Henry Ford Was Right – Congress Must Act!
Henry Ford warns, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
People are catching on and they don’t like it!
The Fed Illusion
The Fed’s website is worthy of a BS warning:
The Federal Reserve
- conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;
- promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;
- promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole; and
- promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.
What a cruel joke. G. Edward Griffin gets to the point:
| “The Federal Reserve is a cartel – it’s a banking cartel. And like all cartels, it only has one purpose – and that is to serve the benefit of the members of the cartel, period.” |
It’s ironic that Senator Elizabeth Warren, who lobbied against excellent Fed nominees Herman Cain and Elizabeth Shelton, now calls the Fed, “A culture of corruption.”
What is the Fed?
Asset Strategies (ASI) article, The Fed Is a Purely Political Institution, and It’s Definitely Not A Bank, tells us:
“The de facto reality of the Federal Reserve is that it is a government agency, run by government technocrats, that enjoys the benefits of being subject to very little oversight from Congress. It is no more ‘private’ than the Environmental Protection Agency, and it is no more a ‘bank’ than the US Department of the Treasury.”
They avoid Congressional oversight because they are the “Great Politico Enabler”, monetizing government debt:
“…. It all took an additional great leap away from market-based sanity after the financial crisis of 2008.
…. For example, when federal politicians…wanted to spend trillions of dollars to pay people to not work during the covid lockdowns, the Federal Reserve was there yet again to make it possible for the federal government to issue trillions of dollars in new debt without pushing interest rates up. The Fed did this by adding more than $3 trillion in government bonds to its portfolio.
…. Through it all, the Fed has just been there to assist the US regime in implementing a variety of policies.”
If the Fed were a real bank, they would be bankrupt, adding:
“The Fed funds itself while in bankruptcy by printing money and inflating away the value of the dollars held by ordinary people. The Fed is just another tax-funded government agency, except that the tax that funds the Fed is the ‘inflation’ tax, in which the Fed steals pieces of wealth from savers and workers as it devalues the dollar for the Fed’s own benefit.
…. The Fed: it’s not private, it’s not financially sound, it’s not a bank. It’s just another government technocracy that’s ripping us off.”
Privatize profits – socialize losses
The insolvent Silicon Valley Bank (SVB) wasn’t on the FDIC problem bank list because of a Fed-approved, misleading accounting gimmick.
Assets are classified as Available For Sale (AFS) or Hold To Maturity (HTM).
Wall Street On Parade (WSOP) explains:
“…. Silicon Valley Bank (classified) 43 percent of its assets to the Held-to-Maturity (HTM) category. Under a highly controversial accounting rule, HTM debt instruments are not marked to market or shown on the balance sheet at fair value, but are instead listed at amortized cost – effectively what was paid for the debt instrument at the time of its purchase.
The HTM accounting treatment is allowing banks to create an illusion on their balance sheet as to what their assets are worth…leaving the average shareholder clueless as to what the bank’s assets are actually valued at by the market.
…. Two of the largest federally-insured banks in the U.S. – and potentially others…are holding hundreds of billions of dollars of debt securities in the HTM category.
…. JPMorgan Chase is holding $425.3 billion in HTM securities, which actually have a fair market value of just $388.6 billion or an unrealized loss of $36.7 billion.
Citigroup (reports) $268.9 billion in HTM securities, (with) an unrealized loss of $25.3 billion.”
| Why are banks, who received trillions in taxpayer bailouts, allowed to hide losses from the public? |
Who does Congress look after?
WSOP concludes:
“After the financial crisis of 2008 to 2010 and the exposure of accounting maneuvers that played a role in enabling it, the Financial Accounting Standards Board (FASB) attempted to require fair value accounting for most financial instruments. The proposal had wide support but was shot down as a result of heavy pressure from the banking industry.”
The “savior” casino-banks get bigger; buying out the troubled banks for pennies on the dollar.
Paul Craig Roberts, tells us:
“What is really going on?
US Treasury Secretary Janet Yellen…told a meeting of chief executives of US banks that more bank mergers are likely necessary. Simultaneously Yellen reaffirmed to the bank executives that the banking system was strong and sound.
…. If the banking system is strong and sound, why are more bank mergers necessary?
I have become convinced …. The agenda is to further monopolize the financial system by forcing the remainder of the regional banks into the hands of the five ‘too-big-to-fail’ national banks.
The Federal Reserve and the US Treasury’s solution to failed banks and financial instability is to subsidize the purchase of the failed banks by the ‘banks-too-big-to fail.’
…. My conclusion is that the Federal Reserve’s…intent is to further monopolize the financial system. A concentrated banking system is easier to control and makes it easier to impose digital currency that removes financial independence from the American people.”
|
How do investors protect the value of their nest egg? How do retirees pay their skyrocketing living costs? Luckily there’s a proven way for you to stay ahead of inflation, just like 20,000+ investors are doing right now… Here’s how you can be one of them. Click HERE for more information. |
Fed Rate Policy
The Fed, spouting all their economic hoopla is a sad joke.
In 2016, Fed head Janet Yellen, despite public criticism, held off on rate increases until after the election; vehemently denying her decisions were political. CNN Money reported:
“Federal Reserve Chair Janet Yellen gave the U.S. economy a nearly clean bill of health, two days before Donald Trump arrives at the White House.
Now, it’s fair to say, the economy is near maximum employment and inflation is moving toward our goal.”
Stop the nonsense! The election cycle, not the economic cycle, is a big factor in fed rate hike decisions.
Fed corruption/scandals aplenty!
WSOP reports:
“There is no better insight into the culture of corruption at the Fed than…one of its own former bank examiners, Carmen Segarra. ….(she) describes the culture inside the largest of the Fed’s regional banks — the New York Fed – as follows:
‘…. Nothing I had seen during my decade of legal work had prepared me for what I witnessed in just a few short months at the New York Fed.
In those months I discovered a disorienting world full of hidden clues, where people said one thing but meant another.
| Beneath the public face of the Fed laid a web of incompetence, corruption, rampant mismanagement, secrets, and lies. |
In the ‘fake work’ culture of the Fed, where supervision was a job title, not a job, the most important thing was to control the process to serve the ultimate master. The New York Fed was not simply failing to stop the banks; it was actually enabling their bad behavior.'”
WSOP looks at “Serial Ethical Lapses”:
“The man in charge of investigating misconduct by Fed officials…is the Fed’s Inspector General, Mark Bialek.
…. Unlike the Inspector General of the U.S. Department of Justice, as well as more than 30 other Federal agencies, the Inspector General of the Federal Reserve is not nominated by the President of the United States and confirmed by the U.S. Senate. Instead, the Inspector General of the Federal Reserve is appointed by the ‘head’ of the Federal Reserve Board of Governors; he reports to the Fed Board of Governors….”
At a recent hearing, Senator Rick Scott said,
“There’s 23,000 people I think that work at the Federal Reserve. There’s not a report you’ve done since 2011 that you know of any person that’s been fired; there’s nobody on the Board that’s ever done anything wrong; we don’t have any…good information – on what happened on these stock trades; and you think that we should be happy that we don’t have an independent, presidentially-appointed Inspector General. This doesn’t make any sense.”
Senator Warren chimes in:
“It is not even competent oversight. It looks like, to anyone in the public, that you gave your boss a free pass, and that’s just not gonna cut it here. …. The Fed continues to stonewall Congress, stonewall the public, on the underlying information…. This is not acceptable. This is why we are pushing for an independent IG.”
Congress and the Fed serve “the ultimate master” – themselves; at the expense of the citizens.
Congress must:
- Restore Glass-Steagall; immediately, separate banks from trading casinos.
- Remove the Fed’s role of bank supervision.
- No more bank bailouts – period!
- Demand total transparency, or hold people in contempt and jail them.
- Criminally prosecute the bank executives for felony convictions.
Henry Ford is right, people are catching on, it’s just a matter of time! Congress better act quickly….
|
A little help means a lot! Eight years ago, I vowed to keep our newsletter FREE! I plan to keep my promise. It’s an expensive, time-consuming hobby, but also a labor of love. Recently a reader asked why I didn’t charge for our weekly letter. I explained that I want it available for everyone. Some readers may be on limited budgets and may benefit the most from our advice. He pressed on with his questions. How much does your letter cost? How many readers do you have? He concluded, “If each reader paid $10/year, you would be fine. I responded, “Yes, $10 per reader would work, BUT I am committed to keeping it FREE even if it costs me money.” Several readers suggested we add a donations button to help us offset the cost of our publication. It helps when people pitch in and we certainly appreciate it. If readers want to donate, it sure helps out, however, it’s strictly voluntary – no pressure – no hassle! Click the DONATE button below if you’d like to help. You do not have to sign up for PayPal to use your credit card. And thank you all! |
On The Lighter Side
We’re beginning our driving trip with grandson Brock (13), across America on I-40 to Indiana – with a few stops planned along the way – hoping to create some unforgettable memories. If you see an eastbound Honda with Arizona plates, be sure to give us a wave…
It’s been fun having him with us here for a month, and much different from my childhood summers with grandparents. When the temperature is well into triple digits, stifling hot, it’s unrealistic to suggest he go outside for a while – or take him to neat, outdoor places that require a lot of outdoor walking. There have been some nice day trips, but several others were skipped. We have not once heard. “I’m bored.”
Grandma Jo found a Hallmark Series, “When Calls The Heart”, which has been running since 2014. We’ve enjoyed several evenings together, watching each adventure in order, but still have a few more years left to catch up.
The story is cast in Hope Valley, BC and is a soap opera deluxe. It reminds me of the old “Dallas” series, complete with love stories, cliff-hanging drama, arrogant villains, you name it. As each chapter ends, you are left hanging (Americans spent an entire summer wondering who shot JR?), eagerly awaiting the next episode to see what happens.
Brock is likely to spend several more evenings with us in Indiana as we continue through the adventures.
Quote of the Week…
“But once you realize you’re not going to be around forever, I think that’s what makes life so magical. One day you’ll eat your last meal, smell your last flower, hug your friend for the very last time.
You might not know it’s the last time, so that’s why you should do everything you love with passion, you know? Treasure the few years you’ve got because…that’s all there is.”
— Ricky Gervais as Tony in the Netflix Series After Life…
And Finally…
Friend Alex N. shares some things to ponder:
- If a bottle of poison reaches its expiration date, is it more poisonous or is it no longer poisonous?
- Which letter is silent in the word “Scent,” the S or the C?
- Do twins ever realize that one of them is unplanned?
- The word “swims” upside-down and backward is still “swims”.
- Over 100 years ago, everyone owned a horse and only the rich had cars.Today everyone has cars and only the rich own horses.
- As I watch this generation try to rewrite our history, I’m sure of one thing: it will be misspelled and have no punctuation.
- As I’ve gotten older, people think I’ve become lazy. The truth is I’m just being more energy-efficient.
- I haven’t gotten anything done today. I’ve been in the produce department trying to open this stupid plastic bag.
- Hard to believe I once had a phone attached to a wall, and when it rang, I picked it up without knowing who was calling.
And my favorite…
- I’m not saying I’m old and worn out, but I make sure I’m nowhere near the curb on trash day.
Until next time…
Dennis Miller
“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken
Affiliate Link Disclosure – This post contains affiliate links. If you make a purchase after clicking these links, we will earn a commission that goes to help keep Miller on the Money running. Thank you for your support!