September 25, 2009 (LPAC)—Hearings in the House Financial Services Committee today underlined, for those who are not stupid, that the Federal Reserve, backed by the White House, totally rejects any and all disclosure of its activities to anyone.
What are they hiding?
The criminality and outright treason of the Federal Reserve in threatening a 1923 Germany-style hyperinflationary wipeout of the United States, with its out-of-control printing of money. The Fed has lent, spent, and guaranteed $11.8 trillion in securities bailouts this year, and according to its own Richmond branch bank, now guarantees just about half of all the liabilities in the entire U.S. financial system. While the Fed has the monetary aggregate of the United States growing at 20-21% annual rate, bank credit to the economy is sharply contracting, particularly in August and September, perhaps at a negative 15-20% rate. This intensifying credit crunch simultaneously with skyrocketing money-printing, is a recipe for an early hyperinflationary explosion of the U.S. economy, as illustrated in Lyndon LaRouche's "Triple Curve" diagram.
Most members of "Bailout Barney" Frank's committee avoided the crucial issue, led by Frank himself. The hearing was held on the subject of Rep. Ron Paul's bill to require the Federal Reserve to be completely audited every year by the Government Accountability Office (GAO). The bill is sponsored by 296 Members of the House and could pass tomorrow; it is dreaded by Ben Bernanke and the Fed. Bailout Barney is trying to contain its impact by a deal to incorporate the Paul bill in some form into "financial regulation reform" legislation which Frank and the White House are working on.
While the Congressmen were sparring politely with the Fed's general counsel today, Bloomberg News (which is suing the Fed to try to force disclosure) reported its latest calculation of the $11.8 trillion ongoing total Fed bailout. Despite apparently offering Congress "more transparency," the Fed: refuses to reveal the recipients of these bailout loans, guarantees, and purchases of securities; refuses to reveal the collateral it is buying or accepting for them; refuses to reveal the interest rate it is paying banks (for the first time in its history) to deposit their "excess reserves" at the Fed. These reserves at the Fed have grown from $2 billion to $900 billion in a year! This is some of the money—much of it borrowed from the Fed in the first place—which the banks will not lend into the real economy.
The Federal Reserve has bought nearly half the Treasury Securities issued this year, making it a bigger holder of Treasuries than China or Japan! It has bought 30% or more of the GSE securities issued; is in process of buying up $1.2 trillion "worth" of collapsing mortgage-backed securities, to cite one example; and may have guaranteed half of all the financial liabilities in the whole system. It is preserving and encouraging the cancer of the "non-bank" securitized debt creation, which built the bubbles which blew up from July 2007 on, and it is doing so with hyperinflationary money printing.
"It's 1923 Germany!", Lyndon LaRouche thundered. "Just say so! This indicates we're in a 1923 Germany situation, but actually, it's on a world scale. "Put this out right now," he said. "The right of the Federal Reserve to conceal any of this stuff is junk! That has to be denounced! The Federal Reserve is a private company, under Federal regulation,— it has no right to conceal anything! Particularly at the time the US is being driven into a hyperinflationary explosion, leading to a total collapse. The Fed policy is insane! The Fed has to be brought under strict control, or the United States is going to go down. To support the Fed in this is tantamount to treason. And anyone in the Congress who does that is acting in a manner which is tantamount to treason; and we do mean Barney Frank!
"That's the only way you're going to get at this!", LaRouche went on. "You're not going to get at this by scandalizing it; you're only going to get at this by making threats. And the threat is a form of saying what the consequences are. This is criminal. It is criminally insane. Barney Frank is criminally insane! And he has to be removed, or shut up, or gagged! We have to get rough on this thing. This is a hyperinflationary destruction of the United States, and we cannot allow courtesies or debates on details to obstruct the point! The Federal Reserve is insane and out of control and crooked! These responsibilities lie with the Federal government and with the Federal Treasury. The idea that the Fed can substitute itself independently of the Treasury, in this kind of business is treasonous, it's stupid, it's criminal, it's crooked. And only crooked members of Congress could allow this to happen!
"And that's what we're going to tell the American people out there," he emphasized. "There's a mass strike in process, and with a mass strike in process, if the people know that this is the issue, they're going to react! You bastards have got to understand that there's a new thing going on in this country, and you guys are all subject to impeachment and all other kinds of problems, by the American people, who will not tolerate this kind of crap! You want to take your regime down like the East German regime? You're on the way to doing it. That's what we have to say! You have to have the facts, but you've got to stick to the issue. The issue is: what do we do if they do this! Well, we say we pull them down!
"Use the power we have," LaRouche concluded. "The power we have is, we can bring some of these guys down! And, we're going to bring them down!"
I came across this comment from "White House Economist" off the Dow Jones Newswire today referring to an article in the http://voices.washingtonpost.com/44/2009/09/24/goolsbee_chides_aig_ceo_to_min.html?wprss=44 Washington Post.
I find it objectionable that AIG has a new CEO with anywhere near the attitude he has. I don't care if the guy thinks Washington is clueless about business or esp. running his business. On this front he is more than likely correct. It is very unfortunate we (the American Taxpayer) own 80% of the blasted company. I would prefer we own 0% I don't give a darn if AIG would have imploded. Personally I think it did not implode because of the number of "well connected" wealthy bank running CEO's and "investors" that would have lost a fortune if it did called their "friends" running the Treasury and said, "Bail out AIG or we will loose a fortune". So the American Taxpayer paid to make sure that Goldman Sachs can pay it's employees $700,000 in bonuses each this year.
Besides the fact this is the biggest financial crime ever perpetrated against the American people, mind you done without any approval from our impotent legislators, the guys running the show at AIG should have better taste than say such things in public about the "crazies" in Washington. I mean how many people in the entire Government are qualified to run a sprawling 100 + country "insurance" operation, let alone all the other far flung divisions they own? There are not many people in the world that understand AIG enough to "run" it.
Obviously Hank Greenberg was running an operation with "Enron" financing. It has been reported he was moving money around to skirt the US regulators (Partly allowed because of the arcane and completely outdated insurance regulation in the US which is still state by state and completely out of touch with the fact that the industry is national and international in scope) and pad his accounts to hide the billions of dollars in risk and losses he began to accumulate when they kicked him out over one false reinsurance deal for which was caught.
Hank still gets "answers" when he make calls to Washington and as far as I can tell he is a one man lobbying effort right now to "save" his old company. He has said himself "all of his wealth" is tied up in AIG shares (though he sole enough to pay some bills) and he obviously thinks he can influence "Washington" to loosen up credit terms and allow AIG five years or so to "unwind" loosing positions and rescue the company's balance sheet.
It is not going to happen. AIG should be "gone" as we know it and unfortunately, not unlike the "bad banks" the Chinese created after bailing out their banking industry about a decade ago, the American Taxpayers will NEVER see the $160 billion sunk into the company. This is reality. But the bankers, hedge funds and other "investors" that benefited from the taxpayer bailout "got theirs" and they are living large off what is left of the crumbled institution's lousy contracts.
Shame. Mr. Robert Benmosche should be fired. AIG wound down, sooner rather than later.
Today irritation: Congress approves military projects and government spending NOT requested by the users of the end product. Presidential helicopters not wanted, planes not needed, unsuccessful projects allowed to continue running over both their budget and time estimates - not by small amounts, but by years and millions of dollars.
My experience with both personal and business budgeting - Being the expert in my field, I create the wish list of expenses, my possible sources of income and reconcile the 2 by removing expenses that cannot be paid for. Congress has taken the wish list of government that was created by experts, added projects Congress wants without regard to the experts' wishes and removed/denied $ for budget items that truly help individuals, and Congress created expenses that have no intrinsic value or result for the American people. Since when did Congress develop knowledge and planning abilities beyond those of the experts we have running our very specialized areas of our government?? Who does Congress represent? Certainly not me or any Americans I know.
The result of Congress wanting these things:
- MY tax dollars are spent on products that when complete will go into some unused equipment storage facility
- MY tax dollars cannot pay for direct help to individual Americans like healthcare and infrastructure
- THEY receive huge lobbyist money for choosing with the side of businesses instead of individuals (it would be cheaper to pay the salaries of those you fear might lose their jobs than to also pay business profit and use materials to create products no one wants!)
-THEY continue to have a job, get paid well, have their healthcare provided and line their pockets with money from businesses
Government support and bailout should be to the individuals of our country. When they are directly given the $ to save their mortgage, pay for their healthcare and put their lives in the best order possible, then businesses will receive that money through normal operational channels, as they should. Businesses and government should always be at the mercy of the desires and needs of individual Americans - let people speak their mind with their money, how they spend it, save it, and get the best return for it in both services and goods.
Obama, please be stronger and believe in your ability to fight through the confrontation to disallow these unethical and immoral practices that have moved individual Americans to the back burner so that businesses, politicians, and the wealthy can reap many benefits at the expense of the true fiber of America - individual people who work hard, have a generous heart within their community, struggle to make financial ends meet, experience constant stress about their jobs and the ability of their families to survive, and foresee a future as gloomy as today. REAL CHANGE PLEASE!!!!!
By Padmini Arhant The ravenous economy has absorbed about $3.7 trillion dollars via bailouts and stimulus plans, (please refer to individual stimulus package topics for breakdown) yet the nation’s jobless rate rising like a tidal wave rather than settling along the shores. Several arguments mounting regarding the precarious job situation across the nation with some fifteen states like California, Michigan, Indiana, Ohio and others experiencing double digit in job losses accumulated over a period of time.
Not surprisingly, criticisms with an ominous prediction such as a possible return of the ‘Great Depression’ from various political and economic factions pouring against the current administration’s level of action and apparent inaction in averting the precipitous decline of the job market...
Please check out the related topics Economic Bailouts on an Unprecedented Scale, Bush Bailout Packages and Obama Bailout Packages with more on the way.
Further riveting details and visuals @http://www.padminiarhant.com
Thank you.
Padmini Arhant
By Padmini Arhant
With a finger on the pulse of the economy, the recent reports on employment, housing, financial and stock market post stimulus funding worth $787 billion approved by Congress in February 2009, has drawn both praise and criticism from different quarters. The praise is always welcome and encouraging for any administration and the Obama administration is no exception to the rule, particularly when they are relentlessly engaged in stabilizing the economy as the top priority.
Whereas, the criticism targeted at the President is no revelation considering the partisan Washington atmosphere. The results thus far, indicate the current national unemployment rate at 9.2% against 8% in the pre-approval stimulus package forecast. Further, the reports reveal the economy shed 1.6 million jobs with the White House claiming 150,000 jobs saved since...
More @http://www.padminiarhant.com
Thirty-six members of the U.S. House -- Democrats and Republicans, liberals and conservatives -- recently wrote to President Obama asking him to stop the White House Auto Task Force from taking actions that are harmful to American autoworkers, auto dealers and the states and communities impacted by plant and dealership closings.
Congressman Dennis Kucinich, D-Ohio, organized the effort with Ohio Republican Steven LaTourette in response to the administration's approach to the Chrysler bankruptcy and bailout.
http://www.thenation.com/blogs/thebeat/440720/bipartisan_objections_to_a_bad_gm_deal
Here's my inspiration on how to save the American auto industry:
When Henry Ford produced his first car, there was a need to produce cars all day everyday. But now there is no need for new cars every year so why not produce cars every three years and allow for some real research and development and the dealships can stay active maintaining the vehicles they sell for three years.
A. Include in the sale price (or discount) the price of 3 years of oil changes B. Include in the sale price free tire rotations for the 3 year period C. Guarantee a trade-in regardless to the condition of the vehicle at time of trade-in D. Make arrangements with recylcing plants to recycle the trade-in.
Ban vehicles older than 5 years unless they are classics in modern day running condition (emissions, fuel, etc.). A lot of the nestalgia is that the car is inexpensive, not endearing.
Najsycak
Wall Street Parties while Real People literally Cry themselves to Death.by Jason M. Christos from http://docs.google.com/Doc?id=dgpmp8mq_105gd4g9xgp
Last night a program aired on T.V. that made me want to cry. I saw real peoples faces crying because they are going to die, due to clinics closing. Imideatley I ask myself why is wall street partying with the Obama Plan money while these people cry themselves to death literally. I want to help, I want to start a quick non-profit. And accept donations for these people via paypal. Anybody who is with me contact me. These are REAL PEOPLE DYING IN OUR COUNTRY while wall street throws BAILOUT parties! We CAN'T depend on the government! we must act now and let these people know that they are loved. I will update as soon as possible as soon as I start a private non-profit for their benefit. Contact me if you want to help (314) 827-2189
Here is a link to the program. http://www.cbsnews.com/stories/2009/04/03/60minutes/main4917055.shtml
I think after you look these real people in thier eyes you will lose faith in the Obama Plan and Government in general. This is the responsibility of WE THE PEOPLE.
Video interview: Kucinich outraged over $3.7 billion in bonuses paid by Merrill Lynch Today at 12:27am
Kucinich focuses attention on bailouts given to big banks.
This video is a must see. I was willing to sacrifice my home just to help others save their own and the ones giving me the most fight was our courts. Please watch attached video and follow link to other parts
http://www.youtube.com/watch?v=A2jErlKYLt4
It sure would help.
Hi All,
Greetings and Salutation!
I watched the movie version of “Chicago” the other night. Today, I think about this AIG fiasco and remember Richard Gere’s well done rendition of “Razzle Dazzle ’em” in that movie. The sly lawyer as he diverts attention from what is fact to what is emotion. In the instance of this AIG fiasco, diverting attention to bonuses paid executives and away from the truth. Any really, really, good swindle or scam uses that “Razzle Dazzle ‘em” rule. One must have a focus of attention somewhere other than upon the fraud itself. The shenanigans at AIG bring to mind a movie called “Paper Moon”. Destiny teams a little girl and a middle-aged man up as con artists. The man pays for some items in a story with a large bill. Behind him in line, the little girl pays for something with a small bill. When the girl sees her change, she balks, claiming that she had given the clerk the larger bill. Her distressed cry that the larger bill is a birthday gift with a birthday inscription on it, inciting emotions. Found in the cash drawer is a larger bill with the inscription the girl claims. The girl “earns” the larger bill via her deception. AIG is much the same con, right down to the little girl taking the fraud into a simpler swindle. A couple of more obvious short-changing maneuvers to increase her take or maybe just to show off her flair for the con game. In the AIG situation, these would be bonuses unnecessary yet still, bonuses useful in diverting attention toward facts to attention toward emotions. It can be a bit more complicated but the primary things that occurred up to and including the bailouts is the same. There are many faucets to this fraud. However, the base fraud is a matter of giving a small bill and pretending it is the large bill. The deregulation of laws, which had created borders betwixt Wall Street, the Banks, and the Insurance companies, that allowed great fraud to be committed. Long ago and far away, something called “buying on margin” came to be. This entailed a situation whereby a person could post X dollars of collateral and the stock market company would give an equal amount of credit. Thereby, one could have $100.00 in collateral and buy $200.00 in stock. This is termed “leveraging” and was fine when regulations were in place. The advent of such things as “options” for “hedging” will greatly increase this leveraging situation to create a “win-win” situation for the smart investor (or better said, “Sly” investor). The stock market always somewhat of a gamble, one could now “bet” that a stock would fall in value and make the big bucks. Even if one did not actually own the actual shares of that stock, one could control hundreds of thousands of dollars in stock with only a few hundreds of marginal dollars. Marginal dollars are the big bill that the little girl did not really give the store clerk; it never existed. However, the real big bill, which the store clerk gave back to the little girl, did exist. In effect, it was money used to “bail out” the clerk and the store due to emotional circumstances. One day it hit the news that a company called “Lehman Brothers” had taken the big dive and the world would collapse unless the government did not step in to help. The sky was falling, as it were. The big cats including the FED knew that Lehman would collapse if someone did not purchase it (and revise the books) or the FED did not step in with help. The stack of cards to build the house was going to come down. The FED knew long before Lehman Brothers failed that it would happen. Instead of bracing (or bailing out) Lehman Brothers, the Fed let Lehman Brothers fail. The auspice incongruously put out that Lehman would fall by itself and create only a pothole on Wall Street. This is incongruent because anyone familiar with the system would know that Lehman would take others with it. Lehman failed and AIG became responsible for the billions in insurance it sold against such a failure. The government fooled to step in with billions and no oversight. The insurance that AIG had sold and could not cover, billions in insurance to protect investors that they not lose their investment AND not lose the monies that did not exist; stocks and options bought on MARGIN. What a quandary, what a great fraud is the scam perpetrated on an unsuspecting people. AIG had insured billions of dollars that did not exist. Until the FED marched in and turned those dollars into real cash, the clerk handing the poor little child her take and her bonus for her short change game. The executives earned those bonuses because they pulled the biggest heist in history. In addition, they are taking the people’s eye off the proverbial ball and probably giving AIG plenty of time for a probable shredding enterprise. Find the insured and one will find the trail of fraud or one can play with the millions in bonuses and ignore the billions in fraud.
Loveya,
