The Fed Becomes a Dictator

22 posts / 0 new
Last post
jerrydon10's picture
jerrydon10
Status: Gold Member (Offline)
Joined: Mar 2 2009
Posts: 442
The Fed Becomes a Dictator

"President Barack Obama is expected Wednesday to propose the most sweeping reorganization of financial-market supervision since the 1930s, a revamp that would touch almost every corner of banking from how mortgages are underwritten to the way exotic financial instruments are traded.

At the center of the plan, which administration officials are referring to as a "white paper," is a move to remake powers of the Federal Reserve to oversee the biggest financial players, give the government the power to unwind and break up systemically important companies -- much like the Federal Deposit Insurance Corp. does with failed banks ...

Lawmakers are expected to take issue with several of the plan's more thorny issues, including how to create a system that won't simply bail out large financial companies when they topple. Giving the Fed more clout -- in light of recent criticism from lawmakers, both Republican and Democratic, of its secrecy and accumulation of power -- will also be a controversial idea."

http://www.businessinsider.com/this-guys-getting-more-power-2009-6

Original article here if you are a Wall Street Journal subscriber.

Question to ponder: Since there is really nothing Fed about the Fed other than it's head is appointed by the POTUS, do you feel like a private banking cartel should have the power to dismantle private companies much like the FDIC does with failed banks?

 

Gungnir's picture
Gungnir
Status: Platinum Member (Offline)
Joined: Mar 2 2009
Posts: 643
Re: The Fed Becomes a Dictator

Can we say fox and hen house...?

This type of reaction is why I believe there should he minimum IQ requirements for TPTB in DC. Does anyone else smell panic?

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: The Fed Becomes a Dictator

Looks like we have a front row seat at the final destruction of our once free and prosperous nation.  We've been sold out.  Welcome to fascism and perpetual debt; say goodbye to the constitution and bill of rights. 

Is anyone watching?  Does anyone care? 

I say that rhetorically as most here understand what's going on, but where are the vast majority of the people?

Here's my take, the people are being bombarded with scary news.  Financial worries, terrorism, NK nukes, the middle east, pandemics and on and on.  Many are in a fuzzy malaise that comes with watching your sense of security fade away, replaced with fear and degrees of anger and resentment.

Groups that act on fear and anger are usually reactionary.  They become desperate for solutions and will even accept crazy ones; they are ripe to be taken.  For example, often popular revolutions end up replacing one dictator with another. 

The key is that the people must understand what's going on, why change is needed and demand a return to the rule of law (bring back our constitutional republic).  End the imperial presidency.

The Fed must go, there is no way around it.  I'm going to advance the CC and End the Fed move harder than before.  Don't wait for the MSM to tell the truth - we have to become proactive.  Get the word out!

Larry

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: The Fed Becomes a Dictator
DrKrbyLuv wrote:

Looks like we have a front row seat at the final destruction of our once free and prosperous nation.  We've been sold out.  Welcome to fascism and perpetual debt; say goodbye to the constitution and bill of rights. 

Is anyone watching?  Does anyone care? 

I say that rhetorically as most here understand what's going on, but where are the vast majority of the people?

Here's my take, the people are being bombarded with scary news.  Financial worries, terrorism, NK nukes, the middle east, pandemics and on and on.  Many are in a fuzzy malaise that comes with watching your sense of security fade away, replaced with fear and degrees of anger and resentment.

Groups that act on fear and anger are usually reactionary.  They become desperate for solutions and will even accept crazy ones; they are ripe to be taken.  For example, often popular revolutions end up replacing one dictator with another. 

The key is that the people must understand what's going on, why change is needed and demand a return to the rule of law (bring back our constitutional republic).  End the imperial presidency.

The Fed must go, there is no way around it.  I'm going to advance the CC and End the Fed move harder than before.  Don't wait for the MSM to tell the truth - we have to become proactive.  Get the word out!

Larry

 

Larry,

I originally posted this in the "Inflation vs. Deflation - What Comes Next?" thread, but feel it is applicable here too. It's not the answer, but it's one approach, FWIW.

 

While following Patrick's Fed Chart link, I came across the following at the end of the article. Now I know the JBS is considered by many to be a radical right-wing organization and I am not a member myself.

However, in this particular instance, they provide an easy vehicle for contacting your legislators to encourage them to End the Fed. Thus, as a public service to this forum, here is the information if you choose to pursue it (I have now used it to send emails to my legislators here in Oregon).

The solution to these monetary problems of inflation is to restore sound money and phase out the Federal Reserve. The John Birch Society (JBS) has published a model "Sound Money and End the Fed" resolution for state legislatures to use for creating pressure on Congress to restore gold- and silver-based money and to phase out the Fed. The JBS has also posted a pre-written, editable email message for all Americans to use to directly influence their representative and senators in Congress to restore sound money and End the Fed.

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: The Fed Becomes a Dictator

Perhaps (as Denninger suggests) US citizens might ask the Iranians for tips on protesting.

Don

____________________________________________________

Acquiescence by the many to their own inability to comprehend

jerrydon10's picture
jerrydon10
Status: Gold Member (Offline)
Joined: Mar 2 2009
Posts: 442
Re: The Fed Becomes a Dictator

Heavy post Don, with a major point being aptly communicated in one short sentence.

Do us dumbed down Americans care about anything other than what happened to Brad Pitt and Angelina last week or Brittany Spears' butt? Nope.

I snicker when some of my friends on here mention revolution. There will never be another revolution in this country. The U.S., as we knew it, is toast.

There are a few, though, who are CC graduates. I see some hope there.  

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: The Fed Becomes a Dictator
pir8don wrote:

Perhaps (as Denninger suggests) US citizens might ask the Iranians for tips on protesting.

Don

____________________________________________________

Acquiescence by the many to their own inability to comprehend

Hey Don,

Great succinct post.

Funny you should say that. While we were catching a bit of mid-day news and watching the protests, I said to my wife that I wish Americans would get out and protest like that.

Sad to say, I also have to agree with jerrydon10 about the chances of that happening.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: The Fed Becomes a Dictator

Sam - I like most of that JBS resolution and btw, I thought the same thing about the news coverage in Iran.

Don - I was tempted to post Denningers roll.  To share with others, here's what Denninger said:

Proud To Be American? You Should Be Ashamed

We have seen the largest looting operation in history perpetrated against The American People.

Over $5 trillion dollars in junk securities were marketed and sold.  They had a real value of about $2 trillion dollars; the other $3 trillion, roughly, was pure fiction.

The banks created and sold these throughout the world, with the full knowledge and support of Congress, The Fed, and the banks themselves.

It was pure fraud.

Granting someone a "mortgage" based only on whether they can fog a mirror is proof positive of malfeasance, unless you disclose this fact to the buyers of these securities - a fact that was not disclosed until after the securities blew up.

Lenders, builders and others pressured appraisers to "hit the numbers" to support these fraudulent deals.  Proof of that is found in the nearly-10-year-old Appraisers Petition bearing thousands of appraiser signatures. 

That ratings were a "mistake", either real or intentional, is a matter of now-known historical fact.

Americans have sat on their butts through all of this, allowed their 401ks and IRAs to be trashed, their supposed "home values" to be pumped and then destroyed, and their hopes, dreams, employment and house have all vanished into the ether of fraud.

When this came to light the banks went to Congress, and supported by The Fed's intentional draining of liquidity to create an immediate "crisis", they got a $700 billion bailout bill passed - one that you, your children and grandchildren, will have to pay for.

The government then passed another near-trillion-dollar "stimulus" bill claimed to hold unemployment to 8%.  It did not, because it was yet another "papering over" of the fraud, but that bill your children and grandchildren, along with you, will also pay.

Your savings accounts and CDs now yield an effective zero. 

Your credit card interest rates have gone from 11% to 29%, all so that the banks can keep granting ill-advised credit to people who can't pay.  Those who can pay - the rest of you - are being jacked for 30% a year in interest.

We have seen a few "tea parties" in which a few people showed up and which were immediately panned by "those in power" as "astroturf."

Contrast with this.

A few days ago, Iran held an election.  It is alleged that there was massive fraud.  The current President claimed victory under less-than-clear circumstances.

The people said "hell no!" in this sort of demonstration:

That's about 2 million people, out of 70 million population (roughly), or one in thirty-five Iranians in the entire nation who took to the streets to demand justice in a simple vote.

More strikingly, Tehran has a population of roughly 12 million; this means that one in six citizens of the city are standing in that crowd.

This, despite the fact that the government there has been shooting people, has arrested the opposition party and issued an order to burn the ballots so there can be no recount.

This, despite the fact that the Iranian population does not enjoy a Second Amendment, and thus is forced to fight a rogue government with makeshift molotov cocktails, rocks and clubs, should that rogue government choose to shoot.

And this was about an election.  A President.  One man.

In our nation we have literally had 1/3rd of our GDP - that is, 1/3rd of everything you worked for last year - stolen by a bunch of fraudsters with the explicit cooperation and assistance of the government.

We should be seeing 10 million Americans literally closing Washington DC with peaceful protest in the streets - making the entirety of the downtown inaccessible to vehicles and the normal conduct of business impossible, were Americans to display the same sort of anger over an insult vastly more serious than that served upon the Iranian people.

If one in six Americans had enough in America's big cities, there would be one million people in the Streets of Chicago - enough to fill Chicago's Loop from Lake Michigan to I-90/94 and from The Chicago River to beyond Soldier Field, rendering the city core impassable.  (Roughly double the crowd that shows up for the 4th of July Fireworks, to put it in perspective.  "Greater Chicagoland" has a population of ~7 million)

The same in NY City would result in a crowd of 3.3 million people.

Where are you America?

In America, if the government turns into a goon squad, you have the constitutionally-protected ability to shoot back.  In Iran you have no such ability as the Iranian government has never recognized the unalienable rights as set forth in our Declaration.

So in Iran the population risks mass death to protest.

In America the population risks loss of some income since you'd have to cut work.

The Iranians take to the streets; we take to our couches and have another beer.

Grow a pair of b**** America.

The people of Iran are putting us to shame.

Larry

SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: The Fed Becomes a Dictator

Wow! Great post, Larry. Thanks for making that available for all of us to read!

 

Edited to add: I was so impressed by Denninger's post that I emailed the link to practically everyone in my address book!

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Re: The Fed Becomes a Dictator

Amen!

Jimbo0972's picture
Jimbo0972
Status: Member (Offline)
Joined: Nov 6 2008
Posts: 9
Re: The Fed Becomes a Dictator

 WAIT FOR THE WAVE OF INSURANCE COMPANY Failures

 

And any other instituation  that was heavily invested in financial wizardry...

 

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: The Fed Becomes a Dictator

Must say you all here take criticism better than I usually do although its obviously not personal. I find Denninger a good read when I can understand his sometimes technical language. He seems to get a mixed press here and his views are obviously extremely conservative. Also his faith in deflation doesn't go down so well. But I hope I can separate his politics from his message which is sometimes right to the point.

I sumise there is a model for attention toward government in the US and elsewhere that has emerged during times of affluence. A model characterised by little need for attention to government and a misplaced trust in it. Shifting that model is not easy when only a few are sounding the warning bells and the habit has become so ingrained. I don't see it as a dumbing down just a matter of where to and how to direct available attention. 

The Iranian people seemed to be expecting election fraud before it happened so they were ready for it.

Don

_________________________________________ 

So few then with so many ways, so many now with so few ways
 

kaman's picture
kaman
Status: Bronze Member (Offline)
Joined: Apr 24 2009
Posts: 51
Re: The Fed Becomes a Dictator

I hadn't got around to 'feeling ashamed' yet, I'm still stuck up past my axles in disbelief that all this could happen in America, land of the free - home of the brave.  Learning the truth about Santa Claus was eventful.  Finding out that hard work and honesty were not the golden pathway to success was traumatic.  But discovering that the vast majority of my countrymen have evolved into mindless passive cattle incapable of independent or original thought, has shocked me to the core.  This has to be some kind of bad dream, - bad karma.

I have always felt that regardless of what happens during my life, I will always be an American.  That fact brought with it the pride and security that only comes from being adjoined with a principled people that loved freedom and demanded liberty.  The last time I looked we all stood side by side as far as the eye could see, threaten us and we'd box your ears off and nail your hide to the barn door, piss us off and only the wrath of God himself could prove mightier.  What the heck happened?  I now spend much of my time reading, listening, to the unfolding events of our country's demise, and risk being labeled a mad man for trying to get others to see that the sky truely is falling.  I feel like a stranger in my own country.  Or is this my country?

A. M.'s picture
A. M.
Status: Diamond Member (Offline)
Joined: Oct 22 2008
Posts: 2368
Re: The Fed Becomes a Dictator

Kaman,

Somewhere under the dogmatic disbelief and fear of reprisal is the same country you know and love.
All we need is some leadership. If Obama succeeds in his latest endevour; handing the FED regulatory powers over our economy, we can kiss our way of life goodbye.

It's getting really close to the point of no return.

Cheers,

Aaron

Gungnir's picture
Gungnir
Status: Platinum Member (Offline)
Joined: Mar 2 2009
Posts: 643
Re: The Fed Becomes a Dictator

Amen kaman. I was not born an American but chose to be one because of the principles laid down by the Founding Fathers, who faought and defeated by country of birth.

I've sworn an oath to protect and uphold the Constitution of the United States, and to bear arms in defence on the US against all enemies foreign and domestic. I will NOT give up liberties for security, I will NOT mndlessly follow the lead of the government, I will NOT surrender my constitutionally protected freedoms in any way. If they want to come and take them, they can try...

 

 

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: The Fed Becomes a Dictator

I'd like to think that Kiwis in this situation would have started a march on parliament or be camped on the Whitehorse lawn. It doesn't take more than one person to get it going. Marches are good because of the gathering momentum. You need a clear aim like "End the Fed" and or "Let them fail". So there are alternatives to something that needs a high level of support to get started. Hope I'm not trying to teach grandmothers to suck eggs.

Having said that; I prefer the alternative of simply making TPTB irrelevant to our lives and Dmitry Orlov has an excellent new post on that and many more subjects http://cluborlov.blogspot.com/

Don

____________________________________

"There is a crack in everything, thats how the light gets in"

Leonard Cohen Lyric

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: The Fed Becomes a Dictator

Great but sad points here. Looks like at some point more than S...will hit the fan....more like the bodies that make it will too.

foote2777's picture
foote2777
Status: Bronze Member (Offline)
Joined: Sep 30 2008
Posts: 65
Re: The Fed Becomes a Dictator

This was in the news tonight here in Australia for those that can't get onto the Wall Street Journal

 

Quote:

Barack Obama pushes essential' reforms to restore market integrity

 

Damian Paletta | June 17, 2009

Article from:  The Wall Street Journal

THE Obama administration will today propose sweeping changes to the way the US government oversees financial markets and push Congress to grant new powers to the Federal Reserve to oversee the economy, according to a near final draft of the plan viewed by the Wall Street Journal.

 

The 85-page proposal is part of an effort by Barack Obama to redraw the rules that govern finance in an attempt to restore confidence in US and global markets. Administration officials want the rules to be tough enough to correct some of the damage caused by the financial crisis last year, but not so restrictive that they stifle innovation. The paper says the administration has stopped short of calling for all changes that could be seen as “desirable” and pushed only for those they see as “essential” to reform.

 

“We must act now to restore confidence in the integrity of our financial system,” the draft of the administration proposal says. “The lasting economic damage to ordinary families and businesses is a constant reminder of the urgent need to act to reform our financial regulatory system and put our economy on track to a sustainable recovery.”

 

The US President’s plan will touch almost every corner of financial markets, from tougher consumer-protection policies to stricter rules over exotic financial products, such as credit derivatives. The plan would push the government into almost all corners of finance, bringing many of the products and companies that previously operated outside of the banking system under federal scrutiny.

 

The administration's proposal would give the government the power to take over and wind down a large financial company, a power that government officials lacked last year when the financial crisis was intensifying. It would also give the central bank more powers over the payments and settlements systems that money flows through in US financial markets, to prevent against a breakdown in these areas that officials fear could destabilise the economy.

 

The plan would abolish the Office of Thrift Supervision and create a new national regulator for financial institutions, aimed at making it harder for companies to shop between supervisors.

 

One new detail is that any large, interconnected company that the government wants to take over and break up could be pushed into government seizure by the Treasury Department. Once taken over, the companies would typically be run by the Federal Deposit Insurance Corp, but the proposal gives the government discretion to change the way this might work. The Treasury has said these powers were necessary, but the details of how they would work were unveiled for the first time in this proposal.

 

Hedge funds and other private pools of capital would have to register with the Securities and Exchange Commission. Thousands of financial institutions would be required to hold more capital in reserve to protect against unexpected losses, and companies would also have to retain a portion of the credit risk for loans they have packaged into securities.

 

The Fed emerges from the plan with the power to oversee from top to bottom almost any financial company in the country, including the firms' foreign affiliates. It would also hand the central bank another victory by allowing it to oversee any commercial company that owns a banking charter known as an industrial loan company.

 

To soothe lawmakers unhappy with the Fed's growing power, the proposal also proposes capping it in some ways. The administration's proposed consumer protection agency - which would have the ability to write rules related to mortgages, credit cards and other consumer products - takes away powers previously held by the central bank.

 

In addition, the plan would require the Fed to receive authority from the Treasury Department before it took dramatic action to stabilise the economy, which it did several times last year after it cited “unusual and exigent” circumstances.

 

The proposal stops short of recommending the creation of a national charter for insurance companies, but it does suggest that there should be some sort of federal co-ordination of insurance regulation.

1440 minutes's picture
1440 minutes
Status: Bronze Member (Offline)
Joined: Dec 29 2008
Posts: 51
Re: The Fed Becomes a Dictator
pir8don wrote:

Perhaps (as Denninger suggests) US citizens might ask the Iranians for tips on protesting.

Don

____________________________________________________

Acquiescence by the many to their own inability to comprehend

Sadly, even some people on this forum have ridiculed Congressman Ron Paul who has protested the Fed and our insane monetary policies for decades.  If knowledgeable CM forum members ridicule Ron Paul and his followers, then what hope is there for any meaningful protest in the United States?

jerrydon10's picture
jerrydon10
Status: Gold Member (Offline)
Joined: Mar 2 2009
Posts: 442
Re: The Fed Becomes a Dictator
1440 minutes wrote:

Sadly, even some people on this forum have ridiculed Congressman Ron Paul who has protested the Fed and our insane monetary policies for decades.  If knowledgeable CM forum members ridicule Ron Paul and his followers, then what hope is there for any meaningful protest in the United States?

Who says they were knowledgeable CM forum members, 14? Please remember that any idiot can post in here.

A. M.'s picture
A. M.
Status: Diamond Member (Offline)
Joined: Oct 22 2008
Posts: 2368
Re: The Fed Becomes a Dictator

I'm curious as to who ridiculed Ron Paul as well.

I've heard folks who didn't agree with him, which is understandable, but he's a hard man to put an insult to.
Any word on the progress of this proposition by President Obama?

Cheers,

Aaron

1440 minutes's picture
1440 minutes
Status: Bronze Member (Offline)
Joined: Dec 29 2008
Posts: 51
Re: The Fed Becomes a Dictator

My bad.  I think I was being thin skinned.  Just a few skeptical comments toward the end of this topic; nothing really ridiculing Ron Paul as I had (falsely) remembered.

http://www.peakprosperity.com/forum/ron-pauls-campaign-liberty/14836

It's sad what's happening to our country, but in reality I probably should be thrilled about the support that Ron Paul is getting on the "Audit the Fed" bill.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments