Will the USA Declare Independence from the Private Federal Reserve Bank?

The German Finance Minister, Wolfgang Schauble, as many of you know, has said that the Federal Reserve does not know what it is doing. It has been translated that he said Bernanke is clueless, but really, he said that they know they don't know what to do. That means they have a clue that they don't know. What a relief!

But seriously, the implications of what the minister said is disturbing. He is saying that there already is enough liquidity in the system. Of course we know what he really is saying, that the issue is not about liquidity, but rather is about solvency.

The TBTF banks, with their interactive, and radioactive counterparty risk, are insolvent. It is most likely that off the bat, Bank of America and Citibank would be insolvent, with JP Morgan and Wells Fargo potentially insolvent if the other two fail. So then, all these trillions of dollars of debt and bailouts that include giving money to the banks in exchange for toxic assets, is a failure.

We are Japan. We are carrying banks that cannot lend, and liquidity is simply sopped up by the banks in order to hide losses. The disturbing thing about all this is that this minister would not likely say this if it weren't true. That is what is disturbing. Bernanke owes us an explanation because things are not getting better on main street.

 But we know that the central banks do not have allegiance to main street, only to their big banks. If you understand that you will go a long way in understanding why they let bubbles go unpopped!
 

Ben Bernanke is No Hero

What Americans need to realize was that Ben Bernanke prevented an economic meltdown caused by the Fed itself! The Fed private bank allowed off balance shadow banking approved by Basel 2 to come to the shores of the US and Greenspan and Bernanke looked the other way while the ponzi loan machine was undermining the sound value of US real estate! For a more complete understanding of the Fed's involvement in the housing bubble one only has to read my hub about Ponzi housing.
So when we have these Fed bankers coming on, saying how great Bernanke is, just remember that he helped to almost bring the system down. In the real world, if a Fireman burns down a forest so he can go in and put the fire out he is a criminal.

While there may be a case for bailouts by the Fed and by our government of big banks, there is no defense of the Fed letting CDO's be sold all over the world. That messy fraud was permitted by Greenspan and Geithner. I would like to see the Fed nationalized, with strict penalties for failure to regulate. I don't know that ending the Fed would be such a great idea because that would allow for rogue banks even more so than now. I would rather see the Fed taken over, with the international cabal on the outside looking in. Failure to prosecute bankers who needed bailouts was a big mistake. There has to be a price to bailouts because they weaken the sovereignty of the nations.

The Federal Reserve is not watching out enough for asset inflation in an age of globalization. Asset inflation is damaging to the soul of America, because Main Street cannot recover when prices are soaring for basic commodities food and oil. Speculation is allowing this onslaught by the Fed. Wages stagnate as America strives to compete in a globalized trading environment.

Even Nouriel Roubini and Bill Gross of Pimco, and others have argued that the Fed has not taken care to protect recoveries by stopping asset inflation. Congress could ban a lot of excess speculation in the futures markets simply by not permitting the investment bankers from taking large positions in the futures markets. 

Asset inflation is hitting real estate as well. It has been reported by Dr Housing Bubble that prices for homes in Culver City, California have doubled in price. Some would say that this is just getting back to trend. Yet, it is being done by investment bankers gone wild. So, more money and wealth continues to travel upwards to the uber rich, while the average folks cannot catch a break in SoCal with needed rent decreases. 


I understand the Fed is afraid to stop the pumping in deflationary times. But at some point the medicine of stimulus of the banks, and not main street, actually starts to really destroy the economic stability of MainStreet USA. We need more money to come to MainStreet, the true victim of this deflationary situation caused by the Fed and toxic loans in the first place!

So then, we have massive bubbles in all markets in various stages of maturity, with decreasing money finding its way to MainStreet. Asset inflation benefits only the very rich while destroying demand for MainStreet USA. 

I would much prefer a nationalized Federal Reserve that is beholden to the people  and not to the TBTF banks as is the case now.

Here is the court case proving the Fed is a private organization, with allegiance to the bankers first and to the nation second:

Lewis v. United States, 680 F.2d 1239 (1982)

 

 Hashtag #bullcrapben

 







 



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