Would the media be lauding the passing of this bill that would once and for all let the American people know what goes on at the Federal Reserve, or would they let the good citizens know this bill is lacking the necessary audit of monetary policy, the one thing that could prevent the Federal Reserve from causing future busts in the economic cycle.

Leave it to the mainstream media, both sides of the aisle, to misinform. Look at the following headlines for proof positive there are big money sources working against letting the Federal Reserve cat out of the bag.

Washington Post: “Victory for Audit the Fed”

Forbes: “Ron Paul Gets His Wish – The Fed Will Be Audited”

Huffington Post: “Ron Paul Backs Fed Audit Compromise”

Source

Source

Source

Every single one of those title’s is misleading and plain wrong.

What Ron Paul Really Said

Ron Paul did not approve of the Sanders amendment.  He knew it didn’t go far enough. Sure, he would have voted for it, but the Vitter amendment was the carbon copy of the original H.R. 1207 bill that received bipartisan support in the House.  This is what Ron Paul wanted to pass, but failed to win support in the Senate.

Taxpayers are sick and tired of bailing out privileged, dysfunctional institutions that should be allowed to fail in order to stop their ability to wreak havoc on our economy.  Perpetuating these corporations at taxpayer expense is not just wasteful, it is actively harmful.  It would be good to know what went on in the past, but what about accountability in the future?  A one-time disclosure now will not do us a lot of good down the road when the cycle repeats itself and friends of the Fed find themselves in trouble again.

More importantly, agreements with foreign central banks are not touched by the new Sanders Amendment language.  At a time when Greece, Portugal, Spain and other countries are experiencing dire financial crises and have their hands out to the international community, we need to know if our Federal Reserve is at all involved in bailing them out.  As weary as we are of bailing out companies, the American people would not stand for bailing out entire countries. Our government is wasteful enough in its own affairs without contributing to the waste of other countries.  Yet the Fed currently has the tools it needs to do just this, and to do it in secret.

Ron Paul Source

Is anyone else putting the pieces of the puzzle together?

What are you going to do about it come November?

Related posts:

1. An Open Letter To Sellout Congressman Bernie Sanders On Auditing the Fed
2. Why Don’t The Elite Want the Fed to be Audited?
3. Limbaugh and Hannity Still Favor The Fed and War While Most In America Don’t

Unfortunately, what Sanders facebook fans don’t realize is this amendment does not audit monetary policy, the one thing that H.R. 1207 and the Vitter amendment would have audited. In other words, the folks at the federal Reserve are smiling, including Ben Bernanke who approved of the Sanders amendment.

To rub salt in the wound to all who have worked hard at getting the original  “Audit the Fed” bill to pass the House with bipartisan support, Senators Bernie Sanders and Judd Gregg were doing the media circuit today receiving pats on the back.  They were enjoying congratulatory remarks from all the journalists who don’t have a clue about the monetary policy of the Fed and their manipulation of interest rates being one of the main culprits for the bust to begin with.

The Federal Reserve is just a con game and We the People will pay for their past and future mistakes through higher taxes and higher inflation.  Thank you Sanders and Judd….and future generations will be thanking you too for decades to come…except not in the manner you expect!

Mr. Sanders,

People are cheering for your victory with the passing of your bill 96-0 but in reality the Paul/Grayson amendment, H.R. 1207, would have gone much further in addressing auditing Federal Reserve monetary policy. Your bill does nothing towards that end.

Even though you voted for the Vitter amendment, you are a sell out to the Dodd and Gregg power elite of the Senate who refuse to work on behalf of the People in restraining the Federal Reserve, the cause of the bust to begin with.

The result of such negligence will be seen in a weakening dollar, a Federal Reserve balance sheet full of risk and more and more power handed to the entity that wreaks havoc on the entire economic system.

Congress has no clue what will occur because they can’t see the forest through the trees. We the People can and will remove from office those who do not adhere to the principles of Sound Monetary Policy.

It’s a shame you had no fight in you to stand for the principles of H.R. 1207, Ron Paul and Alan Grayson. Our nation will reap what Dodd, Gregg and the others who voted “NAY” to the Vitter amendment sow.

Thank you for voting yes. It falls short of me recommending anyone vote for you in the future because of your succumbing to the power elite. J.P. Morgan is smiling in his grave.

Related posts:

1. Left and Right Media Misinforming Public About Auditing the Fed
2. Senate Shoots Down Vitter Amendment; Vote the Bums Out!
3. Limbaugh and Hannity Still Favor The Fed and War While Most In America Don’t

An attempt at pulling the wool over the People’s eyes I had discussed yesterday has succeeded.   See The Federal Reserve Con Game

Don’t be fooled by the media’s attempt to sugar coat any audit with a quasi attempt like what is being pushed through Congress now and supported by the White House.

Know the difference.  Contact your senator now!

Watered Down Version Passes

It turns out, the Sanders Amendment, known as the watered down version of the original Audit the Fed bill, H.R. 1207 that passed the House in a bipartisan vote, was passed with a 96-0 vote.

The concern from those who wanted the Fed to be audited was the fact the Sanders amendment would not address monetary policy.  Monetary policy is the one thing Bernanke and the Fed have been keen on keeping out of any Fed audit bill. They succeeded.

Who Was Most Vocal Against the Original Audit the Fed Bill?

Two of the most vocal against the original Audit the Fed bill proposed by House members Ron Paul and Alan Grayson were Senators Chris Dodd (D-CT) and Judd Gregg (R-NH).  These two senators had nothing to lose with their outrage at this bill from the get go as neither of them are running for reelection in their states.

Excerpt from that video:

Gregg; You know the only thing that’s not audited is monetary policy.”

Paul; It’s the only thing that counts.”

Gregg; The only part that’s not subject to the political influence of the Congress auditing it, is monetary and open market.  Why?  Because an independent Fed is critical to a stable monetary system.

Paul; Look what you have. Where’s the stability?

Paul; The Constitution puts the responsibility of the value of the dollar on the Congress, not some secret body or international orginization to deal with our money (Paul is referring here to IMF, Special Drawing Rights to be discussed in a forthcoming article).

Result of Sanders Amendment: No Monetary Policy Audit

Good Riddance Dodd and Gregg

Dodd would have been annihilated by Peter Schiff in the Connecticut Senate race come November.  Judd was not looked upon favorably in New Hampshire.

What I really ponder is what hidden deals have these outgoing Senators have made with their corporate masters in setting up the next leg of their careers.  You can bet they will somehow be taken care of.

Please note that Senator Brown from Massachusetts voted with the Democrats….again.  Talk about your one time Senator.

Defeat Can Only Lead To Victory

In the end, the failure of the Vitter amendment to pass is not going to stop me from going after those who voted “nay” to this bill.  These people need to be voted out of office.  They are allowing an entity that is quasi-government in nature to garner more and more power while at the same time causing the bust to begin with.

At some point this will come crashing down on all of us.

Will I be writing an article at that point in time telling everyone “I told you so?”  The answer is no.  Why?  Because I’m going to be doing something about it now in completing my book “Fed Up!” with the intent of waking people up to what’s really going on with Congress and the Federal Reserve.

Don’t Vote for Any of Those Who Voted “NAY” Below Come November – Throw the Bums Out!

Grouped By Vote Position

Related posts:

1. An Open Letter To Sellout Congressman Bernie Sanders On Auditing the Fed
2. Left and Right Media Misinforming Public About Auditing the Fed
3. Limbaugh and Hannity Still Favor The Fed and War While Most In America Don’t

While people have laughed at former President George Bush’s attempt in getting a quote right in the above video, it looks like Bush is also wrong in saying “you can’t be fooled again.”

Are we Americans getting fooled again? If so, by whom?

To answer these questions, take a look at what’s been going on at the Federal Reserve that past few years and see how their quest for more power and control is just an attempt at fooling the American public into thinking they have everything under control.  In reality, the Federal Reserve has brought us to the brink of collapse.  You just can’t see it yet.

RECENT HISTORICAL PERSPECTIVE OF FEDERAL RESERVE QUEST FOR MORE POWER

3/29/2008 -Bush Proposes More Power for Fed

On March 29th 2008, the Bush administration proposed a sweeping overhaul of the way the nations financial industry would be regulated, including recommending more powers for the Federal Reserve.

The Fed would become the government’s “market stability regulator,” given sweeping powers to gather information on a wide range of institutions so that Fed Chairman Ben Bernanke and his colleagues could better detect where threats to the system might be hiding.

7/30/2008 – Congress Votes To Keep People in their Homes

Shortly after this Bush proposal, Congress, in a bipartisan effort, passed Nancy Pelosi’s bill, H.R. 3221, the Housing and Economic Recovery Act of 2008.  The vote was 72-13, with 15 Senators not voting, including McCain and Obama.

This is the bill that was passed to keep people in their homes and try and get more individuals suckers to purchase homes with only a 3.5% down payment through an FHA program.  People who bought homes at the wrong time are thus rewarded and people who don’t have the wherewithal of knowing when is the best time to buy real estate were given free gifts from the U.S. taxpayer.  The rest of you paid for it.

Embedded in the Housing and Economic Recovery Act was the first granting of power to the Federal Reserve under Sec. 1118.

CONSULTATION BETWEEN THE DIRECTOR OF THE FEDERAL HOUSING FINANCE AGENCY AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM TO ENSURE FINANCIAL MARKET STABILITY

9/23/08 – Stock and Real Estate Market Continue To Fall

As the stock and real estate markets continued to fall, on September 23rd, 2008, Treasury Secretary Paulson and Bush appointee Federal Reserve Chairman Ben Bernanke went on the record urging Senators to pass some sort of rescue plan with the intent of giving the Federal Reserve even more power to manipulate the markets.  In reality, it was the Federal Reserves  manipulations to begin with that was causing the market turmoil as Thomas Woods pointed out in his book, “Meltdown.”

Thomas Woods takes the Austrian economic approach as to why the markets failed.  In a nutshell, the Fed kept interest rates too low for too long rather than let the free market dictate.  This encouraged/fooled businesses into taking on more credit, expanding the boom period, which was followed by the inevitable bust we are experiencing now when the carpet was pulled from underneath them.

Only the pompous folks at the Federal Reserve would have the gall to ask for more power while causing the bust to begin with.  The fact that many in America don’t see the connection; “Fool me once.”

The housing and stock market continued to fall in 2008 despite the attempt by Congress and the Fed collusion in helping homeowners.  Certain derivative bets were falling apart causing the collapse of Bear Stearns, Lehman and AIG and threatening many other financial institutions while investors were running to Treasuries for safety.

Paulson, Bernanke Urge Senators to Pass Rescue Plan

10/08/2008 - “Emergency, Emergency” Gomer Pyle the Paulson, Bernanke, Geithner Show

Congress passes the H.R. 1424 – Emergency Economic Stabilization Act of 2008 aka TARP.   Almost all Democrats and 47 Republicans voted for this bill.

On a side note, does it make sense to vote for those who are in favor of such bills that would threaten the system?  Why not vote them out?  But you may not be convinced yet as to the reasons why they need to be voted out.  Digging deeper might shed some light.

This Emergency act gave the Federal Reserve even more power to stabilize the financial markets through the purchase of troubled assets:

TROUBLED ASSETS- The term ‘troubled assets’ means–

(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and

(B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.

If you own a flower shop or local restaurant and business has slowed down to a halt because of the economy, you are not deemed necessary to financial market stability and failure is your only option.  If you have given millions to politicians on both the left and the right showing loyalty to the Parties in charge, you’re allowed to survive.

Who Allows Your Business to Survive?

The Financial Stability Oversight Board was established under this bill to decide which assets were deemed troubled.  This Board is comprised of–  (1) the Chairman of the Board of Governors of the Federal Reserve System;  (2) the Secretary;  (3) the Director of the Federal Housing Finance Agency;  (4) the Chairman of the Securities Exchange Commission; and  (5) the Secretary of Housing and Urban Development.

Congress Is Assured Transparency and Disclosure by the Fed

This bill was also supposed to make the Federal Reserve provide some sort of transparency so the public could see what shenanigans the folks at the Federal Reserve were up to.

SEC. 114. MARKET TRANSPARENCY.

(a) Pricing- To facilitate market transparency, the Secretary shall make available to the public, in electronic form, a description, amounts, and pricing of assets acquired under this Act, within 2 business days of purchase, trade, or other disposition.

(b) Disclosure- For each type of financial institutions that sells troubled assets to the Secretary under this Act, the Secretary shall determine whether the public disclosure required for such financial institutions with respect to off-balance sheet transactions, derivatives instruments, contingent liabilities, and similar sources of potential exposure is adequate to provide to the public sufficient information as to the true financial position of the institutions. If such disclosure is not adequate for that purpose, the Secretary shall make recommendations for additional disclosure requirements to the relevant regulators.

11/11/2008 – Federal Reserve Gone Wild

Instead of transparency and disclosure, we ended up with the Fed refusing to disclose anything to anyone.  If any other entity did this, the media would be all over it exposing such a con.  Where is the media exposure?  The media for the most part has been silent, but there are some people reporting what’s going on daily. While others are doing their part to expose the truth. and the Campaign for Liberty keeps folks on track offering their own transparency of Congress and the Fed.

For the most part, who really believes Bernanke and the Federal Reserve would abide by any rules set forth to begin with?  Did the congressmen and women who voted for it believe the words of Paulson and Bernanke?  Did they even read the bills they passed into law?  The self interest of these folks is evident by their actions.  But for whose benefit, yours?

“Just the Facts”

“Fed Defies Transparency Aim in Refusal to Disclose [$2 Trillion in taxpayer loans to banks]

“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.” … “Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.” … ““The collateral is not being adequately disclosed, and that’s a big problem,” said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. “In a liquid market, this wouldn’t matter, but we’re not. The market is very nervous and very thin.”” … “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.”” -By Mark Pittman, Bob Ivry and Alison Fitzgerald; Bloomberg

But it’s not just 2 Trillion the Fed is playing with.  They have managed to put the U.S. Taxpayers at risk for $9.7 Trillion in future pledges, or as Bloomberg put it, “enough to pay off more than 90 percent of the nation’s home mortgages.”

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.

Bloomberg along with the NyTimes ended up suing the Fed to get full disclosure.

A federal judge in Manhattan ruled in Bloomberg’s favor last November, and a three-member panel of appellate judges upheld that ruling in March. But last week the Fed asked the full United States Court of Appeals for the Second Circuit to take up the case.

The Fed will go to all ends to keep the truth from U.S. taxpayers.  These same Congressmen and women who gave the Fed more powers through the bills described above are still at it today pulling the wool over your eyes by offering a watered down Audit the Fed bill instead of the original version offered by Alan Grayson and Ron Paul.

The Truth Be Known – It’s All a Con Game

When an investor makes a decision on buying company A over Company B, they do their due diligence, look at each companies financial balance sheets and make an informed decision as to whether to put their hard earned money into the company in anticipation of seeing it grow in value.

Those who are more adverse to risk, like many seniors these days, will put their money in Treasuries and assume the small amount of interest they receive will go towards paying their bills and keeping pace with inflation.

What would an investor or senior do if they didn’t have access to a companies balance sheet or didn’t know anything about the assets on the balance sheet?  Would they invest?

Well guess what folks…if you have money in a bank, money market or in Treasuries, you don’t know what’s in the Fed’s balances sheet and you are that investor. But after some digging, I did find what’s in the Fed’s wallet.

The Federal Reserve’s Balance Sheet

Since 1971, the Federal reserve has kept a balance sheet consisting of about 70% in U.S. Treasury Securities as seen in the chart below.

That started to change towards the end of 2007.  By the end of 2008, the Federal Reserve had approximately 22% in Treasuries, a 48% decrease in the levels experienced the last 40 years .   Are seniors aware of this?  Is anyone?

Author Peter Stella: Monetary and Capital Markets Department

Just What Are the Assets the Fed Carries on Their Books if Not Treasuries?  Are They Safe?

Take a look at the following chart and you’ll see that instead of Treasury Securities, 78% of the Federal Reserves balance sheet consists of approximately $2.2 Trillion of all those assets they’ve been accumulating under the TARP program thanks to Congress giving them the authority to do so.

For better viewing click here (will open in new window)

Perhaps some of you reading this today feel safe with your investments believing Bernanke and the Federal Reserve have indeed pulled us out of this recession.  But if you really sit down and analyze the green shoots pushing the stock market higher, they are fueled only by the false hopes provided by government spending.

Whether it be cash for clunkers, appliances, homes or buyouts of failed institutions, they are the same false hopes the Federal Reserve provides time and time again, the hopes that turn to fear and despair as the inevitable bust arrives.

Don’t expect anything different this time around except a harder fall.  Just look at the Fed’s balance sheet for proof.  Then add to that Fannie and Freddie’s future obligations.

Sorry GW…you can get fooled again and thanks a bunch for making sure of it. But you don’t have to be fooled twice…

If you want to see an end to this Congressional and Federal Reserve madness then you must contact your senators now and have them vote YES for Congressman David Vitter’s amendment which contains the Audit the Fed language that passed the House last fall.

Don’t be fooled by the media’s attempt to sugar coat any audit with a quasi attempt like what is being pushed through Congress now and supported by the White House.

Know the difference.  Contact your senator now!

No related posts.

I want to reiterate the point this $100 Billion was approved by congress just 8 months after receiving $700 Billion from U.S. taxpayers for TARP.  I would also like to point out that the banks who received money from us taxpayers did not use the gift to pay off toxic assets, but instead used it to shore up their cash balances and fend off the FDIC.  The banks are still in trouble.

It turns out, Ron Paul asked the question, “Where does the money come from (to fund the IMF)?” to Ben Bernanke in April of 2010.  Bernanke confirms the Federal Reserve had nothing to do with it as the money was approved by congress.  But where does Congress get the money from?  Higher taxes and/or higher inflation, caused by the Federal Reserve of course…with the help of wiling Congressmen.

So Bernanke, in this case, is right.  The money wasn’t printed out of thin air via the Treasury and the Fed, but allocated by Congress.

I wanted to know who in Congress voted for this gift to the IMF.  Was it along party lines or, like the TARP $700 billion bailout for the financial industry, was it both the Republicans and Democrats who joined together in favor of passing this bill?

When the bill, H.R.2346 came to the House of Representatives vote, it passed by a roll call vote on May 14th, 2009 with 368 Ayes, 60 Nays, 5 Present/Not Voting. 168 Republicans and 200 Democrats combined together to vote for this bill.  Ron Paul (R) and Alan Grayson (D), both who are working to Audit the Fed, voted against it.  See how each congressmen voted.

The Senate was a bipartisan vote as well with 86 Ayes, 3 Nays, 10 Present/Not Voting, passing on May 21, 2009.

Obama signed the bill into law on June 24, 2009.

Congress Is Either With Us or Against Us

There is a connection here that’s important to voters.  Which Congressmen and women are casting their votes for the Constitution and We the People and which are voting against the Constitution and the People?  Knowing the difference come election time will dictate whether we remain We the People or become We the Serfs.  Do not vote for any of the folks who voted Yes to the TARP funding or Yes to this bill.

One point that brings this all into perspective for the common man is Ron Paul’s exchange with Bernanke involving Greece.

Quote from the video above:

Ron Paul; “The irony of this promise, in the new arrangement, this increase, Greece is going to put $2.5 billion dollars in there (the IMF fund).  Only a fiat monetary system worldwide can up and have Greece help bailout Greece.”

The smile that comes to Bernanke’s face at 2:29, right after Ron Paul made that statement is an acknowledgment Bernanke knows Ron Paul is spot on with his assumptions.  If only We the People could be spot on with their votes, we could wipe this smile off Bernanke’s face for good.

“Information is a treasure for our people. The promise of the journalist is not with popularity.  It is with the truth.” Daniel Coronell

Related posts:

1. Congress Gives IMF Your Tax Dollars to Bailout Greece
2. Vote For Those That Voted “NO” To the Bailout Come November
3. A Solution for Ron Paul Supporters?

Where does the U.S. get these funds to loan the IMF?  Where do any of these countries get the money to give them?

Congress Uses Your Tax Dollars to Bailout Greece and Other Nations

In 2009 at the Group of 20 (G20) nations summit in London, countries in attendance agreed to a “war chest” to prevent any future global financial meltdown from occurring.

Leaders of the world’s 20 largest economies earlier this month offered the IMF a $1 trillion war chest to help countries in trouble and pledged to make it the premier financial watchdog to help avoid the next global downturn.

$1 Trillion?  Are things really that bad?

The U.S. contribution to the IMF war chest was $100 billion in June of 2009. Did the U.S. just have $100 billion sitting around to give the them when just 8 months earlier the Republicans and Democrats approved a $700 Billion TARP bailout of U.S. banks?  Did Congress sell some of our gold or National Parks to raise the capital to send to the them?  Did you write a check to Congress and direct it towards them?  Well, the answer is, yes…you did, whether you know it or not.

How can a country that is over $12 trillion in debt allow Congress to loan $100 billion to the IMF? Where does this money come from?

To answer these questions, one must first resolve just who the IMF is and why Congress is so eager to give them your tax dollars.

Who Is the IMF

In a nutshell, the IMF is just a bunch of rich countries banding together to help out the smaller countries, typically of the third world variety.  Of course in doing so, the rich countries want something in return.

The International Monetary Fund was founded in 1944 at Bretton Woods, New Hampshire as a result of the financial turmoil of the 1930s. The aim was to create an institution that would help rebuild – along with the World Bank – the world economy.  The IMF is neither a world central bank nor a development bank. It acts as a monitor of the world’s currencies by helping to maintain an orderly system of payments between all countries. It is also a kind of international credit union. Member countries contribute money to the Fund, which in turn lends money to members who face severe balance of payment problems. Critics of the IMF complain that its short-term loans are accompanied by stringent conditions that often end up doing more harm than good. Original Source: AWorldConnected.Org

The IMF defined mission from their own site is:

An organization of 186 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

But let’s be real…it’s really the rich countries that tell the others what to do.

What Effect Do the Policies Implemented by the IMF Have?

These “stringent conditions” on the loans given to countries are further defined as:

(1) Monetary austerity: Tighten up the money supply to raise internal interest rates to whatever heights needed to stabilize the value of the local currency. (2) Fiscal austerity: Increase tax collections and reduce government spending dramatically. (3) Privatization: Sell off public enterprises to the private sector. And (4) Financial liberalization: Remove restrictions on the inflow and outflow of international capital as well as restrictions on what foreign businesses and banks are allowed to buy, own, and operate. Only when governments sign this “structural adjustment agreement” does the IMF agree to: (5) Lend enough itself to prevent default on international loans that are about to come due and otherwise would be unpayable. And (6) arrange a restructuring of the country’s debt among private international lenders that includes a pledge of new loans. Original Source: AWorldConnected.Org

In other words, it’s just a way for these nations to acquire the wealth/assets/productivity of the nations who weren’t able to manage their own affairs.

Debt is an efficient tool. It ensures access to other peoples’ raw materials and infrastructure on the cheapest possible terms. Dozens of countries must compete for shrinking export markets and can export only a limited range of products because of Northern protectionism and their lack of cash to invest in diversification. Market saturation ensues, reducing exporters’ income to a bare minimum while the North enjoys huge savings. Susan George, A Fate Worse Than Debt, (New York: Grove Weidenfeld, 1990)

The result is something like what has happened in Jamaica as described in the documentary Life and Debt.  The citizens of these countries receive a lower quality of life as they become debt slaves to the IMF, whose mission you will remember is to “reduce poverty.”  In reality, they are the mechanism that ensures poverty so the rest of the world can buy low cost goods.

The Economist (18.9.99), not a magazine noted for radicalism, calls the IMF “an overbearing organisation with a well-thumbed book of macro-economic policy nostrums”. It goes on to argue that “the Fund and [World] Bank have been hijacked by their major shareholders for overtly political ends. Whether in Mexico in 1994, Asia in 1997 or Russia throughout the 1990s, the institutions have become a more explicit tool of western, and particularly American, foreign policy.”

They do not reduce poverty and mainly benefit the better off in poor countries; they seem designed more to benefit large corporations by giving them cheaper raw materials and access to new markets.  Kicking the Habit By Joseph Hanlon and Ann Pettifor

So How Is It the IMF Can Do What They Do?

If you think about it, the IMF is somewhat just like the FDIC.  All of the banks in the U.S. pay a fee to the FDIC to insure that if one or more of the banks has financial problems, they can be bailed out by the FDIC.  186 nations contribute to the IMF.  If one or more of these nations have financial problems, they can be bailed out by the IMF.  In reality, they are just an extension of the Federal Reserve as “lender of last resort.”

Government deposit insurance was only one of many policies adopted during the 20th century designed to suppress economic and business failures. On the theory that certain banks were “too big to fail,” the United States government transferred $2.5 billion to save the Bank of New England in the early 1990s. That was as nothing compared to what would come later.  Beginning with the Latin American debt crisis of 1982–86, the government undertook to bail out, either directly or through augmented payments to the International Monetary Fund, American banks and investors who had lent large sums to insolvent Third World governments and firms. As if to confirm the validity of the theory of “moral hazard,” the Mexican bailout of 1994 ($40 billion) was followed closely by the IMF “rescue” of the collapsing currencies of East Asia—South Korea, Thailand, Malaysia, and Indonesia ($120 billion). And so it goes. Historian Scott Trask, Mises Institute

Earlier I posed the question as to where the money comes from to pay the IMF.  The answer is the same place it comes from to pay the Federal Reserve; from the printing presses provided by the Treasury.  Does anyone really think a nation with a total debt of over $12 Trillion can afford to pay $100 Billion to the IMF in the middle of a financial meltdown and two wars if it didn’t have a printing press?

So what about the future of Greece. What does the IMF have in store for them?

What Does IMF Involvement Mean for the Future of Greek Citizens?

“This is a defining moment for Greece,” said Poul Thomsen, who heads the IMF negotiating mission to Athens. “The global economic crisis exposed Greece’s weak fiscal position. Revenues have declined significantly, while spending, especially on wages and entitlements has risen sharply.

“What the government has committed to is a tough, front-loaded program that will correct things for the future, although it will take time. Indeed, it will be a multi-year effort,” Thomsen explained. “The authorities have already begun fiscal consolidation equivalent to 5 percent of GDP and further legislative action is expected this week. There is also an emphasis on fairness, with measures to protect the most vulnerable. The authorities are asking the Greek people to share the burden fairly across all levels of society,” he added.

A nice rosy synopsis….written by someone from the IMF of course.

In January, Greek Prime Minister George Papandreou came out and said they wouldn’t need IMF help and the poor would be taken care of.  As we now know, the IMF was called in to help.  What are the odds the citizens of Greece who are poor will be unaffected as a result?

Congressman Ron Paul summarizes the effect of the IMF programs of the past on the poor;

{They are] supposed to help the poor people of the world and redistribute wealth.  They have redistributed a lot of wealth, but most of it ended up in the hands of wealthy individuals and wealthy politicians. But the poor people of the world never get helped by these programs.

Living proof of this comes from Ross P. Buckley, The Rich Borrow and the Poor Repay: The Fatal Flaw in International Finance, World Policy Journal, Volume XIX, No 4, Winter 2002/03:

According to UNICEF, over 500,000 children under the age of five died each year in Africa and Latin America in the late 1980s as a direct result of the debt crisis and its management under the International Monetary Fund’s structural adjustment programs. These programs required the abolition of price supports on essential food-stuffs, steep reductions in spending on health, education, and other social services, and increases in taxes. The debt crisis has never been resolved for much of sub-Saharan Africa. Extrapolating from the UNICEF data, as many as 5,000,000 children and vulnerable adults may have lost their lives in this blighted continent as a result of the debt crunch.

The IMF’s Real Purpose

Ron Paul goes on to reveal the real purpose of the IMF and please note, this was written in 2004.  Ron Paul has always been on top of things and it’s time people start listening to what he has to say;

The IMF provides a perfect illustration of the both the folly of foreign aid and the real motivations behind it. The IMF touts itself as a bank of sorts, although it makes “loans” that no rational bank would consider – mostly to shaky governments with weak economies and unstable currencies.The IMF has little incentive to operate profitably like a private bank, since its funding comes mostly from a credulous US Congress that demands little accountability. As a result, it is free to make high-risk loans at below-market interest rates.  The real purpose of the IMF is to channel tax dollars to politically-connected companies. The huge multinational banks and corporations in particular love the IMF, as both used IMF funds – taxpayer funds – to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It’s a familiar game in Washington, where corporate welfare is disguised as compassion forthe poor.  In fact, IMF loans often do far more harm than good. At best IMF borrowers are governments of countries with little economic productivity; at worst the money ends up in the hands of corrupt dictators. Either way, most recipient nations face huge debts they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. Source: LewRockwell.com

The icing on the cake can be found in what the IMF is doing in helping the poor countries mitigate climate impact; giving them $100 billion.  That’s right, the IMF is giving poor countries $100 billion to help deter the effect of global warming.  Which U.S. corporations do you think will benefit from this move?  You can’t make this stuff up!

How about the IMF use that money instead to teach nations self- sufficiency? Would they ever consider such madness?

Yes, there are consequences to high priced government employees, unions and the like, resulting in living beyond one’s taxable means.   It would be the same for any individual who maxes out their credit cards where there choices are defaulting on the cards, or borrowing from someone to stay afloat a little longer.  But without a change in how one got there to begin with, the same problem will occur down the road.  As for Greece, relying on the Angel of Death represented by the IMF is no plausible solution.

So, how do you feel about bailing out Greece at the expense of our own nations needs, knowing full well it benefits a select few and will result in a worse off situation for the citizens of Greece?

Ron Paul concludes:

The IMF and other complex schemes only serve to obscure the real issue: Why should US taxpayers be forced to send money abroad? Certainly the Constitution provides no authority for foreign aid. In historical and practical terms, redistribution of wealth from rich to poor nations has done little or nothing to alleviate suffering abroad. Only free markets, property rights, and the rule of law can create the conditions necessary to lift poor nations out of poverty.

It’s time to hold your congressmen and women accountable folks.  It’s time to say “I’m Fed Up!”

Related posts:

1. Which Congressmen Voted to Give IMF $100 Billion? Vote Them Out!
2. Your Senate Hard at Work Spending Your Tax Dollars and Increasing the Federal Debt Again
3. Vote For Those That Voted “NO” To the Bailout Come November

What will 2010 bring?

Stay tuned…I’ll expose it all here on the Fed Up! Blog and help people understand what’s really going on with the U.S. Dollar, Gold and their investments, media influence, our government and the politicians who run it and their collusion with the real “root of all Evil” that is at the forefront of the bust economy, the Federal Reserve.

Keep an eye out for my book (finally) “Fed Up!” coming out later this year.  Almost 5 years in the making as the research seems to never end, but the timing couldn’t be better!

Here are the top 5 Articles of 2009 for “The Fed Up! Blog”

1.  What Really Backs the U.S. Dollar?

Don’t be confused by all the games the Treasury and the Federal Reserve are playing. Educate yourself as to what money is and what really backs the U.S. dollar.

2.  Why Don’t Limbaugh and Hannity Support Ron Paul’s Bill to Audit the Fed?

There is currently a bill to Audit the Federal Reserve before the House and Senate that has bipartisan support and makes sense for all the People of this country yet Rush Limbaugh and Sean Hannity (among others) never promote it on their shows.  Why is that?

Follow Up: Limbaugh and Hannity Still Favor The Fed and War While Most In America Don’t

Related: Why Don’t The Elite Want the Fed to be Audited?, The One Thing Bernanke Is Really Afraid Of,  The Banking Crisis is Far From Over, and The Left and Right Love and Need War and can only wage it with the Fed’s help.

3.  DOW 10,000 In 2009 Is NOT the Same as DOW 10,000 In 1999 – It Buys You 23.8% Less Today

CNBC can cheer all they want about the DOW hitting 10,000 again by proclaiming it “DOW 10,000 (version) 2.0,” but is it really a better version, or even the same version as DOW 10,000 of 1999?

4.  Gold and Silver: Jim Rogers Does NOT Win Over Peter Schiff

Dr. Jeffrey Lewis from Commodities Online is mistaken, Jim Rogers does not win over Peter Schiff.

Related: Gold and the Carry Trade: Rogers vs. Roubini, Who’s Right? and Gold Is Not Falling

5. The Government Is Not in the Business of Keeping You Healthy

Is the Government in the Business of Keeping You Healthy?  No.  What makes anyone think that the government can develop a health plan that can do what Medicare doesn’t even do? As usual, government has it all backwards. Look no further than the government run Medicare program to see how much government understands the health care business.

Follow Up: The Government Is Not in the Business of Keeping You Healthy Revisited: No Mammograms Recommended for Women Aged 40-49

Related: Defend Your Health Care; Stop Obama’s Health Plan

Related posts:

1. America’s Infrastructure In 2009: Grade “F”
2. All Gold, Investment and Economic Articles Moved To New Website

The Media Will Let This Bill’s Passing Slide Unnoticed

This bill, H.R. 4314, To permit continued financing of Government operations passed with the same exact numbers as the Health Care vote, with all Republicans voting Nay.  Since the Media doesn’t want you talking about the national debt at Christmas time, they won’t even mention this bill’s passing.

The Health Care Bill Cost Is Dwarfed by the National Debt

It is estimated that the Health Care Bill will cost each family just under $8,000. You can add this to the over $38,000 that represents each individual’s share of the national debt.

While Republicans are starting to see the light when it comes to their votes in restraining government spending, Democrats are fully taking advantage of their majority which leads us to the question, are Democrats stupid or ignorant?

Green Shoots See Winter Approaching

The temporary fix ala the Federal Reserve, aka bailouts and green shoots are still working.  But the damage they are causing is on the horizon.  It’s only a matter of time before the green shoots wither and die.  The future outlook for America hasn’t changed. Congress will still do what they do best, no matter who is in office, spend your money as well as that of future generations.

I’m Not Always Negative

To spread some Christmas cheer to the Obama administration, I wrote to the White House 17 days ago to give them ideas on how they can help the unemployment picture for teens in America.

The teens of America are especially hit hard by unemployment.

Unemployment Rate by Race Age 16-19:

Black: 49.4%
Latino 34.7%
White 23%

I sent my email letting the White House know I have solutions directly to the attention of President Obama via his email address: president@whitehouse.gov.

So far, I haven’t received a reply.  If someone sees him over the Christmas Holiday, please tell him to read his emails.

Merry Christmas to all!

Related posts:

1. Congress Gives IMF Your Tax Dollars to Bailout Greece
2. Health Care Reform Didn’t Work for Romney and Won’t Work For Obama – Here’s What Will Work
3. There’s A New Currency That Will Solve All Your Debt Problems – The Barackazillion

Perhaps CNBC’s agenda today was to discredit Ron Paul’s appearance in the morning where he debated former Fed governor Mishkin and Senator Gregg on his Audit the Fed bill, H.R. 1207 with 317 bipartisan cosponsors and 79% of the People wanting the Fed audited.  The Senate version is S.604.

Since Ron Paul got the best of those two during that morning CNBC interview, perhaps CNBC got some flack by some powerful people and decided to bring on another opponent of the Federal Reserve being audited, the aforementioned Mort Zuckerman.

Zuckerman was telling the CNBC audience that “if the Fed raised rates it would be a disaster for the economy.”  Technically, it would be a disaster for your commercial real estate holdings there Mort, but Mort’s right, it would be a disaster for the economy.

The Fed is stuck between a rock and a hard place.

If the Fed raises interest rates too quickly to support the U.S. Dollar, it will bring the economy to a screeching halt.  Consumers, who have in the past made up 70% of GDP, wouldn’t be able to borrow.  Small businesses and big businesses alike would see their cost of doing business would go up.  But the Fed’s only option if the U.S. Dollar were to break down is to raise interest rates to satisfy their two biggest creditors, China and Japan.

Does Zuckerman Represent the People?

The reality is, Zuckerman and the Fed don’t want you to know is which banks are in trouble so behind the scenes the Fed can secure more time to bailout the troubled institutions.  It’s a good old boys network and the connections are obvious to most.  Just Google Goldman Sachs “bailout” or “bonuses” to get yourself up to date.

There have been over 130 banks that have failed this year and that’s even after the original TARP money that was supposed to go towards “toxic assets” went instead to shore up the banks cash balance sheets.

I remember going into troubled WAMU bank when Chase first said they were going to take them over and overheard a teller doing some soliciting of funds from clients and offering to pay them 6% on a CD.  6%?  In a climate that at most Treasuries were paying 3.5%?  This shows you how hard up these troubled banks really were for cash.

Earth To Zuckerman

Zuckerman though would have you believe Fed interest rate manipulation wasn’t the original cause of the crisis.  Perhaps he should read the book “Meltdown” by Thomas Woods.  While there were other reasons for the bank failures, like lending to any human with a pulse and repackaging those loans to suckers on Wall Street, it was the artificial lowering of interest rates by the Fed that originally spurred on the real estate speculation causing the boom and eventual bust cycle.

Zuckerman Wants the Fed to Get Special Treatment That the SEC Wont Even Give U.S. Corporations

Zuckerman calls the six months lag time in auditing the Fed “a very short time” that would “undermine the independence of the Fed.”

Well Mort, aren’t all corporations in America required to file Form 10-Q for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act of 1934?  Don’t shareholders of banks have the right to know what’s going on with their bank, especially if it is in trouble and secretly receiving funds from the Fed?   Then why shouldn’t the People of the United States also know what’s going on with the one entity that destroys the purchasing power of the U.S. Dollar?

Zuckerman Believes the Fed Is Our Savior.

Transparency is something that Zuckerman would have you believe is only for others, not for the elite.

Zuckerman wrote an article two days ago for the Financial Times called; “We must safeguard the Fed’s independence.”

He glorifies the Fed for getting us out of the financial mess when in fact it was the Fed that got us into this mess to begin with.  He even goes so far to say;

“The House proposal seeks to have the General Accounting Office audit all Fed operations, including emergency lending, dealings with foreign central banks, aid to major institutions and the Fed’s ability to drive down interest rates by intervening in bond markets.” (emphasis added)

This is exactly why the Fed needs to be audited.  If they were truly trying to prevent unemployment, by following their mandate of full employment, then they would let the free market do what it does best; weed out the bad companies by allowing them to fail and let the good companies prosper without government regulations and interference.  The free market will weed out those companies that don’t perform as expected.   What Zuckerman is afraid of is the Audit the Fed bill will weed out the bad institutions, including the Fed!

Zuckerman goes on to say;

“Markets would reckon that US inflation would lead to higher interest rates. There would be pressure on the dollar, as investors back away from buying Treasury debt. Given the deficit, we are facing a run on the dollar that would be disastrous.”

Thanks Mort, for explaining what is going to happen in our future because of the Fed!

Don’t buy U.S. News and World Report.
Don’t buy the New York Daily News
Audit the Fed and make sure H.R. 1207 is a stand alone bill and not attached to a bill that gives the Fed even more powers.
Call your Senators and request they pass S.604.

Related posts:

1. Limbaugh and Hannity Still Favor The Fed and War While Most In America Don’t
2. Left and Right Media Misinforming Public About Auditing the Fed
3. Why Don’t Limbaugh and Hannity Support Ron Paul’s Bill to Audit the Fed?

Why would these two pro-conservative, highly influential media pundits not say one thing about the Audit the Fed bill winning a vote in the Financial Services Committee to be included as part of another bill?  This is big news and has a real impact on our economy if it passes.

75% of Americans want this bill to pass and only 9% opposed it.  15% were not sure how to vote and I would speculate this is because they really don’t understand the Federal Reserve and what it does.  Most in America don’t.

I’ve been asking Limbaugh and Hannity since July as to why they don’t support the Audit the Fed bill and they continually refuse to bring up the subject to their listeners who follow their every word.

Why don’t they support the bill?

Because it would allow the monitoring of the one entity that allows the neoconservative arm of the Republican Party to fund their beloved wars and Congress to continually spend what they don’t have.  And not to leave out the neo-liberal arm of the Democrat Party as they love war too, there was also no mention of the Senate Finance Committee vote by Rachel Maddow, the Keith Olbermann Show (who had a guest host), or Joy Behar.

No Mention By the Media, So What Would an Audit of the Fed Actually Accomplish That Makes Them So Afraid?

It is the Audit of the Fed that is necessary to keep the Fed from handing out favors to connected individuals and keeping failed businesses afloat.  But it is the End of the Fed that is necessary to keep Americans from experiencing these boom and bust cycles and depreciation of our currency via inflation that really has them scared.

Auditing the Fed is the first step in taking back control from the folks who cause the problems to begin with.  Ending the Fed will guarantee that Congress doesn’t possess the tools that are turning us into serfs.

There is no way in hell the health care bill will pass if Congress had to actually use tax dollars to fund it.  There is no way in hell that our troops would be in 130 nations and we’d be fighting two wars and threatening more if Congress actually had to use tax dollars to fund them.

How is it that Limbaugh and Hannity don’t ever mention this?

How is it that most in the media don’t mention this? Why are some so upset that this bill is garnering bipartisan approval?

Watch this video and see what Senator Judd Gregg (NH) had to say about the Fed on CNBC.  He said that “one of the great strengths of our nation is an independent Fed.”  Nothing could be further from the truth folks. It is individuals like Senator Gregg that are fooling you into thinking the Fed is necessary for monetary policy.  Is it any wonder that Gregg also believes that the War on Terror and WMD are of greater concern than the deficit and voted yes on the Bush bank bailout bill.  The Fed is at the root of the problem, not the solution.

These are the people that we elected who are in collusion with the Fed as their adamant support of  the Fed allows them to continue to fleece the American public.

What would Congress be able to do without the Fed?

The only real answer to this would be, live within their means.  Wouldn’t the dollar automatically be stronger and maintain its purchasing power if this were to occur?

Does the Fed Existence Interfere With Your Freedom?

I believe that those of us who truly want personal liberty, limited government, free markets and a strong national defense will be continually pressed to follow the Limbaugh and Hannity mantra of war unless we curtail the entity that gives Congress the ability to fund wars.

It is through the exposure of Limbaugh and Hannity’s lack of support for a bill that can change the course of America forever that I hope to win over those who have been swayed away from what the Republican Platform used to stand for;  Limited Government, Fiscal Conservatism, Personal Liberty and a Strong National Defense and get them to return to their Republican roots of getting us out of wars and living within our means.

The goal here is to take back the Republican Party from those who hijacked it.

It is only through this kind of action that we can return America to what it used to be and build her back up with a strong foundation built upon a fiscally responsible Congress.  I will be going into more detail on this in my forthcoming book, “Fed Up!”

What Needs to be Done Now

The way to get the things on the right track is to keep exposing the economic weakness of the Left. But at the same time, mandating that the candidate for the Right will hold true to fiscal responsibility. Not George W. Bush fiscal responsibility, but fiscal responsibility that any educated individual can get behind.

No candidate from either party can hold to fiscal responsibility until the means to which they are allowed to spend more than they have loophole is closed. The “means” referring to the Federal Reserve.

This Audit the Fed bill would be the first step to tie the hands of all candidates, both left and right and again, is something that only 9% of Americans oppose.

Flashback January 2008

There was a candidate for President that did have all the answer of what our nation needed to do.  He was the only Republican candidate that wanted to “just bring our troops home.”  He was the only Republican candidate that understood economics and schooled John McCain on economic policy.

Yet this candidate was mocked by Sean Hannity.  He was never promoted on either Limbaugh’s or Hannity’s shows.

His name is Ron Paul.

I used to continually debate people on Michelle Malkin’s website warning them that the Republicans don’t stand a chance of winning with the same pro-war mantra that lost them the House and Senate in 2006.  This prediction came true as John McCain, the one who wanted to “bomb, bomb, bomb, bomb bomb Iran” was soundly defeated by Obama.

Now we are stuck with a nightmare of spending that if the People don’t start pressuring their Congressman soon, will lead to major problems for the dollar.

My first blog, January of 2008 was in support of Ron Paul and his “message.” The Ron Paul rEVOLution, Super Tuesday and “The Message!”

I was warning people back then as to what the Fed can do to cause harm to our nation.  The message then was about “eliminating the tool of destruction, the Federal Reserve.”  Just look what has happened since then!  Now the Fed wants even more power. Don’t let them have it!

Implore your Congressman to make sure this Audit the Fed Bill passes….or else make sure they are replaced by a Freedom Loving candidate who understands economic policy and monetary policy!  This candidate may not have the financial backing of the military industrial complex and those Wall Street and Union lobbyists, but they only need your vote.  Do your homework and find out who they are and what they stand for.  Ask questions!

For more information on asking your current Congressman questions and directing them to do what most in America want, Audit the Fed, contact them via the Campaign For Liberty website.

Hannity and Limbaugh need to support the Audit of the Fed bill to be taken seriously in their attempts at being “conservatives.”  Remember, they really didn’t say too much when Bush was doing all his spending and taking away our liberties.

Hold their feet to the fire and continually ask them why they don’t support it.  I believe I know the answer, but I’d like to finally hear for once their take on it.  It’s been over three months and I don’t expect to hear them talk about it anytime soon.

Are we supposed to believe they are in the best interest of Conservatives when they won’t advertise getting rid of the one main entity, the Federal Reserve, that is bringing down our nation?

I’ll give you the answer from Sean Hannity now….

Comment by Doug Digger Eberhardt on 8 August 2009:

I decided to join Sean Hannity’s discussion forum and ask the question why Hannity doesn’t support H.R. 1207.

Here’s the questions I asked:

Why doesn’t Hannity support the Audit the Fed bill?

I’d like to see him support it too, but I think there’s more to it than meets the eye. I wrote an article on the subject recently.

http://fedupbook.com/blog/federal-reserve/why-dont-limbaugh-and-hannity-support-bill-to-audit-the-fed/

Maybe he doesn’t want to be associated with anything to do with Ron Paul, the author of the bill?

Yet over 60% of the House supports the bill and 75% of the American people do according to a Rassmussen poll.

I’d just like to hear if anyone has heard him even talk about it…

The result? Click the following url to see:

http://docs.google.com/View?id=dd8ngkwz_5fcz9v372

For those that can’t click or can’t read it, the result was that I was “banned for life.”

I guess Hannity doesn’t like it when he’s challenged…

Audit the Fed then End the Fed!

Feel free to comment and discuss….

Related posts:

1. Why Don’t Limbaugh and Hannity Support Ron Paul’s Bill to Audit the Fed?
2. Left and Right Media Misinforming Public About Auditing the Fed
3. Why Don’t The Elite Want the Fed to be Audited?