Unelected Bernanke And Paulson Sieze Power In COUPhttp://elainemeinelsupkis.typepad.com/money_matters/2008/09/unelected-berna.html
September 20, 2008
Elaine Meinel Supkis
The Democratic Republic of America is dead. It was taken over last night in a private coup by the former Wall Street money man, Paulson and the lunatic economics professor, Herr Bernanke. Between themselves, they have seized the reins of power and are now the unelected rulers of the USA. The Supreme Court ruled in 2000 that we don't get to vote for President. Now this! Both Congress and the barely-elected President who should be impeached and arrested for both war crimes and refusing to protect America on 9/11, both of these entities are TRAITORS. They should either arrest the financial conspirators or resign from office. Next: a military coup.
Federal Reserve Chairman, Martin, speaking in 1954:
There is one other fundamental thing that again is right at the heart of it [inflation]. Monetary policy in my judgment should never be used to restore the purchasing power of the dollar. Once it is gone, it is gone. Production and productivity are the only ways we will restore the purchasing power of the dollar.
We will read more of this ancient speech from the old times when we still had a democracy of sorts. We just won WWII and were entering the Cold War when Mc C. Martin made this long speech explaining what the Federal Reserve was and how it was supposed to operate. NOT ONE THING HE TALKED ABOUT IS WORKING TODAY. Instead, the US systematically stripped itself of all the original systems set up to fund and control the Federal Reserve!
Now, after totally blasting away all the support systems, the restrictions and the balances of the original banking system, we now have a TOTAL collapse of the ENTIRE US banking system. And what is being done to fix this mess?
The very authors who enabled and pushed for all the worst aspects of the system are now running amok, fixing the system by systematically taking over all the financial systems of the US itself. I got an alarming email from Kevin, a reader, which said that the legislation being handed over the the flaccid fish in Congress has this shocking proviso: Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
WHAT THE HELL WAS THAT?
Back in 2000, I was very heavily involved in the garbage that came spewing out of that failed election. I went to DC and visited most of the Senators and ordered all of them to carefully support the counting of ALL the votes no matter how long that took. Instead, the Supreme Court ruled at 12am, midnight, on 12/12/2000, a magic number day and hour, they ruled that votes were NOT to be counted because so many goofy voting systems were used.
I had my 'Uniform voting act' bill written and ready. A reporter called me from the corner phone that night to tell me excitedly that I could now sue to have uniform voting standards. But then he read the last line of the Supreme Court ruling: this ruling was UNIQUE and could NOT be used in court as precedent! I blew up and began swearing. 'THIS IS A COUP!' I yelled.
But then Gore surrendered to the coup.
Now we are in the second stage of this coup. Bush is wildly unpopular to such a degree, he had to stay away from the GOP convention. No one is following this fool. The entire economic system is collapsing and he has walked away from it a la Coolidge. Congress is equally unpopular. They, too, are abdicating control to outside forces. Just as Congress refused to curtail a very UNCONSTITUTIONAL Supreme Court ruling, we now have Congress abdicating powers of the purse to a PRIVATE banker, Bernake, and a PRIVATE Wall Streeter, Paulson. Neither man was elected by anyone in America.
In a just world, we could go to DC and simply arrest Congress and the President for vacating their offices in the time of an emergency! But then, Bush wasn't impeached for his queer behavior on 9/11. Nor his queer behavior during Katrina. Or his outright lies about Saddam Hussein.
NYT: A Professor and a Banker Bury Old Dogma on Markets
A longtime student of the Great Depression, Mr. Bernanke was acutely aware of what could happen without a decisive move. Finally, the moment that called for action arrived late Wednesday. Less than 24 hours after the Fed bailed out American International Group, the giant insurer, it was clear the turmoil gripping Wall Street was only growing worse and that ad hoc solutions were not working.
Talking into a speaker phone from his ornate office, Mr. Bernanke told Mr. Paulson that it was time to adopt a comprehensive strategy that Congress would have to approve. Mr. Paulson understood. Reluctant in recent days to send Congress a plan that lawmakers had warned had little chance of quick passage, he had worried that a rejection would only further shock the markets. But during two conference calls Wednesday night and Thursday morning, he agreed that they had no choice.
They had no choice! RIGHT! They could have called ME! I would have given both of these coup criminals an earful! They are worried about markets falling?
WELL, TOUGH TITTIES! The collapse of our entire DEMOCRACY? Isn't that important? Isn't that....damn. Time to cuss like an old mule driver. Tarnation! What the HELL were these clowns thinking? Congress isn't moving fast enough? So did these TRAITORS go to the public to push for more?
HAHAHA. No! They knew the Derivatives Beast was now visible and would eat them and their stupid, nasty, awful gnome buddies! To save these unsavory idiots who created and fed the Beast, these two committed the gravest crime against our nation: TREASON. Their unconstitutional coup is utterly illegal and wrong.
Just like that, Mr. Bernanke, the reserved former Ivy League professor, and Mr. Paulson, the hard-charging former Wall Street deal maker, launched what would be the government’s largest economic rescue operation in modern times, one that rivals the Iraq war in cost and at the same time may redefine Washington’s role in the marketplace for years.
The improvisational nature of their effort has turned President Bush and Congressional Democrats into virtual bystanders, sometimes uncertain about what comes next and left to wonder about the new power dynamics in the capital. Seemingly every time lawmakers tried to get a handle on what was happening and what role they might play with elections around the corner, Mr. Paulson and Mr. Bernanke would show up again on Capitol Hill for another evening meeting with another surprise development.
ARREST EVERYONE!!!!! Good grief. Just reading this makes me shake with fury. I call upon the Goddesses of the Cave of Wealth and Death to unleash their powers on these presumptuous pompous men. I am not 'wondering about the new power dynamics,' I am FURIOUS about this.
Time to look in the past at an earlier Fed chair who was not a total traitor and coup master:
THE ROLE OF THE FEDERAL RESERVE SYSTEM
21 January 1953
Mr. Wm. McC. Martin, Jr., Chairman, Board of
Governors, Federal Reserve System,
Washington, D. C
We all know that the Federal Reserve System is here to regulate the money supply. Its purpose, simply stated, is to facilitiate [facilitate] -- not establish, for you can't do that, but to facilitate high level employment, stable values, and a rising standard of living: in other words, the objectives of a going and developing society.
In approaching all of these problems we have to realize that economics is not an exact science. It is, in part, sociology and psychology: it has to do with the reactions of a multitude of individuals-- with human factors. I think you've got to. keep that in mind if you are thinking of problems of high level employment and the satisfaction of the needs of the community, and if you are going to get any real value.
Now what about money? The simple definition of money that we get in textbooks is that it is a medium of exchange and a standard of value, and it has a basic component of confidence. Let's not forget that human factor: its basic component is always confidence. For we can talk about the gold at Fort Knox and how it should be counted and so on, but all of us know that what matters more than whether the gold is really there is whether people have confidence in the makeup of the currency which rests upon it. At least it matters more when we are dealing with the fundamentals rather than with accounting procedures and technicalities.
Gold was the basis of monetary power. And it was kept by the central bank in Fort Knox and it was the patrimony of all Americans. The Fed REGULATES MONEY SUPPLY. It also is supposed to take care of society. NOT RULE US.
Now, why do we have a Federal Reserve System today? Unless you think of it as an evolution, you are missing a major point. No modern country can have stability and progress without some basis of sound currency. That is why all modern countries have central banks. The United States central bank is the Federal Reserve System. Why is it in the form that it is ?
Now, the Board of Governors of the Federal Reserve System is Clearly a government operation, a government institution. The individual Reserve Banks are semi-government; part government, part private, and the democratic device of having the directorship determined in part by the banks that own the stock in the Reserve Banks has on the whole worked out reasonably well in the roughly 40 years of the Federal Reserve System's existence.
Why did we have the Federal Reserve System as such? We had it because, remembering 1897, and more particularly the money panic of 1907, the country was fed up with recurring money panics. Whenever money was most needed, it disappeared; whenever it was least needed, it was abundant. The same was true for bank reserves throughout the country. Whenever bank reserves were unnecessary, they were plentiful; whenever they were necessary for the business community in general, they tended to disappear, because they were scattered and there was no way of mobilizing them.
So the two basic defects in our money situation in 1906 and 1907, crystallizing in that panic of 1907, were, as we call it in technical terms, the inelasticity of the currency and the scattered reserves for the banks as a whole. Since the Federal Reserve System came into being, we have virtually eliminated the problem of elasticity of the currency. In fact, today it works so well that you never hear of any currency shortage, except in the case of the nickels, dimes, or quarters which have not been turned out by the mint fast enough; where the flow of the currency from one section of the country to another has been delayed by the mail; where currency has accumulated more rapidly; or in a period of mobilization where there is an increase in the currency in circulation and the manufacture of the money is delayed by not having sufficient manpower at the Bureau of Engraving and Printing.
First of all, many people trying to buy gold and silver today are shocked and very understandably angry that delivery is slow and waiting long. Computer funny money has also been missing. Banks won't even give each other FAKE money, much less, real gold or silver! There is something very, very screwy going on here. The Fed, far from stopping panics or bubbles, has been the main author of them. Ever since the gold standard was abandoned in order to pay for the Vietnam War and the oil crisis, we have had the goofiest monetarist system ever concocted: the Floating Currency Regime. This fake business has finally fallen off the cliff entirely. Instead of examining this and realizing it won't work, it can't work and it MUST NOT WORK, we see two private citizens taking over our entire government INCLUDING THE COURTS to force things to keep going in this goofy Floating Currency system.
Section 8 of the bill the Real Rulers are pushing through forbids courts from reviewing the legality of these rules!!!! Amazing! And neither can any agency heads or any entity within the government, elected or unelected. NO ONE can challenge the CONSTITUTIONALITY of this new law Congress is being rushed into passing.
The odious and evil 'Patriot Act' was passed the same way and only slowly is being picked apart. Without much help from the criminals sitting in the Supreme Court, the ones who nixed vote counting. GRRRRR....... Back to 1954:
It was something more than correcting the inability of banks to get reserves when they were needed, because with the
correction went power for the Federal Reserve System actually to create money.
Within the limit of the statutory requirements that liabilities of the individual Reserve Banks on notes and deposits can never exceed four times their holdings of gold certificates, the Federal Reserve System can create reserves for the member banks at any time it wishes. And in that ability to create or extinguish reserves lies the essence of what is our modern regulation of the money supply.
I have some worthless gold US dollar certificates from 1892-1933. I keep this to remind myself about what promises are worth: NOTHING. When Roosevelt didn't consult with anyone except the Treasury Sec and the Fed head when he confiscated private gold and did the draconian setting of the value of gold via fiat, the courts didn't stop him. Every step of the last 100 years has been a loss of sovereignty by Congress. Congress has few functions left. It can do one big thing: misspend money to their heart's content. That is it. Right on the eve of the entire collapse of our banking system and the coup, Congress voted to misspend nearly a hundred billion dollars on the insane wars in Iraq and Afghanistan, wars we are losing badly.
Money is not a cure all. It is one means—at the start I used the word "facilitate" rather than "establish"--of facilitating high level employment, stable values, a rising standard of living. But monetary policy by itself can't do any of those things. You can't make people borrow money if they don't see an opportunity to profit from it. You can't run a deficit in the federal budget of X billion dollars over a period of time and expect monetary policy to make it feasible. You can't ignore your tax and expenditure structure and just "ordain" the components of money, including that component of confidence that I spoke about; it won't work. In my opinion a sensible money policy must be directed consciously toward permitting the forces of the market — by which I mean in a general sense here this morning the forces of supply and demand — to operate.
You need the market's objective measures of the forces of supply and demand because you have to have some guide that on the whole is better than the subjective judgment of the Federal Reserve Board or of the United States Treasury, or of any one here this morning. The guide used, it seems to me, must be practicable. I believe that test is met by the composite judgments of the market place in relation to the law of supply and demand in whatever framework a given society is placed. In our society, we still believe in private property, free enterprise, and the profit motive. Those are basic tenets that are part of this loose and sometimes mouthy force we call the American way of life, and of the American economic system. They are inherent precepts concerning the process which has made us the productive country we are and which has given our workers a productivity, based on that philosophy, unmatched elsewhere. If you want to overturn that philosophy and build a new system, you would have to change a great many things — and up to this point we have not done it.
Reading this old speech fills me with fury. Not only has the Fed and the government allowed bankers to run not 4X lending based on gold certificates, they are allowed to run 30X holdings of paper products! And of those, many were lousy. So banks were lending based on absolutely nothing except hot air. And they pumped out trillions of dollars in the biggest hot-air balloon in history! Congress did ignore tax revenues and did vote for constant deficit spending and this spending has gotten utterly out of control. And it obviously isn't working. Because Congress refused to adhere to its own 'debt ceiling' laws it passed in the past, we have the yearly and now, monthly farce of Congress raising and raising and raising this ceiling to the heavens. Now, there is no debate at all. In the past, Congress was scared to do this.
Now, they shrug while doing it automatically. And the President views this money as more fun stuff to spread around to corrupt buddies in the military/industrial complex and Wall Street! Both Congress and the President hope to blame Paulson and Bernanke for the obvious downsides of this coup that was pulled today.
THIS IS TREASON. They can't use these men as scapegoats for the failures of Congress and the cheap criminal dictator in the White House. Bush once boasted that he was the 'Decider who decides.' Now, he is the Deceiver who deceives. Or aka, The Devil. Which he worshipped at the Skull and Bones crypt at Yale. Gads. Arrest him.
Martin answered questions and it is heartbreaking, reading these answers tonight!
QUESTION: I have a rather administrative type of question to ask, sir. You stated, I believe, that the central bank could extend credit some four times beyond its gold certificate holdings, or something to that effect. What is backing up that credit that is extended there? Is it the Treasury of the United States? Or what is backing that up?
MR. MARTIN: It is the gold reserve.
COMMENT: Yes, sir; but there is over four times as much credit out as they have gold. In case something extreme should happen, who would back that up beyond the gold?
MR. MARTIN: Well, that four to one ratio happens to be the present legal requirement. If something extreme should happen, you would probably change the reserve. It is an elastic operation. It is probably the most difficult thing for any of us to understand what the scope of human psychology on it is. You start by saying:
"We did have 40 per cent; now we have 25 per cent in gold." At one point we had a lot of commercial paper in the country. It could be gold, Government securities, or commercial paper. In the framework in which we are operating today, those are the limits. If those limits are exceeded, we would have to take steps to contract. Now, whether the likelihood of what you are talking about would be mismanagement by the Reserve authorities, if it became too rapid for them, they would have to go to Congress, and Congress would have to legislate a different reserve. It is nothing but a relationship. I am afraid I didn't satisfy you.
Amazing. Just stunning. How far we have fallen. We must nurse our fury. We have to do something here. I am willing to try to go to DC to lobby against this obvious coup. Anyone interested? My phone number is 518-658-9023. Call between 9am and 8pm Eastern Daylight Time. We have to do something besides read each other.