Tag Archives: Ben Bernanke

Website invites bids to assassinate Obama and other world elites

It is against our server WordPress’s Terms of Service to advocate or encourage violence. WP can simply unilaterally shut down this blog for violating that policy.

So I ask our readers to exercise due prudence. Any comments inciting or approving of violence will be promptly deleted and the commenter permanently banned from FOTM.
Here’s the takeaway last paragraph from the CODA article:
“In his Forbes article, Greenberg noted that there had been other crowd-funding assassination efforts before Sanjuro’s. Given that, no doubt there will be successors to Assassination Market, some of which may well be faux dark web sites deployed by TPTB to entrap wannabe political assassins. If you were TPTB, wouldn’t you do precisely that? Caveat Emptor!”

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State attorney generals sue powerful fed agency blocking bank lending

I just heard a snippet of a very interesting interview on Mike Huckabee’s radio talk show this morning.

Guv. Huckabee was speaking to South Carolina Attorney General (AG) Alan Wilson about a lawsuit Wilson and other state AGs just filed against the federal government over the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law by Obama in July 2010.

Wilson maintains that one big reason why the U.S. economy is stalled and unemployment remains high is because banks won’t lend money to businesses, although they’re sitting on a lot of cash. Wilson attributes this to the Consumer Financial Protection Bureau (CFPB) — a creation of the Dodd-Frank Act and a powerful federal govt agency that has no Congressional oversight and restricted judicial review, but answers only to the even more powerful Federal Reserve System, itself a bastard hybrid of part-govt part-private banks which is also not subject to Congressional oversight.

The very powerful director of the CFPB is Richard Cordray, an Obama appointee. The even more powerful director of the Federal Reserve is Ben Bernanke.

The authors of the Dodd-Frank Act are both unaccountable: Sen. Chris Dodd had already retired from the Senate in 2011, and Congressman Barney Frank is not seeking reelection. Both also had a direct hand in the housing collapse that began America’s Great Recession in that, in their respective roles as chair of the Senate Banking Committee and chair of the House Financial Services Committee, the two men had ignored the imprudent reckless lending policies of the government-sponsored mortgage lenders Fannie Mae and Freddie Mac.

~Eowyn

A rogues gallery (l to r): Chris Dodd, Barney Frank, POS, Richard Cordray, Ben Bernanke

Here is an article, “Republican State AGs Resisting Cooperation with CFPB,”  by Carter Dougherty for BusinessWeek on the lawsuit:

A group of Republican state attorneys general has declined to sign cooperation agreements with the Consumer Financial Protection Bureau, part of an escalating Republican revolt against the agency that began in the U.S. Congress.

Richard Cordray, the agency’s director, asked all 50 states in March to sign a memorandum of understanding designed to protect confidential information shared among states and the bureau. To date, only 12 states — all but one with Democratic attorneys general — have signed, according to the bureau and documents obtained in a public records request.

Oklahoma Attorney General Scott Pruitt said in an interview that he is declining to sign the agreement because of legal objections to the law that created the consumer bureau, the 2010 Dodd-Frank Act. “There are misgivings I have about the authority and scope and power of the CFPB and the power granted to the director,” Pruitt said in an interview. “Frankly, until some of those issues are fleshed out, it is very premature for a state to enter into an MOU.”

Four attorneys general, led by Pruitt, plan to join an existing lawsuit that challenges the constitutionality of Dodd-Frank and the CFPB, according to a person briefed on the decision. Pruitt and attorneys general from South Carolina, Michigan and Kansas may become plaintiffs in the suit as soon as tomorrow, said the person, who spoke on condition of anonymity because the decision wasn’t public.

Separation of Powers

The lawsuit in federal court in Washington was filed June 21 by State National Bank of Big Spring, Texas. The bank argues that the structure of the consumer bureau violates the constitutional principle of separation of powers because Congress does not appropriate its budget, the president has limited ability to remove its director and courts face restrictions in reviewing its actions.

South Carolina Attorney General Alan Wilson, told a campaign rally last week in Greenville, South Carolina, of plans for legal action.

“We’re going to challenge that law,” Wilson said on Sept. 14, in remarks reported by Fox News. “We’re going take the battle back to Washington, D.C., because community banks on Main Street shouldn’t be choked to death so that big banks on Wall Street can take our money.”

The CFPB was created by Dodd-Frank to consolidate federal financial consumer protection authority in a single agency. Since starting work in July 2011, it has set up a complaint system for consumer services, proposed regulations on housing finance and is studying areas including mandatory arbitration, payday lending and overdraft protection.

State Cooperation

Cooperation with state attorneys general has been a signature effort of the consumer bureau since Harvard professor Elizabeth Warren began setting it up in late 2010. Warren, who is now running for the Senate as a Democrat from Massachusetts, touted state law enforcers as “natural partners” for the agency because of their focus on consumer protection.

Republicans opposed creation of the bureau, and Senate Republicans refused to confirm anyone to the position of CFPB director. That standoff led President Barack Obama to install Cordray as director on Jan. 4 using a process known as a recess appointment.

Republican opposition to CFPB and Cordray hasn’t been absolute.

Republican state attorneys general including Rob McKenna of Washington, John Suthers of Colorado and Mark Shurtleff of Utah signed an Oct. 18, 2011 letter supporting Cordray as CFPB director. Cordray, in response to a personal request from Suthers, publicly promised to help AGs combat payday lenders who dodge state laws by affiliating with Native American tribes.

Constitutionality Challenged

Pruitt of Oklahoma has spearheaded the work among attorneys general on challenging the constitutionality of Dodd-Frank, according to the person briefed on the lawsuit. Diane Clay, a spokeswoman for Pruitt, declined to comment on the lawsuit.

“General Pruitt has been leading the discussion on legal challenges to the unconstitutional provisions in Dodd-Frank for more than a year, and will work with South Carolina to lead the state litigation once plans are announced,” she said.

Michigan attorney general Bill Schuette and his counterpart in Kansas, Derek Schmidt, will also join the lawsuit, the person said. Schuette’s spokeswoman Joy Yearout declined to comment. Schmidt spokesman Jeff Wagaman did not return an e-mail or phone call seeking comment.

‘Disdain’ for States

Pruitt, Wilson and Schuette all signed a March 5 memo from the Republican State Leadership Committee, an association of Republican state officials, that criticizes the Obama administration’s “disdain for states, federal laws it finds inconvenient, the Constitution and the courts.” The memo includes Cordray’s recess appointment on a list of Obama’s objectionable actions.

Pruitt has opposed other initiatives backed by the Obama administration. In February, he declined to join a 49-state settlement with five large mortgage servicers over foreclosure practices, preferring to cut his own deal instead.

The CFPB and the National Association of Attorneys General signed a “joint statement of principles” in April 2011. In a March 6 speech, Cordray, a former Ohio attorney general, asked states to also sign individual MOUs, and asked for a “quick turnaround.”

“We want to expand on what you already do so well — and we want you to take advantage of new resources we bring to the arena,” Cordray said in an address to NAAG in Washington.

Agreements Tallied

More than five months later, only 10 states had signed the memorandum: New Hampshire, New Mexico, Montana, New York, Vermont, North Carolina, Hawaii, Iowa, Mississippi and Nevada, according to copies obtained on Aug. 22 under a Freedom of Information Act request.

Since then, the District of Columbia, Wyoming and North Dakota have signed such memorandums with the consumer bureau, agency spokeswoman Moira Vahey said in an e-mail.

“We are pleased that we have a dozen agreements and additional agreements in the works. However, this is a state-by- state process and will take time,” Vahey said.

The purpose of the memorandum is to “preserve the confidentiality of information the parties share,” according to the documents. It states that any non-public “written or oral information exchanged between the parties will be deemed confidential.”

North Dakota attorney general Wayne Stenehjem is the only Republican among state officials who have signed the memorandum. Those who have declined gave differing reasons.

Greg Zoeller, the Republican attorney general of Indiana, said the pact was “unnecessary” because his office can sign confidentiality agreements that cover specific enforcement cases they work on with CFPB.

“I never quite understood why they wanted a common memorandum of understanding,” Zoeller said in an interview. “It has not really caught on well.”

At the same time, Zoeller downplayed the need for broader challenges to the CFPB. He called potential lawsuits evidence that the country is in a “silly season” before the election, and said that a Republican-only lawsuit “hurts our credibility in challenging federal laws.”

For instance, no Democratic attorneys general joined lawsuits against the Obama health care law, Zoeller said. The Supreme Court eventually ruled against them.

Other Republicans involved with state issues took a harder line on the Obama administration and Cordray’s work.

“This effort for bipartisan cooperation with the states has clearly failed at this point,” Chris Jankowski, president of the Republican State Leadership Committee, said in an interview.

The bank’s case is State National Bank of Big Spring v. Geithner, 1:12-cv-01032, U.S. District Court, District of Columbia (Washington).

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Ben Swann – QE3 = QE Infinity Until the Crash

Ben Bernanke giving banks $40,000,000,000

 per month indefinitely?

[youtube=https://www.youtube.com/watch?v=hf2WAw81OqQ&list=UU1h3bqESVdqkwm123Ce4ZmA]

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QE3: The Next Rip Off of the American Middle Class

Did you feel it?

Feel what, you ask.

I’ll be blunt: Did you feel screwed? Because that’s what happened two days ago, on Thursday. As Peter Schiff, president of Euro Pacific Capital, writes: “September 13, 2012 may one day be regarded as the day America finally threw in the economic towel” as a result of Federal Reserve Chairman Ben Bernanke setting loose QE3.

I know your eyes tend to glaze over at words such as “Federal Reserve,” “monetary policy” and “QE3”. But you need to pay attention because that’s precisely what our government is counting on, which then enables them to fiddle with monetary policies like QE3.

QE is Quantitative Easing; 3 refers to this being the Feds’ third QE because two previous Quantitative Easings had failed at jump-starting America’s stalled economy, which then of course calls for yet another QE. [Snark] Nothing succeeds like failure!

According to Wikipeida, Quantitative Easing is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system, generally through buying of the central government’s own bonds to stabilize or raise their prices and thereby lower long-term interest rates. This policy is usually invoked when the normal methods to control the money supply have failed, e.g. the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

Did you understand that? Me neither!

What I do know is that, from teaching (for many years) a college course on the political economy of Japan, Quantitative Easing was used unsuccessfully by the Bank of Japan (which is really the Japanese government) to fight deflation after the bursting of Japan’s “bubble economy” at the end of the giddy 1990s. Today, Japan’s economy, sadly, remains in the doldrums. So much for Quantitative Easing.

Below is an op-ed by a guest writer for FOTM, Dave McMullen, who’s one of our regular commenters. Following Dave’s op-ed is a great video that explains what the euphemistic term “Quantitative Easing” means. It’s a hoot. Highly recommend!

~Eowyn

QE3: The Next Rip Off of the American Middle Class

By Dave McMullen

This week Ben Bernanke announced that the Federal Reserve bank will begin to spend 40 billion dollars a month (with no cap on spending) to buy mortgage-backed securities. [Note: A mortgage-backed security is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.]

Once again, our government is asking taxpayers to buy the same toxic mortgage-backed derivatives that caused the crash of our economy back in 2008. Once again we are being forced by our government to bail out the same criminal financial institutions, whose criminal conspiracy had caused the collapse of the housing market and the ensuing recession in the first place.

The government now wants to own these properties, but remember the money from the TARP (Troubled Asset Relief Program) bailout of 2008 could have easily purchased all of them, and at the least, taxpayers would have owned the assets. But the government chose to give the money to the banksters, with little or no regulation on how the funds were to be used. TARP may have helped the banks but it was a disaster for our housing markets: 80% of U.S. homebuilders were bankrupted; the average home lost 30-40% of its value.

This devaluation of our real estate was caused by the worthless money printed by the Federal Reserve bank.  In other words, the Obama administration virtually stole the equity from every U.S. homeowner to bail the banksters out.

So now the government is doing this all over again. The Federal Reserve will print more worthless Fiat currency to buy these same toxic mortgages and the results will be the same. QE3 will further devalue our real estate and our money, thereby causing more inflation that will lead to more unemployment.

How much more can our fragile economy withstand?

TARP Failed. QE1 and QE2 were models of political corruption. QE3 may well be the “straw that breaks the camel’s back.”

It may be time to pick up the pitch forks and march on Washington. But at the least, call your Congressmen and tell them “NO MORE!”.

[youtube=https://www.youtube.com/watch?v=PTUY16CkS-k]

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Ron Paul confronts Fed Chairman

At the House Financial Services Committee hearing yesterday, Feb. 29, Ron Paul socked it to Federal Reserve Chairman Ben Bernanke.
At around the 3:50 mark, Paul asks Bernanke if he does his own shopping, if he is aware of what true inflation is, and if he knows that Americans don’t trust the government because they are being lied to about inflation. Then Paul delivers this zinger: “The Fed will self-destruct anyway when the money is gone.”
[youtube=https://www.youtube.com/watch?v=n7gAgjTvtjc&feature=player_embedded#!]
H/t ZeroHedge
See my post “Steep rise in food and gas prices under Obama” and Sagebrush’s “The Truth About the Federal Reserve.”
~Eowyn

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Herman Cain and the Federal Reserve

Many conservatives were elated when, on May 21, 2011, Herman Cain announced he’s running for the presidency in 2012.
In spite of Cain’s many impressive achievements and credentials, however, some of us are wary because of his close association with that strange hybrid creature called the Federal Reserve System. Cain was a former deputy chairman (1992–94) and chairman (1995–96) of the civilian board of directors to the Federal Reserve Bank of Kansas City.
The Federal Reserve System (FDS) was conceived in secrecy in 1910 on Jekyll Island, New York, then created in 1913 via the Federal Reserve Act. It is a strange public-private hybrid of privately-owned banks that act as America’s central bank with limited government supervision. As America’s central bank, the FDS supervises and regulates the banking system, manages the country’s money supply through monetary policy, maintains the stability of the financial system, and attempts to prevent and contain banking panics.
The importance of the Federal Reserve and its public-private nature have provoked many a conspiracy theory, which is not helped by its Inspector General Elizabeth Coleman’s admission in May 2009, that the FDS could not account for $9 Trillion in “off-balance sheet transactions,” whatever that means.
Coleman’s admission provoked outrage among the American people, who demanded Congress to audit the Federal Reserve. The Fed, in turn, resisted every effort. Its chairman, Ben Bernanke, at one time even resorted to fear tactics, darkly warning that an audit by the General Accounting Office “would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
All of this was made worse when, in December 2010, a limited one-time peak into the Federal Reserve revealed a secret taxpayer-funded bailout of foreign banks in the amount of a mind-boggling $12.3 Trillion – and Congress wasn’t even informed, not to speak of being consulted.
When asked about auditing the FDS, Herman Cain at first was defensive but eventually allowed that he is not opposed to auditing the Federal Reserve System. Below is more information on Cain and the FDS.
~Eowyn
Herman Cain and the Fed
By Joseph Lawler on 5.27.11
Joshua Green at The Atlantic takes note of an interesting situation: Herman Cain, currently undertaking a populist and Tea Party-based campaign for the presidency, is a former Kansas City Federal Reserve chairman.
There are elements of the Tea Party, especially those influenced by Ron Paul, who are against the Fed in general. And the Tea Party has led the wider trend in Republican thought against loose monetary policy. For Cain to have been a member of the Fed and defend it some cases is an obstacle in his attempt to present himself as the Tea Party favorite.
Cain was appointed as a Class C director of the Kansas City Fed board in 1992. In that capacity, he provided advice to the president of the KC Fed (the conservative Thomas Hoenig) about conditions for private, non-bank businesses. According to Green, that particular bank was very conservative at the time, and so was Cain:

I had better luck with Drue Jennings, a Kansas City lawyer who served with Cain on the Federal Reserve Board and succeeded him as chairman. Jennings is quite fond of his old colleague. “Herman was a pleasure to work with,” he told me. “His views were pretty consistent with those of the Fed at the time. Alan Greenspan was, of course, chairman and Herman was in lock stop with the policies of the Fed.” Jennings added that this was not atypical; he could not recall a single dissent from anyone during this three-year term. Still, he said, Cain was no pushover. “He’s a guy you’ll never find in a gray area,” Jennings said. “He’s intelligent, well spoken, and very assertive to the point of almost being aggressive. He’s anything but shy.”
Jennings said Cain fit the profile of the Kansas City Fed. “Inflation was always the big bugaboo,” he told me, “and when it comes to monetary policy, he was an inflation hawk. I’ll tell you, that’s the most conservative bunch of guys I’ve ever met.”
At a recent Spectator press event I had the opportunity to ask Cain about his views on the Federal Reserve. His view is that the Fed’s current dual mandate is overbroad, and that it should not be tasked with promoting maximum employment. He argued that the only role of the Fed should be to stabilize the price level, and suggested that as president he would try to end the dual mandate.
While keeping inflation expectations stable doesn’t necessarily entail a specific Fed stance (for instance, during a downturn it would be necessary for the Fed to engage in very loose monetary policy to avoid deflation), Cain made it clear that he favored tighter money for the current economy. In other venues, he’s expressed approval of some kind of gold standard or other asset backing for U.S. currency. And he’s not impressed by current Fed chairman Ben Bernanke’s management of the crisis and weak recovery — he said flatly that he wouldn’t reappoint Bernanke in 2014 if he were president. Cain declined to suggest who he would replace Bernanke with, however. Although he had a few candidates in mind, he chuckled that he wouldn’t want to invade their privacy just yet.

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Audit the Federal Reserve!


Back in May of last year, I wrote this:

The Federal Reserve System (FDS), created in 1913 via the Federal Reserve Act, is the United States’ central bank. It is a quasi-public, quasi-private banking system in that it is a government entity with private components. As America’s central bank, the FDS supervises and regulates the banking system, manages the country’s money supply through monetary policy, maintains the stability of the financial system, and attempts to prevent and contain banking panics.
The importance of the Federal Reserve and its public-private nature have provoked many a conspiracy theory, which is not helped by its Inspector General Elizabeth Coleman’s admission last May that the FDS could not account for $9 TRILLION in “off-balance sheet transactions.”
Coleman’s admission provoked outrage among the American people, who demanded Congress to audit the Federal Reserve. The Fed, in turn, resisted every effort. Its chairman, Ben Bernanke, at one time even used fear tactics, darkly warning that an audit by the General Accounting Office “would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
At long last, we have victory!
Yesterday, May 11, the Senate actually did something good and useful. By a unanimous and bipartisan vote of 96 to 0, the Senate passed an amendment by Sen. Bernie Sanders (I-Vermont) to audit the Fed.

Alas, my exclamation of “victory” was sadly premature and wildly optimisitc, for on January 27, 2011, I saw this Wall Street Journal headline, Rand and Ron Paul Introduce Twin Fed-Audit Bills.” Here’s the article by Jamila Trindle:

Sen. Rand Paul (R., Ky.) introduced U.S. Senate legislation Wednesday to audit the Federal Reserve while his father, long-time Fed critic Rep. Ron Paul (R., Texas), re-introduced similar legislation in the U.S. House.
“We must take a critical look at the Fed’s monetary policy decisions, discount window operations, and a host of other things, with a real audit–and not just pay lip-service to the idea of an audit,” Sen. Paul said in a statement. “It is more crucial than ever that we have real transparency at our own central bank.”
Sen. Paul said the bill would eliminate the current audit restrictions placed on the Government Accountability Office and mandate a complete audit of the Federal Reserve by a deadline. Sen. Paul joined the Senate as a freshman lawmaker in January. His father, Rep. Paul, has been in the House since 1997 and previously was a member of Congress in the 1970s and 1980s.
Rep. Paul introduced legislation calling for the same audit of the Fed on the House side, which is similar to legislation that he has pushed for as a House lawmaker. As part of the financial regulatory overhaul, Rep. Paul wanted to give congress the power to audit the fed’s interest rate decisions. But the measure never made it in the final version of the bill.
“I was very pleased that so many of my colleagues were willing to stand up for transparency and accountability in government,” Rep. Paul said. “I am optimistic about our prospects for a full and complete audit in the 112th Congress.”

Clearly, the Federal Reserve has something to conceal. Concealment and deception are the hallmark of evil.
God bless Ron and Rand Paul — and the voters who put this determined father and son in Congress. Tell them you appreciate and support what they’re doing.
To send a message to Senator Ron Paul (Texas), CLICK HERE.
To send a message to Congressman Rand Paul (Kentucky), CLICK HERE.
~Eowyn

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Federal Reserve's Secret Taxpayer-Funded $12 Trillion Bailout of Global Banks

The Federal Reserve System (FDS) was conceived in secrecy in 1910 on Jekyll Island, New York, then created in 1913 via the Federal Reserve Act. It is a strange public-private bastard-hybrid of privately-owned banks that act as America’s central bank with limited government supervision. As America’s central bank, the FDS supervises and regulates the banking system, manages the country’s money supply through monetary policy, maintains the stability of the financial system, and attempts to prevent and contain banking panics.
The importance of the Federal Reserve and its public-private nature have provoked many a conspiracy theory, which is not helped by its Inspector General Elizabeth Coleman’s admission in May 2009, that the FDS could not account for $9 TRILLION in “off-balance sheet transactions,” whatever that means.
Coleman’s admission provoked outrage among the American people, who demanded Congress to audit the Federal Reserve. The Fed, in turn, resisted every effort. Its chairman, Ben Bernanke, at one time even used fear tactics, darkly warning that an audit by the General Accounting Office “would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
Now comes even more disturbing revelations.
A limited one-time peak into the Federal Reserve revealed a secret taxpayer-funded bailout of FOREIGN banks in the amount of a mind-boggling $12.3 TRILLION — and Congress wasn’t even informed, not to speak of being consulted.
Like you, I still have a measure of trust in the basic goodness of my fellow human beings and in government, but the stark horrible reality of the Federal Reserve and the corrupt banking system is now too insistent to be ignored. I saw news of this some days ago but was too depressed by it to post. Below are excerpts from the most recent account, David DeGraw’s “The Wall Street Pentagon Papers.”
New World Disorder, anyone?
God help us….
H/t Joseph, MayTina, & FS.
~Eowyn

The Wall Street Pentagon Papers: Biggest Scam In World History Exposed: Are The Federal Reserve’s Crimes Too Big To Comprehend?
By David DeGraw The Public Record Dec 10, 2010
What if the greatest scam ever perpetrated was blatantly exposed, and the US media didn’t cover it? Does that mean the scam could keep going? That’s what we are about to find out…from the one-time peek we got into the inner-workings of the Federal Reserve. This is the Wall Street equivalent of the Pentagon Papers.
I’ve written many reports detailing the crimes of Wall Street during this crisis. The level of fraud, from top to bottom, has been staggering…. Just when I thought the banksters couldn’t possibly shock me anymore… they did.
We were finally granted the honor and privilege of finding out the specifics, a limited one-time Federal Reserve view, of a secret taxpayer funded “backdoor bailout” by a small group of unelected bankers. This data release reveals “emergency lending programs” that doled out $12.3 TRILLION in taxpayer money – $3.3 trillion in liquidity, $9 trillion in “other financial arrangements”… and Congress didn’t know any of the details….
Yes. The Founding Fathers are rolling over in their graves…. The Federal Reserve was secretly throwing around our money in unprecedented fashion, and it wasn’t just to the usual suspects like Goldman Sachs, JP Morgan, Citigroup, Bank of America, etc.; it was to the entire Global Banking Cartel. To central banks throughout the world: Australia, Denmark, Japan, Mexico, Norway, South Korea, Sweden, Switzerland, England… To the Fed’s foreign primary dealers like Credit Suisse (Switzerland), Deutsche Bank (Germany), Royal Bank of Scotland (U.K.), Barclays (U.K.), BNP Paribas (France)… All their Ponzi players were “gifted.” All the Racketeer Influenced and Corrupt Organizations got their cut.
…If you still had any question as to whether or not the United States is now the world’s preeminent banana republic, the final verdict was just delivered and the decision was unanimous. The ayes have it.
Any fairytale notions that we are living in a nation built on the rule of law and of the global economy being based on free market principles has now been exposed as just that, a fairytale. This moment is equivalent to everyone in Vatican City being told, by the Pope, that God is dead.
I’ve been arguing for years that the market is rigged and that the major Wall Street firms are elaborate Ponzi schemes, as have many other people who built their beliefs on rational thought, reasoned logic and evidence. We already came to this conclusion by doing the research and connecting the dots. But now, even our strongest skeptics and the most ardent Wall Street supporters have it all laid out in front of them, on FEDERAL RESERVE SPREADSHEETS.
Even the Financial Times, which named Lloyd Blankfein its 2009 person of the year, reacted by reporting this: “The initial reactions were shock at the breadth of lending, particularly to foreign firms. But the details paint a bleaker and even more disturbing picture.”
Yes, the emperor doesn’t have any clothes. God is, indeed, dead. But, for the moment at least, the illusion continues to hold power. How is this possible?
To start with, as always, the US television “news” media (propaganda) networks just glossed over the whole thing – nothing to see here, just move along, back after a message from our sponsors… Other than that obvious reason, I’ve come to the realization that the Federal Reserve’s crimes are so big, so huge in scale, it is very hard for people to even wrap their head around it and comprehend what has happened here.
Think about it. In just this one peek we got at its operations, we learned that the Fed doled out $12.3 trillion in near-zero interest loans, without Congressional input.
The audacity and absurdity of it all is mind boggling…
Based on many conversations I’ve had with people, it seems that the average person doesn’t comprehend how much a trillion dollars is, let alone 12.3 trillion. You might as well just say 12.3 gazillion, because people don’t grasp a number that large, nor do they understand what would be possible if that money was used in other ways.
Can you imagine what we could do to restructure society with $12.3 trillion? Think about that…
People also can’t grasp the colossal crime committed because they keep hearing the word “loans.” People think of the loans they get. You borrow money, you pay it back with interest, no big deal.
That’s not what happened here. The Fed doled out $12.3 trillion in near-zero interest loans, using the American people as collateral, demanding nothing in return, other than a bunch of toxic assets in some cases. They only gave this money to a select group of insiders, at a time when very few had any money because all these same insiders and speculators crashed the system.
Do you get that? The very people most responsible for crashing the system, were then rewarded with trillions of our dollars. This gave that select group of insiders unlimited power to seize control of assets and have unprecedented leverage over almost everything within their economies – crony capitalism on steroids.
This was a hostile world takeover orchestrated through economic attacks by a very small group of unelected global bankers. They paralyzed the system, then were given the power to recreate it according to their own desires. No free market, no democracy of any kind. All done in secrecy. In the process, they gave themselves all-time record-breaking bonuses and impoverished tens of millions of people – they have put into motion a system that will inevitably collapse again and utterly destroy the very existence of what is left of an economic middle class. That is not hyperbole. That is what happened.
We are talking about trillions of dollars secretly pumped into global banks, handpicked by a small select group of bankers themselves. All for the benefit of those bankers, and at the expense of everyone else. People can’t even comprehend what that means and the severe consequences that it entails, which we have only just begun to experience…. No matter which way you look at it, we are all in serious trouble!
If you are an elected official…and you believe in the oath you took upon taking office, you must immediately demand a full audit of the Federal Reserve and have Ben Bernanke and the entire Federal Reserve Board detained. If you are not going to do that, you deserve to have the words “Irrelevant Puppet” tattooed across your forehead….
Here’s a roundup of reports on this BernankeLeaks:
Senator Bernie Sanders (I-Vermont)…was the senator who [sic] Bernanke blew off when he was asked for information on this heist during a congressional hearing. Sanders fought to get the amendment written into the financial “reform” bill that gave us this one-time peek into the Fed’s secret operations…. In an article entitled, “A Real Jaw-Dropper at the Federal Reserve,” Senator Sanders reveals some of the details:

At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later… we have begun to lift the veil of secrecy at the Fed…
After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America….
We have learned that the $700 billion Wall Street bailout… turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country.…
Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations including two European megabanks — Deutsche Bank and Credit Suisse — which were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities….
Has the Federal Reserve of the United States become the central bank of the world?… [read Global Banking Cartel]
…What we are seeing is the incredible power of a small number of people who have incredible conflicts of interest getting incredible help from the taxpayers of this country while ignoring the needs of the people. [read more]

In an article entitled, “The Fed Lied About Wall Street,” Zach Carter sums it up this way:

The Federal Reserve audit is full of frightening revelations about U.S. economic policy and those who implement it… major bank executives who had run their companies into the ground were allowed to keep their jobs, and shareholders who had placed bad bets on their firms were allowed to collect government largesse, as bloated bonuses began paying out soon after.
But the banks themselves still faced a capital shortage, and were only kept above those critical capital thresholds because federal regulators were willing to look the other way, letting banks account for obvious losses as if they were profitable assets.
So based on the Fed audit data, it’s hard to conclude that Fed Chairman Ben Bernanke was telling the truth when he told Congress on March 3, 2009, that there were no zombie banks in the United States. “I don’t think that any major U.S. bank is currently a zombie institution,” Bernanke said. As Bernanke spoke those words banks had been pledging junk bonds as collateral under Fed facilities for several months…
This is the heart of today’s foreclosure fraud crisis. Banks are foreclosing on untold numbers of families who have never missed a payment, because rushing to foreclosure generates lucrative fees for the banks, whatever the costs to families and investors…. Not only are zombie banks failing to support the economy, they are actively sabotaging it with fraud in order to make up for their capital shortages. Meanwhile, regulators are aggressively looking the other way.” [read more]

Even the Financial Times is jumping ship:

Sunlight Shows Cracks in Fed’s Rescue Story
It took two years, a hard-fought lawsuit, and an act of Congress, but finally… the Federal Reserve disclosed the details of its financial crisis lending programs. The initial reactions were shock at the breadth of lending, particularly to foreign firms. But the details paint a bleaker, earlier, and even more disturbing picture…. An even more troubling conclusion from the data is that…it is now apparent that the Fed took on far more risk, on less favorable terms, than most people have realized. [read more]

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Edward G. Griffin wrote a book on the founding of the Federal Reserve System, The Creature From Jekyll Island, that is now the definitive work on the Fed. 
Here’s a video of Griffin talking about the Beast:

~Eowyn

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Fed Chief Ben Bernanke Calls US Economy "Unsustainable"

Ben Bernanke, head of the Federal Reserve Bank, is America’s central banker. So when Bernanke makes a speech in which he paints a dire picture of the U.S. economy and calls the Obama administration’s fiscal policy “unsustainable,” Americans should listen. But did you hear or see this in the mainstream media?
~Eowyn

Bernanke Tells the Truth: The United States is on the Brink of Financial Disaster

By Robert Wenzel – Economic Policy Journal – October 5, 2010
Yesterday, Federal Reserve Chairman Ben Bernanke delivered a speech before the the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In the speech, he warned about the current state of the government finances. His conclusion, the situation is dire and “unsustainable”.
It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words:

Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, “If something cannot go on forever, it will stop.”9 One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis.

This is as close as you are ever going to see a central banker admit that his country’s financial situation is so dire that it could breakup at any time.
Here’s more from Bernanke’s remarkable speech:

The recent deep recession and the subsequent slow recovery have created severe budgetary pressures not only for many households and businesses, but for governments as well. Indeed, in the United States, governments at all levels are grappling not only with the near-term effects of economic weakness, but also with the longer-run pressures that will be generated by the need to provide health care and retirement security to an aging population. There is no way around it–meeting these challenges will require policymakers and the public to make some very difficult decisions and to accept some sacrifices. But history makes clear that countries that continually spend beyond their means suffer slower growth in incomes and living standards and are prone to greater economic and financial instability.

Now, get this, he warns that it is not only the Federal government that has financial problems, but also states and local governments:

Although state and local governments face significant fiscal challenges, my primary focus today will be the federal budget situation and its economic implications.

Does Bernanke see the tsunami hitting or what?
Then, he put things in historical perspective:

The budgetary position of the federal government has deteriorated substantially during the past two fiscal years, with the budget deficit averaging 9-1/2 percent of national income during that time. For comparison, the deficit averaged 2 percent of national income for the fiscal years 2005 to 2007, prior to the onset of the recession and financial crisis. The recent deterioration was largely the result of a sharp decline in tax revenues brought about by the recession and the subsequent slow recovery, as well as by increases in federal spending needed to alleviate the recession and stabilize the financial system. As a result of these deficits, the accumulated federal debt measured relative to national income has increased to a level not seen since the aftermath of World War II.

Then, he explains the deterioration and the problems it will create for the entire economy:

For now, the budget deficit has stabilized and, so long as the economy and financial markets continue to recover, it should narrow relative to national income over the next few years. Economic conditions provide little scope for reducing deficits significantly further over the next year or two; indeed, premature fiscal tightening could put the recovery at risk. Over the medium- and long-term, however, the story is quite different. If current policy settings are maintained, and under reasonable assumptions about economic growth, the federal budget will be on an unsustainable path in coming years, with the ratio of federal debt held by the public to national income rising at an increasing pace.2 Moreover, as the national debt grows, so will the associated interest payments, which in turn will lead to further increases in projected deficits. Expectations of large and increasing deficits in the future could inhibit current household and business spending–for example, by reducing confidence in the longer-term prospects for the economy or by increasing uncertainty about future tax burdens and government spending–and thus restrain the recovery. Concerns about the government’s long-run fiscal position may also constrain the flexibility of fiscal policy to respond to current economic conditions.

Then, he tells us how powerful the negative trends are and how the aging population and Obamacare are going to make things worse:

Our fiscal challenges are especially daunting because they are mostly the product of powerful underlying trends, not short-term or temporary factors. Two of the most important driving forces are the aging of the U.S. population, the pace of which will intensify over the next couple of decades as the baby-boom generation retires, and rapidly rising health-care costs. As the health-care needs of the aging population increase, federal health-care programs are on track to be by far the biggest single source of fiscal imbalances over the longer term. Indeed, the Congressional Budget Office (CBO) projects that the ratio of federal spending for health-care programs (principally Medicare and Medicaid) to national income will double over the next 25 years, and continue to rise significantly further after thatthe aging of the U.S. population will also strain Social Security, as the number of workers paying taxes into the system rises more slowly than the number of people receiving benefits. This year, there are about five individuals between the ages of 20 and 64 for each person aged 65 and older. By 2030, when most of the baby boomers will have retired, this ratio is projected to decline to around 3, and it may subsequently fall yet further as life expectancies continue to increase. Overall, the projected fiscal pressures associated with Social Security are considerably smaller than the pressures associated with federal health programs, but they still present a significant challenge to policymakers.

Then he goes back to warn that the financial mess also exists at the state and local level:

The same underlying trends affecting federal finances will also put substantial pressures on state and local budgets, as organizations like yours have helped to highlight. In Rhode Island, as in other states, the retirement of state employees, together with continuing increases in health-care costs, will cause public pension and retiree health-care obligations to become increasingly difficult to meet. Estimates of unfunded pension liabilities for the states as whole span a wide range, but some researchers put the figure as high as $2 trillion at the end of 2009.5 Estimates of states’ liabilities for retiree health benefits are even more uncertain because of the difficulty of projecting medical costs decades into the future. However, one recent estimate suggests that state governments have a collective liability of almost $600 billion for retiree health benefits. These health benefits have usually been handled on a pay-as-you-go basis and therefore could impose a substantial fiscal burden in coming years as large numbers of state workers retire.

Bernanke then breaks the news that the problem is global:

It may be scant comfort, but the United States is not alone in facing fiscal challenges. The global recession has dealt a blow to the fiscal positions of most other advanced economies, and, as in the United States, their expenditures for public health care and pensions are expected to rise substantially in the coming decades as their populations age. Indeed, the population of the United States overall is younger than those of a number of European countries as well as Japan.

Bernanke then re-emphasises, the damage this will do to the overall economy:

Failing to address our unsustainable fiscal situation exposes our country to serious economic costs and risks. In the short run, as I have noted, concerns and uncertainty about exploding future deficits could make households, businesses, and investors more cautious about spending, capital investment, and hiring. In the longer term, a rising level of government debt relative to national income is likely to put upward pressure on interest rates and thus inhibit capital formation, productivity, and economic growth. Larger government deficits increase our reliance on foreign lenders, all else being equal, implying that the share of U.S. national income devoted to paying interest to foreign investors will increase over time. Income paid to foreign investors is not available for domestic consumption or investment. And an increasingly large cost of servicing a growing national debt means that the adjustments, when they come, could be sharp and disruptive. For example, large tax increases that might be imposed to cover the rising interest on the debt would slow potential growth by reducing incentives to work, save, hire, and invest.

He then states that we do not know how much time is left before all hell breaks loose:

It would be difficult to identify a specific threshold at which federal debt begins to pose more substantial costs and risks to the nation’s economy. Perhaps no bright line exists; the costs and risks may grow more or less continuously as the federal debt rises. What we do know, however, is that the threat to our economy is real and growing, which should be sufficient reason for fiscal policymakers to put in place a credible plan for bringing deficits down to sustainable levels over the medium term.

From there,Bernanke goes into a bit of wishful thinking by identifying ways Congress can rein in spending and make the tax system more efficient. Good luck with all of that.
The real important part of Bernanke’s speech is the first half where he warns of the financial crisis just ahead.

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