Archive for Alan Greenspan

Why the Fed Likes Independence

Posted in Attack on Freedom, Business, economic tyranny, Economy, News, Ron Paul, The Constitution, The Federal Reserve, Thoughts, Truth/Freedom, Tyranny, Unconstitutional with tags , , , , , , , on January 15, 2010 by truthwillrise

Why the Fed Likes Independence

By Ron Paul 01/12/2010

Dr. Ron Paul is a Republican member of Congress from Texas.

Last week it was revealed that when Treasury Secretary Tim Geithner was Chairman of the New

York Federal Reserve, he urged AIG officials not to disclose to the Securities Exchange

Commission relevant details of agreements with banks to bail out Goldman Sachs. Apparently he

felt at the time that regulators and the public would be angry that taxpayer money was used to fully

compensate bankers who made some horrifically bad investment decisions. These banks should

have suffered the consequences of the huge risks they were taking. After all, they kept plenty of

rewards when times were good. Instead, the Fed found a way to socialize these major losses so

these banks could survive and continue making more bad decisions, at the expense of the American

people and the value of the dollar.

Geithner claims that they had to take politically unpopular actions to save the economy from

collapse. Half of that is right – it was politically unpopular, but it is extremely premature at best, to

claim the economy has been saved. It was just reported that 85,000 more jobs in December.

Unemployment stands at 10 percent officially, and 22 percent according to more traditional

calculations. It is hard to argue that this sort of government waste has done anything but harm to

our economy. Raiding Main Street to bail out Wall Street is a foolish idea. Main Street productivity

and the strength of the dollar is the bedrock of the economy. You cannot gut this foundation without

eventually toppling everything else. This is what too many policy makers either don’t understand or

refuse to face. Or even worse, perhaps they do understand, but don’t care!

In any case, this revelation makes precisely my point about the need for Fed transparency. This

claim that the Fed should have “independence” is a canard. They very much enjoy their comfortable

pattern of bailing out friends and devaluing the currency with no oversight and no accountability.

Geithner specifically asked officials at AIG not to disclose to the SEC or to the public particulars

about this special deal for his friends. We only know these details now because AIG was eventually

forthcoming when Congress demanded some answers.

We should be getting this information, and information on all such dealings, straight from the Fed.

The Fed should be accountable to Congress because it is a creature of Congress. The Constitution

gives Congress the authority to oversee the integrity of the monetary unit. We have unwisely and

unconstitutionally delegated this authority to the Federal Reserve, which has in turn devalued our

dollar by 95 percent and counting. When the Federal Reserve engages in harmful policies,

Congress is still ultimately responsible. If the Fed is not made accountable through a GAO audit at

least, it will continue to be accountable to no one, and that is unacceptable.

 

Geithner expects to be praised and thanked for his actions instead of rebuked and fired. He

expects to be given more power to engage in “experimental” monetary policy in the future. But he

has just given us a very good idea of what the Fed and Treasury would do with more power, what

they consider good monetary policy, and why they like their so-called independence.

Advertisements

US court skeptical of Fed push for bailout secrecy

Posted in Attack on Freedom, economic tyranny, Economy, International Bankers, New World Order, News, Stupid Government Tricks, The Constitution, The Federal Reserve, Truth/Freedom, Tyranny, Unconstitutional with tags , , , , , , , on January 15, 2010 by truthwillrise

* Press seeks details of Fed bailout programs

 Fed says disclosure could hurt banks, financial system

* Bloomberg says disclosure breeds confidence

* News Corp’s Fox News also opposes Fed

By Kristina Cooke and Jonathan Stempel

NEW YORK, Jan 11 (Reuters) – A federal appeals court on Monday appeared skeptical of U.S. Federal Reserve efforts to prevent the press and the public from learning the names of participants in emergency lending programs designed to support and bail out the financial system.

The central bank has argued that disclosure would cause “competitive and reputational harm” to participants, perhaps triggering bank runs, and impede its ability “to effectively manage the current, and any future, financial crisis.”

Bloomberg News and News Corp’s (NWSA.O) Fox News Network LLC had sought details of the Fed’s actions under the federal Freedom of Information Act, or FOIA, which requires government agencies to make documents available to the public.

A release of data could give the public, including bank shareholders, a better sense of how the Fed was moving to prop up the financial system during what is widely considered the worst financial crisis since the Great Depression.

In a 1-3/4 hour oral argument, a panel of the U.S. Second Circuit Court of Appeals in Manhattan questioned the Fed argument that if potential participants knew they might be named, they might choose not to borrow rather than face a possible “stigma” for seeming to be in trouble.

This, the Fed had argued, could harm the broader financial system.

“I’m having a little trouble with it being a stigma outside of, basically, a day,” Circuit Judge Peter Hall told Matthew Collette, a lawyer representing the Fed.

“You’re talking of a crisis of a moment, or maybe a few days, or a week,” Chief Judge Dennis Jacobs added.

Collette said that if banks were dissuaded from borrowing out of fear their names would be disclosed, it could harm their businesses and force them into unwanted activities, perhaps including fire sales of assets or firings of employees.

“The stigma is very real,” Collette said. “This is a problem in which there will be an assumption, potentially, that this bank is in trouble.”

BREEDING CONFIDENCE

Bloomberg brought its case to force the Fed to release records of actions it took to shore up the financial system starting in late 2007, including the March 2008 sale of Bear Stearns Cos to JPMorgan Chase & Co.

Emergency lending programs have more than doubled the Fed’s balance sheet to am amount in excess of $2.2 trillion, especially following the Sept. 15, 2008, collapse of Lehman Brothers Holdings Inc (LEHMQ.PK).

FOIA “breeds confidence in our public institutions, which quite frankly is something that is sorely needed right now,” said Thomas Golden, a lawyer for Bloomberg.

Bloomberg had won its case in Manhattan district court in August. Chief District Judge Loretta Preska ruled that the Fed failed to show that disclosing names could lead to a “downward spiral of financial instability.”

Fox News, in contrast, lost its case in the same court the prior month. Judge Alvin Hellerstein said “the national economy is not so out of danger, and the frailty of banks so different now … as to make the board’s concern academic.”

An appeals court panel typically takes several weeks or months to rule. Its ruling may be appealed to the full court or to the U.S. Supreme Court.

The Clearing House Association LLC, an industry-owned group of banks, supported the Fed’s position.

This group includes the ABN Amro Bank NV unit of Royal Bank of Scotland Group Plc (RBS.L), Bank of America Corp (BAC.N), Bank of New York Mellon Corp (BK.N), Citigroup Inc (C.N), Deutsche Bank AG (DBKGn.DE), HSBC Holdings Plc (HSBA.L), JPMorgan Chase & Co (JPM.N), UBS AG (UBSN.VX), US Bancorp (USB.N) and Wells Fargo & Co (WFC.N).

“The press would like a blanket rule and change nearly 100 years of central banking policy in this country,” said Robert Giuffra, a lawyer for the Clearing House. “The problem is, you can’t set a blanket rule.” He urged the court to step back and leave it to Congress to set disclosure rules.

The Bloomberg case is Bloomberg LP v. Board of Governors of the Federal Reserve System et al, U.S. Second Circuit Court of Appeals, No. 09-4083. The Fox News case in the same court is Fox News Network LLC v. Board of Governors of the Federal Reserve System et al, No. 09-3795. (Reporting by Kristina Cooke and Jonathan Stempel; Additional reporting by Chris Sanders; Editing by Steve Orlofsky)

Fall of the Republic HQ full length version

Posted in Alex Jones, Attack on Freedom, economic tyranny, False Flag Terror, Fiat Currency, International Bankers, New World Order, News, Police State/Martial Law, Ron Paul, Shadow Government, The Constitution, The Federal Reserve, Truth/Freedom, Tyranny, Unconstitutional with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on December 5, 2009 by truthwillrise

Order the DVD at: http://infowars-shop.stores.yahoo.net…
Fall Of The Republic documents how an offshore corporate cartel is bankrupting the US economy by design. Leaders are now declaring that world government has arrived and that the dollar will be replaced by a new global currency.

President Obama has brazenly violated Article 1 Section 9 of the US Constitution by seating himself at the head of United Nations’ Security Council, thus becoming the first US president to chair the world body.

A scientific dictatorship is in its final stages of completion, and laws protecting basic human rights are being abolished worldwide; an iron curtain of high-tech tyranny is now descending over the planet.

A worldwide regime controlled by an unelected corporate elite is implementing a planetary carbon tax system that will dominate all human activity and establish a system of neo-feudal slavery.

The image makers have carefully packaged Obama as the world’s savior; he is the Trojan Horse manufactured to pacify the people just long enough for the globalists to complete their master plan.

This film reveals the architecture of the New World Order and what the power elite have in store for humanity. More importantly it communicates how We The People can retake control of our government, turn the criminal tide and bring the tyrants to justice.
A film by Alex Jones.

Legendary Financial Historian Ed Griffin on the Economic Crisis, the Monetary Elite and the Future of the Internet

Posted in economic tyranny, Economy, Fiat Currency, International Bankers, New World Order, News, The Federal Reserve with tags , , , , , , , , , , , , , , on November 29, 2009 by truthwillrise

 


G. Edward Griffin

 

Guest Interview

11/29/2009 – with Scott Smith

The editors of the Daily Bell are pleased to publish an exclusive follow-up interview with legendary hard-money historian G. Edward Griffin who has much to say about the economic crisis, the mood of the monetary elite and the effect of the Internet on freedom.

Introduction: Mr. Griffin is a distinguished film producer, author and political lecturer. He is the founder of Freedom Force International, a libertarian-oriented activist network focused on advancing individual freedom. First released in 1994, Mr. Griffin’s best-selling financial book, The Creature from Jekyll Island, is a no-holds-barred look into the inner workings of the Federal Reserve banking system, or cartel if you will. Mr. Griffin peels back the layers of obstruction to rational analysis and leads the reader on a wonderfully researched, although disturbing, journey from the very beginning, when the Fed was still in the planning stages, up to the present, where it is now struggling to survive. For many years, the editors of the Daily Bell have been avid readers of Mr. Griffin’s tremendous literary contributions on free markets and personal liberty. His insights are especially noteworthy given the validity of his vision and the exciting and troublesome nature of the times in which we live.

Daily Bell: Has the stimulus helped? Why or why not?

Griffin: Has the stimulus helped? I guess the question is has the stimulus helped whom? Or What? The general idea is that the stimulus is supposed to stimulate the American economy and help the American people and in that I don’t believe that there is any reason to think that it has helped at all. I don’t think it was really designed to do that at all. It was designed to be sold that way but I don’t think that anyone in Washington thought that it would actually accomplish the end objective. Now I suppose that some people did think so, I would have to backtrack on that, there are some collectivists that believe the government can solve all problems, that the government can take everything from the citizens and redistribute it back to them in a more efficient manner. There are people like that out there and they thought the stimulus package would help. Surely everybody understands that the money that is being spent is coming out of the pockets of the very people it is supposed to help.

Daily Bell: From the central banking mechanism?

Griffin: Yes, the government doesn’t have this money. The government is spending this money but they don’t have this money, and the paradox there is that they are not collecting it from taxes but they are just creating it out of nothing. They are using the Federal Reserve mechanism to create this money out of nothing, push it into the economy and then that results in inflation. The cost of it is born by everybody but it is usually born mostly by the people at the bottom of the economic scale who will feel the effects of inflation the most.

Daily Bell: Modern governments are supposed to take care of the poor, but often it doesn’t work that way.

Griffin: The very wealthy don’t suffer too much from the effects of inflation and the upper middle class get by OK, but the bottom part of the middle class and those who are on limited incomes have a real tough time with inflation. So I am saying the cost of all these stimulus packages are falling on the very people who are supposedly to be helped and not only that, the benefit is not going to those people at all but to the politically favored class, those who are in government jobs or government contracts with the government. It is going to the banks, going to the insurance companies, the big corporations – all who have strong lobbying influence with Washington. The money is coming from the middle and lower class and going to the politically favored class. So is it helping? It is helping the politically favored class a lot, it is helping the politicians a lot because they can posture and grandstand and say we are doing something, we are taking charge here. So it is helping them. But as for helping the economy or the people at large, it is a miserable failure.

Daily Bell: Are we headed toward price inflation?

Griffin: I think we are going to see some continued deflation in the economy, particularly in the bubble sectors. These markets had a long way to contract and I don’t think they are finished. However, it is inevitable that we are going to see price inflation and lots of it. Probably hyper-inflation because the only thing these people in Washington know is how to print more money which almost inevitably leads to higher prices.

Daily Bell: Isn’t price inflation already in the system?

Griffin: Of course it is, particularly in cost of living sectors – food, education and healthcare. Things people have to deal with every day. We are already are seeing price inflation there.

Daily Bell: Price inflation, which inevitably results from the printing of money. …

Griffin: What is interesting when you have a complete understanding about this, is to realize that while they are creating tremendous amounts of money out of nothing and pouring it into the economy through the politically favored class, as I mentioned earlier, at the same time a tremendous amount of money is dropping out of the system at the bottom because of the collapse of real estate values, the loss of savings, the writing off of bad loans, mortgages or writing off a $20k or $30k credit card bill or whatever the debt is. And eventually they go into bankruptcy court and they are cleared of that debt, that money literally goes out of existence.

Daily Bell: So inflation – which is actually the quantity of money – is evening out for the moment?

Griffin: With the fiat money system, money comes in and out of existence and people sometimes forget that fact. So in these economic downturn times, a lot of money is disappearing and at the same time is appearing at the top. The thing to keep your eye on is where the money is going out of the system. It’s coming out of the middle class. These are the people that have lost their savings, have lost the equity in their homes. They have lost all the money that they thought they had in the way of assets, a lot of it anyway. So we see there is money going out and at the same time there is money coming in. It is a transfer of wealth. The wealthy, because of the political connections, are making more and more money and the middle class is literally being squeezed. These guys at the top hope to squeeze these middle guys out of existence.

Daily Bell: Is the power elite running scared?

Griffin: I wouldn’t say they are running scared. I think they are cautious. I think things are unfolding pretty much the way they had anticipated all along. I think these people are smart enough to realize that as we come closer and closer to their New World Order, as they like to call it, the system is becoming more and more a command economy rather than a free market.

Daily Bell: But aren’t people waking up?

Griffin: There is a lot of upheaval going on. I think there is anticipation that there is a lot of waking up going on. But I think they have been preparing for that. I think they are cautious, but I think they fully expect to contain that or possibly turn it to their advantage. For example, if they could encourage rebellion, revolts and riots, that would provide the excuse for martial law. I think the motivation behind their equipping police forces and national guard units with crowd control weapons and the reason they have been building these massive FEMA concentration camps all around the country, is their anticipation of the need for a final crackdown.

Daily Bell: Has the Internet contributed to elite setbacks?

Griffin: I think the Internet has been the most powerful force to set back the plans of the power elite. They hate the Internet, they hate the free exchange of information. You can see the impact all around the world. The totalitarian systems are moving heaven and earth in order to regulate and restrict the free use of the Internet. They want to control it. They can control it. And they are working very hard as we speak to maneuver the legislation so that they will control it.

Daily Bell: How are they going about it?

Griffin: They are trying to sell it to the average person as a good move for the public. They are trying to convince people that if the government doesn’t control the Internet then we will have pornography, people will have their privacy stolen, children will be abused. A lot of people don’t really understand the real issues. They say “oh yeah, naturally we need more and more regulation on the Internet.”

Daily Bell: This is being done independently by governments?

Griffin: Actually, there is a movement afoot for the United Nations to control the Internet. The idea is that international control would be fairer than what we’ve got now, which is a good deal of American control. Of course, most countries don’t make any pretense of respecting individual rights or free-speech. They are totalitarian in nature. The whole world is filled with dictatorships of one kind or another, and these people have no respect for human rights or freedom of speech. You can be sure that if the United Nations winds up in control that the free exchange of information that the whole thing will come to a shuttering stop!

Daily Bell: Not a pleasant thought. But meanwhile, the power elite has other things to occupy itself with. Is it fair to say that the fiat money system is broken beyond repair?

Griffin: No, the fiat money system is all that the world has right now. Of course, it is not working well at all and thus there has been talk of a new monetary system – one that might possibly be backed a little bit by gold or silver. But that’s what they always say to sell it in the early stages. If you look at the people who are making these statements, the Western world leaders, they are enemies of gold and silver. They love fiat money. They want to control it because it’s a means of strengthening their hand over the people. Fiat money is not dead by any means.

Daily Bell: Is there more unrest in the West than the mainstream media suggests?

Griffin: Good question, I don’t know that I am qualified to answer that. My contacts indicate that there is a lot of unrest when you get out beyond informed groups to the people who make up the bulk of the population. But it’s unrest that is not knowledgeable; it’s not based on information.

Daily Bell: What is the trigger, then?

Griffin: It’s based on emotion and envy and anger and I am afraid that that kind of unrest can be used to bring about the very opposite of what we need in this world. If you can manipulate the mobs into being angry, say for example, at capitalism, then you can end up with something even worse.

Daily Bell: Yes, that’s why change has to be non-violent.

Griffin: And it has to be knowledgeable. It’s not knowledgeable to say the banks are failing and therefore capitalism has failed, so let’s try socialism. What’s left out of that argument is that the banks are not functioning within a free-market system. The banks in the world today are a prime example of collectivism. They are in bed with the government. They couldn’t exist without government favoritism and government monopoly. The banks and the government are practically one in the same. That’s not capitalism, that’s not free enterprise competition. But the masses have been told that that is capitalism. So when the collectivist system goes belly up, as it periodically does, then those who are misled can get angry at capitalism, which is the wrong target. I worry about that kind of rising resentment and anger in the world because it is not based on facts.

Daily Bell: Yet understanding of free-markets has taken off in the last decade, thanks to the Internet in large part.

Griffin: Funny, I am thinking that there are two parts in my brain fighting against each other at the moment. On the one hand I want to say something very positive and encouraging because there certainly are strong signs of a growing movement for the free market. But when you look at who is still in charge of the world’s governments and institutions, it’s still a very small component of the larger scene.

Daily Bell: But it is growing? …

Griffin: Yes, it is definitely growing and I believe it has a solid base to it. In fact, I get a great deal of encouragement from that. We just have to keep the fire under it and I think as more and more people become upset with the collapse going on around them, they will honestly start looking for a new way. And thanks to the Internet, many are starting to realize that we haven’t had free-enterprise capitalism, we haven’t had free markets for many years. I’m encouraged by that, but we still have a long way to go.

Daily Bell: We compared the Internet to the Gutenberg press and said the results would be similar. Do you think so?

Griffin: I think that is a good analogy. The Gutenberg press made information available to the masses and the Internet has done the same. Good analogy, yes.

Daily Bell: We’ve spoken about some general threats to the freedom of the Internet. Will the current American administration be able to crack down on the Internet and censor its messages about free-markets and freedom in general?

Griffin: The current administration can do anything it wants to do. That is the answer to the question. They have the political power, the military power and the economic power. They own the economy and they control the military. And the media goes along with everything they want to do. I think they want a crack down, and will try, but they are going to need some kind of an excuse. They are going to need some kind of a major event to justify it.

Daily Bell: Will Ron Paul and his free-market message have an increasing impact on American politics?

Griffin: I believe he will, but I don’t know if it will be because of his personal involvement or this thing that we might call the Ron Paul phenomenon. Ron Paul generated this phenomenon because of his astoundingly excellent position on so many policies and because he ran as a candidate of a major political party which gave him visibility, which he would never have had, particularly with young people. Once that is started, it can’t be stopped really. Once the bell is rung it can’t be un-rung. So I think, even if Ron Paul is not personally involved in any more political movements, that the Ron Paul phenomenon is going to continue to grow.

Daily Bell: We think the conservative movement is desperate to co-opt the libertarian message and has launched a number of artificial candidates to do so including notably Sarah Palin. Agree?

Griffin: I agree that that is a strategy they have considered and would execute if they could. When it comes to particular candidates, I don’t know enough about them. Sarah Palin is very hard to pin down. I don’t know what her political philosophy is. And that worries me, because if someone is offering themselves for leadership, especially in these troubled times, they have to stand up and say what it is they believe in. I am talking about real principles and not just in terms of whether we should or shouldn’t drill oil. That’s an issue, and an interesting issue, but what are the principles, what is the ideology, what is the yardstick that will be used, the guidelines that will be used to make all the decisions that come down the line.

Daily Bell: She comes off as free-market oriented in some ways but not in others. Most notably her ongoing support for the military industrial complex is problematic.

Griffin: I don’t know what her philosophy is. But I have a feeling that what you said is absolutely correct, that they are going to package her as a quote “conservative” whatever that means. Certainly, they are going to package her as a constructive alternative to Obama. Yet when it comes to the real issues like the loss of American sovereignty, the abolition of the Federal Reserve System, important issues like that, we don’t know where she stands.

Daily Bell: We think the American intel establishment is launching more and more conspiratorial and pro-war Internet sites – ones that nonetheless feature free-market rhetoric – in order to confuse the public. Agree?

Griffin: I am not aware of them but it sounds like something they should do. If I was running their strategy, that is exactly what I would do. I don’t know what sites you would be referring to but I would expect that to be the case.

Daily Bell: Will the American establishment media ever get to the bottom of 9/11?

Griffin: The American establishment media will never get to the bottom of 9/11 because they are controlled by the same financial and political forces that seem in some sense responsible for 9/11. I am talking about that cluster of personalities on the Council of Foreign Relations and the people that circle around them. They are the ones that are really calling the shots, not only in the government, but also in the media, educational systems, foundations, etc. The media is as much a part of that group as the government. So I don’t expect to see the media break step with the official position of the government.

Daily Bell: Why did John Farmer, the 9/11 Commission lead litigator, recently come out with a book that basically accused the entire American military, political and industrial structure of lying about what happened on that terrible day?

Griffin: I don’t know, I have not read the book but I am guessing that it might be a kind of decoy to lead people away from the real issue. I suspect that it is part of a decoy. Make a half confession instead of a fuller one.

Daily Bell: Did you ever believe this sort of free-market movement would exist – as it evidently does – within your lifetime?

Griffin: I never questioned whether there would be a free market movement – I was determined to be part of it. That is much of the focus of my work. Yes I did expect to see it.

Daily Bell: Can you list some of your own notable accomplishments – outside of writing one of the best books ever on the Federal Reserve – in aiding this trend?

Griffin: As far as my own work is concerned, others would be better to evaluate how effective that was. I just keep chugging away as best I can.

Daily Bell: What do you believe will happen within the next ten years? Are you optimistic for free markets and freedom in the West and in particular in America?

Griffin: I divide my view into the short view of history and the long view. I have to be honest and say in the short run that I am very pessimistic. I believe that the forces that brought us to this situation are firmly in control of the systems of the world right now. I don’t think we are going to see a turn around in the short term.

Daily Bell: You are speaking of governmental forces?

Griffin: No, I’m not just talking about the political structures, but about the media centers and the educational systems and the labor unions, the church organizations. All the great power centers where people have their leaders and derive their opinions. Those are now all firmly in the hands of collectivists who have this single goal of establishing a new world order based on the model of collectivism.

Daily Bell: You see it as very pervasive.

Griffin: They are in charge. Anyone who thinks we are going to turn that around quickly, well, I don’t think he or she is being realistic. But that does not mean that the long view cannot be favorable. I’m much more optimistic in the longer term. There’s no way to stop this thing in my view. They can stop some of us, but they can’t stop all of us. The ideas cannot be stopped. Once people understand the truth, they are not ever going to easily forget it.

Daily Bell: You’ve done a great deal to help with that effort.

Griffin: All of us together are building a movement where an understanding of free-enterprise and free-markets is reaching the point of critical mass. People are passing the word. Books are being written. DVD’s are being distributed. Outside of the mainstream media, the Internet is having a powerful impact. The overall flow of information is pretty strong right now. It is going to take about two generations, in my opinion, but in the long run I see total victory for free markets and for personal freedom. I feel really good about that.

Daily Bell: From our point of view, the Middle Eastern wars are intended to spread Western-style collectivist democracy to the Islamic world. Has the West stumbled in its war against the Muslim religion (failure in Afghanistan, Iraq, Pakistan, etc.)?

Griffin: Have they stumbled? In my view, the conflict between the Western world and Islam is largely manufactured. There is no question that there are extreme groups within Islam, but my own research leads me to the conclusion that those are the very groups that have been fronted, aided and abetted by forces within America because they wanted to create an enemy – a dreaded foe to justify all the other schemes.

Daily Bell: The BBC, in a program last year came to a similar conclusion.

Griffin: Without an enemy, they cannot fight a war. Without a war, they cannot justify being in the Middle East. If they are not in the Middle East, they can’t control the oil and on and on you go.

Daily Bell: So … it’s at least partially manufactured?

Griffin: The war against Islam is manufactured and is actually a war that need not be. Did they fumble the war? No they created it! They created it and it is just a meme. They don’t want to win the war! They want to fight the war for ten years, twenty years, thirty years. They are not fumbling it. It is exactly what they want. It is not a question of winning or losing, it’s a question of just having it, prolonging it and using it as a means of scaring the daylights out of the American people and conditioning them to accept the loss of their freedom at home.

Daily Bell: Homeland Security is a dangerous institution in our opinion and one of the prime outcomes of 9/11. Do you see it being rolled back?

Griffin: I do not see it being rolled back under the present regime. It is not there because the American people wanted it, it is there because rulers wanted it and we still have the same rulers. I don’t see any reason why they would roll it back. They might try to tidy it up a little bit, so far as public relations are concerned. But I would be very surprised if they cut its budget, cut its staff, cut its powers or anything like that. I think it is going to continue to expand, all aspects of it.

Daily Bell: We had a polite but public argument with the savvy Ellen Brown. Can you give us a further response to Ellen Brown’s (Brownian) perspective on nationalizing banks since they, rather than the Federal Reserve, are responsible in her view for banking abuses?

Griffin: Well I am not aware of that debate, but I am certainly able to address the issue of nationalizing banks. There is no reason in my mind for the banking system, or for that matter, the automobile industry, the motion picture industry, housing or any other part of American life to be run by the government. I don’t see any reason for the hospitals or medical clinics to be run by the government either.

Daily Bell: Good point.

Griffin: The idea that whenever there is a problem the solution is for the government to go in and take control is one of the most absurd and childish concepts I have ever heard of. The idea that the government can do anything better than the free market is just based on complete absence of understanding how the free market works. The only thing I think the government can do better than anybody else is to fight a war. The only thing a government can do better is to kill and destroy, and that is what it is good at. If war is used to kill and destroy in defense of a nation, in defense but not as an aggressive act, and it is used to defend the lives, liberty and property of its citizens then war performs a proper function, in my view.

Daily Bell: So you see a need for some kind of limited government, practically speaking.

Griffin: It is tragic that we have to defend ourselves. But history shows if you cannot defend yourself then you become a slave to someone who moves in and takes over. So we need to have the killing machine, but that’s about all.

Daily Bell: But not the banking system?

Griffin: The idea that government should be running the banks is absurd. The American government has been in the banking business since 1913 when the Fed was founded. The solution is not to get more into the banking business but to get the government out of it completely. So I would say no, let’s get the government out of the banks completely and then make the banks follow the rules and regulations that any other business must follow. Give them no favoritism, no subsidy, no bailouts. Make them honor their contracts and if they fail then they fail. Let new banks come into existence.

Daily Bell: How long has gold and silver been used as money? We think silver anyway is a substance that has been used in commerce for up to 10,000 years of human history, not 2,000 as certain monetary authorities suggest.

Griffin: I would have to get my notes out on exact dates but it doesn’t really make any difference if it’s been 2,000 years or 10,000 years. The real issue is not how long but how well it has performed in that function. When you look at the historical record, there is nothing that has done as well as gold or silver as a medium of exchange because it has all of the essential qualities required of money. It is not perishable, it’s divisible, it has great value and it can be precisely measured. People have used just about everything for a medium of exchange but nothing has worked as well as gold and silver for thousands of years. The record is clear on it. That is what history has chosen over and over again. Why do we have to go looking around for something else? I don’t understand that.

Daily Bell: Do you have any other comments to make regarding where we are at this point in the 2000s rather unique history?

Griffin: The only comment I would like to make is that it is an exciting time in which to live. I am glad I am living at this time. I am glad because, for me or anybody else who is a free-market thinking person and one who cares about the future, it gives us an opportunity to make a difference in the world. I think it is a wonderful time to be alive.

Daily Bell: Thank you, Ed. You continue to make a huge difference. It is always a pleasure and an honor to speak to a free-market legend in his own lifetime!
After Thoughts with Scott Smith

Scott SmithWhat can we say about this remarkable man and the remarkable and honest answers he has provided us? Ed Griffin has fought for freedom throughout his life and his famous book on the Federal Reserve has in one way or another inspired millions to question their assumptions about money and the reality of their lives in modern society.

Ed Griffin is an achiever for freedom and he has continuously made an effort to advance its cause. We don’t have any explanation for what makes Ed Griffin go. He obviously does what he does because he has to do it. We’re just glad he’s around.

If we had any quibble with this interview (how can we, really?) it would be in the area of pessimism – even short-term pessimism. We know Ed was just explaining his viewpoint as honestly as possible, but we think, generally, that pessimism probably expends negative energy that would be better spent doing positive things.

And Ed, despite his views about the elite and their controlling ways, has quite obviously never let pessimism slow him down. He went out and wrote a tremendous book (one of a number he has written) that literally changed people’s lives and perceptions of their culture.

Additionally, Ed is very active in the peaceful fight for freedom in America. He may be pessimistic, short term, but he is the most active pessimist we know. Every day he gets up and does his part, his share, to fight collectivism and to try to gain back some ground for the American Constitution.

For us, Ed is a great inspiration – as a leader, as a fighter in a peaceful revolution of ideas and as a person who has created a life based on an inspiring and important belief structure that he obviously built up on his own. Ed, by the way, lived much of his life in a pre-Internet era. Much of his adult work was conducted pre-Internet, which makes it all the more noteworthy.

For us, of course, as we have often reported, the Internet is something of a game-changer. We look at what the Internet has allowed people to accomplish in terms of supporting freedom, and we begin to believe that the changes that have been made by the Internet are “already in the pipeline.”

Yes people’s minds have already been changed. Now, Ed Griffin believes it may take another two generations to show overwhelming results. But maybe not. There is, as Ed himself agrees, a foundational freedom movement in America, and we see one growing in Britain as well. There are setbacks in all things, and cyclical turnings as well. But people like Ed Griffin and Ron Paul inform us through their actions and intent that there are always two sides at work – and at least two stories being told simultaneously. And maybe, ironically, Ed’s own efforts may contribute to speeding things up. Freedom, real freedom, may not take two generations to achieve.

We want to end by observing that Ed Griffin-a man who certainly ought to know – sees many positives in the world today and in the Internet as well. What we’ll take away from this interview is the energy it exudes, and the excitement that Ed obviously has about the future of freedom, even as he acknowledges, realistically, the challenges ahead.

Thanks again, Mr. Griffin, for all you’ve done and have yet to do.

Interviews and after-thoughts may include the contributions of several Daily Bell editors and writers.

AUDIT WILL EXPOSE FED

Posted in economic tyranny, Economy, International Bankers, New World Order, News, Shadow Government, Stupid Government Tricks, The Federal Reserve, Tyranny with tags , , , , , , , , on July 20, 2009 by truthwillrise

Top official at Fed says U.S. economy will crash if central bank audited

By Christopher J. Petherick

During a hearing on Capitol Hill in early July, a top official at the Federal Reserve warned Congress to stay out of the bankers’ business and not force the privately owned and operated central bank to submit to a public audit.

On July 9 The Financial Times reported on Texas Republican Rep. Ron Paul’s landmark “Audit the Fed” legislation (H.R. 1207), which would remove any remaining proscriptions on federal authorities investigating the Federal Reserve Bank, which serves not only as the U.S. central bank but is increasingly acting as the top banker to the world. So far Paul’s bill has picked up 261 co-sponsors, well over half the membership in the House.

Since the collapse of economies around the world in the summer of 2008—brought about by Wall Street greed—the Fed, through its various funding arms, has had the printing presses running day and night, churning out dollars. The Fed publicly claims that its balance sheet stands at just under $2 trillion, largely composed of loans to private banks, mortgage holdings and Treasury bills (U.S. taxpayer debt). But some honest economists believe the Fed is not telling the whole truth about its assets and liabilities, fudging the facts to keep U.S. taxpayers in the dark about the state of the central bank. But the truth is few know just how much money is even in circulation today.

For the past three years, the Fed has only been reporting two out of three monetary aggregates. The first is M1, the narrowest measure of money supply, which includes currency held by consumers and private corporations, money held in checking accounts and travelers checks.

The second is M2, the figure most commonly cited to describe the country’s money supply. This includes M1 plus any savings that are in relatively liquid holdings like money market mutual funds.

The third, which is no longer released to the public, is called M3. It is made up of M2 plus large liquid assets including some money market funds and certificates of deposit held by massive financial corporations and other large institutions.

In 2006, the Fed announced it would stop publishing statistics for M3, which is considered the broadest accounting of the country’s money supply. The Fed claimed M3 did not provide any additional information on
currency trends beyond what was contained in M2. But the reality is, M3 gives Americans the best sense of the dollar’s value by revealing how much money is out there.

In the past year, M1 has risen by an incredible 16.3 percent to $1.669 trillion. M2’s growth has been less dramatic at 8.7 percent, for a total of $8.369 trillion. But the growth of M3—which the Fed no longer discloses—over the past few years is especially troubling, according to figures compiled by economist John Williams of Shadow Government Statistics. Williams pieces together government reports to provide readers with what he contends is a more accurate accounting of key statistics for the country.

Williams reports that M3’s growth in 2009 was 18 percent. That means in the past decade M3 has more than doubled in from $5 trillion in 2000 to $14.5 trillion. The dramatic growth of currency in circulation in the past few years lends ammunition to those seeking a full and open accounting of the practices of the central bank. That could explain why the Fed has been going on the offensive, using fear-mongering to scare legislators into backpedaling on these landmark measures in the House and Senate that would open up the Fed to public scrutiny.

At the hearing on July 9 before the House Financial Services Subcommittee, Donald Kohn, the vice chairman of the Federal Reserve, told Congress that any interference in the affairs of bankers would “negatively affect markets.”

Said Kuhn: “[E]rosion of the Federal Reserve’s monetary independence would lead to higher long-term interest rates as investors begin to fear future inflation.”

Translation: Our current system of debt would likely collapse should the world learn the truth about our money —and just how bad off the banking system really is. The next day, in an interview with Reuters, Rep. Paul said: “The dollar is worth four cents [compared to] what it was worth in 1913 when the Fed was established. . . . That tells you they’re not very good at protecting the value of our money. They’re the counterfeiters of the world, protected by this secrecy. That has to end.”

And, since AFP reported in the July 6 edition on the list of congressmen who have sponsored Texas Republican Rep. Ron Paul’s Audit the Fed bill (H.R. 1207), an additional 20 legislators have signed on to sponsor the landmark measure for a total of 261 cosponsors. The latest additions include Rep. Betsy Markey (D-Colo.), Rep. Danny K. Davis (D-Ill.), Rep. Zoe Lofgren (D-Calif.), Rep. Ben Chandler (D-Ky.), Rep. Jane Harman (D-Calif.), Rep. Christopher S. Murphy (D-Conn.), Rep. Elton Gallegly (R-Calif.), Rep. John Sullivan (D-Okla.), Rep. Joe Courtney (DConn.), Rep. Mazie K. Hirono (D-Hawaii), Rep. Sam Farr (D-Calif.), Rep. Scott Murphy (D-N.Y.), Rep. Marcia L. Fudge (D-Ohio), Rep. Charlie Melancon (DLa.), Rep. Brian Baird (D-Wash.), Rep. Timothy H. Bishop (D-N.Y.), Rep. Lincoln Diaz-Balart (R-Fla.) and Rep. DavidWu (D-Oreg.).

Federal Reserve to gain power under plan

Posted in Attack on Freedom, economic tyranny, Economy, International Bankers, New World Order, News, Shadow Government, Stupid Government Tricks, The Federal Reserve, Tyranny, Unconstitutional with tags , , , , , , , , , on June 18, 2009 by truthwillrise

Targets dangers to economy

By Patrice Hill (Contact) | Tuesday, June 16, 2009

The Federal Reserve, already arguably the most powerful agency in the U.S. government, will get sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets under the Obama administration’s regulatory overhaul plan.

The final plan due to be released on Wednesday — which originally aimed to streamline and consolidate banking and securities regulation in one or two agencies — now is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources.

The most likely candidate for elimination is the Office of Thrift Supervision, whose failure to detect and forestall problems at Countrywide, IndyMac, Washington Mutual and other freewheeling mortgage lenders is thought to have contributed to the financial crisis.

The decision to concentrate sweeping new powers at the already overstretched Fed is not without controversy. Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, which must approve any regulatory overhaul, has raised objections to that approach, and so has Federal Deposit Insurance Corp. Chairman Sheila C. Bair.

TWT RELATED STORIES:
Speculation costs GM investors hefty price
Health reform faces new obstacles
Obama to give benefits to gay feds’ partners

Ms. Bair advocates an alternative where a council of top bank regulators would make decisions on whether to step in, regulate or close major corporations like the American International Group whose failure posed a risk to the whole economy and financial system. The Fed stepped in to save AIG last year without having such powers, but the result was a costly and muddled bailout that no one wants to repeat.

To accommodate dissenting views, the administration will propose that a council of regulators advise the Fed, although the Fed will have the final say, according to administration officials. The new powers augment the Fed’s existing broad authorities to intervene to prevent crises that could seriously damage the markets and economy.

“What we’re trying to do is focus on the things that were at the core of the problems we saw in the crisis,” said Treasury Secretary Timothy F. Geithner at a Time Warner Economic Summit in New York on Monday.

“When you have too many people involved, there’s an accountability problem,” he said. “At the core of making the system stronger is to give one place in the system clear accountability, responsibility and authority for preventing future crises.”

Mr. Geithner said that while the administration would have preferred a more streamlined regulatory structure with fewer agencies, ensuring fewer gaps in oversight and less opportunity for “regulatory arbitrage” by lenders, it would have had to start “from scratch” to accomplish that. It decided instead to work within the patchwork of multiple agencies established over the past century or so in response to various financial crises.

While the administration decided against merging the Securities and Exchange Commission and Commodity Futures Trading Commission, it will insist on plugging the extensive gaps that have allowed some of the largest securities markets in world history, known as derivatives, to develop without oversight or regulation.

“All derivatives contracts will be subject to regulation and all derivatives dealers subject to supervision,” Mr. Geithner said in an opinion piece Monday co-authored by National Economic Council Director Lawrence H. Summers, adding that “regulators will be empowered to enforce rules against manipulation and abuse.”

Mr. Geithner said a key part of the plan will impose stiffer requirements for setting aside reserve capital by large financial institutions whose far-flung and risky activities around the world pose the greatest threat of disrupting markets.

Strengthening protections for consumers and investors, possibly through a new commission charged with monitoring the development of new loans and instruments in the marketplace, also will be an important new element of the plan, he said.

Democrats to push through banking overhaul quickly

Posted in Attack on Freedom, economic tyranny, Economy, International Bankers, New World Order, News, Stupid Government Tricks, The Federal Reserve, Tyranny, Unconstitutional with tags , , , , , , on June 18, 2009 by truthwillrise

Jun 18, 6:13 AM (ET)

By ANNE FLAHERTY

WASHINGTON (AP) – Democratic leaders have committed to enacting by the end of the year the biggest regulatory revision to the U.S. financial system since the 1930s – an undertaking so ambitious it has some lawmakers worried about missteps.

“We have to evaluate it, weigh it, slow it down and make sure we do it right,” said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee. “Because if we don’t, we will pay dearly.”

Treasury Secretary Timothy Geithner was expected to outline the administration’s plan on Thursday before the Senate panel and the House Financial Services Committee.

The proposal is aimed at filling in regulatory gaps and increasing oversight of the financial markets to prevent another economic calamity.

“We don’t want to stifle innovation,” said President Barack Obama in a speech Wednesday.

“But I’m convinced that by setting out clear rules of the road and ensuring transparency and fair dealings, we will actually promote a more vibrant market,” he added.

Obama wants to empower the Federal Reserve to oversee the largest and most influential financial firms. He also wants to create a council of federal regulators, chaired by the treasury secretary, to monitor risk across the broader market.

A new consumer protection agency would be created to prevent deceptive practices by such companies as credit card lenders and mortgage brokers.

The proposal was well-received among Democrats on Capitol Hill, who said it would prevent another round of bank bailouts and protect consumers from predatory lending practices.

“We regard this as very pro-market,” said Rep. Barney Frank, D-Mass., who chairs the House Financial Services Committee. “Unless you have investors that are well-protected, you don’t have a market.”

Senate Banking Committee Chairman Christopher Dodd said there would be “some debate,” but “I think we’re all seeking the same results.”

But a swift legislative endorsement of the plan could be difficult.

Dodd, D-Conn., is leading a major overhaul of the nation’s health care system, while the Senate also faces a debate on whether to confirm Supreme Court nominee Sonia Sotomayor.

In addition to the Senate’s packed schedule, several lawmakers, including Dodd, have questioned whether Obama’s proposal relies too heavily on the Federal Reserve and expressed concern that the Fed, as an independent agency, doesn’t answer to Congress.

“It’s certainly worthy of a thorough and full-throated debate and discussion as to whether or not that’s a better alternative than vesting the Fed,” Dodd told reporters after Obama’s speech. “There’s not a lot of confidence in the Fed at this point.”

Geithner told reporters at a briefing that the administration had looked at a range of alternatives to giving the Fed expanded powers and had come to the conclusion that “we do not believe there is a plausible alternative.”

Turf fights among lawmakers were also likely, as the plan leaves in question who should regulate derivatives like the credit-default swaps that felled American International Group Inc. (AIG)

Sen. Chuck Schumer, D-N.Y., said the Securities and Exchange Commission should have the job, calling it a “stronger regulator” than the Commodity Futures Trading Commission.

Senate Democratic aides said the plan was to take up the bill this fall, regardless of whether the House has had a chance to act.

Rep. Paul Kanjorski, D-Pa., who chairs a House Financial Services subcommittee, said he was concerned that a rush job will hand the controls to the Senate.

“If we rush this thing too much, we won’t have the opportunity for everyone to buy in,” he said.

House Republicans said Obama’s plan would go too far and bury the market in unnecessary regulation.

Senate Republicans were less dismissive but stopped far short of endorsing the proposal. Shelby and Sen. Judd Gregg, R-N.H., questioned aspects of the plan but said they hoped to work with Democrats to make it stronger.