Thursday, March 27, 2008

Tail Wagging the Dog

The Fed is trying to consolidate its power base

March 27 (Bloomberg) -- America's financial system faces its biggest overhaul since the Great Depression as officials weigh lessons from the credit-market rout and the near collapse of Bear Stearns Cos.

Federal Reserve policy makers are redefining which companies are vital to the flow of credit, an area once the sole domain of commercial banks, and which institutions pose risks to the entire economy if they fail. Treasury Secretary Henry Paulson said in a speech yesterday that the Fed should broaden its oversight to include Wall Street investment firms, now regulated by the Securities and Exchange Commission.

Former regulators predict the changes will see the Fed accrue influence at the expense of the SEC, which was created by President Franklin Roosevelt to make rules for dealers and stock exchanges. The Fed is taking almost $30 billion in assets off Bear Stearns's balance sheet to encourage JPMorgan Chase & Co. to buy the firm, even though Bear's main supervisor is the SEC.

``This is tectonic,'' said Ralph Ferrara, a former general counsel at the SEC, and now a partner at Dewey & LeBoeuf LLP in Washington. ``We no longer want to have a balkanized response to a national crisis.''

My Thoughts:

The Federal Reserve, a private banking institution authorized by Congress to loan money created from nothing and charge interest for doing so, is already a powerful, rouge institution that operates without Congressional oversight. Should we now hand them more power?

The Fed's latest “unprecedented” act of lending money directly to investment banks (swapping treasuries for valueless garbage) and their recent creation of the a) Term Auction Facility b) Term Securities Facility and c) Primary Dealer Credit Facility are all confirmation as to: 1) where their loyalties lie (not the people), and 2) their mischievous, manipulative, rouge ways of supporting their brethren.

Additionally, the bailout of a private company (Bear Stearns) with US taxpayer money, without Congress's approval, is unfathomable -- Who is in control of these guys (shareholders? -- see my note towards bottom of post)

So, the question of the day: does the dog (our government) wag the tail (fed) or does the tail (fed) wag the dog (government)? I think the answer is crystal clear...

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation,(i.e., the "business cycle") the banks and corporations that will grow up around them will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.

Thomas Jefferson, President of the United States 1801-1809


I believe that banking institutions are more dangerous to our liberties than standing armies.

Thomas Jefferson,1816


We have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world - no longer a government by free opinion,no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.

Woodrow Wilson, President of the United States 1913-1921


(Note: Federal Reserve’s controlling stock is owned by: Rothschild Banks of London and Berlin, Lazard Brothers Bank of Paris, Israel Moses Sieff Banks of Italy, Warburg Bank of Hamburg and Amsterdam, Lehman Brothers Bank of New York, Kuhn Loeb Bank of New York, Chase Manhattan Bank of New York and Goldman Sachs Bank of New York)


I think Dr. Schoon said it best in his latest, must read article: The Die Is Cast The Cast Will Die

" The banker's credit money system is now everywhere as are their resultant unsustainable debts; and those who profit by that system, the bankers (and the corporations that grew up around them) now control the media, the political process, and the agencies charged with overseeing and regulating the economy - the US Federal Reserve Bank, the SEC, the US Treasury, and indeed the US government itself: the Presidency, the Congress, and the Supreme Court."

Regards
Randy

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8 Comments:

At 3/28/2008 4:35 AM, Blogger Matt said...

Jim Rogers said it best: We (American taxpayers) just bought Maseratis for Wall Street. What you have identified here is so painfully obvious. Yet most of the U.S. population does not or will not understand. And they don't want to. They will laugh at us when we tell them. The Woodrow Wilson quote is 100% accurate. I have dedicated myself to pay off all debt. I have heard for years that the first step towards freedom is to be debt free. Now is the time for me to get there.

 
At 3/28/2008 12:17 PM, Blogger Randy said...

Matt,

Regarding your comment: "Yet most of the U.S. population does not or will not understand. And they don't want to. They will laugh at us when we tell them." I completely agree and live it every day.

A few more quotes of significance:

"Give me control of a nation's money and I care not who makes the laws."

Mayer Amschel Rothschild (1744 -1812)-- Godfather of the Rothschild Banking Cartel of Europe


"Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good."

John Adams(1735-1826) Founding Father, 2nd US President


"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

Alan Greenspan Former -- Fed Reserve Chairman


"The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities states and nation. At the head is a small group of banking houses generally referred to as 'international bankers.' This little coterie... run our government for their own selfish ends. It operates under cover of a self-created screen...[and] seizes...our executive officers... legislative bodies...
schools... courts... newspapers and every agency created for the public protection."

John F. Hylan -- Mayor of New York 1918-1925


"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments
by controlling the money and its issuance."

James Madison (1751-1836), Father of the Constitution for the USA, 4th US President


"The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

Carroll Quigley (1910-1977) Professor of History at Georgetown University, member of the Council on Foreign Relations (CFR), mentor to Bill Clinton


"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."

Napoleon Bonaparte (1769-1821) French emperor


"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Henry Ford (1863-1947) Founder of Ford Motor Company

I could go on and on with these quotes, but need I? I think you all get the point...

Randy

 
At 3/28/2008 9:00 PM, Anonymous Patrick said...

Buyers' Revenge: Trash the House After Foreclosure

Glitzy Las Vegas isn't immune to the foreclosure crisis and WSJ's Michael Phillips reports bitter homeowners aren't leaving quietly. Now, banks are offering to pay them not to strip down or vandalize their foreclosed homes.

LAS VEGAS -- Eddy Buompensiero noticed eight pairs of shoes outside the door of the modest house on Mother of Pearl Street, evidence that the former owners were still living there even though the bank had foreclosed.

Mr. Buompensiero, a gray-bearded inspector for REO Asset Services-1st Realty Group, rang the bell. When no one answered, he taped a letter to the door offering the occupants $1,000 to move out. The catch: They won't get a cent if they trash the house before they leave.

http://online.wsj.com/article_print/SB120665586676569881.html

 
At 3/30/2008 1:57 PM, Anonymous Captain Moroni said...

Hey Randy,

The Captain here. Haven't posted in a while but I always read.

Can you explain to me how the PM market is manipulated. How is it done and who is doing it? I'm assuming that they can't manipulate it forever, so are their deceitful tactics coming to a close in the next few years?

Thanks

 
At 3/30/2008 2:25 PM, Blogger Randy said...

Hey Captain, Appreciate your readership. I spoke of the PPT PM manipulation in this post: Is the Credit Crunch Over

Hope it answers your questions.

"Coming to a close in a few years" -- I don't know with certainty, but as our fiat US currency begins to fail in earnest, I would assume global demand for PM will become massive and much, much harder to manipulate...

Randy

 
At 1/25/2012 8:08 AM, Anonymous Todd said...

In my view everybody must go through it.
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At 1/14/2013 5:45 PM, Anonymous QUALITY STOCKS UNDER 5 DOLLARS said...

Theirs lots of dogs down on wall street and broad and their not waging their tails.

 
At 3/28/2014 1:09 PM, Anonymous PENNY STOCK INVESTMENTS said...

Walk the dog.

 

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