Courtesy of JESSE’S CAFÉ AMÉRICAIN
"A revolution is coming — a revolution which will be peaceful if we are wise enough; compassionate if we care enough; successful if we are fortunate enough — But a revolution which is coming whether we will it or not. We can affect its character; we cannot alter its inevitability." Robert F. Kennedy, 9 May 1966
The Fed is now engaged in a control fraud, and what appears to be racketeering in conjunction with a few big investment banks. They may have entered into it with good intentions, but they seem to have been turned towards deceit and corruption.
This is not an historical event, but an ongoing theft in conjunction with a number of Wall Street banks, and politicians whom they have paid off through a corrupt system of campaign financing and influence peddling.
This is nothing new in history if one reads the unsanitized version. But people never think it can happen today, that somehow yesterday things were different, as if one is looking at some distant, foreign land. This is a facet of the illusion of general progress.
Audit the Fed. Vote out incumbents until they give you what you demand. Take back the billions stolen through millionaire’s taxes similar to those in place before the ‘Reagan Revolution.’ If there is no profit in theft, it will not happen. EU Puts Tough Restrictions on Banker’s Bonuses.
The individuals in government are not a ruling class, and were never intended to be, although after a second term they start to feel themselves to be privileged, with better pensions and benefits and pay raises than the people whom they serve. These are your chosen representatives, sworn to uphold the law and governing with your consent. The United States is not the Congress, the Supreme Court and the Executive in Washington, it is the people joined freely by their mutual consent under the Constitution. It is of the people, by the people, and for the people.
Goldman Sachs, AIG, and the NY Fed are at the heart of it. Everyone in the government, the media, and on the Street knows this. We are now in the coverup stage of a scandal, similar to Watergate when the White House was stone-walling. The difference is that the corruption and capture of the government is much more pervasive now, and includes a significant portion of the mainstream media, so meaningful reform is difficult. Most of what has transpired so far has been designed to distract and placate the people in their righteous anger.
Here is a commentary from one of my favorite analysts, Howard Davidowitz, and then the story from Bloomberg on how the Fed deceives the Congress and the public, turns a blind eye to glaring conflicts of interest, and is essentially debasing the currency while transferring the wealth of the nation to their cronies.
[See "A Gigantic Ponzi Scheme, Lies and Fraud": Howard Davidowitz on Wall Street -- "This is the most incompetent administration in my life time. It's getting worse every day."]
Janet Tavakoli has been articulate and outspoken on recent financial developments, identifying the fraud and its specifics while taking on the apologists in open forums, for quite some time. And still the regulators do not enforce the laws they have, and Washington drags its feet while accepting buckets of cash from the perpetrators.
The longer reform is delayed and the peaceful protestations of the public are ignored, the worse it will be if the people actually rise and put a stop to this. The Fed could conceivably become a latter day Bastille, one would advise and hope, in a figurative manner.
One of the things I like about the English form of government is that if they behave badly enough, a prime minister can face a vote of no confidence and trigger an election. In the US, it appears that politicians scramble to be elected, and then stay safely in office barring the high hurdle of impeachment, and do what they will, breaking promises and behaving badly, with significant short term impunity. And when the next election comes over the horizon, they start behaving again, and playing the short term memory game. If the US had the British system, there is little doubt that the current Administration would be facing a general election now.
But have no doubt, change is coming, and it is still an open question if hell is also coming with it.
"Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in “assets” the government agreed to purchase in the rescue of Bear Stearns Cos. were “investment-grade.” They didn’t share everything the Fed knew about the money.
The so-called assets included collateralized debt obligations and mortgage-backed bonds with names like HG-Coll Ltd. 2007-1A that were so distressed, more than $40 million already had been reduced to less than investment-grade by the time the central bankers testified. The government also became the owner of $16 billion of credit-default swaps, and taxpayers wound up guaranteeing high-yield, high-risk junk bonds.
By using its balance sheet to protect an investment bank against failure, the Fed took on the most credit risk in its 96- year history and increased the chance that Americans would be on the hook for billions of dollars as the central bank began insuring Wall Street firms against collapse. The Fed’s secrecy spurred legislation that will require government audits of the Fed bailouts and force the central bank to reveal recipients of emergency credit.
“Either the Fed did not understand the distressed state of some of the assets that it was purchasing from banks and is only now discovering their true value, or it understood that it was buying weak assets and attempted to obscure that fact,” Senator Sherrod Brown, an Ohio Democrat and member of the Senate Banking Committee, said in an e-mail when informed about the credit quality of holdings in the Maiden Lane LLC portfolio. The committee held the April 3 hearing."
Fed Made Taxpayers Unwitting Junk Bond Buyers - Bloomberg