Godssecret's Weblog


65 REASONS AMERICA NEEDS A MAJOR CHANGE IN DIRECTION AND IT MUST HAPPEN NOW !

Here are 65 signs that economic collapse is in progress.

 

These are facts and cannot be ignored. These figures are serious enough to warrant panic !

 

 

 

1. Since Barack Obama entered the White House, the number of long-term unemployed Americans has doubled from 2.7 millionto 5.4 million.

 

2. The average duration of unemployment in the United States is nearly three times as long as it was back in the year 2000.

 

3. The unemployment rate in the U.S. has been above 8 percent for 40 months in a row, and 42 percent of all unemployed Americans have been out of work for at least half a year.

 

4. Unemployment in the eurozone has hit another brand new record high. It is now sitting at 11.2 percent. It has risen for 14 months in a row.

 

5. The U.S. economy lost more than 220,000 small businesses during the recent recession.

 

6. The percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

 

7. Overall, the number of “new entrepreneurs and business owners” dropped by a staggering 53 percent between 1977 and 2010.

 

8. The unemployment rate in Spain is now up to 24.6 percent.

 

9. Morgan Stanley is projecting that the unemployment rate in Greece will exceed 25 percent in 2013.

 

10. Since Barack Obama became president, the price of a gallon of gasoline has risen from $1.85 to $3.49.

 

11. The average American household spent approximately $4,155 on gasoline during 2011, and electricity bills in the U.S. have risen faster than the overall rate of inflation for five years in a row.

 

12. About three times as many new homes were sold in the United States in 2005 as will be sold in 2012.

 

13. While Barack Obama has been in the White House, home values in the United States have declined by 12 percent.

 

14. According to AARP, 600,000 American homeowners that are 50 years of age or older are currently in foreclosure.

 

15. Right now there are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.

 

16. According to Gallup, the current level of homeownership in the United States is the lowest that they have ever measured.

 

17. Federal housing assistance increased by a whopping 42 percent between 2006 and 2010.

 

18. In some areas of Detroit, Michigan you can buy a three bedroom home for just $500.

 

19. All around us our cities are crumbling. According to the American Society of Civil Engineers, 2.2 trillion dollars is needed just to repair critical infrastructure in the United States.

 

20. The unemployment rate in New York City is now back up to 10 percent. That equals the peak unemployment rate in New York City during the last recession.

 

21. Back in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.

 

22. The U.S. Postal Service is about to default on a 5.5 billion dollar payment for future retiree health benefits.

 

23. According to Graham Summers, “when we account for all the backdoor schemes Germany has engaged in to prop up the EU, Germany’s REAL Debt to GDP is closer to 300%.”

 

24. According to the Federal Reserve, the median net worth of families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.

 

25. The U.S. trade deficit with China during 2011 was 28 times larger than it was back in 1990.

 

26. The United States has lost more than 56,000 manufacturing facilities since 2001.

 

27. During 2010 alone, an average of 23 manufacturing facilities permanently shut down in the United States every single day.

 

28. The U.S. government says that the number of Americans “not in the labor force” rose by 17.9 million between 2000 and 2011. During the entire decade of the 1980s, the number of Americans “not in the labor force” rose by only 1.7 million.

 

29. Eight million Americans have “left the labor force” since the recession supposedly ended. If those Americans were added back into the unemployment figures, the unemployment rate would be somewhere up around 12 percent.

 

30. Approximately 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed last year.

 

31. At this point, one out of every four American workers has a job that pays $10 an hour or less. If that sounds like a high figure, that is because it is. Today, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.

 

32. Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.

 

33. According to one study, between 1969 and 2009 the median wages earned by American men between the ages of 30 and 50 declined by 27 percent after you account for inflation.

 

34. In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.

 

35. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980. Today they account for approximately 16.3%.

 

36. Medicare spending increased by 138 percent between 1999 and 2010.

 

37. Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars. That comes to $328,404 for each and every household in the United States.

 

38. Back in 1990, the federal government accounted for 32 percent of all health care spending in America. Today, that figure is up to 45 percent and it is projected to surpass 50 percent very shortly.

 

39. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

 

40. Since 2008, the U.S. economy has lost 1.3 million jobs while at the same time 3.6 million more Americans have been added to Social Security’s disability insurance program.

 

41. Since Barack Obama entered the White House, the number of Americans living in poverty has risen by 6.4 million.

 

42. The number of Americans on food stamps has risen from 32 million to 46 million since Barack Obama became president.

 

43. Right now the poverty rate for children living in the United States is 22 percent, and approximately one-fourth of all American children are enrolled in the food stamp program at this point.

 

44. The number of children living in poverty in the state of California has increased by 30 percent since 2007.

 

45. Child homelessness in the United States has risen by 33 percent since 2007.

 

46. According to the National Center for Children in Poverty, 36.4 percent of all children that live in Philadelphia are living in poverty, 40.1 percent of all children that live in Atlanta are living in poverty, 52.6 percent of all children that live in Cleveland are living in poverty and 53.6 percent of all children that live in Detroit are living in poverty.

 

47. Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.

 

48. According to the U.S. Census Bureau, the percentage of Americans living in “extreme poverty” is now sitting at an all-time high.

 

49. In the United States today, somewhere around 100 million Americans are considered to be either “poor” or “near poor”.

 

50. It is now being projected that about half of all American adults will spend at least some time living below the poverty line before they turn 65.

 

51. Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

 

52. Total consumer debt in the United States has risen by 1700 percent since 1971.

 

53. Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.

 

54. According to one recent survey, approximately one-third of all Americans are not paying their bills on time at this point.

 

55. In 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for ever dollar that they earned. Today, the bottom 95 percent of all income earners in the United States have $1.48 of debt for every dollar that they earn.

 

56. The United States was once ranked #1 in the world in GDP per capita. Today we have slipped to #12.

 

57. According to the U.S. Census Bureau, 49 percent of all Americans live in a home where at least one person receives benefits from the federal government. Back in 1983, that number was below 30 percent.

 

58. Incredibly, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.

 

59. Today there are approximately 25 million American adults that are living with their parents.

 

60. The U.S. dollar has lost more than 96 percent of its value since 1900. You can thank the Federal Reserve system for that.

 

61. During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

 

62. Overall, the U.S. national debt has grown by nearly 10 trillion dollars over the past decade.

 

63. The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.

 

64. 40 years ago the total amount of debt in America (government, business and consumer) was less than 2 trillion dollars. Today it is nearly 55 trillion dollars.

 

  1. As Financial Armageddon recently point out, so many homeless people are pooping on the escalators at San Francisco’s Civic Center Station at night that the escalators are breaking down and repair teams have been called in to clean up the mess. As the economy gets even worse, will scenes like this start playing out in all of our cities? FROM WHTC.com:

 

 

 

We cannot handle 4 more years of movement in these directions

NOW IS THE TIME FOR REAL CHANGE

If America is to survive as a Great power.

OBAMA HAS TO GO !



WHO IS PULLING AMERICA’S STRINGS ? +++++++ BIG DANGER AROUND THE CORNER !
January 30, 2012, 9:17 pm
Filed under: Economics, evil inclination

 THIS BLOG FOR THE MOST DEALS WITH HOW TO ATTAIN DIVINE REVELATION BUT AT THIS TIME THE EVIL FORCES ARE TRYING TO DESTROY THE AMERICA WE GREW UP WITH AND MAKE LIFE A LIVING HELL. IT IS TIME FOR THOSE WHO SEEK TO “DO THE RIGHT THING” TO TAKE A STAND. THE TIME IS NOW !

George Soros now controls President Obama and directs policy of the

Democratic party

He is the enemy of the free market system and is working to collape the Amarican

economy so he may profit

HE MUST BE STOPPED 


 

Revealing the evil deceptive ploys and tactics of George Soros, progressive liberals, Marxists, Communists, Socialists, et. al. all to create a One World Government of unrepresentative control, in the same manner Radical Islam wants to create a caliphate.

 

 

GEORGE SOROS TRYING TO 

IMPLEMENT A “ONE WORLD”

SOCIALIST GOVERNMENT

 

 

 

Soros manipulates euro – THE U.S. dollar IS next

 

Accprding to Jerome Corsi the left-wing billionaire George Soros is trying to manipulate the euro as part of his goal of establishing a one-world currency and a one-world government.

 

 

SOROS CAUSED THE OCTOBER 2008 US FINANCIAL MARKET CRASH WITH THE HELP OF GOLDMAN SACHS

In an article Kyle-Anne Shiver wrote for The American Thinker she says, “Soros made his first billion in 1992 by shorting the British pound with leveraged billions in financial bets, and became known as the man who broke the Bank of England.  He broke it on the backs of hard-working British citizens who immediately saw their homes severely devalued and their life savings cut drastically almost overnight.”

…Back to America.  Soros has been actively working to destroy America from the inside out for some years now.  People have been warning us.  Two years ago Bill O’Reilly said on The O’Reilly Factor that Soros [is] an extremist who wants open borders, a one-world foreign policy, legalized drugs, euthanasia, and on and on. This is off-the-chart dangerous. (Source) In 1997 Rachel Ehrenfeld wrote, Soros uses his philanthropy to change or more accurately deconstruct the moral values and attitudes of the Western world, and particularly of the American people. 

Soros is OBAMA’S BOSS

 

AMERICA’S & OBAMA’S PUPPET-MASTER

THIS MUST CHANGE OR IT IS OVER !

 

Inform Your Family and Friends of the Dangers of This Evil, Treasonous Man AND NOT TO VOTE FOR OBAMA AND OTHERS WHO WORK FOR

HIM.

SOROS WANTS TO MAKE ANOTHER FORTUNE BY THE DOWNFALL

OF THE USA

GEORGE SOROS IS ATTEMPTING TO CONVERT AMERICA TO COMMUNISM WITH OBAMA’S HELP AS A PUPPET PRESIDENT

 

FELON, FREQUENT WH VISITOR, AND OBAMA’S BOSS, GEORGE SOROS FINGERED IN CREATING EGYPTIAN UNREST TO INSTALL NEW REGIME  

Occupy’s ‘Nerve Center’ Staffed by Soros Activists

 

A George Soros-funded, Marxist-founded organization with close ties to the White House has urged the Federal Communications Commission to investigate talk radio and cable news for “hate speech.” The organization, calling itself Free Press, claims media companies are engaging in “hate speech” because a disproportionate number of radio and cable-news networks are owned by non-minorities.

This plan of Soro has been along time in the making

George Soros launches a $50 million effort to purge economics of its free-market zeal. Michael Hirsh October 27, 2009

THEY WANT TO SHUT US UP

 

THERE IS SO MUCH INFO AT THESE WEBSITES—THE WHOLE STORY !

http://commieblaster.com/george-soros-fund/

http://www.earstohear.net/soros.html

AMERICA THE TIME IS NOW TO STOP

THIS IMPENDING DISASTER  !



SOCIAL WELFARE PROGRAMS TO FACE DRASTIC CUTS TAXS ARE GOING UP FOR ALL ! RIOTS COMING !
January 29, 2012, 6:20 pm
Filed under: Economics

BEFORE WE DISCUSS SOCIAL WELFARE PROGRAMS TO FACE DRASTIC CUTS TAXS ARE GOING UP FOR ALL ! RIOTS COMING !

IT SEEMS FIT TO INTRODUCE IT WITH THIS URGENT WARNING SPONSORED BY GLEN BECK

Dear Fellow Patriot,

Forgive me for being blunt, but you need to take steps right now to prepare. There’s no time to waste.

The odds are stacked against you if a crisis hit today.

Recent surveys show that 91% of Americans are unprepared to survive in a crisis situation. Most likely, this includes you!

While FEMA is broke and first responders are overwhelmed by the surge in natural disasters what will happen to you and your loved ones?

Research shows you need to be able to survive, completely self-reliant, for at least 40 days.

Will you be prepared to survive, completely self-reliant, for 40 days (until order is restored or help arrives)?

Chances are you’re one of the 91% who can not survive for 40 days… but do you want to be one of the 9% that’s prepared?

I’ve developed a FREE 7 Day Mini Course to teach you the first action steps you MUST take to prepare your family in a crisis situation.

>> Click here for instant access to my FREE SURVIVAL MINI COURSE

I’ll be frank with you, the knowledge contained in the FREE course could be the difference between surviving for you and your family. You owe it to them to invest ten (10) minutes of your time to learn something that could save their lives in a time of crisis.

You MUST prepare to survive.

God bless and stay safe,

 news@glennbeck.com

NOW FOR THE NEWS ;

SOCIAL WELFARE PROGRAMS TO FACE DRASTIC CUTS TAXS ARE GOING UP FOR ALL !

Now, the truth is that helping the poor and those who cannot help themselves is always a good thing.

Nobody is denying that.

But are there really 100 million Americans that cannot take care of themselves?

Of course not.

The welfare state has gotten wildly out of control and now we are drowning in an ocean of red ink because of it.

In fact, unless the underlying laws for the entitlement programs are rewritten and unless benefits are cut to the bone, it will be mathematically impossible for the U.S. government to not default on the national debt.

Right now, interest on the U.S. national debt and spending on entitlement programs like Social Security and Medicare are somewhere in the neighborhood of 10 to 15 percent of GDP.  By 2080, they are projected to eat up approximately 50 percent of GDP if things were to continue as they are now, which is obviously impossible. 50 million are on Medicaid, the federal health-care system for the poor — a 17% jump since 2007. Obama’s health care plan will add 16 million to the Medicaid rolls starting in 2014

Approximately 57 percent of Barack Obama’s 3.8 trillion dollar budget for 2011 consists of direct payments to individual Americans or is money that is spent on their behalf

The U.S. government “borrowed” 2.5 trillion dollars from the Social Security Trust Fund, and now it turns out that the Social Security system is going to start needing that money.  So where will the U.S. government get an extra 2.5 trillion dollars?

 

Food stamp use rises to record 45.8 million

NATION OF POORS

Welfare State: One In Six Americans Getting Federal Aid

THIS IS UNSUSTAINABLE

THERE JUST WILL NOT BE

ENOUGH MONEY !

The costs of federal entitlement programs—Social Security, Medicare, and Medicaid—and interest on the national debt will drive future deficits, and Congress must promptly and carefully decide how best to reduce those costs. However, entitlement reforms will take time, and spending cuts cannot wait. Congress needs to start cutting spending on federal entitlement programs now.

 

The problem is too deep to fix with spending cuts alone. The country has continually spent more than it has been willing to collect in taxes. Over the past four decades, tax revenue has averaged 18% of GDP — while spending has averaged 21%.

 

Tax revenue has to go up now so to stop the growth of national debt and bring it under control.

Over the past couple of weeks, George Soros, the IMF and the World Bank have all issued incredibly chilling warnings about the possibility of an impending economic collapse.  Considering the power and the influence that Soros, the IMF and the World Bank all have over the global financial system, this is very alarming.  So are they purposely trying to scare the living daylights out of us?  Soros is even warning of riots in the streets of America. 

THINGS ARE GOING TO BE CHANGING VERY MUCH

THE WORLD WE GREW UP WITH IS ON THE WAY OUT !

Hhtp://endoftheamericandream.com/archives/14-reasons-why-the-u-s-government-will-never-have-a-balanced-budget-ever-again    

http://money.cnn.com/2011/08/04/pf/food_stamps_record_high/index.htm#0_undefined,0_

http://wonkette.com/418209/welfare-state-one-in-six-americans-getting-federal-aid

http://money.cnn.com/2011/09/05/news/economy/national_debt_taxes/index.htm#0_undefined,0_



The (Potential) future of America, If you dont take back you Country !
September 15, 2009, 9:00 am
Filed under: Economics, History in the making

So what will be in the future of America :


I write this now, as in the future the way things look now State censors will not allow it


The future of America has been stolen

Remember “great Britain , the British empire”, Britain’s decline was driven by bad economics. There are some eerie parallels between the position of the United States today and that of the British Empire a century ago. This is not good. The United States’ recent military interventions in Somalia, Afghanistan, and Iraq all have parallels in British military interventions decades ago. The basic strategic dilemma of being the only truly global player on the world stage is strikingly similar. The ruin of the United States is driven by overextension abroad and profligacy at home. The United States was at risk of “imperial overstretch,” Kennedy wrote in 1987, arguing that “the sum total of the United States’ global interests and obligations is nowadays far larger than the country’s power to defend them all simultaneously.” It has all gone to far.

It didn’t take long before so many of our tax dollars were going toward interest payments that we cant fund even the most basic of government programs without massive tax increases on everyone. People now work most of the year just to pay Uncle Sam”

How did we get to this point ?


Corruption and ideological venom consumed the America we loved years ago.

Dumping of foreign manufactured products into the U.S. market, has killed domestic manufacturing. There are no more jobs here left to be found.


We decided to hand over a bunch of money and power to greedy politicians instead. Smart! After using that money to nationalize a bunch of banks, mortgage companies and insurance companies, they moved on to bigger things.


The airlines came first — we just couldn’t live without them. Then it was the automakers (Detroit would’ve died), health care (they said they could manage it better), and eventually, the oil companies (I’m not sure where all of those “windfall profits” have gone).

The idea behind it all (an idea that was eventually turned into law with the passage of the Securities Exchange Act of 2011) was to “socialize losses” by spreading them out among all taxpayers. The pain, our leaders argued, would be minimal that way.

They were right. At least until the bills came due. See, we didn’t actually have any of the money we were promising everyone; we were borrowing it.

In the United States, the federal government kept many people alive through programs such as Medicaid, Social Security, and food stamps.”


Local governments providde for trash removal and water and sewer line maintenance, road and bridge repair, and so on. Police departments tried to defend people from each other.”


After all these services collapsed all hell broke loose !


All  unraveled, from the bottom, not from the top.


From not worrying about protecting our borders. Complete chaos reigns, immigration control and the illegal alien situation is impossible.


We have faced all 5 Stages of Economic Collapse :

Stage 1- Financial Collapse

Stage 2- Commercial Collapse

Stage 3-Political Collapse

Stage 4-Social Collapse

Stage 5-Cultural Collapse


Iran appears to be refitting their long-range missiles to carry nuclear payloads. All the Islamic extremist groups have dirty bomb, many are dying.


Because we did not develop energy alternatives of find natural sources for our own oil we now have to pay for it at outrageous prices. Only the “rich” can afford gasoline.


A economic snowball has begun rolling down hill may run over America, leaving in it’s wake, a country that is unrecognizable to the next generation.


Do something to stop this train to Hell, before its to late



Fraud & Federal Reserve going BROKE and badly needs a outside Audit
August 27, 2009, 7:33 am
Filed under: Economics

bank

FDIC only has $52 Billion to insure $4.2 Trillion in Deposits

AP

The coffers of the Federal Deposit Insurance Corp. have been so depleted by the epidemic of collapsing financial institutions that analysts warn it could sink into the red by the end of this year.

That has happened only once before — during the savings-and-loan crisis of the early 1990s, when the FDIC was forced to borrow $15 billion from the Treasury and repay it later with interest.

The government agency that guarantees depositors against the loss of their money in a bank failure may need its own lifeline.

The FDIC on Thursday will disclose how much is left in its insurance fund, and update the number of banks on its list of troubled institutions. That number shot up to 305 in the first quarter — the highest since 1994 and up from 252 late last year.

FDIC Chairman Sheila Bair may also use the quarterly briefing to discuss how the agency plans to shore up its accounts.

March 4 (Bloomberg) — Federal Deposit Insurance Corp. Chairman Sheila Bair said the fund it uses to protect customer deposits at U.S. banks could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

“Without these assessments, the deposit insurance fund could become insolvent this year,” Bair wrote in a March 2 letter to the industry. U.S. community banks plan to flood the FDIC with about 5,000 letters in protest of the fees, according to a trade group.

“A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions,” Bair said in the letter. “Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative.”

The FDIC last week approved a one-time “emergency” fee and other assessment increases on the industry to rebuild a fund to repay customers for deposits of as much as $250,000 when a bank fails. The fees, opposed by the industry, may generate $27 billion this year after the fund fell to $18.9 billion in the fourth quarter from $34.6 billion in the previous period, the FDIC said.

The fund, which lost $33.5 billion in 2008, was drained by 25 bank failures last year. Sixteen banks have failed so far this year, further straining the fund.

Angry Bankers

Smaller banks are outraged over the one-time fee, which could wipe out 50 percent to 100 percent of a bank’s 2009 earnings, Camden Fine, president of the Independent Community Bankers of America, said yesterday in a telephone interview.

“I’ve never seen emotions like this,” said Fine, adding that he’s received more than 1,000 e-mails and telephone messages from angry bankers.

– Bank Reserves: MINUS $18 Billion -TAF increased to $60 billion loaned to near insolvent Banks by the Feds…http://www.federalreserve.gov/releases/h3/Current/

The approximately $41 billion in reserves that the US banks used to have on their books are now provided by the Term Auction Credit (TAF) to the tune of $60 Billion, without which the banks would be insolvent: when the run on banks begins, only 1 customer in 20 may get some money, if lucky…

The FDIC Bad Joke: only $52 Billion Fund – not all of it liquid and available – to PROTECT/INSURE $4.2 Trillion Deposits = 1.22% Ratio, or 1.2 cents on the Dollar…

The FDIC may protect your deposits in times of average financial failures, BUT don’t count on it in the expected Financial Melt-Down: for more information, click on the 2007 FDIC Annual Report in the link below…

file:///C:/FDIC/Financial%20Reports.htm

The article on the inadequacy of the FDIC reserves linked below uses older figures, but its conclusion could not be any clearer…

“The bottom line is this: your bank accounts are insured unless there is a banking crisis. Then, you must hope for the best.”

http://www.garynorth.com/public/91print.cfm

There truly is very little now separating your money on bank deposits or in brokerage accounts and the Abyss that will open wide when the first Banks officially go belly up, since they’re now mostly insolvent and the FDIC will be useless…


Federal Reserve Fraud only a fantastic story. There certainly is fraud involved, though it is not the kind normally associated with the word fraud. The Federal Reserve Banks play by all the rules. They may bend the rules from time to time, but they certainly do not break them. There is no need to break the rules when you make the money and the rules !

In a letter to Thomas Jefferson in 1787, John Adams wrote: “All the perplexities, confusion, and distress in America arise, not from defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.”

It was Daniel Webster who said; “Of all the contrivances devised for cheating the laboring classes of mankind, none has been more effective than that which deludes him with paper money.”

Rep. Louis T. McFadden (R. Pa.) rose from office boy to become cashier and then President of the First National Bank in Canton Ohio. For 12 years he served as Chairman of the Committee on Banking and Currency, making him one of the foremost financial authorities in America. He fought continuously for fiscal integrity and a return to constitutional government (Reference 1). The following are portions of Rep. McFadden’s speech, quoted from the Congressional Record, pages 12595-12603:

“THE FEDERAL RESERVE BOARD, A GOVERNMENT BOARD, HAS CHEATED THE GOVERNMENT OF THE UNITED STATES AND THE PEOPLE OF THE UNITED STATES OUT OF ENOUGH MONEY TO PAY THE NATIONAL DEBT. The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have cost this country ENOUGH MONEY TO PAY THE NATIONAL DEBT SEVERAL TIMES OVER.”

About the Federal Reserve banks, Rep. McFadden said, “They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; the rich and predatory money lenders. This is an era of economic misery and for the reasons that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable.”

On the subject of media control he state, “Half a million dollars was spent on one part of the propaganda organized by those same European bankers for the purpose of misleading public opinion in regard to it.”

Rep. McFadden continued, “Every effort has been made by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has USURPED THE GOVERNMENT OF THE UNITED STATES. IT CONTROLS EVERYTHING HERE AND IT CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL. No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve banks. These evil-doers have robbed this country of more than enough money to pay the national debt. What the Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people.”

“Our people’s money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks. The greater part of our monetary stock has been shipped to foreigners. Why should we promise to pay the debts of foreigners to foreigners? Why should American Farmers and wage earners add millions of foreigners to the number of their dependents? Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our competitors in all parts of the world?” Rep. McFadden asked.

“The Federal Reserve Act should be repealed and the Federal Reserve banks, having violated their charters, should be liquidated immediately. FAITHLESS GOVERNMENT OFFICERS WHO HAVE VIOLATED THEIR OATHS SHOULD BE IMPEACHED AND BROUGHT TO TRIAL”, Rep. McFadden concluded (Reference 1, contains an entire chapter on Rep. McFadden’s speech).

By law (check the Congressional record), we can buy back the FED for the original investment of the FED’s 300 shareholders, which is $450 million (Reference 1, P. 227, Reference 17, P. 36). If each taxpayer paid $25, we could buy back the FED and all the profit would flow into the U.S. Treasury. In other words, by Congress allowing the constitutionally illegal FED to continue, much of your taxes go to the shareholders of the FED and their bankers. Note: The people who enacted the FED started the IRS, within months of the FED’s inception. The FED buys U.S. debt with money they printed from nothing, then charges the U.S. taxpayers interest. The government had to create income tax to pay the interest expense to the FED’s shareholders, but the income tax was never legally passed (Reference 20 shows details, state-by-state why it was not legally passed). The FED is illegal, per Article 1, Section 8 of the United States Constitution. Not one state legally ratified the 16th Amendment making income tax legal. Currently, fewer and fewer Americans are being convicted for refusal to pay income taxes. In IRS jury trials, the jury, by law, must decide if the law is just. If taxpayers do not believe the law is just, the jury may declare the accused innocent. Judges are legally bound to inform juries of their right to determine the fairness of a law. Judges often do not disclose this information so they can control the court outcome. Luckily, more and more citizens are becoming informed. If one juror feels the law is unfair, they can find the defendant innocent (Reference 19). In Utah, the IRS quit prosecuting taxpayers because jurors verdict is not guilty. Please tell your friends and sit in the next jury.

If we eliminate the FED and uphold the Constitution, we could balance the budget and cut personal income tax to almost nothing. In Congressional hearings on September 30, 1941, FED Chairman Eccles admitted that the FED creates new money from thin air (printing press), and loans it back to us at interest (Reference 17, P. 93). On June 6, 1960, FED President Mr. Allen admitted essentially the same thing (Reference 22, P. 164). If you or I did this we would go to jail.

It is time to abolish the FED! Tell your friends the truth and win America back. We don’t even need to buy back the FED. We only need to print money the way the Constitution requires, not the new proposed international money. We want to keep our sovereignty and print real U.S. money. Why has Congress allowed the FED to continue? If a Congressperson tries to abolish the FED, the banks fund the Congressperson’s opponent in the next election (Reference 17, P. 35). The new Congressperson will obviously support the FED. When Congresspeople retire, political campaign funds are not taxed. Get elected and be a millionaire if you vote right. By the way, the profit of the FED is not taxed either (Reference 1, 9). Once America understands, and takes action, Congresspeople will then gladly abolish the FED. In 1992, Illinois Congressman Crane introduced a bill, co-sponsored by 40 other Congressman, to audit the FED. This is a step in the right direction.

America is a great nation. As “We the People” become informed, the media and Congress will be forced to buy back the FED, balance the budget, significantly cut taxes, and stop allowing bribes to determine voting strategies. I have already heard from politicians who claim they will change their platform to include abolishing the FED if enough people become informed. IT IS UP TO YOU TO INFORM THE PEOPLE.

The FED hopes you will be passive and not act on this information. We believe in grass roots America – we are waking up America. Ultimately, the battle plan is to inform all Americans and demand change in the media and Congress. True Americans should run for office and throw out the politicians who allow this fraud to continue. Congress may refuse to deal with this issue. That’s why each person needs to go to their local county/state government with the proper paperwork and ask them to abolish the FED. With the proper documents, they are legally obligated to do it. WE NEED LEADERS TO BEGIN THIS ACTION. WILL YOU HELP?

“Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing.”
Congressman Ron Paul

All of a sudden, Congress is paying close attention to Ron Paul.

The feisty congressman from Texas, whose insurgent “Ron Paul Revolution” presidential campaign rankled Republican leaders last year, now has the GOP House leadership on his side — backing a measure that generated paltry support when he first introduced it 26 years ago.

Paul, as of Tuesday, has won 245 co-sponsors to a bill that would require a full-fledged audit of the Federal Reserve by the end of 2010.

Paul attracted just 18 co-sponsors when he authored a similar bill, which died, in 1983. While the impact Fed policies have on inflation is once again a concern, fears about loose monetary policy and excessive federal spending appear even more widespread in 2009.

“In the past, I never got much support, but I think it’s the financial crisis obviously that’s drawing so much attention to it, and people want to know more about the Federal Reserve,” Paul told FOXNews.com.

With the Federal Reserve holding interest rates at rock-bottom levels, pumping trillions into the economy and now poised to have new powers to oversee the financial system under President Obama’s proposed regulatory overhaul, Paul said lawmakers want transparency.

“If they give them a lot more power and there’s no more transparency, that’ll be a disaster,” he said.

The bill would call for the comptroller general in the Government Accountability Office to audit the Fed and report those findings to Congress. The GAO’s ability to conduct such audits now is severely restricted.

A slew of top Republicans are backing the bill, as are many Democrats.

“Ron Paul has the right idea on this,” said Sen. Jim DeMint, R-S.C., who supports similar legislation in the Senate. “I’m just hoping we can get a clear audit. … We need to know what they’re up to.”

House Republican Leader John Boehner, who signed on as a co-sponsor this month, wrote in a recent blog post that the “lack of transparency and accountability” regarding federal dollars committed by the Fed and Treasury Department raise “serious concerns” and make an audit critical.

“The Federal Reserve Transparency Act would remove all of these restrictions, and allow GAO to get real answers from the Federal Reserve to protect American taxpayers,” Boehner wrote.

Unfortunately for Paul, the bill appears to be idling in the House Financial Services Committee, which is chaired by Barney Frank, D-Mass. The bill has been sitting there, gathering co-sponsors, since Paul introduced it in late February.

“You’ve kind of got to rely on the Democratic leadership (to move the bill along),” a Boehner aide said. “I haven’t heard a lot of support from Chairman Frank.”

Calls to Frank’s office were not returned.

Paul acknowledged that his bill hasn’t advanced but said Frank has “promised” him he will deal with his bill and is willing to give it a hearing. Paul said it’s easily got the “momentum” to pass the full House.

A representative with the Federal Reserve could not be reached for comment.

Among the many things discussed Friday night, March 27 at the opening gala in St. Louis, Missouri, was the Missouri Information Awareness Centers’s (MIAC) publication issued to the Missouri State Police placing Ron Paul supporters in the same category as terrorists. The principles of freedom and liberty were also discussed heavily, along with the need for more awareness of issues and a push to audit the Federal Reserve, which is neither Federal nor is there a Reserve. The free event was open to the general public and had an array of speakers, focused on issues important to promote freedom.

The Federal Reserve prefers internal audits

inspector


Oversight of the Federal Reserve System

The Federal Reserve System–including the Board of Governors and the 12 Federal Reserve Banks–is subject to a number of levels of oversight to help ensure that the System operates as a prudent, well managed, and effective public organization.

General

The Federal Reserve is subject to oversight by Congress. Board governors and staff testify before Congress frequently to discuss issues within the Federal Reserve’s purview. For example, in 2008, governors and Board staff testified 35 times before Congress. During the first quarter of 2009, governors and staff have testified 12 times. Board staff also meet with Congressional staff to brief them on topics related to the Federal Reserve’s operations and future direction.

The Government Accountability Office (GAO) has broad authority to review and audit Federal Reserve activities.1 The legislative limits on the GAO’s access to the Federal Reserve System are very specific and stated in the law.2 The GAO conducts reviews and audits at the direction of the Congress and also under its own authority. These engagements cover a wide variety of Federal Reserve activities. As of March 31, 2009, there were 20 GAO engagements underway, 17 of which were initiated by Congress. During 2008, the GAO completed 15 similar engagements.

The Board of Governors orders an annual external audit of the financial statements of the Board and the Reserve Banks.3 The current independent auditor is Deloitte and Touche.4 Each Reserve Bank publishes its audited financial statements, and the Board of Governors publishes the audited combined Reserve Bank financial statements and the Board’s financial statements in its annual report to Congress. The Reserve Banks and the Board comply voluntarily with the internal control requirements of the Sarbanes-Oxley Act. The external auditors also perform an evaluation of internal controls over financial reporting.

Oversight of the Board of Governors

Consistent with the Inspector General Act, the Board of Governors’ Office of Inspector General (OIG) conducts and supervises independent and objective audits, investigations, and other reviews of Board programs and operations to promote economy, efficiency, and effectiveness, and to prevent and detect fraud, waste, and abuse. The OIG’s work spans the Board’s mission areas. As of March 31, 2009, the OIG had initiated 12 audits and evaluations, 5 investigations, and numerous law and regulation reviews; responded to a number of hotline calls, emails, and correspondence; and followed up on open recommendations. During 2008, the OIG completed 15 audits, inspections, and evaluations; closed 9 investigations; and issued a strategic plan and compendium of open recommendations.

The OIG reports the results of its work on its public website and in its semiannual report to Congress. In addition, the OIG is currently coordinating with Treasury’s Office of the Special Inspector General for the Troubled Assets Relief Program (SIGTARP) on matters concerning the Federal Reserve, and participates with other financial regulatory IGs on the TARP IG Council. In addition, the SIGTARP has authority to review certain Federal Reserve System activities that involve the expenditure of funds from the Troubled Asset Relief Program. Four SIGTARP reviews are currently underway.

Oversight of the Reserve Banks

Each Reserve Bank has an independent internal audit function that reports to the audit committee of each Bank’s board of directors. The internal audit function is responsible for identifying risks and assessing the effectiveness of the Reserve Bank’s risk management, control, and governance processes.

In addition, the Reserve Banks are subject to general supervision by the Board of Governors and, in certain matters, the Board’s specific authorization or approval. The Board of Governors’ oversight includes assessing whether Reserve Bank strategies, objectives, and other matters are reasonable and take into consideration all significant and relevant issues and monitoring and reviewing ongoing operations and the implementation of major initiatives.

The Scope of Audits
The scope and frequency of audits are based on the specific risk factors inherent in each Bank’s operations, including the nature of the activities it conducts, the prevailing level of controls surrounding these activities, and the quality and experience of the individuals assigned to the operation.

Internal audits at each Reserve Bank involve verification of assets, liabilities, and items held in custody. Auditors check both the physical presence of these items and the timely and accurate reporting of their movement. An evaluation of the adequacy of controls throughout the Bank and of compliance with prescribed procedures also is done. Audits are performed periodically in order to determine if the auditors’ perceptions of prevailing risk levels and operating conditions since the last review remain valid. Periodic audits also help to determine whether previously identified problems and issues were adequately addressed and remedied, and to ascertain whether new problems or issues have emerged.

Although auditing procedures differ among the 12 Reserve Banks, their emphases are broadly similar. At the Federal Reserve Bank of New York, the audit staff reviews the cash, check, fiscal, electronic payments, and accounting areas, and all of the service and professional operations (which include legal, bank supervision and regulation, and research and statistics). It also audits centralized electronic data processing operations and automated systems under development. These audits consist of reviews of the Bank’s data centers, with primary emphasis on environmental software products, including data base systems, operating systems, and data communications systems. Auditors evaluate the strength of internal controls and security of each software product, as well as the procedures and controls put in place by the organizational unit responsible for it. An auditor at the Buffalo Branch reviews activities there.

Audits of automated systems under development similarly concentrate on the adequacy of controls and security. These audits are intended to ensure that appropriate checks and balances are in place for each automated processing operation. Audit teams check the accuracy of records pertaining to transactions that flow through the system and certify that systems under development are fully and adequately tested before being placed into production.

Together with two other departments of the Bank, the audit staff controls activities in the Bank’s gold vault, which stores about one-quarter of the world’s official gold reserves. Auditors monitor all gold transactions, both deposits and withdrawals, and independently verify accounting records and balances pertaining to gold held in custody by the Bank.

Testimony

Vice Chairman Donald L. Kohn

Federal Reserve independence

Before the Subcommittee on Domestic Monetary Policy and Technology, Committee on Financial Services, U.S. House of Representatives, Washington, D.C.

July 9, 2009

Chairman Watt, Ranking Member Paul, and other members of the Subcommittee, I appreciate the opportunity to discuss with you the important public policy reasons why the Congress has long given the Federal Reserve a substantial degree of independence to conduct monetary policy while ensuring that we remain accountable to the Congress and to the American people. In addition, I will explain why an extension of the Federal Reserve’s supervisory and regulatory responsibilities as part of a broader initiative to address systemic risks would be compatible with the pursuit of our statutory monetary policy objectives. I also will discuss the significant steps the Federal Reserve has taken recently to improve our transparency and maintain accountability.

this is a very long post read the rest at

https://godssecret.wordpress.com/2008/06/08/high/



‘Revolution and food riots in America by 2012’
August 11, 2009, 6:39 am
Filed under: Economics

tent

Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week.


He correctly predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions – all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.


Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.

“It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more.”said Celente, adding that the situation would be “worse than the great depression”.Crime is going to be a lot worse than it was before because in the last 1929 Depression, people’s minds weren’t wrecked on all these modern drugs – over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody’s comprehension.””America’s going to go through a transition the likes of which no one is prepared for,” said Celente. Celente went further on the subject of revolution in America.”There will be a revolution in this country,” he said. “It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.” “The first thing to do is organize with tax revolts. That’s going to be the big one because people can’t afford to pay more school tax, property tax, any kind of tax. You’re going to start seeing those kinds of protests start to develop.”


Celente, who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar, told UPI in November last year that the following year would be known as “The Panic of 2008,” adding that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 percent.

More at

http://www.trendsresearch.com/index.htm



The Secret Federal Reserve 2 trillion dollar loan,also they can’t find 9 TRILLION Dollars
July 6, 2009, 7:05 am
Filed under: Economics | Tags:

If you thought the $700 billion bailout bill was bad, think again. We all argued about so strenuously about $700 billion just this past September. We demand and then codify into law the requirement that our banks make massive loans to people we know they can never pay back? Why? We learned just days ago that the Federal Reserve, which has little or no real oversight by anyone, has “loaned” two trillion dollars (that is $2,000,000,000,000) over the past few months to companies and financial institutions effected by the credit crisis, but will not tell us to whom or why or disclose the terms.  Who has this money? Why do they have it? Why are the terms unavailable to us? Who asked for it? Who authorized it? The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure. The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.

“It’s your money; it’s not the Fed’s money,” said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. “Of course there should be transparency.”

We don’t really know who they’re handing the money out to, because, apparently, it’s a secret. What are the implications of these secret loans? Well, more than anything, it is a serious crisis in democracy. The loans do not come from nowhere — they exist in the form of taxpayers money and loans taken out from foreign investors that must be paid back by, you guessed it, the taxpayer. Another huge problem with the massive bailout is that the tax payer is getting literally nothing in return for it. We already know that $29 billion worth went to JPMorgan Chase (NYSE: JPM) — to shift the worst junk on Bear Stearns’ balance sheet to the Fed’s back in March. And it’s safe to assume that the $2 trillion the Fed lent out is being exchanged for similarly junky assets.

In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed’s disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary. Barney Frank, embarrassing himself yet again, claims the Fed should keep its clap shut because if people know how bad it is, well, there might be a run. I think Barney’s missing the point, as long as people don’t know how bad it is, they won’t trust anyone who might be borrowing large amounts of money from the Fed with crap collateral, because they don’t know how bad it is and they suspect it’s really really really bad. As in 10 cents on the dollar bad. More to the point, that 2 trillion is taxpayer money, and taxpayers have a right to know what sweetheart deals Bernanke’s been giving out, and who’s been getting what. The whole of “this information is too scary for citizens to know.

There aren’t really words to describe how utterly outrageous this is. It is an utter failure of the democratic process and a shocking snap shot of just how corrupt the monetary system is that we live under. The United States is currently over $10 trillion in debt, a level that any other nation would collapse under. The consequences of perpetual debt, privatized profits and socialized risk are stark.


The Government Has Loaned or Pledged Over 7 Trillion Dollars To The Bailout  !

Let’s put this in perspective. According to Jim Bianco of Bianco Research, the bailout has cost more than all of these big budget government expenditures – combined:

Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551billion, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL Combined Cost: $3.92 trillion
Bail Out: $7 Trillion. That’s $7,000,000,000,000.00 and……. growing

Another thing to consider :

Federal Reserve can’t find 9 TRILLION Dollars. The Federal Reserve apparently can’t account for $9 trillion in off-balance sheet transactions. Elizabeth Coleman as the inspector general of the Federal Reserve of the United States and is supposed to be responsible for preventing and detecting waste, fraud, and abuse, but in a videotaped Congressional testimony, she acknowledged that she can’t account for many trillions of dollars of our taxpayers money. TRILLIONS.   Specifically she says she knows nothing about nine trillion dollars ($9,000,000,000,000) that is claimed to be unaccounted for.

When Rep. Alan Grayson (D-Orlando) asked Inspector General Elizabeth Coleman of the Federal Reserve some very basic questions about where the trillions of dollars that have come from the Fed’s expanded balance sheet, the IG didn’t know.

Worse, nobody at the Fed seems to have any idea what the losses on its $2 trillion portfolio really are.

“I am shocked to find out that nobody at the Federal Reserve is keeping track of anything,” Grayson says.

What about the $1 trillion plus expansion of the Federal reserve’s balance sheet since last September?” Grayson asked.

We have different connotations,” Coleman replied. “We’re actually conducting a fairly high-level review of the various lending facilities collectively.”

Translation: Nobody at the Fed knows where the money went.

Do you know what who got the $1 trillion or more in the Fed’s expansion of its balance, Grayson pressed.

“I do not know. We have not looked at this specific area at the particular point on that specific review,” Coleman answer.

What about the trillions of off-balance transactions since last September, Grayson asked.

Coleman demurred again, saying the IG does not have jurisdiction to audit the Federal Reserve.

Between the Public Health Emergency over the Pandemic A/H1N1 Swine Flu, North Korea taking aim at Hawaii, discourse throughout the world, the wars in Iraq and Afghanistan and the Federal Reserve misplacing NINE TRILLION dollars, the crisis are indeed adding up.  America sits in the eye of the perfect storm for the change you don’t want to believe in.

something is amiss (to say it lightly)

We are on the verge of a global transformation.  All we [ the CFR ] need is the right major crisis and the nation[s] will accept the New World Order.”  End Quote.  David Rockefeller: Founder and Honorary Chairman, Council of the Americas; Chairman, Americas Society; Founder, Forum of the Americas; Chairman, Emeritus, Council on Foreign Relations [CFR]; Founder and Honorary Chairman, Trilateral Commission [TC]; Chairman, The Bilderbergs.



Some thing unusual is happening in the world these days.
July 5, 2009, 9:05 am
Filed under: Economics | Tags:

Some thing unusual is happening in the world these days. There are great challenges facing all mankind. These are not “normal” times. Humanity is in fact now at the hinges of history.  It is caught in a gigantic tangle of world-spanning problems of all kinds: demographic, political, social, ecological, security, and psychological problems, orders of magnitude bigger, more complex, and more difficult than ever before. Some great world changes are before us. With Rogue nations as Iran pursuing nuclear weapons, and North Korea threatening the world with theirs. We know that the “overkill” capacity that man has stored in his nuclear arsenals today is equal to an endowment for each man woman, and child in the world today of an equivalent of four tons of TNT. Military expenditures in 1980 will exceed the unthinkable limit of $500 billion, a sum which, if converted to a pile of dollar banknotes for each day’s expenditure, would exceed the height of Mount Everest. The Global economic situation is unprecedented, we have seen nothing like this since the great depression, and in many ways that situation was less complex and severe then what we are facing today. Most of the world is is approaching unprecedented unemployment. the Federal Reserve, which has little or no real oversight by anyone, has “loaned” two trillion dollars (that is $2,000,000,000,000) over the past few months, but will not tell us to whom or why or disclose the terms.  Something of historic proportions is coming. What will the nature of the future be?

David Kaiser is a respected historian whose published works have covered a broad range of topics, from European Warfare to American League Baseball. Born in 1947, the son of a diplomat, Kaiser spent his childhood in three capital cities: Washington D.C., Albany, New York, and Dakar, Senegal. He attended Harvard University, graduating there in 1969 with a B.A. in history. He then spent several years more at Harvard, gaining a PhD in history, which he obtained in 1976. He served in the Army Reserve from 1970 to 1976. He is a professor in the Strategy and Policy Department of the United States Naval War College and has previously taught at Carnegie Mellon, Williams College and Harvard University. Kaiser’s latest book, The Road to Dallas, about the Kennedy assassination, was just published by Harvard University Press.

David Kaiser wrote  a article entitled, “History Unfolding”:

I am a student of history. Professionally, I have written 15 books on history

that have been published in six languages, and I have studied history

all my life. I have come to think there is something monumentally large afoot, and I do not believe it is simply a banking crisis, or a mortgage

crisis, or a credit crisis. Yes these exist, but they are merely single

facets on a very large gemstone that is only now coming into a sharper

focus. Something of historic proportions is happening. I can sense it because I know how it feels, smells, what it looks like, and how people react to it. Yes, a perfect storm may be brewing, but there is something

happening within our country that has been evolving for about ten to

fifteen years. The pace has dramatically quickened in the past two. We

demand and then codify into law the requirement that our banks make

massive loans to people we know they can never pay back? Why? We

learned just days ago that the Federal Reserve, which has little or no real

oversight by anyone, has “loaned” two trillion dollars (that is

$2,000,000,000,000) over the past few months, but will not tell us to

whom or why or disclose the terms. That is our money. Yours and mine.

And that is three times the $700 billion we all argued about so strenuously

just this past September. Who has this money? Why do they have

it? Why are the terms unavailable to us? Who asked for it? Who authorized

it? I thought this was a government of “we the people,” who loaned

our powers to our elected leaders. Apparently not. We have spent two or

more decades intentionally de-industrializing our economy. Why? We

have intentionally dumbed down our schools, ignored our history, and

no longer teach our founding documents, why we are exceptional, and

why we are worth preserving. Students by and large cannot write, think

critically, read, or articulate. Parents are not revolting, teachers are not

picketing, school boards continue to back mediocrity. Why? We have

now established the precedent of protesting every close election (violently

in California over a proposition that is so controversial that it simply

wants marriage to remain defined as between one man and one

woman. Did you ever think such a thing possible just a decade ago?) We

have corrupted our sacred political process by allowing unelected judges

to write laws that radically change our way of life, and then mainstream

Marxist groups like ACORN and others to turn our voting system into a

banana republic. To what purpose? Now our mortgage industry is collapsing, housing prices are in free fall, major industries are failing, our

banking system is on the verge of collapse, social security is nearly bankrupt, as is Medicare and our entire government. Our education system is worse than a joke (I teach college and I know precisely what I am talking about) – the list is staggering in its length, breadth, and depth. It is potentially 1929 x 10. And we are at war with an enemy we cannot even

name for fear of offending people of the same religion, who, in turn,

cannot wait to slit the throats of your children if they have the opportunity

to do so. And finally, we have elected a man that no one really

knows anything about, who has never run so much as a Dairy Queen, let

alone a town as big as Wasilla , Alaska. All of his associations and alliances are with real radicals in their chosen fields of employment and everything we learn about him, drip by drip, is unsettling if not downright

scary (Surely you have heard him speak about his idea to create

and fund a mandatory civilian defense force stronger than our military

for use inside our borders? No? Oh, of course. The media would never

play that for you over and over and then demand he answer it. Sarah

Palin’s pregnant daughter and $150,000 wardrobe are more important.)

Mr. Obama’s winning platform can be boiled down to one word:

Change. Why? I have never been so afraid for my country and for my

children as I am now. This man campaigned on bringing people together,

something he has never, ever done in his professional life. In my

assessment, Obama will divide us along philosophical lines, push us

apart, and then try to realign the pieces into a new and different power

structure. Change is indeed coming. And when it comes, you will never

see the same nation again. And that is only the beginning. As a serious

student of history, I thought I would never come to experience what the

ordinary, moral German must have felt in the mid-1930s In those times,

the “savior” was a former smooth-talking rabble-rouser from the streets,

about whom the average German knew next to nothing. What they

should have known was that he was associated with groups that shouted,

shoved, and pushed around people with whom they disagreed; he edged

his way onto the political stage through great oratory. Conservative “losers” read it right now. And there were the promises. Economic times

were tough, people were losing jobs, and he was a great speaker. And he

smiled and frowned and waved a lot. And people, even newspapers,

were afraid to speak out for fear that his “brown shirts” would bully and

beat them into submission. Which they did — regularly. And then, he

was duly elected to office, while a full-throttled economic crisis bloomed

at hand – the Great Depression. Slowly, but surely he seized the controls

of government power, person by person, department by department, bureaucracy by bureaucracy. The children of German citizens were at first, encouraged to join a Youth Movement in his name where they were

taught exactly what to think. Later, they were required to do so. No Jews

of course. How did he get people on his side? He did it by promising

jobs to the jobless, money to the money-less, and rewards for the military-

industrial complex. He did it by indoctrinating the children, advocating

gun control, health care for all, better wages, better jobs, and

promising to re-instill pride once again in the country, across Europe ,

and across the world. He did it with a compliant media – did you know

that? And he did this all in the name of justice and … change. And the

people surely got what they voted for. If you think I am exaggerating,

look it up. It’s all there in the history books. So read your history books.

Many people of conscience objected in 1933 and were shouted down,

called names, laughed at, and ridiculed. When Winston Churchill

pointed out the obvious in the late 1930s while seated in the House of

Lords in England (he was not yet Prime Minister), he was booed into his seat and called a crazy troublemaker. He was right, though. And the

world came to regret that he was not listened to. Do not forget that Germany was the most educated, the most cultured country in Europe. It

was full of music, art, museums, hospitals, laboratories, and universities.

And yet, in less than six years (a shorter time span than just two terms of

the U.S. presidency) it was rounding up its own citizens, killing others,

abrogating its laws, turning children against parents, and neighbors

against neighbors. All with the best of intentions, of course. The road to

Hell is paved with them. As a practical thinker, one not overly prone to

emotional decisions, I have a choice: I can either believe what the objective pieces of evidence tell me (even if they make me cringe with disgust); I can believe what history is shouting to me from across the chasm of seven decades; or I can hope I am wrong by closing my eyes, having another latte, and ignoring what is transpiring around me. I choose to believe the evidence. No doubt some people will scoff at me, others

laugh, or think I am foolish, naive, or both. To some degree, perhaps I

am. But I have never been afraid to look people in the eye and tell them

exactly what I believe-and why I believe it. I pray I am wrong. I do not

think I am. Perhaps the only hope is our vote in the next elections.



THE END OF THE FEDERAL RESERVE IS COMING SOON-BEWARE
February 19, 2009, 8:51 am
Filed under: big news, Economics, FINANCE

A Banking insider can be quoted as saying :

Who could possible BUY SO MANY PRODUCTS in the sheer numbers America did from the Chinese and think it helps support their Economies and People ???.

We are now a COUNTRY that is in trouble as a result of the Private Federal Reserve System Systematic Implosion. The problem is the trillions of dollars in CDS’s (credit default swap) and derivatives contributed to the IMPLOSION and is going to take even more time to UNWIND.

Thats where the first 350 BILLION of the TARP FUNDS went. Thats why they wont tell the people what they did with the money.You see. It is historic. The RICH and POWERFUL take their RAKE before the Implosion. The world doesn’t have enough money to support this fiasco. We are a casualty along with the G20 so to speak. We have our own debts and our own problems to deal with now.

UNDERSTAND:
Whom pays the salaries…retirements…etc. etc. etc. of ALL FEDERAL GOVERNMENT EMPLOYEES and PROGRAMS. They gave THEMSELVES raises those bastards in CONGRESS just recently REMEMBER ? With the Private FEDERAL RESERVE BANKING SYSTEM dissolving due to IMPLOSION by the SHEER NUMBERS it CANNOT support at all PERIOD….TRILLIONS and TRILLIONS:

The Federal Government of the United States and the United States Treasury under all of AMERICAS FEDERAL POLITICIANS, ENTITLEMENT PROGRAMS, MILITARY etc. Whom do you think is still responsible for THAT FINANCIAL BURDEN that will never go away ???

You….THE AMERICAN CITIZEN SERVANT to ALL OF THE FEDERAL GOVERNMENT.

The Private FEDERAL RESERVE HAS LOST ALL POWER GLOBALLY as the Global HEGEMONIC Comptroller. Thats all. The TORRENT will be evident by March.
The World Economy will become detached from the Private Federal Reserve Banking System. Their will never be, nor ever could be interest paid back to the Private Federal Reserve Banks by the UNITED STATES FEDERAL GOVERNMENT. There will be major scrambling by world leaders, alliances, agreements, etc. Some Countries will experience EXTREME RIOTING. Civilized nations will just be poorer. Everyone will be talking about this come March.
ALL WILL BE AWARE OF THE DOOM.

When is the U.S. Bond-bubble gonna pop? If the Chinese decide to pop it. I dont think they will. If they do….it will destroy them and us. Despite what many may think.
TPTB set up this GLOBAL ECONOMY just for MUTUALLY ASSURED DESTRUCTION. Right now it is about Negotiating and Making Deals.
It could snap….but it would be hush hushed. The dollar will not crash.
It will fluctuate up and down as usual. It can’t crash….the WORLD would crash with it.


There is a replacement coming for the FEDERAL RESERVE by MARCH it will be here.

Does anyone want to know WHO and what is taking over our MONETARY POLICY from:

THE FEDERAL RESERVE ???

ALL BANKING POWER will Now Go from the FEDERAL RESERVE PRIVATE BANKING CARTEL to the:

THE FEDERAL GOVERNMENT OF THE UNITED STATES of AMERICA and the UNITED STATES TREASURY.

The FEDERAL GOVERNMENT of the UNITED STATES is NOW IN CHARGE….that means all of YOUR SAME OLD POLITICIANS, American CORPORATE Powers, THE FEDERAL GUYS who have been a part of this are WILL by MARCH be completely in control of the DOLLAR. It will now be backed FOR REAL by the FULL FAITH and CREDIT of the FEDERAL GOVERNMENT without the FEDERAL RESERVE attachment. The CONSEQUENCES are going to cause GREAT CHAOS in ECONOMIES the WORLD over. They will not announce THE Private FEDERAL RESERVE SYSTEM is dead publicly….But IT IS !
If it were still tied to the THRONE of BRITAIN and then BRITAIN would not crash so hard.They are finished and it is a crash. I do not know what the hell they are going to do.
They are in BIG TROUBLE as their lone economy without the GLOBAL HEGEMONIC system they were in control and linked to IS GONE. Their economy is not Nearly as BIG, PRODUCTIVE, or RESILIENT as the UNITED STATES. They will be FORCED to join the EURO. The New Financial Order is just now REALLY GOING TO BE PLAYED OUT GLOBALLY.

I see it as still a MONUMENTAL task for ALL THE WORLD. The False Numbers and False Money will be replaced with a more REALISTIC system with More OVERSIGHT.
Not by the FED but by the WORLD BANK. Yes. The WORLD MONETARY FUND.
It is an automatic and systematic RECAST.



The fed
June 8, 2008, 10:01 am
Filed under: Economics, FEDERAL RESERVE BANK | Tags:

Independence and Accountability
A well-designed framework for monetary policy includes a careful balance between independence and accountability. A balance of this type conforms to our general inclination as a nation to have clearly drawn lines of authority, limited powers, and appropriate checks and balances within our government; such a balance also is conducive to sound monetary policy.

The Federal Reserve derives much of the authority under which it operates from the Federal Reserve Act. The act specifies and limits the Federal Reserve’s powers. In 1977, the Congress amended the act by establishing maximum employment and price stability as our monetary policy objectives; the Federal Reserve has no authority to establish different objectives. At the same time, the Congress has–correctly, in my view–given the Federal Reserve considerable scope to design and implement the best approaches to achieving those statutory objectives. Moreover, as I will discuss in detail later, the independence that is granted to the Federal Reserve is subject to a well-calibrated system of checks and balances in the form of transparency and accountability to the public and the Congress.

The latitude for the Federal Reserve to pursue its statutory objectives is expressed in several important ways. For example, the Congress determined that Federal Reserve policymakers cannot be removed from their positions merely because others in the government disagree with their views on policy issues. In addition, to guard against indirect pressures, the Federal Reserve determines its budget and staff, subject to congressional oversight. Thus, the system has three essential components: broad objectives set by the Congress, independence to pursue those legislated objectives as efficiently and effectively as possible, and accountability to the Congress through a range of vehicles.

Benefits of Independence to Conduct Policy in Pursuit of Legislated Objectives
The insulation from short-term political pressures–within a framework of legislated objectives and accountability and transparency–that the Congress has established for the Federal Reserve has come to be widely emulated around the world. Considerable experience shows that this type of approach tends to yield a monetary policy that best promotes economic growth and price stability. Operational independence–that is, independence to pursue legislated goals–reduces the odds on two types of policy errors that result in inflation and economic instability. First, it prevents governments from succumbing to the temptation to use the central bank to fund budget deficits. Second, it enables policymakers to look beyond the short term as they weigh the effects of their monetary policy actions on price stability and employment.

History provides numerous examples of non-independent central banks being forced to finance large government budget deficits. Such episodes invariably lead to high inflation. Given the current outlook for large federal budget deficits in the United States, this consideration is especially important. Any substantial erosion of the Federal Reserve’s monetary independence likely would lead to higher long-term interest rates as investors begin to fear future inflation. Moreover, the bond rating agencies view operational independence of a country’s central bank as an important factor in determining sovereign credit ratings, suggesting that a threat to the Federal Reserve’s independence could lower the Treasury’s debt rating and thus raise its cost of borrowing.1 Higher long-term interest rates would further increase the burden of the national debt on current and future generations.2

The second way in which political interference with monetary policy can damage the economy is by promoting an undue focus on the short term. Because excessively easy monetary policy tends to boost economic activity temporarily before the destabilizing effects of higher inflation are felt, policymakers with a relatively short-term outlook may be tempted to ease monetary policy too much. The eventual result is higher inflation without any permanent benefit in terms of employment, an outcome that is inconsistent with the dual mandate for maximum employment and price stability. Thus the increase in inflation must be followed by policies to bring inflation back down–policies that have the side effect of temporarily reducing output and employment. The fixed, lengthy, and overlapping terms of Federal Reserve Board members, in combination with the other elements of operational independence, help ensure that the Federal Reserve appropriately considers both the short-term and long-term effects of its policy decisions.

Statistical studies have confirmed that countries with more independent central banks experience lower and more stable rates of inflation with no sacrifice of jobs or income.3 Moreover, low and stable rates of inflation help to deliver strong economic growth and high rates of employment. The benefits of central bank independence appear to be a major explanation for the trend I mentioned earlier of countries moving to establish or to enhance the independence of their central banks. It is surely no coincidence that countries around the world have experienced sustained declines in the level and variability of inflation as they have moved to grant their central banks greater operational independence.

Monetary Policy Independence and the Mitigation of Systemic Risk
Is monetary policy independence threatened by giving a central bank other responsibilities, such as supervisory and regulatory authority for some parts of the financial system? Are there potential conflicts between a high degree of independence for monetary policy and accountability in supervisory and regulatory policy? I believe that U.S. and foreign experience shows that monetary policy independence and supervisory and regulatory authority are mutually compatible and even have beneficial synergies.

The current financial crisis has clearly demonstrated the need for the United States to have a comprehensive and multifaceted approach to containing systemic risk. The Administration recently released a proposal for strengthening the financial system that would provide new or enhanced responsibilities to a number of federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission with respect to over-the-counter derivatives, the SEC with respect to hedge funds and their advisers, and several agencies, including the Treasury, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the SEC with respect to the resolution of systemically important failing nonbank financial institutions. In addition, the proposal would provide the Federal Reserve certain new responsibilities for overseeing systemically important financial institutions and payment, clearing, and settlement arrangements.

These incremental new responsibilities are a natural outgrowth of the Federal Reserve’s existing supervisory and regulatory responsibilities. Through our role as consolidated supervisor of all bank holding companies (BHCs), the Federal Reserve has long been responsible for supervising many of the most important U.S. financial organizations, and in the current crisis several more large complex financial firms–including Goldman Sachs, Morgan Stanley, and American Express–have become bank holding companies. And the expanded regulatory authority of the Federal Reserve with respect to payment and settlement systems builds upon our existing responsibilities for supervising certain critical payment, clearing, and settlement systems, such as the Depository Trust Company and CLS Bank, as well as our historical efforts to reduce risk in such systems through, for example, our Payment System Risk Policy.4

The authorities that the Administration’s proposal would provide the Federal Reserve with respect to systemically important non-BHC financial firms and payment, clearing and settlement systems also are similar in many respects to the authorities that the Federal Reserve currently has with respect to bank holding companies and payment, clearing, and settlement systems under our supervision. The Administration’s proposal does call for a more macro-prudential approach to the supervision and regulation of systemically important financial firms and payment, clearing, and settlement systems, including the establishment of higher capital, liquidity, and risk-management requirements for systemically important firms. The Federal Reserve already has been moving to incorporate a more macro-prudential approach to our supervisory and regulatory programs, as evidenced by the recently completed Supervisory Capital Assessment Program. The Federal Reserve has also long been a leader in the development of strong international risk-management standards for payment, clearing, and settlement systems and has implemented these standards for the systems it supervises.

In our supervision of bank holding companies and our oversight of some payment systems, we already work closely with other federal and state agencies and participate in groups of regulators and supervisors such as the Federal Financial Institutions Examination Council and the President’s Working Group on Financial Markets. These responsibilities and close working relationships have not impinged on our monetary policy independence, and we do not believe that the enhancements proposed by the Administration to the Federal Reserve’s supervisory and regulatory authority would undermine the Federal Reserve’s ability to pursue our monetary policy objectives effectively and independently.

Indeed, these enhancements would complement the Federal Reserve’s monetary policy responsibilities. The Federal Reserve and other central banks have always been involved in issues of systemic risk, most notably because central banks act as lenders of last resort. Central banks, which operate in markets daily and have macroeconomic responsibilities, bring a broad and unique perspective to analysis of developments in the financial system. And, as we have seen over the past two years, threats to the stability of the financial system can have major implications for employment and price stability. Thus, the Federal Reserve’s monetary policy objectives are closely aligned with those of minimizing systemic risk. To the extent that the proposed new regulatory framework would contribute to greater financial stability, it should improve the ability of monetary policy to achieve maximum employment and stable prices.

Accountability and Transparency
In a democracy, any significant degree of independence by a government agency must be accompanied by substantial accountability and transparency. The Congress and the Federal Reserve have established a number of policies and procedures to ensure that the Federal Reserve continues to use its operational independence in a manner that promotes the nation’s well-being. The Federal Reserve reports on its experience toward achieving its statutory objectives in the semiannual Monetary Policy Reports and associated congressional testimony. The Federal Open Market Committee (FOMC) releases a statement immediately after each regularly scheduled meeting and detailed minutes of each meeting on a timely basis. We also publish summaries of the economic forecasts of FOMC participants four times a year. In addition, Federal Reserve officials frequently testify before the Congress and deliver speeches to the public on a wide range of topics, including economic and financial conditions and monetary and regulatory policy.

Our financial controls are examined by an external auditor, and Reserve Bank operations and controls are reviewed by each Reserve Bank’s independent internal audit function and by Board staff who oversee Reserve Bank activities. We provide the public and the Congress with detailed annual reports on the consolidated financial activities of the Federal Reserve System that are audited by an independent public accounting firm. We also publish a detailed balance sheet on a weekly basis.

The Federal Reserve recognizes that the new programs we have instituted to combat the financial crisis must be accompanied by additional transparency. Americans have a right to know how the Federal Reserve is using taxpayer resources and they need to be assured that we are acting in a responsible manner that minimizes risk and maintains the integrity of our operations. We have increased the transparency of our actions while safeguarding our ability to achieve our public policy goals of fostering financial and economic stability. This year we expanded our website to include considerable background information on our financial condition and our policy programs. Recently, we initiated a monthly report to the Congress and the public on Federal Reserve liquidity programs that provides even more information on our lending, the associated collateral, and other facets of programs established to address the financial crisis. These steps should help the public understand the considerable efforts we have taken to minimize the risk of loss as we provide liquidity to the financial system in our role as lender of last resort. Altogether, we now provide a higher degree of transparency than at any other time in the history of the Federal Reserve System. Because of the large volume of information we publish, the Federal Reserve is among the most transparent central banks in the world.

Federal Reserve policymakers are highly accountable and answerable to the government of the United States and to the American people. The seven members of the Board of Governors of the Federal Reserve System are appointed by the President and confirmed by the Senate after a thorough process of public examination. The key positions of Chairman and Vice Chairman are subject to presidential and congressional review every four years, a separate and shorter schedule than the 14-year terms of Board members. The members of the Board of Governors account for seven seats on the FOMC. By statute, the other five members of the FOMC are drawn from the presidents of the 12 Federal Reserve Banks. District presidents are appointed through a process involving a broad search of qualified individuals by local boards of directors; the choice must then be approved by the Board of Governors. In creating the Federal Reserve System, the Congress combined a Washington-based Board with strong regional representation to carefully balance the variety of interests of a diverse nation. The Federal Reserve Banks strengthen our policy deliberations by bringing real-time information about the economy from their district contacts and by their diverse perspectives.

Oversight by the Government Accountability Office
On the topic of Federal Reserve accountability and transparency, the possibility of expanding the audit authority of the Government Accountability Office (GAO) over the Federal Reserve has recently been discussed. As you know, the Federal Reserve is subject to frequent audits by the GAO on a broad range of our functions.

For example, the supervisory and regulatory functions of the Federal Reserve are subject to audit by the GAO to the same extent as the supervisory and regulatory functions of the other federal banking agencies. Thus, the GAO has full authority to–and does in fact–audit the manner in which the Federal Reserve supervises and regulates bank holding companies on a consolidated basis. Moreover, if the Congress were to provide the Federal Reserve with responsibility for serving as the consolidated supervisor of systemically important financial firms that are not bank holding companies, the GAO would, under existing law, have full authority to audit the Federal Reserve’s supervision and regulation of such firms as well. We would expect the GAO to actively use that authority, as it does today. Indeed, as of June 29, 2009, the GAO had 19 engagements under way involving the Federal Reserve, including 14 that were initiated at the request of the Congress. In addition, since the beginning of 2008, the GAO has completed 26 engagements involving the Federal Reserve, including engagements related to the Basel II capital framework, risk-management oversight, the Bank Secrecy Act, and the Board’s Regulation B, which implements the Equal Credit Opportunity Act.

The Congress also recently clarified the GAO’s ability to audit the Term Asset-Backed Securities Loan Facility (TALF), a joint Treasury-Federal Reserve initiative, in conjunction with the GAO’s reviews of the performance of Treasury’s Troubled Asset Relief Program (TARP). The Federal Reserve has been working closely with the GAO to provide that agency with access to information and personnel to permit it to fully understand the terms, conditions, and operations of the TALF so that the TARP can be properly audited. At the same time, the Congress granted the GAO new authority to conduct audits of the credit facilities extended by the Federal Reserve to “single and specific” companies under the authority provided by section 13(3) of the Federal Reserve Act, including the loan facilities provided to, or created for, American International Group and Bear Stearns. These facilities are markedly different from the widely available credit facilities–such as the discount window access for depository institutions, the Primary Dealer Credit Facility, and the Commercial Paper Funding Facility–that the Federal Reserve either has historically used or has recently established to address broad credit and liquidity issues in the financial system. For this reason, the Federal Reserve did not object to granting the GAO audit authority over these institution-specific, emergency credit facilities.

The Congress, however, has purposefully–and for good reason–excluded from the scope of potential GAO audits monetary policy deliberations and operations, including open market and discount window operations, and transactions with or for foreign central banks, foreign governments, and public international financing organizations. By excluding these areas, the Congress has carefully balanced the need for public accountability with the strong public policy benefits that flow from maintaining the independence of the central bank’s monetary policy functions and avoiding disruption to the nation’s foreign and international relationships.

The same public policy reasons that supported the creation of these exclusions in 1978 remain valid today. The Federal Reserve strongly believes that removing the statutory limits on GAO audits of monetary policy matters would be contrary to the public interest by tending to undermine the independence and efficacy of monetary policy in several ways. First, the GAO serves as the investigative arm of the Congress and, by law, must conduct an investigation and prepare a report whenever requested by the House or Senate or a committee with jurisdiction of either body. Through its investigations and audits, the GAO typically makes its own judgments about policy actions and the manner in which they are implemented, as well as recommendations to the audited agency and to the Congress for changes or future actions. Accordingly, financial markets likely would see the grant of audit authority with respect to monetary policy to the GAO as undermining monetary independence–with the adverse consequences discussed previously–particularly because GAO audits, or the threat of a GAO audit, could be used to try to influence monetary policy decisions.

Permitting GAO audits of monetary policy also could cast a chill on monetary policy deliberations through another channel. Although Federal Reserve officials regularly explain the rationale for their policy decisions in public venues, the process of vetting ideas and proposals, many of which are never incorporated into policy decisions, could suffer from the threat of public disclosure. If policymakers believed that GAO audits would result in published analyses of their policy discussions, they might be less willing to engage in the unfettered and wide-ranging internal debates that are essential to identifying the best possible policy options. Moreover, the publication of the results of GAO audits related to monetary policy actions and deliberations could complicate and interfere with the communication of the FOMC’s intentions regarding monetary policy to financial markets and the public more broadly. Households, firms, and financial market participants might be uncertain about the implications of the GAO’s findings for future decisions of the FOMC, thereby increasing market volatility and weakening the ability of monetary policy actions to achieve their desired effects.

These concerns extend to the policy decisions to implement the discount window and broadly available credit facilities. These facilities are extensions of our responsibility for promoting financial stability, maximum employment and price stability. Indeed, unlike the institution-specific loans that the Federal Reserve has made that now are subject to GAO audit, these broader market facilities are designed to unfreeze financial markets and lower interest rate spreads in concert with our other monetary policy actions. It is important that, like other monetary policy decisions, the Federal Reserve remain independent in making policy decisions regarding these facilities.

An additional concern is that permitting GAO audits of the broad liquidity facilities the Federal Reserve uses to affect credit conditions could reduce the effectiveness of these facilities in helping promote financial stability, maximum employment, and price stability. For example, even if strong confidentiality restrictions were established, individual banks might be more reluctant to borrow from the discount window if they knew that their identity and other sensitive information about their borrowings could be disclosed to the GAO. Rumors that a bank may have used the discount window can cause a damaging loss of confidence even to a fundamentally sound institution. Experience, including experience in the current financial crisis, shows that banks’ unwillingness to use the discount window can result in high and volatile short-term interest rates and limit the effectiveness of the discount window as a tool to enhance financial stability.

Overall, the Federal Reserve believes that removing the remaining statutory limits on GAO audits of monetary policy and discount window functions would tend to undermine public and investor confidence in monetary policy by raising concerns that monetary policy judgments in pursuit of our legislated objectives would become subject to political considerations. As a result, such an action would increase inflation fears and market interest rates and, ultimately, damage economic stability and job creation.

Thank you for inviting me to present the Board’s views on this very important subject. I look forward to answering any questions you may have.