“Mischief” and Fed Secrecy
By Greg Hunter’s USAWatchdog.com
A very important hurdle was cleared last week for the folks who want to end the Federal Reserve’s privilege of secrecy. By a bipartisan vote of 46-26, the House Finance Committee approved an amendment to audit the Fed. This did not get passed without a fight from the Fed and its backers. Democrat Mel Watt offered up a watered down amendment which was not voted on. Even Chairman Barney Frank, who had previously been a supporter, made a surprise turnaround and voted “no” on the amendment.
Here is Congressman Grayson speaking to his fellow House members on why only the Paul-Grayson Amendment should be passed. Listen closely as Grayson talks about the half trillion dollars that was given to foreign banks and more than 200 billion of toxic assets removed from Citibank. These bailouts and many more were done by the Fed which is fighting to keep all its actions secret.
This is just one big battle in a long war. A majority of Senators will have to get behind a bill that will force an audit of the Fed. Finally, the President will have to sign the legislation. Will Obama veto it? Keep in mind, Goldman Sachs is a big campaign contributor and a big beneficiary of Fed largeness.
There are many high profile opponents to a Fed audit. Warren Buffet is against a Fed audit because he thinks it will hurt its independence. Buffet recently said, “…there is nothing more important in the economic future of the country than to have an independent Fed.” Buffet went on to say, “…curbing the independence of the Fed could lead to a lot of mischief.” (Complete Video Below)
Buffet has profited from an “independent Fed,” and that may be the reason he doesn’t want the wall of secrecy around it torn down by legislation. Take for example Goldman Sachs, this is a company Buffet has heavily invested in. Goldman got a 13 billion dollar payout from the Fed through the AIG bailout. The Fed will not explain why it gave such good treatment to the former investment bank.
In all, Buffet has at least $26 billion invested in 9 banks that could be getting secret bailouts from the Fed. Two of his investments, Bank of America and Wells Fargo, have already gotten $70 billion in TARP money alone. Another Buffett bank bailout is something a Fed audit would surely reveal. If billionaire investor Warren Buffet got bailed out by the Fed, would that be “mischief” or just good business?
All the while this loud battle over the Federal Reserves secret money policies is going on, the mainstream media is silent. Please show me where this story is getting mentioned on nightly news broadcasts or is being printed on the front page of major publications. I can’t see where the mainstream media is even mentioning this most important issue. Instead, it is filling the airwaves and newspapers with superficial garbage like Oprah Winfrey quitting her show two years from now! Oprah might be interested in the Fed story because she has a couple billion Federal Reserve Notes that are being devalued everyday by the secret actions of the central bank.
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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.
Excellent post, Greg. I hope a lot of people read this because this guy Buffet isn’t the “nice, old Uncle Warren” as the MSM has portrayed him. He’s just as greedy and self-serving as the rest of the pigs on Wall Street.
Tom,
Buffet is a shark and he smells blood and cash! Make no mistake, Warren is trading the financial meltdown, Thank you for your comment.
Greg
Of course they are fighting it and they will fight all the way to the final vote. If the plunder were exposed, there would be unbelieveable outrage on Main Street, and this is exactly what they fear most. Good luck – I think in the final hours, the Senate will vote as they are told by those who have always paid them, and who will continue to pay them; and that isn’t the little guy on Main Street.
Ian,
I hope you are wrong but I fear you are spot on!
Thank you for your imput!!
Greg
And PS: Buffet is the same guy that was saying in public that derivatives were financial weapons of mass destruction while at the same time making billions off of them. He is Shorting the dollar in a BIG way.
I couldn’t agree more on Buffet or the rest of this fine article. Everyone should know that MSN is owned by Buffet’s friend, Bill Gates. You do not become the richest man in the world by being anything other than a ruthless, unrelenting opportunist. I do not think the O’man will let the Fed Audit bill go thru. It will show the world in real terms what the US government financial picture is. NO ONE will be prepared for the outcome, even the Harvard and Yale trained financial managers around the world. If the true gets out, you will see a global meltdown that will most likely result in war. And while you may pooh pooh this prediction, poor economic conditions have always preceded the drumbeat of war.
George,
Good point! Thank you for that!
Greg
Its clear Americans have a right to know what the Fed is doing with Billions of their dollars……..
I am disgusted that these Fed carpet baggers have no loyalty to the Country they are serving and actually believe that the tax dollars they are getting actually belong them and their cronies to do with as THEY please…
The Washington arrogance must be reigned in immediately or lose the Country to elitists.
Majot I am also disgusted and fearful of what will happen to honest Americans in the next 2 years. Thankyou for your comment.
Greg
Greg,
Does anybody else think that the timing of the Dubai debacle is a little suspicious??
The FDIC always releases the failed banks on Friday after close to mitigate damages I believe.
Why release a Black Swan event the night before a U.S. market close with subsequent shortened Friday?
Europe panics and runs into the dollar– The U.S. dollar shorts are forced to cover on Friday morning. The price of all commodities tank, including gold, a TWO-FER.
I might be a tad conspiratorial but it is not like with this group that you don’t need to be.
Thank you
Smitty,
Very good point because I beleive there are no coincidences. Thank you for your insights!
Greg
With depression at the doorstep, it is time to fire the Federal Reserve. Western economies are on the brink of total collapse; only prompt, decisive and radical measures can prevent complete world economic ruin. Ironically, Russia and China are in a much better position to weather this up-coming storm than western countries.
[…]
The band aids will not help the economic crisis. There is a systemic problem. The Federal Reserve and all the central banks in the world that are designed on its model are defrauding the people of the world.
There is no rational reason why the U.S. Congress cannot print its own currency. The Congress was intimidated, bribed and blackmailed into creating and maintaining the Federal Reserve Bank. The Federal Reserve was awarded a contract to manage the currency in America. The cost of that contract to the U.S. has been $10 trillion in national debt.
To try to cover for the Federal Reserve’s greedy fraud, many countries are being forced to pay into the Federal Reserve coffers to keep the world economy afloat. One of the ways they are being forced to pay is through devaluation of their currencies with respect to the U.S. dollar, which is a way of building up America at the expense of others in the world.
All of the band-aid measures will fail. The problem is the Federal Reserve, which concept is founded upon debt-based currency and fraud. It must be closed down or it will continue to suck the resources of the U.S. with its currency management contract. The American government could do the Federal Reserve’s job for virtually nothing, and save the U.S. taxpayers between $200 and $900 billion each year in interest off a debt that will never be paid off.
Since the U.S. cannot pay off the debt, the rest of the world is being called in to assist in the maintenance of the Federal Reserve. Further, many other nations have similar central banks, so they are also paying their respective national debts on their currencies in addition to being asked to fund the U.S. currency debt.
It is time to let the U.S. currency debt fail, close down the Federal Reserve entirely, and begin on the road to correcting the fraud that lies deep in world economic affairs. It is time to shut down every central bank that mirrors the Federal Reserve. It is time that the people stop feeding the ruling elite through their central banks.
Thomas,
You are so correct when you say “There is no rational reason why the U.S. Congress cannot print its own currency.” It would also be much cheaper because we pay the Fed interest to print “Federal Reserve Notes” when there is nothing “Federal” about them. Bravo, great stuff!!!
Greg
The Fed is “federal” like Federal Express.
Except, unlike Federal Express, it’s a cartel and therefore illegal.
Audit hell! Abolish. In any case it’s too late.
Our hash is all settled ladies and gentlemen, the goose is cooked.
Todd,
You make some good points but it is not too late to protect yourself. Thank you for booth of your comments!