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Posts Tagged ‘FED’

Dennis Kucinich: “Congress Must Regain Power to Coin Money Interest Free”

In Dennis Kucinich, Economy, FED, Federal Reserve, Fiscal Cliff, News, NWO, Politics, USA, USA, World Revolution, Zionism on January 2, 2013 at 2:08 AM

01/01/2013

END THE FED!

Ron Paul’s Texas Straight Talk 07/02/2012: Audit the FED Headed for the House Floor!

In Economy, News, NWO, Other Leaks, Ron Paul, Ron Paul 2012, Ron Paul's Texas Straight Talk, USA, Viral Videos, World Revolution on July 9, 2012 at 1:01 AM

07/02/2012

 

Transcript:

Last week supporters of Federal Reserve transparency had a major victory when the House Committee on Government Oversight and Reform passed my Audit the Fed bill, HR 459 unanimously with all major audit provisions intact.  This clears the way for a House floor vote expected sometime in late July, and with a whopping 263 cosponsors, the chances of it passing have never looked better!  This is an unprecedented opportunity for transparency into how the currency of the United States is handled, and mishandled by the Federal Reserve.  It is more important than ever that my colleagues in the House and Senate understand what this legislation does and why it is so important.

The Federal Reserve is an enormously destructive and unaccountable force in both the U.S. economy and the greater global economy. Federal Reserve policies affect average Americans far more than fiscal, spending, and tax policies legislated by Congress; indeed the Fed “spends” more than Congress when it creates trillions of new dollars on its balance sheet to bail out favored financial institutions.

For several decades the Fed has relentlessly increased the supply of U.S. dollars (both real and electronic) and kept interest rates artificially low. These monetary policies punish thrift, erode the value of savings, and harm older Americans living on fixed incomes and the poor. The Fed’s expansion of the money supply, combined with artificially low interest rates, creates destructive cycles of malinvestment. This results in housing, stock market, and employment booms and busts that destroy lives.

While the Fed was created by Congress, current law prohibits Congress from fully auditing the Fed’s monetary policy – the Fed actions that impact Americans the most. The Fed’s financial statements are audited annually, but the Fed’s monetary policy operations are exempt from audit. Congress’ investigative arm, the Government Accountability Office (GAO), currently is prohibited by law from examining discount window and open market operations; agreements with foreign governments and central banks; and Federal Open Market Committee (FOMC) directives. It is precisely this information that should be made public.

The audit mandated in the Dodd-Frank Act focused solely on emergency credit programs, and only on procedural issues rather than focusing on the substantive details of the lending transactions. Most of the data on its other activities, such as open market operations and discount window lending, have only been published as a result of lawsuits—not because of Congressional action.  Dodd-Frank requires this information to be disclosed going forward, but with a two year time lag and with GAO restricted to auditing only the procedural components of any programs. H.R. 459 grants GAO and Congress access without special exemptions and ensures that ALL of the Fed’s lending actions will be subject to oversight.

Also, given the Fed’s establishment of dollar swap agreements with foreign central banks (which lent up to $600 billion at a time in 2008), and the increasing economic uncertainty surrounding Spain, Greece and the European Union, the Fed’s continued financial assistance to Europe should not be exempt from public accountability and Congressional oversight. H.R. 459 brings transparency to the Fed’s agreements with the European Central Bank and other foreign entities.

H.R. 459 does not limit the focus of the audit, making a full audit finally possible. An entity that controls the value and purchasing power of the dollar should not be permitted to operate in the dark without oversight by Congress and accountability to the people. The Fed needs transparency and H.R. 459 would provide it. We now have this opportunity to ensure solid passage of HR 459 on the House floor, then the Senate floor and have it promptly signed into law.

http://www.ronpaul2012.com/

Peter Schiff on TruNews w/ Rick Wiles 04/02/2012

In News, NWO, Ron Paul, Ron Paul 2012, USA, World Revolution, Zionism on April 6, 2012 at 6:58 AM

Economic expert Peter Schiff joins TruNews’ Rick Wiles to discuss a variety of issues from the Federal Reserve, gas prices, inflation, fiat money, and gold.

U.S. Government Shuts Down Online Poker Sites

In News, NWO on April 19, 2011 at 1:49 AM

Federal authorities have unshielded an indictment against the founders of the three largest Internet poker companies operating in the U.S. The indictment charges 11 defendants, including the founders of PokerStars, Full Tilt Poker, and Absolute Poker/Ultimate Bet with bank fraud, money laundering, and illegal gambling offenses.

The federal government is getting serious about cracking down on online gambling, with 2009 revenue from U.S. players to be an estimated $5.4 billion. So is the federal government missing out on potential tax revenue, and what’s the future of the online gaming industry? Fox Business Network’s Adam Shapiro reports live from the Foxwoods Resort Casino in Connecticut.

Obama’s justice department led a massive crackdown on online poker sites, with the FBI indicting 11 people on charges of fraud, money laundering and illegally operating online gambling sites. The websites include three of the largest and most popular online poker forums, Full Tilt, Absolute Poker, and Poker Stars. Cato’s Julian Sanchez weighs in on the sudden crackdown.

Led by US attorney Preet Bharara, the so-called “anti-poker crusades” have sparked debate over the government’s role in online gambling. Protesters dispute poker’s classification as gambling, saying it is a game of skill, not just luck.

According to John Pappas, executive director of the Poker Players Alliance, poker is not an illegal activity — it is a legitimate business.

“The reality is, we don’t believe poker to be gambling, therefore the activities surrounding it shouldn’t be viewed as covering up some sort of illegal gambling activity.”

Cenk Uygur and Ana Kasparian discuss the real motives behind the U.S. government cracked down on several large internet poker websites and players.

Lawsuit Forces FED to Release Documents

In News, NWO, Other Leaks, Wall Street on April 1, 2011 at 12:33 PM

A lawsuit filed by the Fox Business Network and Bloomberg News has forced the Federal Reserve Bank to give up details about which banks borrowed billions from the government during the financial crisis.

DOWNLOAD THE FED DOCUMENTS HERE

A massive cache of documents released by the Federal Reserve Thursday reveals that banks from every corner of the globe, large and small, turned to the U.S. government’s emergency bailout program for help as the credit crisis exploded in late 2008.

In addition to global banking giants such as Bank of New York Mellon (BK: 30.46, +0.59, +1.98%) and Morgan Stanley (MS: 27.42, +0.10, +0.37%), the documents show numerous, small regional banks tapped the Fed’s discount window, especially banks from areas hard hit by collapsing real estate markets, such as California.

Dexia, Erste Group and Depfa, were among the foreign banks that turned to the Fed as credit markets dried up and banks had no other alternative but to seek U.S. government bailout dollars.

Other big foreign borrowers were Norinchukin Bank of Japan, Bank of Scotland, and Germany’s Landesbank Baden-Wurttemberg and France’s Societe Generale.

The Fed released the trove of information after a lengthy court battle initiated by media outlets including FOX Business, which sought the data under the Freedom of Information Act.

In 2008, as the financial crisis was gaining steam and many banks were bleeding money as a result of vast investments in toxic subprime loans, the U.S. government agreed to a series of emergency measures designed to bail out faltering banks by providing loans through the Fed’s discount window, often referred to as the lender of last resort.

According to the documents released Thursday, the peak for lending was Oct. 29, 2008, with $111 billion in discount-window borrowing. About $50 billion of that day went to Dexia and Depfa.

FOX Business initially sought information on the use of the bailout funds for American International Group (AIG: 35.18, +0.04, +0.11%) and the Bank of New York Mellon, and later sought similar data on the bailout funds for Citigroup Inc (C: 4.48, +0.06, +1.24%).

FOX Business asked the Treasury Department to identify, among other issues, the troubled assets purchased by the government, any collateral extended by the banks, and any restrictions placed on these financial institutions for their participation in this program.

But the Fed refused to name banks that borrowed funds through the discount window or provide any other information related to the emergency programs for fear there would be a run on banks tied to bailouts.

FOX Business and Bloomberg News subsequently argued in lawsuits that the public had a right to know where the money went and how much was borrowed.

Sifting through the documents one broad theme emerges: all the large banks used the discount window to some extent, though the use of this so-called lender of last resort was generally a small part of their total emergency borrowing through other Fed programs. Goldman Sachs, for instance, tapped the window for $50 million, a tiny amount for a firm that size.

In some cases, the documents reveal a bank failure occurring in real time. Washington Mutual, for instance, started borrowing from the discount window on Sept. 18, 2008, with an initial loan of $2 billion. But it then borrowed another $2 billion every night until Sept. 25, when JPMorgan bought it.

Discussing the rationale for withholding the information, Jay Ritter, a finance professor at the University of Florida, said the Fed in late 2008, as it was lending money to desperate banks, feared “a self-fulfilling prophecy.”

“The Fed was legitimately concerned if it revealed which banks were having trouble it would become a self-fulfilling prophecy and a death-knell for those banks,” he said.

In effect, he said, if investors or depositors think there’s going to be a bank run the chances are good there will be a bank run.

On the other hand, the secrecy surrounding the Fed’s discount window flies in the face of other U.S. securities laws, namely the Securities and Exchange Commission’s “mandate that all material information should be disclosed to investors for publicly traded corporations,” said Ritter.

The FOIA complaint was filed by FOX News Network, LLC, as owner of FOX Business.

Kevin Magee, Executive Vice President of FOX Business Network, said at the time, “The Treasury has repeatedly ignored our requests for information on how the government is allocating money to these troubled institutions. In a critical time like this amidst mounting corruption and an economic crisis, we as a news organization feel it’s more important than ever to hold the government accountable.”

In early 2009, a federal judge ordered the release of some documents from Treasury. Much of the information contained in the documents was redacted, leaving thousands of blank documents, whited-out sentences and page after page of little more than lists of email recipients, senders and subject lines.

Meanwhile, Treasury was still able to file what’s known as a Vaughan index, which allowed it to hold back some information. Citing attorney-client privilege, the government held back a lot. That’s the material now being released.

Courts have repeatedly ruled in favor of FOX Business. In separate rulings, federal judges said Congress rather than the Fed should decide whether withholding the information best serves the national interest.

Despite the court victories, release of the material provided on Thursday had been held up on appeal. Specifically, a trade group called the Clearing House Association [CHA], which represents some of the biggest U.S. banks, had sought recently to have the case heard by the Supreme Court.

The CHA argued in its court filing that the Fed has never revealed the identities of borrowers from its discount window, the lending facility where banks get short-term funding and the source of the 2008 emergency loans.

But the Supreme Court ruled last week that it would not hear the case, forcing the release of the information by the Fed. The Fed, essentially conceding the battle to the media outlets, did not join the appeal by the CHA.

In an unrelated FOIA battle, FOX Business fought successfully last year for the repeal of a measure included in the recent financial reform bill that made it easier for the Securities and Exchange Commission to withhold information from the public. President Obama repealed the controversial provision in October following bi-partisan criticism of its inclusion in the Dodd-Frank Wall Street reform bill.

While that same bill has forced the Fed to increase its transparency, one area had been isolated for continued secrecy – the Fed discount window. Thursday’s release gives the public access to that information.

Steven G. Mintz, who has argued several FOIA cases on behalf of Fox Business, said earlier this week in response to the Fed’s release of the material, “It’s been a long time coming. I am very pleased that the American public will finally be able to learn who borrowed money from the Fed discount window during the financial crisis.”

Congressman Ron Paul discusses the documents the FED released by court order today.


DOWNLOAD THE FED DOCUMENTS HERE

Related Links:

FCIC Report Says Financial Crisis Was Avoidable and Warnings Were Ignored

Inside Job (2010)

Why Isn’t Wall Street in Jail?

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