White House stooges are no small part of the problem,

Quote:

contrary to the Fed’s claims of independence, it has been operating as an extra-legal off balance sheet entity of the Treasury, circumventing normal Constitutionally-stipulated budget processes. And rather than make adjustments in its practices to reflect its enlarged and now overtly political role, the Fed has instead been engaging in cynical, blatant misrepresentation, giving lip service to the idea of greater transparency in pubic, while fighting disclosure tooth and nail.

http://www.nakedcapitalism.com/2010/05/t....

OT....RUN!!!

European Union, Currency Are Headed for Collapse: Gartman
By: Jeff Cox
Published: Wednesday, 5 May 2010 | 12:55 PM ET
http://www.cnbc.com/id/36961257

The current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it, said Dennis Gartman, hedge fund manager and author of "The Gartman Letter." "I think the whole thing will go down to defeat, the whole thing will eventually unravel," Gartman said in an interview with CNBC.com.

Gartman said he doesn't have a specific timetable for how long it will take for the collapse of the 17-year-old EU, but said, "it doesn't look good." The debt problems continued to escalate Wednesday as Greek citizens rioted in the streets over proposed austerity measures that would be required for any rescue plan to gain approval.

At the same time, Moody's warned that it might downgrade the debt for Portugal, accelerating worries that Greece's unremitting debt worries could spread across the continent.

Gartman holds the following long positions: 15 percent gold; 10 percent silver, and 15 percent each to Canadian and Australian dollars; he is short 15 percent each in euros, pounds and yen.

The chaos was enough for Gartman to advise US investors to get out of the stock market. "It means confusion, it means a stronger dollar, it probably means weak commodity prices," Gartman said.

"I think they should be out. People should be on the sidelines and out."

A correction of as much as 15 percent in the US market "would be normal," he said. "There's always a chance we could get worse than that."

In his daily letter to investors, Gartman said there is little chance of a peaceful, successful resolution of Greek's troubles.

"The modern Greek culture is so dependent upon government largesse, and is so used to the fact that Greek fiscal irresponsibility will be bailed out by the taxes paid by responsible German workers and businessmen, that we cannot see this being resolved short of Greece being summarily tossed out of the EMU, or removing itself voluntarily," he wrote.

He added that "we are not naive. Rather we are realists, and realists know that little other than chaos and the eventual breaking up of the EUR is the way of the future."

sell, Sell, SELL!

While I don't disagree with you position Karl. My fear is when we find out the truth and Bernake is fired, then what? Do we shove the crap back onto the originators? If the majority belongs in Freddie and Fannie, then either way it's going to happen. What are the ramifications of cleaning up the filing cabinets?

Throw it on Fan/Fred and toss 'em to the wolves.

Then forgive my ignorance, but this is straight from the Fan website. "On September 6, 2008, Director James Lockhart of the Federal Housing Finance Agency (FHFA) appointed FHFA as conservator of Fannie Mae. In September 2008, we also entered into an agreement with the U.S. Department of Treasury that was most recently amended in December 2009. Under the agreement, Treasury will provide us with capital as needed to correct any net worth deficiencies that we record in any quarter through 2012."

Therefore we are going to get stuck with the bill (really grand kids). I want this pushed back onto the idiots that created this problem - both buyer/seller. Therefore, while cleaning house is the right thing to do on the Fed I'm still stuck with someone's bill I can't afford.

"toss 'em to the wolves"....wouldn't that require revocation of the Christmas eve edict?....whose legality, unless I missed it, has never been explained.

Yes, it would - but there's no legislative force of law required to do that.

Of course legislative force of law could be used to eject them from the Treasury Umbrella....

Thanks for picking this up. Here's a simple question - who or what institution is responsible for debts incurred by the U.S. Federal Reserve Bank? Is it the consortium of banks that own it, or the U.S. Government, which has chartered it to conduct its central bank business? In fact, that's the central question here. If QE was always a U.S. sponsored activity (as in conducted under laws passed by congress and signed by the pres.) then the Fed was conducting legitimate U.S. business and such a transfer might be legit. If it was extra-legal, as you suggest, I would argue that the owners - the big banks - bought it and now are the proud owners of a large pile of dung. Please remit $1.2T at your earliest convenience.

I have another problem with this. When the Fed bought this pile of dung, they paid for it, either in federal reserve notes or T-bills - or simply moved numbers around on electronic funds. Whose money was that? Actually, that's the same question but goes back to the original crime. I will never forgive Obama for supporting this. It was one thing for the Bush Admin. to do TARP, legislation by extortion - at least TARP had a whiff of legitimacy. QE is the functional equivalent of one's accountant secretly buying you a Yugo at Bentley prices. When a nation's people are ripped off by its central bank it is time not just for an audit, but prosecutions - and if there were true justice - executions.

If there was no Executive Order and No Legitimate Appropriations Bill -then the Banks are Blatantly Robbing the National Treasury.

Ditto for AIG, Phony & Fraudie.

Screw the Bankers trying to Gift Themselves the National Credit & Treasure.

Just got this email reply from my email last week

Dear Jeff,

I recently asked the Chairman of the Federal Reserve which banks received the half trillion dollars ($500,000,000,000) the Fed handed out. He said he didn't know.

Think about that for a minute -- he didn't know!

That kind of ignorance and arrogance must end. We need a full independent audit the Fed. The House has passed it and the Senate could vote on it as soon as this afternoon. It's going to be extremely close -- every vote will count.

Can you sign the PCCC's urgent petition asking the Senate to support the Audit the Fed amendment?

The amendment is simple. If it passes, we'll finally learn how the Fed has been handing billions of dollars to big Wall Street banks like party favors. But if it fails, the Fed can keep handing out our money to whomever it wants, without telling Congress or the American people.

You'd think passing this legislation would be a slam dunk. Wrong. Wall Street bankers and their lobbyists are twisting arms and pouring millions into the campaign coffers of politicians on both sides of the political divide, to keep their sweetheart Fed loans under wraps. We need to counter their influence-peddling by making the Senate listen to the united voice of the American people. (That would be you.)

It's time to step up the pressure. Sign the PCCC's petition NOW. Then, we'll tell you how to contact your senator.

We can pass this, with your help. The amendment is already cosponsored by progressive heroes like Bernie Sanders, Pat Leahy, and Russ Feingold. And joining us in this bipartisans coalition are John McCain, Jim DeMint, David Vitter, and Sam Brownback.

Now we need your senator on board. Can you take a second to sign the PCCC's petition right now?

Courage,

Alan Grayson, Member of Congress

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Can someone please tell me the correct bill number so I can tell my senaturd what I want him to vote for?

They're stuck between Scylla and Charybdis here. If they throw Fannie and Freddie to the wolves, they'll be thrown out of office in front of howls of "destroying housing affordability for most Americans". And if they don't, of course, the whole mess implodes anyway.

Our elected so-called representatives will not do, and don't care about, what's "right"... only what will prolong their careers and enable them to get out with secure retirements, cushy speaking engagements and honoraria, etc. And it's out fault. We should have tossed them all in November 2008. We didn't. We've already told them that it's perfectly OK to loot and break the law and ignore us. Now we're going to wind up facing the music.

Too bad we don't have an Andy Jackson to park an Abrams tank at the Fed's front door.

Ps: I think this, but check site for sure: HR 1207

http://www.dailypaul.com/node/90775

Thats the daily paul site.

Thanks Psgirl:

Quote:

Can someone please tell me the correct bill number so I can tell my senaturd what I want him to vote for?

House Bill = HR 1207
Senate Bill = S 604

Thanks Busted and Az. The girl that answered my senaturd's phone said he was for S 504--that must be why I could not find it. Just to make sure, I am going to call her and make sure it is 604.

Sen. Kyl's office too busy to accept calls this afternoon. His chief financial staffer, Dan Brant, (for other AZ's who want to call) did grant me 30 minutes re. Bernanke confirmation. Left voice mail that there are now too many of us "educated" voters who will not accept his indefensible "no" vote. Same message delivered to my congressman, Rep. Mitchell. Vote against audit and no vote for you. McCain voting for....so far.

From Rutben:

Quote:

"toss 'em to the wolves"....wouldn't that require revocation of the Christmas eve edict?....whose legality, unless I missed it, has never been explained.

"Christmas eve edict"? Is

this the edict that keeps giving and giving? <Sarcasm off>

The Federal Reserve Act of 1913, surreptitiously pushed through Congress Christmas Eve 1913.

Quote:

"The States should be applied to, to transfer the right of issuing circulating paper to Congress exclusively, in perpetuum." --Thomas Jefferson to John W. Eppes, 1813. ME 13:276

Tail does not wag dog. Dog wags tail. It's time our elected officials control the punch bowel before we run out of punch and/or booze. What you say Congress folk?

Seeking Alpha 05:55 PM;
"When Tim Geithner says that he doesn't want to see the Fed audited, what he's really saying is he doesn't want to see Tim Geithner audited," Rep. Alan Grayson says. "It's one of the biggest conflicts of interest I've ever seen."

Rep. Grayson: Geithner has a 'Conflict of Interest'
Rep. Grayson objects to WH's effort to block audit of Federal Reserve.
09:11 | 05/05/2010
http://abcnews.go.com/Politics/video/top....

Grayson begins at 3:48


When Will Tim Geithner, Who Has The "Biggest Conflict Of Interest", Recuse Himself Of Fed Audit Deliberations?
Submitted by Tyler Durden on 05/05/2010 16:14
http://www.zerohedge.com/article/when-wi....

Alan Grayson storms back to the stage by asking just why is Tim Geithner, who has the biggest conflict of interest when it comes to Fed matters, even be allowed to have an opinion on Fed transparency issues. In today's ABC Top Line, Alan noted, “when Tim Geithner says that he doesn't want to see the Fed audited, what he's really saying is he doesn't want to see Tim Geithner audited,” Grayson said.

“He was the head of the New York Fed for years and years. This audit would apply to him. And the actions he took -- which he can now take in secret and, when this bill passes, will no longer be secret -- we'll be able to see and understand the decisions that he made that among other things put huge amounts of bailout money into the hands of private interests.”

Grayson added: “It's one of the biggest conflicts of interest I've ever seen.” Keep in mind that this is the same Fed that when it took over Bear via ML1 said it would have no losses on the collateral it assumed, only to see its Red Roof Inn holdings be foreclosed upon last week as Zero Hedge first discussed. How the Fed's opacity is still a topic of discussion simply does not compute. And that Obama is doing all he can to prevent the Fed transparency initiatives by Paul and Grayson from passing at this point certainly means that should the Fed's dirty laundry be made public that the administration would certainly collapse in a smoldering heap of 0% approval.

Some more painful common sense from Grayson:
“The Fed doesn't want to be audited. Who does? Do you want to be audited? I don't want to be audited, but sometimes it's necessary,” he said. “When you're handing out a trillion dollars at a time -- a trillion dollars at a time, which works out to $3,000 for every man woman and child in this country -- don't we have a right to know what happened to it?”

Grayson added: “It's central to the bill. We've had secret bailouts from the Fed to private interests now for the past two years without any exposure whatsoever. … We need to know what happened to our money, because when the Fed hands out our money, every dollar in your pocket, every dollar in your checking account, every dollar in your 401(k) becomes that much cheaper and less in value.”

In retrospect it is really much simpler: the Fed will only retain its secrecy as long as it can keep pushing the market higher, and as long as it can force the middle class to empty out their money markets and throw their money into bankrupt retailers trading at one million P/E.

Once the market tumbles, it is game over. The Fed knows it, the president knows it, and Geithner certainly knows it. Which is why we expect massive resistance by the Fed and all the "liquidty providers" and "market makers" to allowing the Ponzi formerly known as the market, to reach its true fair value (absent from endless fiscal stimuli and ZIRP insanity)... somewhere in the 400-500 S&P range.

Gen wrote:

Quote:

---Full audits. Now and evermore. Annually.---

OK. And then END THE FED pronto.

"If Bernanke is not forced to be accountable to the American people, he could easily dump the entire load of trash on Fannie and Freddie..."


I am sure that is the intent. After all, Freddie and Fannie already have an open ended tax payer obligation, as the cap was lifted. Count on it happening.

"A correction of as much as 15 percent in the US market "would be normal," he said. "There's always a chance we could get worse than that."

The correction has been some 80% so far, since March, 2009. Down is not the correction, up is.

Gem,

Have you ever considered the accounting entries and how many it would take to make all this balance out? Right now they have 1.2 trillion, what percentage of the problem does that take care of? What would it take to do an expose?

I'm stuch trying to figure how the banks books would look, the feds books, the GSE's books, and the Federal Govt 's books. The fed trade cash for trash, and moves it off their balance sheet presumably for something and the GSE now have it on theirs. Is that 's when it's correctly valued and the GEs show a big loss? What do the Fed get in exchange and how are the American people presented with the bill. Dopes the GS'e loss go onto the USA balance sheet?

What percentage of the problem does 1.2 trillion represent. What if 30% of the 13 Trillion in mortgages turn to mush? How do they keep repeating this? I'm back to the phase where I have many more questions than I do answers. Do this toxic paper represent the CDOs we bought rather than pay off the CDSs on them? Or did we do both? At Par?

Disgusted in Indiana