Tag Archives: Federal Reserve

Ceilings

11 Oct

Courtesy  Marquil at EmpireWire.com

The Ben Bernank and the Quantitative Easing

22 Nov

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and the response:

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Audit The Fed

12 May

Audit The Fed” is a cause that is popular on the fringes of both parties.  It’s a libertarian wet dream as that group wants us to return to the gold standard and believes the federal reserve is at fault for our economic boom and bust cycles, also Jews and End Times and whatnot.  It’s a far left liberal wet dream because it will show how the federal reserve is a function of a corporatist state that disenfranchises Americans from government.

In between these two fringes, you find 99.4% (estimated) of Americans who don’t really know what the Federal Reserve does, nor do they particularly care…hey, Two and a Half Men is on!   You’ll also find 00.5% of Americans who understand what the Federal Reserve does (generally) but they don’t get their underwear all bunchy over it.

I’m usually found in the 00.5% camp because I’m not a big believer in wild conspiracy theories about the federal reserve functioning as some sort of secret cabal of Jewish bankers and the Illuminati, siphoning off our wealth for their benefit.  However, I do believe it would be pretty great if we knew where the money from the bailouts of 2008 and 2009 went.

Rep. Alan Grayson (D, FL, Awesometown) has been on this case for a couple of years, putting together some pretty quality YouTube videos in pursuit of information about where $1,000,000,000,000 of our bailout money has gone and what the Federal Reserve and the banks did with it.

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It’s shocking that we don’t have a full accounting of where that taxpayer money went and for what it was used.  We have a general idea, but we don’t have an itemized list with a full trail of profit/loss statements, timelines for repayment (if they exist), etc. ya know, an audit.  If we did, we might find out more information like this:

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That’s right, we (the US taxpayers) own the Red Roof Inn, the whole chain.  Hooray for us.

So, the bills/amendments sponsored by Reps. Paul and Grayson in the House (calling for a comprehensive audit of the Federal Reserve) were ultimately watered down in the Senate version to an audit of the Federal Reserve as it pertains only to emergency lending activities.  That watered down amendment, sponsored by Sen. Bernie Sanders (I, VT) passed by a vote of 96-0, an incredible show of bipartisanship in a Senate that can barely agree on what day it is.

The Senate today voted overwhelmingly to adopt an amendment, authored by Sen. Bernie Sanders (I-VT), forcing a comprehensive review of the Federal Reserve’s emergency lending activities. The amendment passed by a 96-0 vote.

Though the measure was always popular, it faced extraordinary opposition from the White House, Wall Street and the Fed itself. Late last week, in a move that defused the opposition, and may have saved Wall Street reform legislation, Sanders agreed to limit the scope of the audit to emergency lending only, exempting other Fed activities.

That preserved the broad intent of the plan, which was always aimed at bringing the Fed’s shadowy activities during the financial crisis into the daylight. Under the terms of the proposal, the Fed will also be required to make public which companies received upwards of $2 trillion in aide from the Fed, and under what terms.

Incremental transparency and reform wins the day.  We need to know where the bailout money went, this gets us there.