Archive for Ben Bernanke

You Tube Pulls Hundreds Of Ron Paul Videos

Posted in Attack on Freedom, New World Order, News, Paul Watson, Ron Paul, Stupid Government Tricks with tags , , , , , , , , , on August 9, 2009 by truthwillrise

Popular C-Span Junkie user channel suspended, 6400 videos gone

You Tube Pulls Hundreds Of Ron Paul Videos 120509top

Paul Joseph Watson
Prison Planet.com
Wednesday, August 5, 2009

You Tube has expanded its zealous copyright crusade by suspending the popular C-Span Junkieuser channel, and in doing so has pulled hundreds of viral Ron Paul videos, which are now completely dead.

The C-Span Junkie user channel, a non-partisan archive of short clips taken from C-Span broadcasts of events in the Congress and the Senate, has been the home of the vast majority of You Tube videos you have seen of Bernanke, Geithner, Paulson and others being confronted in Congress, as well as Ron Paul’s speeches on the House floor. A total of more than 6400 videos in all have been pulled, hundreds of which featured the Texan Congressman.

Whether or not C-Span itself requested that You Tube pull the channel is not known, but it is clearly in the public interest and constitutes fair use to show a clip less than 10 minutes in length of what the people who are supposedly our Representatives are saying in Congress on our behalf.

As we have highlighted before, You Tube arbitrarily suspends accounts based on flimsy copyright claims that aren’t even properly investigated.

We had our own You Tube account suspended following a copyright complaint from a separate party who didn’t even own the copyright on the original material. In addition, the copyright claim was clearly erroneous as it was based on the fact that Alex Jones held up a printed version of an online newspaper story for a few seconds on camera. The channel was eventually reinstated after You Tube received a flood of complaints.

(ARTICLE CONTINUES BELOW)

You Tube Pulls Hundreds Of Ron Paul Videos 150709banner2

“I don’t know if you can imagine what it’s like to in a moment see 6400 videos gone,” writes the channel owner on the C Span Junkie website, “Figure 6400 hours (easily) poof GONE! I did this for the common good and now it all gone.”

The channel has now been replaced with a new account but it’s unlikely to survive long if the owner dares to post anything of substance.

Truth is no longer acceptable on You Tube as it transforms itself into a pale reflection of Hulu, a site owned and operated by NBC Universal (GE) and Fox Entertainment Group (News Corp), that is to say a joint venture by a corporation owned by a death merchant (GE manufactures attack helicopters and jet engines) and a disinformation platform owned by a notorious neocon, Rupert Murdoch.

In the Hulu-ized universe, there is no room for truth or alternative media — all channels will contain the same schlock and mindless pablum already available on cable and broadcast television.

Videos of members of Congress grilling Bernanke and his cohorts about auditing the Fed and finding out where trillions in missing TARP funds has disappeared to just aren’t part of the sanitized and lobotomized video landscape that You Tube wants to portray.

If you post videos about people eating each other’s vomit or clips of plastic bimbos with their breasts hanging out then you’ll be left alone, but God forbid should anyone try to give the country a window on what’s actually happening in Congress and what their own Representatives are talking about – in that case your thought crimes will immediately be censored and removed.

Fed Chairman ‘Forgets’Banks He Loaned Half Trillion $

Posted in economic tyranny, Economy, Fiat Currency, International Bankers, News, Ron Paul, The Federal Reserve, Tyranny, Unconstitutional with tags , , , , , , , , on August 4, 2009 by truthwillrise

By Christopher J. Petherick

  rss202

Ben Bernanke, the head of the privately owned and controlled Federal Reserve, cannot remember to which foreign banks the Fed has loaned a half trillion dollars. His lack of memory can be understood, given that the Fed has loaned or guaranteed trillions of U.S. dollars to banks around the world since the U.S. economy took a turn for the worse in the summer of 2008. Still, it was quite an embarrassment for the country’s top banker, who, during a three-hour grilling on July 21 before the House Committee on Financial Services, admitted he did not know the recipients of foreign liquidity swaps—loans to foreign financial entities—that amounted to some
$550 billion.

Shortly after news broke of Bernanke on the hot seat, video of his testimony spread like wildfire on the Internet with hundreds of thousands of viewers around the world watching the chief banker stutter and squirm. Here is the relevant portion of the official transcript relating the exchange between Bernanke and Rep. Alan Grayson (D-Fla.), who is also a sponsor of Rep. Ron Paul’s landmark “Audit the Fed” legislation (H.R. 1207).

Grayson: “What’s that [the $553 billion amount]?”

Bernanke: “Those are swaps that were done with  foreign central banks. Many foreign banks are short dollars. . . .”

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Grayson: “So who got the money?”

Bernanke: “Financial institutions in Europe and other countries.”

Grayson: “Which ones?”

Bernanke: “I don’t know.”

Grayson: “Half a trillion dollars, and you don’t know who got the money?”

Grayson was following up on earlier testimony by Bernanke, who said that loans to foreign banks had increased from $24 billion at the end of 2007 to $553 billion at the end of 2008. That is a 2,300 percent increase in one year for anyone doing the math.

Grayson and Bernanke were debating complicated global financial transactions known as foreign liquidity swaps, whereupon the Federal Reserve gives U.S. dollars to foreign financial entities, usually foreign central banks. In return for dollars, the foreign institutions usually hold an equivalent amount of their own currencies in accounts for the Fed.

Officially, the Federal Reserve states, “When the foreign central bank lends the dollars it obtained by drawing on its swap line to institutions in its jurisdiction, the dollars are transferred from the foreign central bank’s account at the Federal Reserve to the account of the bank that the borrowing institution uses to clear its dollar transactions.”

Translated from banker-speak, the U.S. dollars, in a nutshell, are going to back unstipulated loans in countries around the world.

As of now, the Fed has dollar liquidity swap lines open with 13 foreign central banks. These include the Reserve Bank of Australia, the Central Bank of Brazil, the Bank of Canada, Denmark’s National Bank, the Bank of England, the European Central Bank, the Bank of Korea, the Bank of Mexico, the Reserve Bank of New Zealand, Norway’s Norges Bank, the Monetary Authority of Singapore, Sweden’s Sveriges Riksbank, and the Swiss National Bank.

Bernanke tried to clarify the need for the swaps, saying that foreign central banks are short of U.S. dollars and come into the U.S. market, driving up interest rates. “We swap our currency dollar for their currency,” said Bernanke. “They take dollars and lend to banks in their jurisdiction.”

Grayson responded that his staff had looked into some of the swaps, including a $9 billion dollar loan to New Zealand. That works out to $3,000 for every citizen in New Zealand, he said.

“Seriously, wouldn’t it have been better to extend that kind of credit to Americans rather than New Zealanders?” asked Grayson.

Putting aside the constitutionality of lending dollars to foreign banks—strictly speaking, neither the Federal Reserve nor the fractional reserve banking system is constitutional—there are considerable dangers associated with these types of transactions. Should the “swapped” foreign currency lose value, and the foreign bank balk at paying back the loan at the agreed-upon rate, the Federal Reserve and the dollar could be dragged down with them. Also, should the U.S.-backed foreign loans go bad, the whole system could go down like dominoes with foreign central banks taking down the Federal Reserve and the U.S. economy.

It’s a dangerous game the U.S. private central bank is playing with the American people’s money, all the more reason why it should be opened up to public scrutiny. With no clue as to the solvency of the Federal Reserve, Rep. Paul’s “Audit the Bill” looks better and better every day.

UPDATE: Since AFP last went to press on July 22, another legislator—Rep. DonYoung (R-Alaska)—has signed on to sponsor Rep. Paul’s audit the Fed bill, bringing the number of supporters in the House to
276.

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.

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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.

Obama Regulatory Reform Plan Officially Establishes Banking Dictatorship

Posted in Alex Jones, Attack on Freedom, economic tyranny, Economy, Fiat Currency, International Bankers, New World Order, News, Paul Watson, Shadow Government, Steve Watson, Stupid Government Tricks, The Federal Reserve, Tyranny, Unconstitutional with tags , , , , , , , , , , , , , , on June 18, 2009 by truthwillrise
Paul Joseph Watson & Steve Watson
Prison Planet.com
Thursday, June 18, 2009

Obama Regulatory Reform Plan Officially Establishes Banking Dictatorship In United States 180609top2 

President Obama’s plan to give the privately-owned and unaccountable Federal Reserve complete regulatory oversight across the entire U.S. economy, which is likely to be enacted before the end of the year, will officially herald the beginning of a new form of government in the United States – an ultra-powerful banking dictatorship controlled by a small gaggle of shadowy and corrupt elitists.

The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

This goes a step further than the centrally planned economies of the Soviet Union or Communist China, in that the Federal Reserve is not even accountable to the U.S. government, it is a private entity that according to former Fed chairman Alan Greenspan, is accountable to nobody but the banking families that own it.

Obama’s regulatory “reform” plan is nothing less than a green light for the complete and total takeover of the United States by a private banking cartel that will usurp the power of existing regulatory bodies, who are now being blamed for the financial crisis in order that their status can be abolished and their roles handed over to the all-powerful Fed.

According to an Associated Press report today, Democratic leaders have committed to enacting the plan before the end of the year and Republicans in both the House and Senate have indicated that they won’t stand in the way of the overhaul.

“The final plan….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, ” reports the Washington Times.

In other words, the Fed, which is already totally unaccountable to Congress, is to be placed in complete control of the entirety of the U.S. financial system, to do as it wishes without repercussion.

As the LA Times reports, the government, in conjunction with the private Federal Reserve, would effectively have the clout to simply seize and take over any company it desires.

In order to appease those opposed to the plan, such as Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, the Obama administration has agreed to create a “watchdog” council of regulators to “advise the Fed”.

However, as former chairman  Alan Greenspan has most recently pointed out, given that the Fed is an independent entity, and therefore accountable to no one, it will have the power to simply reject and overrule any advice it is offered.

Pointing out the flagrant conflict of interest in empowering the Federal Reserve to essentially regulate itself, Professor of public affairs at the University of Texas at Austin Robert Auerbach writes, “The Federal Reserve has massive conflicts of interest that make it ill suited for its present regulatory functions and certainly for an expanded regulatory reach. The officials leading the Fed today preside over an organization that is run in substantial part by the bankers they regulate. Bank regulation begins at its 12 district Federal Reserve Banks, each governed by a nine-member board of directors, two-thirds of whom are elected by the bankers in the district.”

As economic author Nomi Prins highlights, Obama’s plan does nothing whatsoever to fix the excesses of financial institutions blamed for the financial collapse, it only ensures their continued operation and an expansion of the practices that contributed to the economic crisis in the first place.

“The ’sweeping overhaul’ of the financial system detailed by Geithner on behalf of the Obama administration does not overhaul the system at all,” writes Prins, “giving the Fed a bigger role, creating a ‘council of regulators’ to oversee the existing oversight bodies and allowing the biggest Wall Street players to maintain their status, leaves the system intact.”

“The Federal Reserve is not a fully public entity. It has amassed a set of $7.87 trillion worth of facilities and other entities through which it has lavished cheap loans in return for questionable collateral from the banking system. It has kept the true nature of these transactions a secret despite numerous FOIA requests. And, it has actively promoted the creation of bigger institutions in a chaotic environment, rather than putting the brakes on the creation of these giants,” concludes Prins.

Proof that the agenda of implementing overt financial dictatorship is being carefully coordinated can be seen in the fact that an almost identical scheme is also being set up in the United Kingdom, where “The governor of the Bank of England has called for greater powers to allow it to fulfil its new role of promoting financial stability,” according to a BBC report.

 

  • A d v e r t i s e m e n t
  • efoods

Just as in the U.S., King is calling for traditional independent regulatory bodies to be all but abolished and replaced by the Bank of England itself, which just like the Federal Reserve is a private outfit with no accountability to the government whatsoever.

The mainstream media, for the most part, has reported the oversight plan as a much needed regulatory crackdown on those responsible for the financial crisis. However, the details of the plan constitute almost exactly what lobbyists for leading bankers have been pushing for over the past few weeks.

“All derivatives contracts will be subject to regulation and all derivatives dealers subject to supervision,” Treasury Secretary Timothy F. Geithner said at a Time Warner Economic Summit in New York on Monday, also noting “When you have too many people involved, there’s an accountability problem.”

As we reported earlier this month, heads of nine of the biggest banks in the derivatives market, including JP Morgan Chase, Goldman Sachs, Citigroup and Bank of America, secretly lobbied to keep derivatives under Federal Reserve “oversight” and away from real scrutiny.

As reported by The New York Times, they all met secretly to discuss how to use the lax regulation and institutional secrecy of the NY Fed to shield their credit-default swaps business from prying eyes and attempts at regulation.

The banks formed a lobby– the CDS Dealers Consortium– only weeks after accepting TARP funds in October 2008 to protect its interests. Heading this effort was Edward Rosen, who previously helped fend off derivatives regulation. Rosen wrote and circulated a “confidential memo” to the Treasury Department and leaders on Capital Hill, making their agenda clear, the Times reported.

Rosen and his backers propose that derivatives be “traded in privately managed clearinghouses, with less disclosure,” according to the Times. The clearinghouse of choice for the big banks in Rosen’s CDS Consortium is ICE U.S. Trust, which is in turned regulated only by the Federal Reserve system.

So the upshot of all this is that the bankers get what they want, are allowed to carry on as they were, while at the same time the fractional reserve banking system and the federal government are both greatly expanded and empowered, and the compliant corporate media ludicrously tells us that a strict crackdown is underway.

This kind of activity is exactly what some leading representatives have warned of in recent weeks.

A fortnight ago, the Democratic Chairman of the Agriculture Committee, Collin Peterson, announced to the press that “The banks run the place,” in reference to the US Congress.

While Peterson is also pushing for legislation to regulate derivatives trading, his proposed bill would limit derivatives trading to public exchanges, rather than private clearinghouses, which are managed by banks.

Peterson’s warning mirrors that of Democratic Senator Dick Durbin, who just a few weeks before uttered the same rarely acknowledged truth.

“And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place,” Durbin said.

How simultaneously dangerous and ridiculous it is that the Federal Reserve is given more authority to oversee the economy. This is the same privately run entity that refused to comply with congressional demands for transparency and disclose the destination of trillions dollars in bailout funds. It is the same privately owned entity that has withheld internal memos, in spite of freedom of information act requests. It is the same private entity, run for the most part by European banking elites, that has arrogantly refused to tell Senators and Congressmen which banks were in receipt of government loans.

The government is ready to hand over everything to a monolithic private corporation and a gaggle of bastard banker offspring, that have gobbled up an amount close to the entire GDP of the country in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone.

It can be no more apparent than at this time that legislation to audit, repeal and eventually end the Federal Reserve, must be supported by Americans if they want to see their children and their grandchildren grow up without indentured debt and entrenched servitude to a fascistic marriage of private banks and hugely inflated government.

Federal Reserve To Be Given Sweeping New Powers

Posted in Alex Jones, Business, Economy, New World Order, News, Stupid Government Tricks with tags , , , , , , , , , , on June 17, 2009 by truthwillrise
Steve Watson
Infowars.net
Tuesday, June 16, 2009

Federal Reserve To Be Given Sweeping New Powers 030409fed

 

The privately owned and run Federal Reserve is to be handed sweeping new powers under Obama administration proposals in a deal that will please bankers who lobbied for more Fed “oversight” of their activities.

The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

“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, ” reports the Washington Times.

In other words, the Fed, which is already totally unaccountable to Congress, is to be placed in complete control of the entirety of the US financial system, to do as it wishes without repercussion.

As the LA Times reports, the government, in conjunction with the private Federal Reserve, would effectively have the clout to simply seize and take over any company it desires.

In order to appease those opposed to the plan, such as Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, the Obama administration has agreed to create a “watchdog” council of regulators to “advise the Fed”.

However, as former chairman  Alan Greenspan has most recently pointed out, given that the Fed is an independent entity, accountable to no one, it will have the power to simply reject and overrule any advice it is offered.

The mainstream media, for the most part, has reported the oversight plan as a much needed regulatory crackdown on those responsible for the financial crisis. However, the details of the plan constitute almost exactly what lobbyists for leading bankers have been pushing for over the past few weeks.

“All derivatives contracts will be subject to regulation and all derivatives dealers subject to supervision,” Treasury Secretary Timothy F. Geithner said at a Time Warner Economic Summit in New York on Monday, also noting “When you have too many people involved, there’s an accountability problem.”

  • A d v e r t i s e m e n t
  • efoods

As we reported earlier this month, heads of nine of the biggest banks in the derivatives market, including JP Morgan Chase, Goldman Sachs, Citigroup and Bank of America, secretly lobbied to keep derivatives under Federal Reserve “oversight” and away from real scrutiny.

As reported by The New York Times, they all met secretly to discuss how to use the lax regulation and institutional secrecy of the NY Fed to shield their credit-default swaps business from prying eyes and attempts at regulation.

The banks formed a lobby– the CDS Dealers Consortium– only weeks after accepting TARP funds in October 2008 to protect its interests. Heading this effort was Edward Rosen, who previously helped fend off derivatives regulation. Rosen wrote and circulated a “confidential memo” to the Treasury Department and leaders on Capital Hill, making their agenda clear, the Times reported.

Rosen and his backers propose that derivatives be “traded in privately managed clearinghouses, with less disclosure,” according to the Times. The clearinghouse of choice for the big banks in Rosen’s CDS Consortium is ICE U.S. Trust, which is in turned regulated only by the Federal Reserve system.

So the upshot of all this is that the bankers get what they want, are allowed to carry on as they were, while at the same time the fractional reserve banking system and the federal government are both greatly expanded and empowered, and the compliant corporate media ludicrously tells us that a strict crackdown is underway.

This kind of activity is exactly what some leading representatives have warned of in recent weeks.

A fortnight ago, the Democratic Chairman of the Agriculture Committee, Collin Peterson, announced to the press that “The banks run the place,” in reference to the US Congress.

While Peterson is also pushing for legislation to regulate derivatives trading, his proposed bill would limit derivatives trading to public exchanges, rather than private clearinghouses, which are managed by banks.

Peterson’s warning mirrors that of Democratic Senator Dick Durbin, who just a few weeks before uttered the same rarely acknowledged truth.

“And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place,” Durbin said.

How simultaneously dangerous and ridiculous it is that the Federal Reserve is given more authority to oversee the economy. This is the same privately run entity that refused to comply with congressional demands for transparency and disclose the destination of trillions dollars in bailout funds. It is the same privately owned entity that has withheld internal memos, in spite of freedom of information act requests. It is the same private entity, run for the most part by European banking elites, that has arrogantly refused to tell Senators and Congressmen which banks were in receipt of government loans.

The government is ready to hand over everything to a monolithic private corporation and a gaggle of bastard banker offspring, that have gobbled up an amount close to the entire GDP of the country in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone.

It can be no more apparent than at this time that legislation to audit, repeal and eventually end the Federal Reserve, must be supported by Americans if they want to see their children and their grandchildren grow up without indentured debt and entrenched servitude to a fascistic marriage of private banks and hugely inflated government.

Decrying AIG, top officials ask strong new control

Posted in Economy, New World Order, News, Stupid Government Tricks, Truth/Freedom, Unconstitutional with tags , , , , , , on March 24, 2009 by truthwillrise

I cannot believe what I read. These criminals who should be behind bars, have the audacity to pull an attempt at grabbing even more power. The sad part is there apparently are those in Washington who are either gutless or do not give cares about the American People. What is even worse is the people who actually think actions such as this are the right thing to do! When will these people wake up!??-truthwillrise

By TOM RAUM and JEANNINE AVERSA, Associated Press Writers Tom Raum And Jeannine Aversa, Associated Press Writers –

WASHINGTON – Pointing with dismay to the AIG debacle, the nation’s top economic officials argued Tuesday for unprecedented powers to regulate and even take over financial goliaths whose collapse could imperil the entire economy. President Barack Obama agreed and said he hoped “it doesn’t take too long to convince Congress.”

Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, in a rare joint appearance before a House committee, said the messy federal intervention into American International Group, an insurance giant, demonstrated a need to regulate complex nonbank financial institutions just as banks are now regulated by the Federal Deposit Insurance Corp. ”

AIG highlights broad failures of our financial system,” Geithner told the House Financial Services Committee. “We must ensure that our country never faces this situation again.

” But the two appeared divided over where the authority should reside. Geithner suggested his Treasury Department’s powers be expanded. Bernanke was noncommittal, even suggesting the FDIC.

Both officials sought to channel the widespread public outrage over the millions of dollars AIG spent in post-bailout bonuses into support for regulatory overhaul. Geithner was expected to lay out more details on the administration’s plan Thursday when he appears again before the committee.

Democrats in the Senate say the administration wants the proposal on taking over non-banks to move separately from the larger financial industry regulatory bill, to get it going more quickly.

At the White House, Obama told reporters, “We are already hard at work in putting forward a detailed proposal. We will work in consultation with members of Congress. That will be just one phase of a broader regulatory framework that we’re going to have to put in place to prevent these kinds of crises from happening again.”

Rep. Barney Frank, D-Mass., the committee chairman, said that “when nonbank major financial institutions need to be put out of their misery, we need to give somebody the authority to do what the FDIC can do with banks.

” The government has given AIG over $180 billion in bailout funds since it first intervened last Sept. 16. The U.S. now owns nearly 80 percent of the giant insurer.

“If a federal agency had had such tools on Sept. 16, they could have been used to put AIG into conservatorship or receivership, unwind it slowly, protect policyholders and impose haircuts on creditors and counterparties as appropriate,” Bernanke said.

Both Geithner and Bernanke told the panel they did not become aware of the $165 million in AIG bonuses until March 10, just days before the payments were made. However, lower-level officials at both agencies were aware of the payments.

At the time of the first AIG bailout, Geithner was the president of the New York Fed, which helped oversee the government intervention.

 AIG is a globally interconnected colossus, with 74 million customers and operations in more than 130 countries.

 “Its failure could have resulted in a 1930s-style global financial and economic meltdown, with catastrophic implications for production, income and jobs,” Bernanke told the panel.

Bernanke said it was “highly inappropriate to pay substantial bonuses” in such a situation. He said he had asked that the payments be stopped but was told that they were mandated by contracts.

 “I then asked that suit be filed to prevent the payments,” he said.

 But Bernanke said his legal staff counseled against this action “on the grounds that Connecticut law provides for substantial punitive damages if the suit would fail.”

Separately, Connecticut Attorney General Richard Blumenthal said the Fed “never contacted me or my office concerning the applicability of the Connecticut wage law to the AIG bonuses. If the Fed had called, we would have given the green light for litigation blocking these unconscionable bonuses.”

Dealings between Congress and Geithner have been tense. But they were a little more relaxed in the afterglow of Monday’s nearly 500-point surge in the Dow Jones industrials, though the Dow gave back about 116 points on Tuesday. The rise came in large part in response to the administration’s unveiling of a public-private program to buy up to $1 trillion in bad loans and toxic mortgage-related securities clogging bank balance sheets.

 Still, there were a few pointed exchanges Tuesday.

 Rep. Paul Kanjorski, D-Pa., warned Geithner about any requests by the Obama administration for more taxpayer money to support financial bailouts.

“I assume that you recognize there’s not an awful lot of sympathy up here to necessarily provide additional funds — not going on the merits of whether the funds are necessary,” he said.

 “We recognize it will be extraordinarily difficult,” Geithner acknowledged. Rep. Brad Sherman, D-Calif., told Geithner: “What I fear here is that we are doing a kabuki theater in three acts.

“The first act: Washington tells the American people, `We understand your anger at Wall Street.’ In the second act, we nitpick to death any proposal that actually adversely affects Wall Street. And then, in the third act, we bestow another trillion dollars on Wall Street under extremely favorable terms.”

Geithner made it clear he believes the treasury secretary should be granted broad powers — after consultation with Federal Reserve officials — to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.

AIG has become a symbol of reckless risk-taking on Wall Street. The bonuses came even as AIG reported a stunning $62 billion fourth-quarter loss, the biggest in U.S. corporate history. The government has bailed out AIG four times, to the tune of more than $180 billion altogether.

 New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the largest bonuses from AIG have agreed to return the money, totaling about $50 million.

 The House last week voted overwhelmingly to slap 90 percent taxes on the largest bonuses. But Republicans in the Senate are blocking similar legislation, and White House reaction to the legislation has been tepid at best.

 Senate Majority Leader Harry Reid, D-Nev., told reporters on Tuesday Democrats were considering other alternatives.

“The issue is not over,” he said.

 But House Majority Leader Steny Hoyer, D-Md., said, “If the money is returned, the legislation may no longer be necessary.”

Senate Republican Leader Mitch McConnell said Geithner should get credit for trying to fix the financial system.

“That’s the real issue. And at least he’s grappling with that,” McConnell said.