Fed Audit -- what are Barney Frank and Tim Geithner HIDING?

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Fed Audit -- what are Barney Frank and Tim Geithner HIDING?

Dr. Gary North explains why Dr. Ron Paul's bill to audit the Federal Reserve isn't moving, and adds some surprising observations:

I do not recall this in my lifetime. A majority in the House of Representatives has co-signed H.R. 1207, a bill introduced by Ron Paul to have the Federal Reserve System audited by an independent government agency, the Comptroller General's office.

The bill has been bottled up in committee by Barney Frank, who has insisted that he is doing this in order to better coordinate consideration of the best way to gain greater transparency from the Federal Reserve. He has not said that he favors an independent audit of the FED.

The FED in June hired a public relations expert, Linda Robinson, to deal with Congress. She was formerly a lobbyist for Enron. I have little doubt that it was H.R. 1207 that forced the FED into this move.

If the bill passes the House and the Senate, Obama will veto it. The FED is not going to be audited by the government. That is not how the world works. The FED is only officially under government authority. Except in wartime, it has never been under government authority. It was set up to provide the illusion of government control. That illusion has worked since 1913.

The FED does face a major problem. If it escapes from both the Congress and the courts, this will sell lots more copies of "End the Fed." On the other hand, if the court system finally forces the FED to reveal who got what and on what terms, then banks in the future will hesitate to go to the FED, hat in hand, because the public learn who was begging for a bailout. This is not the sort of information that big bank bankers want the financial press to discover, let alone the Internet.

http://www.lewrockwell.com/north/north750.html

North's assertion about a presidential veto of HR 1207 is, of course, merely his opinion. But it does not strike me as far-fetched. We saw the same configuration during the LooterFests, when the majority of Congress opposed the bailouts because their constituents were 100-to-1 against it. But the wholly-bought Congressional leadership twisted arms, cashed in chips, and forced it through at all costs on the second go-round, as the president cheerleaded.

Now we have Barney Frank, who was up to his ears in the wheeling and dealing that produced the LooterFests, keeping the Fed audit bill safely buried beneath his fat, pimply keister. Meanwhile, TreasSec Tim Geithner says auditing the Fed is 'a line we shouldn't cross.'

What do Barney Frank and Tim Geithner have to hide? Very bluntly, if a Fed audit discloses major irregularities, Frank and Geithner could face indictment for larceny, extortion, racketeering and fraud. Their public behavior is completely consistent with an attempted cover-up of serious crimes. Were they promised a presidential pardon as an incentive to do their dirty deals? In other words, is the system corrupt all the way to the top? 

You can guess what I think ... Sealed

 

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

Turns out that Joe Bageant was already several steps ahead of me:

I got up this morning to the headline: “Social Security Checks to Shrink.” Surely this makes a slew of generation Xers cackle with glee. But some of us are trying to stay drunk on that check until our date with a heart attack or one of those death panels the Republicans are yammering about. 

To be honest though, I wasn’t sure just how the Social Security scam would be run on us. All I knew was that the steady stream of payments into Social Security represents the last big hog still running the woods. Sooner or later corporate interests would gut it.  

Corporate interests? Yup. It’s like this. Congress and the president hands the public treasury to elite financial corporations, via bailouts, special tax breaks and cash-stuffed aircraft carriers bound for their fortified French villas.   Then Congress and the administration go looking for some new scheme to the pay for the Congressional Country Club out there in Bethesda, MD, the White House heating bill and money to keep Air Force One in toilet paper and armagnac-marinated quail breasts.

This newest Social Security shell game is quite a bit slicker than the previous one. The old one consisted of simply ripping the money out of the SS fund, and replacing it with bad paper -- IOUs repayable in up to 100 years. Since our Social Security checks cannot be cut by law, the boys on the Hill had a problem. The solution was to raise the Medicare prescription drug premium deducted from SS payments. Now I ask you, could the old zombie war hero and the semi-slutty Alaskan have come up with anything like that? I doubt it. It takes a Harvard degree in constitutional law and a devil on your shoulder named Tim Geithner whispering the game plays in your ear.

A poster on AlterNet named monkeywrench observed that Obama couldn’t have handed the corporate owners of this country more if he had been a Trojan Horse candidate. So prescient was the poster that I have highjacked his chain of thought herein. Could Obama be a Trojan horse? Maybe, but it would be a waste of time and effort. Trojan horses are not necessary in a country that has only one political party anyway – Big Business. You don’t need a Trojan Horse when Troy is your home. The Republicans vs. Democrats mock combat are mere bread and circuses for the clamoring crowd. Personally, I have no problem with that. I fully understand I was born under a corpocracy. But I do wish our masters grasped the importance of free alcohol in the suspension of disbelief.

http://counterpunch.org/bageant08282009.html

Money mouth  Fed audit = perp walks  Money mouth

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...
machinehead wrote:

What do Barney Frank and Tim Geithner have to hide? Very bluntly, if a Fed audit discloses major irregularities, Frank and Geithner could face indictment for larceny, extortion, racketeering and fraud. Their public behavior is completely consistent with an attempted cover-up of serious crimes. Were they promised a presidential pardon as an incentive to do their dirty deals? In other words, is the system corrupt all the way to the top? 

 

Treason. They should all be given a fair trial and escorted to the town square.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

machinehead,

What are they hiding? 

If the Fed were audited I think we'd find more horrific stuff than Jeffrey Dahmer's refrigerator.  The first big surprise would be that the Fed has been creating money on the side for many years for cronies, bribes and to pay for their criminal enterprises including the BIS and the IMF.

Think about that for a minute.  There is no way that we would know if they were creating billions or trillions of dollars every year.  The way it is set up, we just take them at their word.  We know that they are part of an international crime syndicate so it makes perfect sense that they would steal as much as possible.

I agree with Davos, treason has been committed by those who perpetuate their lies and give them cover.  While I would like to see the Fed audited, I would prefer it be done as part of a RICO criminal investigation.  That would enable us to seize their assets and the assets of those who ran the scam.

Most would rat one another out faster than the deals could be written.  I have been against Gitmo and torture but in the case of the Fed, I think these tools may bear fruit.

Larry 

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

The Constitution lists only 2 crimes by name: Treason and counterfeiting.

It sickens me to see Bernake give his wise @ss answer when one of the half dozen or so Congressmen that know up from down ask him by what authority he does this and question the Constitutionality of it and he quips Congress authorized it in 1913.

Rather than audit the Fed one of these half dozen should hire some Constitutional Professors and Attornies and contest the law passed almost 100 years ago.

It amazes me to read abut the Jewish prisoners who made money for the Nazis at the Sachsenhausen concentration camp. They printed 134 million British Pounds to ruin Britian's economy. 

Now we have Bernanke carrying out the mother of all Operation Bernhard's. There are so many ironys at play I couldn't even begin to list them all. The most pathetic is that we could wind up with concentration like conditions as a result of this.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

To be frank, I think auditing and "re-evaluating" the role of the Federal Reserve over its history is probably the single most important issue to securing future rights and liberty for Americans. I am not confident that an audit will go through for various reasons, but enough members of Congress have now been made aware of an issue that was previously unheard of. The only way to support what might be a real green shoot is for the American citizenry to wake up.

It's sad, for me in particular, to see such a high percentage of my generation give up their futures in order to secure present day "hope" and euphoria. Bread and circus is very much alive and well. But Rome is already on fire and no fire lasts forever. The fact that our treasonous "leaders" desire to retain Fed secrecy is reason enough to demand an audit.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...
DrKrbyLuv wrote:

While I would like to see the Fed audited, I would prefer it be done as part of a RICO criminal investigation.  That would enable us to seize their assets and the assets of those who ran the scam.

Other than the buildings and furniture, I'm not sure that the Fed has  any assets.

Think of how Fannie Mae and Freddie Mac became insolvent when securities they held as assets became impaired. How do we know this? Because as NYSE-traded public companies, they were audited.  Whereas the Fed is a privately-held cartel which has arrogated quasi-sovereign powers to itself. Ninety-five uninterrupted years of abusing power can produce a mountain of skeletons in the closet ... maybe even literal ones.

The Fed has taken hundreds of billions of junky securities onto its balance sheet. If this costly junk has depreciated in value, the Fed may be insolvent ... like Fannie, Freddie, FDIC, SocSec, Medicare, Medicaid, and ... hey, does anyone see a pattern here?

What I smell is cornered-rat Ponzi schemers who have lost control of their check kiting.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...
machinehead wrote:

Other than the buildings and furniture, I'm not sure that the Fed has  any assets.

Want to see something that will make you weep for a bygone era?

Today I just stumbled across a part of the Treasury website where they have old pdf documents detailing the fiscal condition of the US Treasury.

Obviously hand-typed, which adds to the charm, these documents will make you gasp as they clearly and cleanly, in a manner any 10 year old could grasp, the liabilities and assets of the US government.

What is the top entry, the one with the greatest importance?  Gold obviously.

The next?  Silver, of course,

Next?  Notes, coin, etc.

And so on.

What immediately catches the eye is the fact that the amount of physical silver counted as an asset perfectly matches the silver liabilities inclusing all outstanding silver certificates.  In other words, 100% backing.  No fractional anything, no leverage, no BS.

Here's the link.  Worth a trip down memory lane.

When people cannot conceive of a world without fractional reserve shenanigans and high leverage I am just going to point them back to this link.  It really wasn't all that long ago...

 

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

On a related front, regarding Bloomberg's FOIA lawsuit against the Fed. On Aug. 24th, a federal judge gave the Fed five days to turn over the documents. That would be ... let's see ... TODAY.

Ooops, wait, this just in:

NEW YORK (Reuters) - The U.S. Federal Reserve won a delay of a federal judge's order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received. 

Chief Judge Loretta Preska of the U.S. District Court in Manhattan stayed her August 24 order in favor of Bloomberg News, which had sought the information under the federal Freedom of Information Act, so that the central bank could appeal.

Preska directed the Fed's board of governors to file a notice of appeal and an emergency stay application with the 2nd U.S. Circuit Court of Appeals.

She also said Bloomberg will not, for now, insist on a search of "official files" at the Federal Reserve Bank of New York, after the central bank's representation that a search would likely be fruitless.

http://www.reuters.com/article/ousiv/idUSTRE57R5BE20090828

The cornered rats are fighting with their furry little backs to the wall.  Searching the New York Fed, where the FOMC actually makes its trades, would be 'fruitless'? Doubtless the shredders are working overtime at 33 Liberty Street this weekend, with Timmy G. having sneaked in through the loading dock, disguised as a forklift operator, to help.

Nothing prevents us from submitting a 'friend of the court' brief to the SeCONd Circuit, urging them not only to reinstate the District Court order, but also to jail Bernanke for contempt and obstruction.

Unfortunately, federal judges understand that exposing the Ponzi scheme would demolish their pensions, if not their paychecks too.  Appeals court judges are under tighter political control, with the bait of a Supreme Court nomination always dangled before them to ensure that they vote correctly on the government's 'must win' cases.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

You can wear the orange jump suit and go along with the "system" or you can break with the cowardly ranks and stand up for something. Precious few choose the latter.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

On the subject of FOIA suits, an NYT article today points out that two ACLU lawyers managed to obtain 130,000 pages of formerly secret documents pertaining to detention of 'enemy combatants' at Abu Ghraib and Guantanamo. Here's what they had to do to prevail:

The A.C.L.U. and its partners, a New Jersey law firm, Gibson P.C., and four other advocacy groups, estimate that they have put more than 10,000 hours of legal work into the case. The parties have filed more than 100 motions before Judge Alvin K. Hellerstein of the United States District Court in Manhattan; appeared for formal court arguments a dozen times; and twice taken disputes to the Court of Appeals for the Second Circuit. And now, for the first time, the government is seeking a hearing before the Supreme Court.

http://www.nytimes.com/2009/08/30/world/30intel.html?hp

It's also been six years since the initial request for documents was submitted.

Does the Federal Reserve really think the Second Circuit is going to give TARP more protection than memos regarding secret CIA interrogations?

Probably the lesson the Fedsters draw is that with artful dodging, delay and obfuscation, they too can fend off disclosure for six years. By which time the cost of TARP will constitute little more than a rounding error, as quadrillions become the customary unit of government finances.

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

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Re: Barney Frank Comes Around?

This could be big -- really big. If we can believe it:

WASHINGTON (Reuters) - Rep. Barney Frank, the chairman of the U.S. House of Representatives Financial Services Committee, said he plans legislation to restrict the Federal Reserve's emergency lending powers and subject the central bank to a "complete audit."

At a recent town hall meeting, Frank said the House would pass a bill to use an audit to crack open the central bank's books more widely, but in a way that will not encroach on the central bank's monetary policy independence.

In addition, he said the House would move to rein in the authority that allows the Fed to lend to a wide range of non-bank firms in "unusual and exigent circumstances."

A bill sponsored by Texas Republican Rep. Ron Paul that would allow the Government Accountability Office, a federal watchdog agency, to audit Fed interest-rate decisions has won the co-sponsorship of more than half of the House.

Frank said he has been working with Paul on compromise language. "He agrees that we don't want to have the audit appear as if it is influencing monetary policy because that would be inflationary," Frank told constituents.

http://finance.yahoo.com/news/Rep-Frank-eyes-Fed-audit-rb-3402785272.htm...

The potential merit of this approach is that Frank is a powerful committee chairman. Cooperating with Ron Paul could make it a bipartisan bill with majority party support.

The demerit is that Frank was heavily involved in designing the corrupt TARP program. Drafting the Fed audit bill gives him an opportunity to cover his own tracks. For instance,

Frank said the House legislation would pave the way for an audit to look into what the central bank "buys and sells," but he said the data would be released after a period of several months to avoid impacting financial markets.

This is the same principle as releasing FOMC minutes with a lag. But  how many loopholes will be provided, so that data can be withheld, or aggregated into meaninglessness?

In any event, it seems that Ron Paul's End the Fed  'book bomb' is starting to alarm the powers-that-be. Gotta love Frank's non sequitur that an audit might be inflationary. That's like blaming a building security system for causing intruders.

Quick -- how can we design some opaque transparency? Money mouth

 

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

machinehead and others,

Misinformation Alert: Barney Frank Never Said That HR 1207 Will Pass In October

Missing Sentence in Transcript Causes Premature HR 1207 Victory Celebration.  Several blogs and forums reported during the past 24 hours that Chairman of the House Financial Services Committee, Barney Frank, said that Ron Paul’s bill to audit the Federal Reserve, HR 1207, will pass in October.

 Incorrect Reports about Barney Frank’s Statement on HR 1207 -

  • Washington Times: Barney Frank says Ron Paul bill will pass
  • Politico: Barney: Fed audit bill will pass in October
  • Business Insider: Barney Frank: Yes, We Will Pass Ron Paul’s “Audit The Fed” Bill
  • United Liberty: Frank: Vote on HR 1207 in October
  • Daily Paul: Video: Barney Frank Says House Will Pass HR1207 in October
  • ZeroHedge: Barney Frank Says The House Will Pass HR 1207 In October
  • Mish: Barney Frank Says Ron Paul’s Audit The Fed Bill Will Pass In October
  • Washington Independent: Ron Paul’s ‘Audit the Fed’ Bill to Get October Vote?

The source of the rumor seems to be the following video.

A sloppy and incomplete transcript, which appears to have originated at the Washington Times, is making the rounds. The transcript is missing an essential sentence, which is marked in bold:

One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. That will be part of the overall federal regulation that we are redacting. This will probably pass in October.”

With “This will probably pass in October”, Frank is referring not to HR 1207, but to his own financial regulation bill, which might or might not include some aspects of Ron Paul’s HR 1207. The preceding sentence, That will be part of the overall federal regulation that we are redacting,” is for some reason missing from the widely distributed transcript, and has therefore been completely ignored by bloggers and commentators.

What did Ron Paul really say?

It has become fashionable for the political elite to try to distort Ron Paul’s statements for political gain or even put entirely new words into his mouth. Just the other day, Treasury Secretary Tim Geithner said, “Even [Ron Paul] recognizes how important it is to us to have the Fed independent of politics.”

Now Barney Frank claims that “[Ron Paul] agrees that we don’t want to have the audit appear as if it influences monetary policy as that would be inflationary.”

Ron Paul never said that an audit of the Federal Reserve would be inflationary. In fact, he has credibly demonstrated the exact opposite: that the secretive Federal Reserve itself is responsible for inflation, with the dollar having lost 96% of its value since the Fed’s creation in 1913.

  The Fed has done an horrific job at managing our money

Here is what Ron Paul actually said about HR 1207, the bill to audit the Federal Reserve, and why only a real audit will protect the public’s interest.

Ron Paul: “Mr. Speaker, the big guns have lined up against HR 1207, the bill to audit the Federal Reserve. What is it that they are so concerned about? What information are they hiding from the American people?

Larry

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Re: Fed Audit -- what are Barney Frank and Tim Geithner ...

Earlier I said:

"While I would like to see the Fed audited, I would prefer it be done as part of a RICO criminal investigation.  That would enable us to seize their assets and the assets of those who ran the scam."

machinehead said:

Other than the buildings and furniture, I'm not sure that the Fed has  any assets.

As I understand it, the RICO act would allow prosecutors to seize personal assets gained by racketeering.  If the booty goes to other corporations involved in the conspiracy, they too may have assets seized.

What a mother-load, behind the Fed is, JP Morgan Chase, Goldman Sachs, Citibank, etc.  The Rothschild s, Warburgs and Rockefellers.  The wealthiest people on earth! 

One of the tough things about RICO is that assets may be seized before a trial.  Often, wealthy criminals recognize that RICO can leave them destitute, unable to even pay for an attorney.  They almost always sing like birds in trying to arrange a deal.

The house of Rothschild is not beyond the U.S. law even though they are in Europe.  To let them know we mean business, I would suggest some cruise missiles be sent to several of their mansions.

Larry 

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