Federal Reserve Secrets and Lies
By Greg Hunter’s USAWatchdog.com
The Federal Reserve has been a clandestine organization since its inception. It is not really part of the federal government; it is merely a subcontractor for monetary policy. The Fed is basically a cartel of both U.S. and European banks. It has pulled the levers in the economy from behind a curtain of secrecy since 1913 and has always enjoyed a certain degree of respect and admiration. All that changed when the economy melted down in 2008. The respect and admiration of the Federal Reserve is being shredded right along with its veil of secrecy. The Fed allowed everyone to think the cost of controlling the 2008 financial crash was just a measly $3.3 trillion. This giant lie was exposed after Senator Bernie Sanders of Vermont put a provision in last year’s financial reform bill that forced the Fed to come clean on $9 trillion in additional emergency loans and bailout money. The Fed funneled cash to foreign banks and companies right along with American banks and companies. It basically rewarded reckless and illegal behavior of greedy Wall Street bankers that caused the mess we are in now.
Nothing is fixed and nothing has really changed. The economy is still a wreck, and the Fed still wants its secrets. CNBC reported last week that the Fed refuses to tell how much cash it sent to Iraq just after the invasion because it came from the “oil for food” program. The Fed claims it has to obey “rules.” The report said, “The Fed’s lack of disclosure is making it difficult for the inspector general to follow the paper trail of billions of dollars that went missing in the chaotic rush to finance the Iraq occupation, and to determine how much of that money was stolen.” (Click here for the complete CNBC story.) Taxpayers would be on the hook for the missing cash that the Defense Department says is $6.6 billion. This could represent the largest theft in history. The Fed didn’t obey any “rules” when it hid $9 trillion in bailout money. Doesn’t the Fed work for the U.S.? Apparently not.
Last week in Congressman Ron Paul’s Monetary Policy Subcommittee, Treasury Inspector General Eric Thorson assured Congress U.S. gold was safe. The gold is under the control of the Federal Reserve, and it has not been audited in decades. Paul wants an audit, and there are plenty of folks at the Fed who are against it. CNN reported last week on the hearing and said, “During the hearing, Paul suggested that the Federal Reserve of New York, which has 5% of the U.S. gold reserves, has the ability to secretly sell or swap gold with other countries without anyone knowing. “The Fed is pretty secret, you know,” said Paul, who leans Libertarian. “Congress doesn’t have much say on what’s going on over there. They do a lot of hiding.” (Click here for the complete CNN story.) (Click here to listen to some of Ron Paul’s hearing.)
Also last week, Fed Chief Ben Bernanke held a press conference and said, “We don’t have a precise read on why this slower pace of growth is persisting.” This is an astounding admission from the head of the Federal Reserve. Bernanke doesn’t know why the economy is failing? Economist John Williams from Shadowstats.com isn’t buying it. In his most recent report, Williams said, “It is hard to believe that Mr. Bernanke, the presidents of the regional Federal Reserve Banks and the extensive staff of fine economists throughout the Federal Reserve System do not understand why the economic and systemic-liquidity crises persist. If indeed the problems really are not understood, Mr. Bernanke should not be Fed Chairman. More likely, the problems are understood, but Bernanke’s admitting that would entail his admitting that circumstances are beyond control, and that the Fed lacks the ability to address the issues effectively. . . . There is the possibility, though, that the comments were deliberate, intended as a warning of things to come. . .”
The Federal Reserve wants its dealings with bailouts and our nation’s gold to be kept secret. I don’t know if Bernanke is just incompetent, or if he continually lies about what is happening in the economy to keep the public from panicking. Do we really need the Fed with all their secrets and lies?
Love all the work you do but I must disagree this was not the largest theft of our money. I put forth the theft that was announced by Donald Rumsfeld on 9-10-2001 of 2.3 Trillion is the largest single theft. While I have your attention have you ever heard of or researched CAFR (Complete Annual Financial Report). This guy did a great documentary on the subject I think you would enjoy and I would love to hear your take on the topic. http://www.youtube.com/watch?v=QkfMuvVuETQ
Keep all the great work
why don’t u look into deferred prosecution agreements called DPA’S. this is where business realizes its better to first commit the crime and then plea bargain with the justice department to let the crime be committed. the DPA activitiy nets the company 5 million and justice plea deals the payoff to justice at less than the 5 million made. these DPA’s are all over the place if checked into but i’m seeing guys like andrew cuomo and chris christie portrayed as heroic. haven’t these guys worked the justice dept? how many DPA’s are involved here? its probably like the gold, can’t go there, or auditing the fed, can’t go there. the press appears to be in the pockets of the bad guys. the press is suppose to be one of the checks and balances the constitution speaks of. u should report this greg!!!!
In a word, “No”, we don’t need the Fed with all their secrets and lies. Congress is authorized to establish a national currency, either in coins or in paper and to make that currency lawful money for all purposes, as regards the national government or private individuals.
The question is when will Congress step up and actually do something productive?
Another great article Greg. I agree with what you write and it makes me just sick to think that there is nothing being done to correct the Fed and the bankers running roughshod over us. Back in 2008 when Hank Paulson pushed congress for TARP money with threats of marshal law to bail out his bank buddies, its been blatant unabashed theft without consequence ever since. I feel helpless that there is nothing we can do but prepare as best we can. Most of my friends and family think I’m nuts, but I see a total collapse of our monetary system and the hard times it will produce. Get ready for the second American Revoulution.
Greg, the answer to your question at the end of your article is NO! As to John Williams quote commenting on the Chairman’s statements …”There is the possibility, though, that the comments were deliberate, intended as a warning of things to come”… is indeed the real meaning of the statement. Kicking the can down the road until another crisis can overshadow the current economic mess we are in or help pull it out is certainly a policy, and I believe such a policy is in effect. What crisis you may ask, you know me, I said it before, only WAR! Its coming! It makes perfect sense for Ben to continue along just getting along as things become more and more stagnant. War is the game changer. A major large regional war or bigger would call attention only to itself and overshadow all issues of the economy; rationing gas & food, price controls, identity papers, assigned employment, new currency, etc., and anyone critizing such a war could be looked upon as a traitor. Let me make this clear, not any old war will do, another Lybia just would not get the job done. That is the only trick left for our Government since I believe the Fed knows and our Government should as well that the problem is systemic and can’t be fixed by anymore spending, borrowing, or adding debt and or by severe cuts in social programs, etc. The can has been kicked down the road for 40 years and the old policy of continued devaluation of our money and borrowing for spending on social trinkits while making sure all the money finds its way to the elite is at its end. The invester class has gobbled up all the middle class it can swallow and there is nothing left of the carcass now except bones. War will be their answer and it will be a “real” one this time, not some small county in a way off place to test new arms, maybe even one who can shoot back. If one believes that the elite in power would not take this country to war in a heartbeat to save their own asses they might as well believe in the tooth fairy.
If Ron Paul or Bernie Sanders wants to really go after the Fed, then they must get the American people on their side. It is a proven fact that the best way to go after an organization is to personalize it. Go after the top dogs. Put some names out there.
This all begs the questions of why Congress is so afraid of the Fed. Why hasn’t anyone, asked Bernanke, while addressing Congress this simple question; Who are the owners of the Fed? What are the namThis all begs the questions of why Congress is so afraid of the Fed.es of the largest share holders?
With all the disparaging talk of secrecy, I am astounded this secret ownership has gone unchallenged.
I just want to kick old Benny Boy and this Thorson in the shins.
The nerve of these guys. Audit the gold and have it assayed! What? Can’t do it cause it will cost too much. Have Benny Boy print some more cash up to pay for it. Whats to hide?
Not much has been said after China found a few gold plated “Tungsten” bars in their inventory awhile back. How could one of those enter the system? Who was the last custodian of those fake bars? “One Thing Leads To Another”, by The Fix comes to mind.
I do not know which is worse. The arrogance of our leaders or the utter complacency of the people. All I know for sure is that I have had my fill of it.
Bernacke hasn’t been looking too well lately. Guess his Acadamia Bravado is a little off. He is wishing he was somewhere else.
Slingshot, I would say the complacency of the people is worst than the leaders as I expect our leaders to sell us out (as always) for their own best interest, but our fellow people have no excuse.
“I do not know which is worse. The arrogance of our leaders or the utter complacency of the people. All I know for sure is that I have had my fill of it.”
Amen to that!
The concept of central banking originated with the Rothschild family in Europe for the benefit of the large banks. Collectively, central banks have done more to destroy currencies and economies than any other force in history. For example, one of the Fed’s guiding principles is to control inflation by setting inflation targets and manipulating the money supply to hit those targets. This means the true purpose of the Fed is to cause inflation, a hidden evil that ultimately hurts the working classes.
Another “responsibility” was recently added to the Fed’s mission, that of controlling unemployment. We all know how effective they’ve been at that.
The Fed is essentially owned by the big banks and continues to serve their needs. Someday we will return to the Constitutional requirement for Congress to issue our money, money that is not created by debt. The Founding Fathers were suspicious of banks but we now have reason to be terrified of them.
The truth shall set the world free. Thanks for writing this brief, but to the point article on the (NOT) Federal Reserve Bank. The FED cares nothing about America, as it is a bunch of European bankers that controls, or should I say owns them. There is no way they do not know what they are doing. They have not so quietly been destroying Americas economy for almost a 100 years, as you pointed out. Bernanke is just the puppet of the Fed. If you dig deeper you find a list of families that own these “Central Banks”, and the head family is the House of Rothschild. Yes they have stolen money for thousands of years. The Morgans, Rockefeller, Goldman, etc. family’s are all in on it. They start the wars and profit off them as well. They always win, and the people always lose. They create the boom and bust cycles. They want to own the world, as David Rockefeller boldly and arrogantly stated. Oh yes, and said he is proud of it. The IMF, UN, World Bank, and other crooked organizations are also controlled by this criminal cartel. I suggest that WE THE PEOPLE help Ron Paul, Judge Andrew Napalitano, Peter Schiff, Murray Rothbard, Greg Hunter, etc. and the other modern day patriots that are exposing these crimanls start by educating our family, friends and associates to the history of the fed. Start by watching “The Creature From Jekyll Island” and “The Money Masters.” Subscribe to “The Mises Institute of Austrian Economics” newsletter. This newsletter will give you an education on why the FED’s policy of Keynesian monetary policy is fleecing America and the world. Just my opinions, but it has taken me along time to find these educational resources that tell the truth to us all. May the Republic be restored to our forefathers plan, and once again may the law of the land be The Constitution, Bill of Rights and the will of WE THE PEOPLE. Not the will of The FED, and a corrupt government controlled by the FED. Thank you again Greg.
Here is why the slow growth is persisting. http://johanraft.files.wordpress.com/2011/06/volcker-corrected.png
The wage share won’t recover without a general price collapse, which ill require massive debt defaults.
Does this really surprise anyone who reads what Greg hunter writes?
Greg gets a resounding congratulations for being smarter than all of these educated idiots! When business majors grow up to be economnists they are under the belief that the worlds economy revolves around business while reporters and others who view economics from outside the business bubble see economics quite differently. We see life as economics while these elistist economists believe that bussinesses run the economy while they forget that consumers drive a capitalist system.
This is why these particular economists are acting and doing what they are doing while the rest of us wonder what the hell are they thinking!
I am with Paul on a full audit of the FED and how about restricting the use of American debt for Americans and spent in America! …not just any bank who has access to the FED bank window!
“Doesn’t the Fed work for the U.S.?” – I really laughed out loud when I read that one. They are a banking cartel. They work for the banks; i.e., for themselves. Who do you want them to be working for? It’s like asking “Doesn’t General Electric work for the U.S.?”. 😀
The questions persist: If there is nothing to hide, why can’t we audit the fed? If there is nothing to hide, why can’t we audit and assay the gold?
The blatant, unprosecuted fraud and manipulation is simply stunning. It is so obvious that criminal acts have been committed that are the largest in all of world history, and the American People could care less if we hold these people to account.
Our “leaders” are psychopaths. Hey, here is an idea: Lets all go vote for democrats and republicans……again….since they have done such a great job for the sovereign citizenry! If we re-elect them for a few more decades, then they will figure out how to spend our money to fix all of the problems they created by spending our money in the first place, right?
Tom H, a valid point about the next, and then the next election of the two party system, one beast with two heads. But as you said, lets go vote again as the next election will solve all the problems. One wonders how in the world the people could buy that bullshit every 4 years as things get continuing worst and worst.
Good article, Greg. The Fed is living up to its unofficial charter – to support the largest banks through counterfeiting (inflation). Zero Hedge Fund reports that QE 2 was essentially a bailout for European banks, for example. The secrecy, including the double-talk, is needed to keep the public deceived into thinking it’s working for them.
The Fed is not needed at all. The IRS,CIA, and some other unelected and unaccountable parts of the government should be abolished asap. It seems obvious by their actions and history that they serve only a small percent of American and some foreigners as well. What is good for Wall Street in most cases is bad for most of us. The government and the media serves Wall Street, the corporation has more rights than humans do. This absurd and needs to stop soon, not only for the welfare of the United States but for the whole world.
Nice article Greg, keep it coming.
Madoff for Fed chairman
Keep it up Greg,
You are willing say what so many others are are afraid to, at the risk of loosing their power and positions.Cowards in the MSM are allowing the wholesale dismantling of the Constitution and Bill of Rights as we who care watch in horror.The Fed is a global Mafia money laundering operation funded by the labor of the US taxpayers and must be brought to justice or we are all doomed to be globalists serfs with zero freedom.
Go Greg, keep the heat on………………
Anybody who tries to create a national currency will be assassinated. Ron Pual has no chance in Hell. The last president to try to make our currency nationalized with executive order 11110 was shot 6 months later in Dallas. As soon as the vice president was sworn in, he killed the order quietly without any word from the press.
Sorry folks but gold won’t save you either. Gold is a useless commodity. It will crash in the event everything else crashes. It’s in a bubble created thru fear. Nobody is going to exchange gold coins. There is not enough inthe world to exchange with. If the shit hits, commodities like food and water will hold more value than your gold coin you bought on late night cable tv. These banks have all the governments of the world by the balls. Just be glad the US has a good seat in this game compared to many other countries.
Great article, but I must disagree about the historical value of precious metals. I only have one cow, I am not about to sell her for a few bits of inedible metal. Keep the cow, sell/barter the milk and meat of her offspring. Same goes for matches, flour, bullets, and guns, or any other manufactured commodity in times of extreme anarchy. Food, water, shelter, and protection are immediately more valuable than gold or gems.
Someone ask the DOJ to authenticate the numbers from the FED? Why not find a few old Gold Certificates, take them to the local Federal Reserve and ask for that value in Gold? When they refuse, sue them, hoping it goes to the Supremes?
Hi Greg, always spot on, good job!
Perhaps the process should start with changing the name of the FED to what it really is. I say let’s rename the FED to IBC, International Banking Cartel. Then it may make it easier for the general public, bless their little hearts, to see who the Fed really is and thus make it easier to get rid of them. However, I’m afraid the sheeple have been brainwashed for so long that this aint going to happen.
Great piece of journalism. Comprehensive yet concise.
Yes. I heard another ‘vetted’ economist on public radio yesterday saying that it’s a matter of public confidence being lost. The “Con” game again. The question put to him was, “Where are the jobs that were promised by the stimulus package proponents?”
The belief in miracles from “on high” is complete in this country. It used to be that 1000 people without jobs was a town waiting to happen. Now that the idea of a working group of people creating a town out of local resources is illegal, and educators and public alike believe all wealth comes from above, they are terrified when they actually listen to what these stupid people with nice hair have to say about government and economics. We don’t need Them, they need US, but most of us have lost the ability to live and cooperate without a remote control either in our hands or in our heads.
– M.O.P.E. (Credit to Jim Sinclair.) And it’s being employed as never before…
– At the right time (when unemployment again breaches the political line-in-the-sand of 10%, and the markets come begging for more juice) the Fed will be there to supply the needed dosage for another temporary high – at least enough to propel those up for re-election through the gates and safely into the arms of publicly-funded pension/medical benefits that you & I will never have.
– I find it interesting that we have come to the point of referring to Ron Paul as ‘Who leans Libertarian’, as if that is some sort of oddity… Ron Paul should be held up as a beacon of Normalcy in political world gone-insane! There was a time not so long ago, that the ideals of a Ron Paul weren’t held up as anything except ‘normal’ in the context of the traditional American construct. Today, in this fractured, Skrewed-up country in which we live, everything is divided down the lines of Right vs. Left, ‘Libtards’ vs. ‘Republipukes’, ad-nauseam. It is as if nothing else matters, nor nothing else exists in this universe save for Republicans and Democrats. And if you Do have an opinion or thought process that happens to stray from this R/L dynamic, you’re nothing more than a curious ‘oddity’…
Listen to a few of your favorite AM Talk-Cons and observe their position on Ron Paul – if they will even mention his name – many of them won’t. There is Good reason for that. Ron Paul and those who share his beliefs are a DIRECT THREAT to the Status-Quo. The same status quo who, while talking out one side of their sullied yaps, calls for a ‘return to Constitutional governance, put lie to their own schizophrenic world-view by insisting that we continue to spend $12B/mo. servicing various ‘wars’ around the globe… While the ‘other side’ cares for nothing save for ‘Education’, ‘Health Care’ and ‘Gay Marriage’.
When you wake up in the morning, do you find yourself anxious, pre-occupied or incessantly worried about: ‘They want to kill us because of our freedoms…’? Or, do you sweat and grind your teeth over ‘Education’, ‘Health Care’ and ‘Gay Marriage’…? You are likely more concerned with the fact that the country you grew up in 30 years ago was Much different than it is today in terms of your Liberty and Freedom, and that what’s left of your Liberty and Freedom is Rapidly slipping away as a direct result of the perverted political dynamic mentioned earlier…
I am disgusted with our country. I am on too all of them. We the people, are not stupid, get rid of them, the Feds! Ron Paul for prez! Obama, thanks for nothing but heartache! Loser!!! What can we do? I want to be an activist and help for my childs future. If things don’t change, which I don’t think they will, I’m considering moving to Australia. Better economy, better people! Who’d think, the best nation in the world would go way down. God is not happy with us. We should have never gone against Israel! Benny needs to pull the tail out from between his legs. Weizel!! I still want to be heard. How can I be heard Greg??? What can I do??
I agree we do not need the FED or the IRS(criminal organization) or Congress, at this point, they are just leaches anyway looking for their permanent residual income stream, once they have been elected. All America needs is a governing body to secure our rights and protect our borders. America’s ingenuity and initiative is all we need..to put us back on the road to greatness.
Wake up America, the time is now, to rise up and take our country back from those we elected (who are not representing us). Enough said
Mr. Bernankes’ doctorial thesis was on how he would have avoided the depression in the 1930’s using his theories. He is now experimenting with those theories today with the U.S. economy. It doesn’t seem to be working, so the only alternative for Mr. Bernanke is to either continue with his theories or find someone to blame for the failing. If he can’t fine someone or something to blame for the failure then it invalidates his PhD.
Isn’t it interesting how the “income tax” seems to appear with the appearance of paper money? The first income tax in the US appeared in conjunction with the issuance of greenbacks. The next iteration appeared when the Fed was created. “LAWFUL MONEY” look it up. It is NOT FRN’s. Title 12 section 411 is the key.
why is there an emblem/symbol of fascism behind the president (on the wall)when a speech from the house of reps, senate,(wherever they are)?
you’d think they could do better with a green wall behind him, do some marketing, animation, something besides that.
The Fed act of 1913.
“This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The worst legislative crime of the age is perpetrated by this bank bill.”
Senator Charles Lindbergh
I believe that banking institutions are more dangerous than standing armies… If the American ever allow private banks to control the issue of currency… the banks and corporations that will grow around them will deprive the people from their property until their children wake up homeless on the continent their fathers conquered.