The Federal Reserve Will Fight to the Death
By Greg Hunter’s USAWatchdog.com
The Fed is currently fighting tooth and nail in a federal appeals court to keep its bailout of big banks secret. In August of last year, the Fed lost a lawsuit in federal court that would force the 97 year old Central Bank to say who it bailed out during the financial crisis in 2008. The Fed gave a half trillion dollar bailout to foreign banks alone during the financial meltdown.
What foreign banks and why? The Fed also bailed out many domestic banks. Which ones and how much did the Fed give them? Those are are just a few of the questions the Fed will be forced to answer if it loses its latest appeal. A loss would, at the very least, cause a major public outcry if those secrets were revealed. Also, a loss might even end the Fed, and that is why it’s fighting so hard to keep its bailout actions secret.
This is a huge story! Why this is not a lead story on every mainstream media outlet is beyond me. I have been writing about the media’s near total lack of coverage of the Fed’s fight to keep bailout secrets from the public. Two of the stories I have posted about the Fed bailout secrets are “Tale of Two Stories” and “The Biggest Story Not Covered in the News.” The mainstream media is either clueless or complicit, I don’t know which. One thing is for sure, this is a very big story with even bigger implications for every dollar you spend and save. Bravo Bloomberg for having the guts to do real journalism! Bloomberg ‘s latest “Fed Bailout Secrets” story follows:
Federal Reserve Seeks to Protect U.S. Bailout Secrets
January 11, 2010
By David Glovin and Thom Weidlich
“Jan. 11 (Bloomberg) — The Federal Reserve asked a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history. “This case is about the identity of the borrower,” said Matthew Collette, a lawyer for the government, in oral arguments today. “This is the equivalent of saying ‘I want all the loan applications that were submitted.” Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued. The lower court agreed with Bloomberg…” (For more on the Bloomberg story click here.)
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
In addition to the government wanting to keep the bailout information secret, President Obama has proposed an additional 120 billion dollar fee to be imposed on all banks to pay for that same bailout. This will be paid for through higher fees the “average Joe and Jane” pay the banks for their checking accounts, lower interest rates paid on savings and investments and reduced credit provided to small businesses.
Once again the government has demonstrated it ability to separate the governments money from the citizens money. The 120B is recouping goverment money while getting it from the tax payors through the banks higher fees and lower services. So we have a two things happening in the financial markets that is counter productive to “government by the people”. If we are going to pay for this one way or the other (taxes or banking fees), then who gets our money should be made public.
Ron,
Good information! Thank you.
Greg
Greg great stuff, quick unrelated question though. What are your thoughts on Credit Unions as a possible alternative from big banks and the risky community banks. I understand they (Credit Unions) differ from one community to another. Just wondering if you could address this question. In any case – keep up the good work. Also for inquiring minds:
Housing Bubbles, Global Household Leverage, Why Fed’s Reflation Efforts Will.. http://twurl.nl/bbj2hn
Joe,
Credit unions are by and large much safer than banks. You can check a CU at Bankrate.com. Here is the link: http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx Thank you for your comment and for reading USAWatchdog!!
Greg
Not sure if this on topic but it’s in the same ballpark of bailouts and our monetary policy.
I found another article on Newsweek (via msnbc) that is claiming essentially that inflation is not a real concern.
http://www.newsweek.com/id/230379
This completely biased article screams propaganda. What happened to objectivity?
Stephen
Stephen,
Thank you for the link. I agree with you all the way. “There will be blood” and there will be very big inflation. Please protect you and your family. Thank you for your comment!
Greg
This article from msnbc is laughable.
http://www.msnbc.msn.com/id/34816272/ns/business-washington_post/
The Fed’s “windfall” profits of $45 billion were only after the government gave them hundreds of billions to prop up our financial institutions.
Based on the timing of articles from msnbc, I would say our “news” media is complicit.
We are capitalist when things are good and socialist when they are not. Either way, the taxpayer is left to foot the bill.
Stephen
Stephen,
Thank you for this. It outrageous to hear the Fed made 45 billion bucks! How? What exactly did they sell? Dose the Fed have a factory prodicing a real product besides money? Yeah I thought the timing was suspect. Thank you again!
Greg
The Fed is private so they are correct in that they do not need to show anyone their accounts not even congress, they can make as much profit as they like and the banks they sent reserves to are mearly part of the same cartel who they are the reserve bank of, because their system is international, so its no good to get all irate about foreign this and foreign that, because the truth is America and most all countries have put the control of money into private hands so as long as these countries continue to chose to do that they should not then turn around making demands upon said private institutes because they are private and the government shouldnt be whining like a little child “asking” these private corporations “if it could just please do this and that” it should be absolutely deliberate in its action in it should demand that they do as told if they do not then their role is removed.
Obviously these private interest hold much control in governments yet it should be obvious to governments that they can pay for themselves by monetising their own bonds thus incurring no debt obligation ever.
People are the only source of wealth in the world, governments have direct access to this energy via tax if the people are in agreement and so their funding should come effortlessly without the need to borrow and pay interest for the privilege of using private property.
Dan,
I agree with part of what you say, but I do not agree with this statment, “The Fed is private so they are correct in that they do not need to show anyone their accounts not even Congress…” The Fed is a subcontractor to the U.S. government. Congress gave the Fed its power and can also take it away. The Fed does have to answer to Congress, that is what H.R. 1207 is all about. Thank you for taking the time to weight in on USAWatchdog.
Greg
Hey Greg,
Thanks for your fine work. Keep it up and I’ll become a regular. Indulge me, if you will, and consider a notion:
During the debate within the Obama Administration some advocated for a process similar to the Resolution Trust Corp. that liquidated S&L’s back in the 1980’s. The idea of setting up a so-called “bad bank” failed to pass.
Is that because we already have the “bad bank” in place? This Federal Reserve Bank is the fourth such central bank in our short history. It’s not like we haven’t shut down central banks that no longer served our purpose in the past.
Estimates that the Fed has spent up to $16 trillion in bailouts and purchases of bad debt is met with denials and claims of privacy as illustrated on your blog.
At some point the Fed will become insolvent. Which is they insist on privacy, lol.
The reason the Lame Stream Media doesn’t report on this, is because the owners and controllers of the “bank” are also owners and controllers of the major media outlets.
Look at the last list of owners of the “bank” that I think was published over 30 years ago, and you have major corporations involved, and you put together enough pieces to see how the puzzle goes together.
ConradB
Thank you for the comment and reading USAWatchdog.
Greg