Will The US Declare Independence from the Private Federal Reserve Bank

The German Finance Minister, Wolfgang Schauble, as many of you know, has said that the Federal Reserve does not know what it is doing. It has been translated that he said Bernanke is clueless, but really, he said that they know they don't know what to do. That means they have a clue that they don't know. What a relief!

But seriously, the implications of what the minister said is disturbing. He is saying that there already is enough liquidity in the system. Of course we know what he really is saying, that the issue is not about liquidity, but rather is about solvency. The TBTF banks, with their interactive, and radioactive counterparty risk, are insolvent. It is most likely that off the bat, Bank of America and Citibank would be insolvent, with JP Morgan and Wells Fargo potentially insolvent if the other two fail. So then, all these trillions of dollars of debt and bailouts that include giving money to the banks in exchange for toxic assets, is a failure. We are Japan. We are carrying banks that cannot lend, and liquidity is simply sopped up by the banks in order to hide losses.

The disturbing thing about all this is that this minister would not likely say this if it weren't true. That is what is disturbing. Bernanke owes us an explanation because things are not getting better on main street. But we know that the central banks do not have allegiance to main street, only to their big banks. If you understand that you will go a long way in understanding why they let bubbles go unpopped!

What Americans need to realize was that Ben Bernanke prevented an economic meltdown caused by the Fed itself! The Fed private bank allowed off balance shadow banking approved by Basel 2 to come to the shores of the US and Greenspan and Bernanke looked the other way while the ponzi loan machine was undermining the sound value of US real estate! For a more complete understanding of the Fed's involvement in the housing bubble one only has to read my hub about Ponzi housing.

So when we have these Fed bankers coming on, saying how great Bernanke is, just remember that he helped to almost bring the system down. In the real world, if a Fireman burns down a forest so he can go in and put the fire out he is a criminal.

While there may be a case for bailouts by the Fed and by our government of big banks, there is no defense of the Fed letting CDO's be sold all over the world. That messy fraud was permitted by Greenspan and Geithner. I would like to see the Fed nationalized, with strict penalties for failure to regulate. I don't know that ending the Fed would be such a great idea because that would allow for rogue banks even moreso than now. I would rather see the Fed taken over, with the international cabal on the outside looking in.

A debate on CNBC between Steve Liesman and Trish Regan on the one side and Rick Santelli on the other was regarding the audit of the Fed sponsored by Ron Paul. If you are an American patriot you will support the audit of the Fed. The Federal Reserve is a private bank that has no authority in the constitution. The Founding Fathers fought to establish freedom from the private Bank of England that put them in debt. Sound familiar? How much debt did our current Fed allow when they looked the other way when ponzi housing off balance sheet banking was brought from Basel 2, home of the central banks like the Fed, to our shores?

The Fed is a traitorous organization. I don't believe that the Fed should be eliminated, but rather nationalized. As it stands now, the Fed is against the interests of the people of the United States. But it does not have to be that way. Liesman and Regan are lapdogs of the Fed and support the secrecy by which the Fed operates. Congress has the right to regulate and look into every action of the Fed. Alexander Hamilton wanted a private bank and wanted the US government to give favorable treatment to a few. This mercantilism continues today as George Bush and Barak Obama seek to please the Federal Reserve bank. This is traitorous behavior.

Indeed, Andrew Jackson, at the risk of his own life, kicked out the Second National Bank and we were as a nation free of private central banks for 70 years. In today's complex economy, the Fed should be given the power to stop speculation, to force investment in the economy rather than in commodity speculation which is simply killing the American consumer.

It is time this predatory mercantilism be viewed for what it really is, an attack on the average Joe. It is time the American people study and bone up on this fraud that continues to attack you! Historically, mercantilism was an aggressive foreign trade coupled with protectionism.

The new mercantilism of today has elements of these but also has the most important element, the favoring of certain businesses by government. It is that favoring of Wall Street over main street that is the most disgusting application of a philosophy we thought was pretty much dead. But favoritism, a New Mercantilism, is far from dead. The new war the mercantilists are waging is against main street and the middle class!

The ultra federalism of Hamilton sought war and expansionism. We are doing this through the neocons who still dominate the Obama adminstration and were brought to power by Bush/Cheney. These are criminal warmongers who want increased debt upon the American people. They even want to increase the debt of the Chinese. Wall Street wants to sell credit cards to the Chinese and make them into consumers instead of savers. Wall Street is the favorite of this government and has shamefully scammed the US citizens with liar loans and usurious credit card rates. The private Federal Reserve Bank is key to this mercantile predatory activity. Make it public and make it serve the interests of the people!

I want independence from the Federal Reserve Bank! We are being robbed as a nation by the Federal Reserve Bank and Steve Liesman of CNBC is fretting over the Fed losing its independence! This is so upside down and backwords that it is time we as a nation started thinking differently and outside the box.

Clearly, Tim Geithner is like a mole, who has been placed by the Fed in the position of Treasury Secretary where he can rob US citizens blind to bail out the Fed's pets, hedge funds and Goldman Sachs. Tim Geithner is giving another bailout, the third one, to GMAC without the bondholders of GMAC taking a haircut. You know why? It is because all the big financial institutions' bonds are levered up by the hedge funds. The hedge fund puts a dollar of wealthy investor money into a bond along with 9 dollars that are borrowed. That fund is levered to the bonds and if the bonds take a hit that gives the hedge funds a multiplier loss.

So that is what this is all about, Geithner protecting the hedge funds and the Federal Reserve Bank cronies. This is cronyism magnified to absurdity. Steve Liesman is an absurdity for even thinking that the Federal Reserve Bank even deserves to be independent.

Until the United States government constrains moles of the Fed, like Geithner who was president of the New York Fed before becoming treasury secretary, and Larry Summers, who is President Obama's main economic advisor and a hedge fund patsy, we will never be free of this theft and speculation!

One just has to observe the asset bubbles being blown by the Fed as they let the dollar tank and we have a massive rip off of the American consumer/taxpayer. Any good bond trader, like Rick Santelli of CNBC, can tell you that the savers in this country are getting ripped off by low yields with the bond bubble in price that exists. You have Steve Liesman, the Fed's man on CNBC defending the tanking of the dollar as being no concern of the Fed. Sorry, but that is wrong, wrong, wrong! We need real economic growth, not asset and debt inflation that will make the US even poorer in the long run. If you think that asset inflation is not important then read what I wrote here.

Lewis v. United States, 680 F.2d 1239 (1982)

John L. Lewis, Plaintiff/Appellant,
v.
United States of America, Defendant/Appellee.

No. 80-5905
United States Court of Appeals, Ninth Circuit.
Submitted March 2, 1982.
Decided April 19, 1982.
As Amended June 24, 1982.

Plaintiff, who was injured by vehicle owned and operated by a federal reserve bank, brought action alleging jurisdiction under the Federal Tort Claims Act. The United States District Court for the Central District of California, David W. Williams, J., dismissed holding that federal reserve bank was not a federal agency within meaning of Act and that the court therefore lacked subject-matter jurisdiction. Appeal was taken. The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.

Affirmed.

1. United States

There are no sharp criteria for determining whether an entity is a federal agency within meaning of the Federal Tort Claims Act, but critical factor is existence of federal government control over "detailed physical performance" and "day to day operation" of an entity. . . .

2. United States

Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as "wholly owned" government corporations nor as "mixed ownership" corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. . . .