Tag Archives: banking

Audit-the-Fed

Yes, It's an UPSIDE DOWN World. FED Chair Bernanke: "Auditing…would effectively be a take over of monetary policy by the Congress." ???

Audit the FedFor those of us who have begun to feel like we’ve slipped into a parallel dimension, statements like those on June 29 from the Federal Reserve’s Chairman don’t help us get back to “reality”.

Actually, reality is people like Fed Chair Bernanke are no longer even putting up a pretense about who is in charge of the United States’ monetary policy.

There is a pesky “little” problem with Bernanke’s attitude and statements.

That little problem?

The Constitution of the United States of America.

“Article I, Section I:

All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.”

Section 8 references those legislative powers concerning “monetary policy”:

“The Congress shall have Power To:

lay and collect Taxes, Duties, Imposts and Excises,

to pay the Debts…

To coin Money, regulate the value thereof, and of Foreign Coin…

No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all Public Money shall be published from time to time”

Section 10 references the forms of money to be used:

“No State shall…

make any Thing but gold and silver Coin a Tender in payment of debts;

Unless my reading comprehension skills are seriously flawed, it appears that under what is supposed to be the “supreme law of the land” in this country, the branch of government which is supposed to be in charge of monetary / fiscal policy IS Congress.

Unfortunately, what can we expect? After nearly a century of operations without any oversight, why wouldn’t the powers that be at the Fed believe they are in charge of US monetary and fiscal policy?

Bernanke’s ridiculously arrogant statement is simply the result of not following the Constitution. There were sound reasons why the Congress was intended to have exactly those powers.

Mr. Bernanke is not only arrogant, but he is also contradicting himself.

In 2007, Mr. Bernanke attempted to defend Fed actions by citing “the mandate given by Congress.”

If I had the opportunity, I would ask the Fed’s Chairman the following questions: “So which is it, Mr. Bernanke? Is the Federal Reserve independent or is it’s authority (“mandate”) granted by Congress? Or is it some twisted combination of the two, leaving us in a no-man’s land as far as the Constitution is concerned?”

fst-bond-seizure-story-296x300

$134.5 Billion Treasury Bonds Seizure: US Gov't Says Forgery, But Dollar Value Called Into Question

Updated June 24, 2009 (Updates are in blue font.)

On June 16, I wrote about a story covered on Glenn Beck’s Fox News show regarding the seizure of $134.5 billion in US Treasury bonds that occured last week on the Italian border.

According to the most recent reports, the seizure actually occurred on the Italian – Swiss border.

At that time, some of the details were rather sketchy.

Just Click the Picture to Read the Post
Just Click the Picture to Read the Post

I found more information on this event today. As is curiously and increasingly the case, the additional information came from a news outlet in Great Britain. The UK Telegraph had a lengthy article on the matter on June 20.

Besides reporting that the US government has since stated that the seized bonds are confirmed forgeries, the article reports extensively on one of the elephants in the room.

The room is the United States and this elephant is the value of the US dollar.

Just Click on the Picture to Read the Article
Just Click on the Picture to Read the Article

It’s a fairly comprehsensive article.  One element of it, in regards to the recent bond seizure, that seems glaringly obvious and is pointed out by Glenn Beck’s guest is the fact that the bonds could only have been counterfeited by a sovereign nation, a government.

The circumstances of the seizure seem to bear out this theory. If a Mickey Mouse operation had produced them, it would have likely been touted as a hoax from the start.  Perhaps it is just that the US government was only being tight-lipped.  Although that is possible, it seems somewhat unlikely. It’s no secret, as indicated by the UK Telegraph story, that the financial markets are keenly aware that the dollar is in trouble.

However, perhaps I am expecting too much from a U.S. Treasury Department that has given me no reason to believe that it is competant.

In any case, the whole episode only brings the whole question of how dire our financial situation is into sharp focus.

http://www.newser.com/story/62301/134b-bond-fraud-may-be-mob-handiwork.html