The U.S. taxpayer footed the bill for the Federal Reserve to create, then loan, trillions in new U.S. currency to banking and insurance interests in an effort to keep the U.S. economy buoyed. So why won't they disclose how much was loaned, and to whom?
One economist has perhaps the first plausible road to finding out exactly how the real purse of the United States is managed.
The basic story is straightforward. The US Congress has lent more than $700bn, via the Treasury, to bankers at below market interest rates through the troubled assets relief programme, or Tarp. This was to keep the banks from going belly up. At the same time, the Fed has lent more than $2 trillion to banks and non-financial institutions to maintain liquidity in the financial system.
The congressional oversight panel, led by Elizabeth Warren, has frequently complained that the Treasury has not always been altogether forthcoming in providing information about its lending practices under the Tarp. However, there is at least a public paper trail. We can find out how much money each bank received and under what terms.
By contrast, there is no public paper trail for the Fed's loans, even though it has more than three times as much money outstanding as does the Treasury through the Tarp. The Fed has only provided aggregate information on the amount of loans in each of its various lending programs, and general information on the terms of the loans and the types of collateral received.
However, it is not possible to find out in detail how much money Goldman Sachs borrowed, for example, at what interest rate, and which assets it posted as collateral. The Fed has explicitly refused to make information about specific borrowers public. In fact, the inspector general who has the responsibility for overseeing the Fed told congress that she does not have this information. Apparently the Fed doesn't even trust its inspector general with information on its lending practices.
You should really read the rest of that editorial.
And while waterboarding is, of course, used here as a rhetorical device, finding out just what exactly is happening at the center of America's economic vortex seems like a reasonable enough proposal. An effort led by Rep. Ron Paul (R-TX) already has 179 co-sponsors in the House, a majority of them Republican. But given the potential for partisan pushback, its passage is by no means assured.
-- Stephen C. Webster
The Fed is the godchild of the Plutocracy. Since the Plutocracy rules us via their corrupted puppets in Washington, and the Plutocracy doesn't want to reveal details of their ownership of the Fed, Washington will always resist any investigation of the Fed.
Part of the necessary destruction of the Plutocracy is the destruction of the absurdly corrupt Federal Reserve.
It is absurd that the taxpayers are giving out trillions of dollars through the Fed Reserve without virtually any oversight over the amounts and recipients of these loans. For all we know, it is going to the Fed Reserve Director's brothers-in law, more likely to the banks and other financial institutions in which these directors have a financial interest of one sort or another.
Any Congressional representative who does not demand full disclosure from this virtually private corporation which controls our monetary system should be removed from office at the next election. Bringing the disclosure legislation to the floor for a vote is urgent. A vote on full disclosure from the Fed should be a litmus test for whether a representative deserves re-election.
Thanks Stephen C. for introducing the Guardian article to those who may otherwise not see it.
Please support and press your congressmen/women to sponsor H.R.1207.
This is the single act of gvt transparency of the non-gvt private Fed.Res. that parades around as if it is one, that shed light on so much corruption at the highest levels that is responsible for the current malaise.
It'd soon reveal that the White House is, now, along with the WallSt.puppet oBUSHma, basically the D.C. branch of Golman-Sachs.
Cheers for shedding light S.C.Webster!
Oh no. Here come the illiterates with pitchforks.... leave monetary policy to Pelosi and Gingrich?
My, my....
Yep, they dumbed down my country sumpin' fierce....
If the working people knew that their retirement moneys and home values hinge on the whims of elitist pigs at the trough of the Fed, who can cash out whenever times get tough by drying up credit markets and getting bailouts while retaining their golden parachutes, the working people might insist on immediate cash only, no more vast pools of other peoples money to syphon, or worse yet socialized medical and housing, even quit going to work if it’s only going to be robbed later. The pigs system of support, corporate welfare, depends on citizens faith in banks and markets. No matter of faith can stand scrutiny, economic or otherwise. The light of day would force them to pay us back with real money instead of the next press run from the treasury. Bernie Madoff is jealous of the Fed, how do you get that licence?
End the FED, HR 1207
Yes, Matt Dubuque is quite correct: us illiterates with pitchforks should STFU, and allow the the magnificent performance of the Fed to continue without scrutiny, nor to force Congress to adhere to the US Constitution, which specifically states monetary policy and the printing of currency resides with Congress, which the People (i.e. the illiterates with pitchforks) can control by voting out of office if they fail at their job.
Heaven forbid that should happen, eh Matt? Much better policy is obtuse and opaque trillion dollar giveaways to the ultrawealthy conmen to pad their ill-gotten loot.
Yep, they dumbed down MY country sumpin' fierce: TWELVE TRILLION STOLEN by the Oligarchs so far and counting....but we need to work until we are 90 and accept less Social Security benefits, because it would take a trillion to fix it for 100 years. And by "fix it", I mean repay what these FUCKERS HAVE STOLEN.
Amazing, ain't it? I mean, how wonderful "Capitalism" works when they have to BORROW TRILLIONS from the only program, a Socialist program, Social Security, that actually WORKS, to survive.
The Federal Reserve Banks are privately owned and have been charging us interest on our own money ... I hope more and more people become aware of how these vampire parasites are feeding off the working class.
Stealing from us and sending our children to fight wars of their making while they gorge on the fruits of our labor, laughing at how easy it is to steal from us. Our Federal Income Taxes (our labor) goes to pay back this debt which they manufactured out of thin air to keep us in slavery working for them.
To all the corrupt politicians and to the filthy criminals that make up the Federal Reserve Banks the day will come when you will run scared into hiding knowing the crimes you committed have come home to roost.
Once the masses wake up, and they will wake up, may each of you pray that the private security you have amassed around you does not also turn on you to demand justice.
[...] Waterboard the Fed Stephen C. Webster Raw Story Wednesday, May 27, [...]
Audit the Fed,End the Fed and Prosecute the Fed...
The Fed is a privately owned bank answerable only to its shareholders. That does not include the Great Unwashed of the USA but it does include the QOE. Why on earth would you think that just because they are allowed to collect taxes from Americans without legal mandate they would be obliged to tell you their business? Did you know that most Americans believe they won the war of independence !!!
[...] RON PAUL DEMANDS THE FED BE AUDITED [...]
[...] UPDATES. What can be done if the same banks that caused this crisis continue to control Congress? here. abcNews thinks the recession is over, here, but S&P thinks the bank crisis may last until 2013, here. Rep. Ron Paul demands the Fed be audited, his measure in the House has 179 co-sponsors, here. [...]
Which raises the question of just how many of the world's sovereign countries don't have any type of central bank when it comes to monetary policy, essentially leaving such to the commercial banks for the most part.
(Would the Scots note-issuing banks--as in the Bank of Scotland, Clydesdale Bank and The Royal Bank of Scotland--be considered a special case?)
[...] Standard and Poor’s decision to downgrade its outlook for British sovereign debt from “stable” to “negative” should be a wake-up call for the US Congress and administration. Let us hope they wake up. WATERBOARD THE FED? [...]
[...] Standard and Poor’s decision to downgrade its outlook for British sovereign debt from “stable” to “negative” should be a wake-up call for the US Congress and administration. Let us hope they wake up. WATERBOARD THE FED? [...]
Too bad we don't have "Old Hickory" in office. Many hated him, but his removal of the central bank then saved the country. Of course, the traitor Wilson reversed that course and here we are today paying for it. Waterboard the FED? I'm normally against torture, but let's start with Greenspan. Not to get info, but to punish him for his treason while there before. They have ruined us, but we can reclaim our country with their removal. Waterboard the FED? How about nuking the shit out of it instead?
hey this is a very interesting article!