Congressman: Fed “Bamboozling” Americans

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DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Congressman: Fed “Bamboozling” Americans

Fed Refuses to Disclose Recipients of $2 Trillion

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Dec. 12 Bloomberg -- The Federal Reserve refused a
request by Bloomberg News to disclose the recipients of more than $2
trillion of emergency loans from U.S. taxpayers and the assets the
central bank is accepting as collateral.

Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act
requesting details about the terms of 11 Fed lending programs, most
created during the deepest financial crisis since the Great Depression.

Congress is demanding more transparency from the Fed and Treasury on
bailout, most recently during Dec. 10 hearings by the House Financial
Services committee when Representative David Scott, a Georgia Democrat,
said Americans had "been bamboozled."

Bloomberg News, a unit of New York-based Bloomberg LP, on May 21 asked
the Fed to provide data on collateral posted from April 4 to May 20.
The central bank said on June 19 that it needed until July 3 to search
documents and determine whether it would make them public. Bloomberg
didn't receive a formal response that would let it file an appeal
within the legal time limit.

"Americans don't want to get blindsided anymore," Mendez said in an
interview. "They don't want it sugarcoated or whitewashed. They want
the complete truth. The truth is we can't take all the pain right now."

The Bloomberg lawsuit said the collateral lists "are central to
understanding and assessing the government's response to the most
cataclysmic financial crisis in America since the Great
Depression.

DrKrbyLuv wrote:
Trade secret? A trade secret is is special business process or a recipe for a steak sauce. The Fed is simply refusing to divulge something embarrasing and maybe illegal.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Congressman: Fed “Bamboozling” Americans

Woops...forgot the link...

Bloomberg

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Congressman: Fed “Bamboozling” Americans

What's really sad, DrKrby, is that despite the flagrant illegality
of the Fed's behavior, Bloomberg's FOIA lawsuit will go nowhere. After
being regaled with fattened salaries and luxurious justice palaces
across the land, federal judges are 100 percent on board with Usgov's
desperate attempts to keep its $60 trillion confidence scheme from
unraveling.

For all we know, there may be secret executive orders pertaining to the Fed's actions and authority during the crisis.

So
the next time some politician stands in front of a serried rank of
dozens of flags and limns paeans to 'democracy,' just remember -- there
is no such thing as 'democracy' under secret orders and secret
finances. The Federal Reserve is a spit gob in the face of democracy.
Excise this fulminating cancer and restore the constitution.

krogoth's picture
krogoth
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Joined: Aug 18 2008
Posts: 576
TARP used for auto bailout?

Now I am hearing that they want to use TARP for the auto bailout? Wait a minute, surly this would need to be voted on and approved. What the hell is going on with this?

Here is what I read-

Secretary Paulson's original proposal contains a sweeping provision that utterly strips the courts of any power to review his decisions. Section 8 of the Paulson proposal reads: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

The alternative bailout bill, APPROVED by Congress and sponsored by Democratic Sen. Chris Dodd of Connecticut, has a very different clause. The Dodd proposal reads: "Any determination by the Secretary with regard to any particular troubled asset pursuant to this Act … shall not be set aside unless such determination is found to be arbitrary, capricious, an abuse of discretion, or not in accordance with the law." In other words, the Treasury secretary's determinations can be challenged on legal grounds. The Dodd version goes on to recite that "the terms of a residential mortgage loan that is part of any purchase by the Secretary under this Act shall remain subject to all claims and defenses that would otherwise apply notwithstanding the exercise of authority by the Secretary or Corporation under this Act."

So does this not qualify for abuse of discretion or not in accordance with the law? How can you take money that is unchecked and practically gone with no reporting to Congress or no Congressional panel approved to for oversight, and possibly divert funds to the Auto Bailout?

How much damage will the Bush administration, Paulson, Bernanke and others do before they leave office? Any lawyers on this forum care to comment on the legality of this? Or the possible unconstitutionality of this?

Come on people, wake up! Something is illegal about this whole thing and I need some clear responses from anyone who is a lawyer or knows constituional law, or has studied this bill in greater detail.

ckessel's picture
ckessel
Status: Martenson Brigade Member (Offline)
Joined: Nov 12 2008
Posts: 480
Re: TARP used for auto bailout?
krogoth wrote:

Now I am hearing that they want to use TARP for the auto bailout? Wait a minute, surly this would need to be voted on and approved. What the hell is going on with this?

Come on people, wake up! Something is illegal about this whole thing and I need some clear responses from anyone who is a lawyer or knows constituional law, or has studied this bill in greater detail.

We need to support a government that is representative of the people. Obviously ours is not it and it ended a long time ago, maybe around 1913 when our same elected reps voted in favor of the Fed Reserve Act. That is about as unconstitutional as anything that is going on today.

 Chapter 3, "The Creature from Jekyll Island" spells out this exact mechanism and it has been going on for a long time. Only the names have changed. The first was Penn Central Railroad in June of 1970. There have been many more since.

The way I see it, the Fed could bail out the auto industry if they felt it was in the best interests of the public to create price stabilization. I know it''s bulls**t but they can do it "legally" as part of the Federal Reserve Act.They are not requires to get anyones approval.  Please correct me if I have this wrong.

The Whole Thing you refer to Krogoth is unfortunately way more than this "little" bailout scene.

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: TARP used for auto bailout?

With all due respect, Professor K, the last person to ask is a
lawyer. Most of the legal profession has been co-opted into inventing
plausible-sounding rationales for traducing the constitution by making
flagrantly incompatible statutes 'legal.' John Yoo, who prepared the
memos authorizing the US -- a signatory to the Geneva Convention -- to
engage in torture, is an extreme example. Yoo is a constitutional
lawyer. As was Bill Clinton. As is Barack Obama. Any questions?

The
Federal Reserve, which prints paper money in defiance of the coinage
and gold and silver clauses in the constitution, is a longer-standing
example. The TARP is just a jakeleg Federal Reserve with no rules at
all, run from the TreasSec's back pocket. And it's 'all legal,'
according to the attorneys who drafted these atrocious statutes.

Most
of the gentleman farmers who signed the constitution weren't lawyers.
It was written by literate working people, and can be interpreted by
literate working people without the assistance of compromised,
tendentious pettifoggers on the payroll of the corporate state. Their
job, as they see it, is to 'lie for their country.' But they confuse
the government with the country. Ain't the same thing atall.

Mike Pilat's picture
Mike Pilat
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 929
Re: Congressman: Fed “Bamboozling” Americans

It reminds me very clearly of what happened during the Revolution. We are now facing a situation of "Taxation Without Representation." But now, it's even worse: We are essentially being taxed (through inflation) by the Federal Reserve, we're not adequately represented to combat this, AND the real rub is that we apparently don't have the right to even know or understand this tax.

"If a nation expects to be ignorant and free, in a state of civilization, it wants what never was and never will be." --- Thomas Jefferson

I'm angered.

Mike

 

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