Waterboard the Fed? Why Yes!
I love this. LOVE THIS. Big smooches and xoxoxoxoxoxo and hugs to death looooove this. ¡Estoy bien enamorada de este sugerencia!
Go get 'em, killer, via the UK Guardian. Leave it to the Brits to call out our central bank since obviously America is in a fucking coma and doesn't care what our little Fed friends are up to:
To my knowledge, no one has proposed waterboarding the US Federal Reserve. But the hostile reaction of much of the country's political leadership to suggestions that the Government Accountability Office (GAO) audit the Federal Reserve Board might lead people to think that waterboarding was being called for.
The basic story is straightforward. The US Congress has lent more than $700bn, via the Treasury, to bankers at below market interest rates through the troubled assets relief programme, or Tarp. This was to keep the banks from going belly up. At the same time, the Fed has lent more than $2 trillion to banks and non-financial institutions to maintain liquidity in the financial system.
The congressional oversight panel, led by Elizabeth Warren, has frequently complained that the Treasury has not always been altogether forthcoming in providing information about its lending practices under the Tarp. However, there is at least a public paper trail. We can find out how much money each bank received and under what terms.
By contrast, there is no public paper trail for the Fed's loans, even though it has more than three times as much money outstanding as does the Treasury through the Tarp. The Fed has only provided aggregate information on the amount of loans in each of its various lending programs, and general information on the terms of the loans and the types of collateral received.
"Aggregate information" like Ben Bernanke straight up telling Congress "fuck you, we aren't telling you where the money went!" ? Is that the aggregate information to which we are referring here? Just want to make sure we're all on the same page here.
Now it makes sense that the Brits would be the ones to call us out since the entire framework of the Federal Reserve System was birthed on their shores. Go Google the diabolical Fed cabal and you will certainly find evidence pointing to as much. Clever bastards.
However, it is not possible to find out in detail how much money Goldman Sachs borrowed, for example, at what interest rate, and which assets it posted as collateral. The Fed has explicitly refused to make information about specific borrowers public. In fact, the inspector general who has the responsibility for overseeing the Fed told congress that she does not have this information. Apparently the Fed doesn't even trust its inspector general with information on its lending practices.
It isn't that the Fed doesn't trust its inspector general, it's that its inspector general isn't supposed to know. Come on, kids, get with the program here. (in case you missed the story of the stupid Fed inspector who has no idea what's going on, you may find "Even the Fed Doesn't Know What the Hell the Fed is Doing" here)
If you are not familiar with the fall of Rome, I suggest you read up on it immediately. You might find some strange similarities between Rome's final days and our own present situation. Just sayin.
The Fed bears primary responsibility for the economic collapse. Alan Greenspan failed to take any steps to rein in the housing bubble and arguably even promoted it. It was inevitable that the collapse of an $8tn bubble would lead to a serious downturn of the sort that we are now seeing. [my emphasis]
This incredible failure of the Fed should raise fundamental questions about its structure. Certainly it would be a positive step if the Fed were more answerable to democratically-elected officials and less accountable to Wall Street bankers. A GAO audit would be a big step in the right direction.
Crap! You had me up until you got to the GAO.
When corruption abounds (yes, I'm talking to you too, Big 4, go take a peek at Francine McKenna if you care to see where "audits" get you these days), there is no such thing as a clean audit. A la the stress tests, it is akin to playing Jeopardy - the answers are given and it is the corrupt auditors' job to come up with the question that leads to them.
Surely I am not the only one who gets this.
Let's start with waterboarding. Then we can work our way towards an audit.