to risk turning either over to unscrupulous or incompetent organizations. That’s why charter schools were originally supposed to be something akin to a small, controlled experiment: public school laboratories intended to encourage new ways to educate students. That way, if something turned out not to work, the risk to students, educators and communities could be contained.
Unfortunately, the modest educators and community members of the charter school movement’s early days have been eclipsed by members of the charter school industry: an industry rife with fraud, waste and abuse. Yet advocates, particularly among elected officials, have been unwilling to confront this fact and deal accordingly.
Fraud and abuse is rampant in the charter sector. Last week, our organizations issued a new report detailing how charter operators wasted or stole more than $100 million in taxpayer dollars. That number only reflects cases that have been reported in 15 states; it boggles the mind to consider what an examination of all states would uncover.
We found examples of operators embezzling millions in public funds for years before being detected, spending public funds on vacation homes instead of textbooks. In one case, someone bought a private airplane; in another egregious example, they used the money for visits to a strip club. In other cases, unfit operators just plain lost vast amounts of taxpayer money.
Sadly, H.R. 10, the charter schools bill recently approved by the House, fails to address the corruption within this poorly regulated industry.
Ignoring several representatives who offered common-sense amendments, the House passed a bill that fails to call for even basic protections like conflict-of-interest guidelines. It “requires” annual audits, yet allows states to waive the requirement, making it easier for fraudulent actors to hide their theft. It does not extend open meetings laws to charters, nor does it require charter operators to include community representation on their boards.
The bill further erodes community input and oversight by awarding priority status to states that allow entities that are not local education agencies (LEA) to be charter authorizers. Not only will this make it harder for local communities to control access to our tax dollars, it will also erode the quality and consistency of children’s education. For example, 17 charters abruptly closed in Columbus, Ohio, last year alone. In most cases, their non-LEA authorizers’ slipshod vetting processes missed red flags that would have allowed them to thwart fraud and mismanagement.
Disturbingly, the bill awards priority to states that don’t have charter caps, encouraging states to further accelerate charter growth before they’ve established the protections that could prevent the aforementioned abuses. States already struggle to monitor the charter schools they have; it is simply reckless to incentivize them to open more before establishing necessary protections.
H.R. 10 ignores many of the most pressing community concerns about charters. Any new funding for charter schools must encourage more, not less, oversight and involvement by local taxpayers and families. Specifically, a new bill should ban the practice of requiring parent contracts, one of many practices that charter operators use to avoid serving the neediest students.
Charter operators should also be required to collect and publicly report information on student attrition, mobility, and transfer before coming back to the public till. This crucial information will ensure that public funding stays with the students it’s intended to benefit. It will also allow families and policymakers to make informed comparisons between charter and public schools.
If our senators want to ensure success and opportunity through quality public schools, they should create legislative protections that promote quality, and mandate the transparency and accountability that make a school public. H.R. 10 does none of this. Children and taxpayers deserve better.
Kyle Serrette is the director of Education Justice Campaigns at the Center for Popular Democracy. Sabrina Joy Stevens is the executive director of Integrity in Education.
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Luchando por los inmigrantes el 4 de Julio
Al congregarnos el 4 de Julio para conmemorar nuestro primer paso hacia la libertad, debemos reconocer los valiosos...
Al congregarnos el 4 de Julio para conmemorar nuestro primer paso hacia la libertad, debemos reconocer los valiosos aportes de los inmigrantes a nuestra nación. Es la historia de nuestro país. Es una parte intrínseca de nuestro carácter nacional, de nuestra grandeza. Como nación, debemos invitar a todas las personas elegibles a dar su primer paso hacia la libertad y convertirse en ciudadanos.
Lea el artículo completo aquí.
Seis meses después de “María”, Puerto Rico sigue en lucha por reconstrucción
Seis meses después de “María”, Puerto Rico sigue en lucha por reconstrucción
“Tuesday, March 20th from organizations across the nation take to the streets in DC to make sure that @fema, Congress,...
“Tuesday, March 20th from organizations across the nation take to the streets in DC to make sure that @fema, Congress, and the Trump Administration hear our demands.”
Read the full article here.
As the federal government fails the people of Puerto Rico, local governments and states must step up
As the federal government fails the people of Puerto Rico, local governments and states must step up
Given the likelihood that even more Puerto Ricans will resettle on the mainland the Center for Popular Democracy and...
Given the likelihood that even more Puerto Ricans will resettle on the mainland the Center for Popular Democracy and Local Progress have published a policy guide, the first of its kind, offering a roadmap for cities and states to address the immediate needs of their new constituents.
Read the full article here.
Allentown leaders, residents rally for immigration reform
The Express-Times - June 18, 2013, By Sarah Cassi - Allentown Mayor Ed Pawlowski and City Council President Julio...
The Express-Times - June 18, 2013, By Sarah Cassi - Allentown Mayor Ed Pawlowski and City Council President Julio Guridy were among the residents and community leaders rallying tonight at City Hall for federal action on comprehensive immigration reform.
Organized by Comunidad Unida del Lehigh Valley, the crowd called on U.S. Sen. Pat Toomey to support the Border Security, Economic Opportunity and Immigration Modernization Act. the bill would create a pathway to citizenship for illegal immigrants already in the country, toughen border security and create a guest worker program.
The Senate is preparing to vote on the bill next week.
Rally participants also called on Congressman Charlie Dent to reject piecemeal measures being advanced in the House.
“The piecemeal immigration bills currently being proposed in the House are cruel and totally miss the point. They ignore the crucial role that immigrants play in our communities and our economy. These bills don’t even offer immigrants a path to citizenship. Today we’re calling on our Congressmen to vocally support the Senate’s comprehensive immigration reform with a pathway to citizenship, which a clear majority of Pennsylvanians support,” Guridy said in a news release.
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Protesters backing undocumented immigrants locked out of Bank of America HQ
Protesters backing undocumented immigrants locked out of Bank of America HQ
The south doors of Bank America’s corporate headquarters were locked at 10:30 a.m. Monday, to keep out a immigrant...
The south doors of Bank America’s corporate headquarters were locked at 10:30 a.m. Monday, to keep out a immigrant advocates who tried to enter the building to advocate for undocumented immigrants.
A dozen protesters sought to enter a branch on the building’s first floor, to present staff with a letter asking that Bank of America distance itself from elected officials who support the immigration policies of President Donald Trump.
Read full article here.
Extraordinary organizing effort to assist undocumented immigrants impacted by the #FlintWaterCrisis needs YOUR help
Art Reyes III is Director of Training and Leadership Development at Center for Popular Democracy. He along with the...
Art Reyes III is Director of Training and Leadership Development at Center for Popular Democracy. He along with the Genesee County Hispanic Latino Collaborative and a powerful group of organizers from around the country are working in Flint to be sure undocumented immigrants in Flint are getting the help they need in the midst of the water crisis there. The need is real. Many undocumented people are not getting the information they need and still more are too afraid of being detained to go to water distribution sites. It’s a legitimate fear as the U.S. Department of Immigration and Customs Enforcement (ICE) is reported to detaining people in grocery stores and other areas around Flint:
Juani Olivares, says there are roughly a thousand undocumented immigrants in Flint – and many have spent years hiding from authorities to avoid deportation.
“Water was being delivered,” she says, “and they (immigrants) were not opening the door. Because that is the one rule. Do not open the door.”
Let’s face it, undocumented immigrants aren’t paranoid: The government really does want to get them.
Juani Oliveras works with the Genesee County Hispanic/Latino Collaborative. She says rumors are flying about sporadic raids at grocery stores.
“That’s another reason why people are not getting the water,” she says.
What’s worse is that many of these folks are still boiling water before drinking it because that’s what they have been told to do in the past when e. colicontaminated the city’s drinking water. In the case of lead contamination, however, it’s exactly the WRONG thing to do because it concentrates the lead even further.
This past Wednesday, Reyes and other organizers held a training for lead canvassers in Flint, setting the stage for what they hope will become regular daily canvasses until the water issue is resolved.
I spoke with Reyes after the organizing meeting to get a better understanding of what they are hoping to accomplish. He told me that there is currently no infrastructure in place to do what needs to be done in the undocumented community so they are literally building it as they go. He told me that there are an estimated 1,000 undocumented people in Flint. The goals of his group are fourfold:
First, they want to educate people about the water situation to ensure they know what precautions to take and what things to avoid (like boiling the water.)
Second, they want to make sure people are getting the water, water filters, and other necessary items that they need to stay healthy. The state has already been neglected this marginalized population and the poisoning of Flint’s drinking water is making things much, much worse.
Third, they are collecting stories from people. Unless the stories of those who are impacted are lifted up and heard, there will be nothing to stop this from happening again.
Fourth, they are trying to create a database of undocumented immigrants so that they can continue to work with them as needed until the crisis is over. This one is very difficult. The idea of getting into any database is, of course, the greatest fear of people here without documentation.
Finally, they are working to build a database of partners and volunteers who can help them with their effort.
How can you help? There are several ways. First, you can donate money. The Genesee County Hispanic Latino Collaborative has set up a fundraising page HERE.
Second, you can volunteer your time and resources to the effort. This will be an ongoing project and they will need assistance for the foreseeable future. Spanish-speaking volunteers are in particularly high demand. They also need things like storage and organizing spaces, trainers, printing, and all of the things that go along with a long-term effort like this. Click HERE to volunteer.
Third, you can donate water.
Finally, educate yourself about the issue. A good starting point is this essay by Art Reyes titled, “I Grew Up in Flint. Here’s Why Governor Snyder Must Resign. “.
One of the groups assisting with this effort is a small non-governmental agency (NGO) called Crossing Water. The group is headed up by social worker Michael Hood who has brought together around 150 social workers from around the country along with several hundred other volunteers and donors. They have already put up several billboards around Flint in both English and Spanish letting people know not to boil the water. They have plans for more billboards, including trailer mounted billboards that they can drive around Flint. They are also using donations to pay for public service announcements on television and radio. They’ve created videos on how to properly install and use water filters and teaching new parents not to use tap water to mix with baby formula. They have recruited plumbers to help replace lead-containing plumbing. This single group is making a huge difference.
Please do what you can to help with this important outreach effort. There are literally lives on the line, including the lives of babies and children.
Source: Eclecta Blog
The Silver Lining of the New Gilded Age: Fewer Targets
The Silver Lining of the New Gilded Age: Fewer Targets
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York...
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York headquarters in January.
Read the full article here.
20 hours ago
20 hours ago