Obama unveils banking reform powers

[Karlis]

The centre of Mr Obama's plan is new powers for the Federal Reserve to oversee the entire financial system. Bank analyst Richard Bove from Rochdale Securities says it is a mistake to put the Federal Reserve in charge.

Read more...

" ... it is a mistake to put the Federal Reserve in charge."

A "mistake"? Isn't that something of an understatement, folks?

Karlis

[Splodgenessabounds]

I'm not the most knowledgable person when it comes to the FED (or anything for that matter but I try to learn) but is this the complete opposite of what most people on here want Obama to do with the FED, giving it more power?

[questionmark]

I'm not the most knowledgable person when it comes to the FED (or anything for that matter but I try to learn) but is this the complete opposite of what most people on here want Obama to do with the FED, giving it more power?

Could be, but on the other hand, what people want much less is Uncontrolled Wallstreet Capitalism V2.0, or a little more figurative: Another round of privatizing gains and socializing losses.

Either, there is a new agency created, that would depend on the Fed, or the means are given to the Fed. The latter will be much less costly.

[ExpandMyMind]

Either, there is a new agency created, that would depend on the Fed, or the means are given to the Fed. The latter will be much less costly.

in the short term. but as the fed were the ones who basically let this happen, from this century to last century, i think it will be more costly in the long run.

plus without any oversight in the fed's dealings, how on earth can we know that any of this money is actually going where it's supposed to?

trillions of dollars have disappeared and will continue to disappear as long as they are in control.

[questionmark]

in the short term. but as the fed were the ones who basically let this happen, from this century to last century, i think it will be more costly in the long run.

plus without any oversight in the fed's dealings, how on earth can we know that any of this money is actually going where it's supposed to?

trillions of dollars have disappeared and will continue to disappear as long as they are in control.

The Fed will be there anyway, and the idea is that there is no political oversight, else we have the Idi Amin Economics pretty soon (What..they got no more money...make them print more!)

...oops we do have... *checks notes*

I don't think that trillions have disappeared, unless in constructions designed by politicians to "stabilize the economy" or pay for a war. The fed can tell you exactly where that money went to...after that it may have disappeared into a black hole, but it was paid out to an account created by politics. And that is what banks do, they distribute money according to their customers wishes until the customer has no more money left.

[ExpandMyMind]

I don't think that trillions have disappeared, unless in constructions designed by politicians to "stabilize the economy" or pay for a war. The fed can tell you exactly where that money went to...after that it may have disappeared into a black hole, but it was paid out to an account created by politics. And that is what banks do, they distribute money according to their customers wishes until the customer has no more money left.

actually i don't think they can as they were asked by the senate and could not answer. still to this day i don't think they have addressed the issue.

[questionmark]

actually i don't think they can as they were asked by the senate and could not answer. still to this day i don't think they have addressed the issue.

They have been asked details about the distribution after they put money in an account to which politicians, and their appointed "crisis solvers" had direct access. Let me put it this way to you, if you ask your bank to put money into an account and you take it out from there: how is your bank supposed to know what you did with it?

It is not that simple in the case of the Fed, because nobody actually got cash out, and there should be a trail leading somewhere. But I am more under the impression that they rather not say instead of not know where the cash went to. The Fed cannot make money disappear that they never had in the first place.

The Fed is (until now) nothing but a bank, and one with special task: safeguard and increase the monetary reserves of the good old US of A (where by definition it should be gone as the US of A has no more reserves) by adding or withdrawing money from circulation (which is generally done by changing interest rates at which other banks can lend money from them or by offering government bonds at more or less attractive conditions).

And, there is nothing stopping Congress from sending some auditors to check the books of the Fed, in fact any majority of US states could demand such an audit. I have the feeling it won't happen because there is a skeleton for everyone in those accounts.

[ExpandMyMind]

They have been asked details about the distribution after they put money in an account to which politicians, and their appointed "crisis solvers" had direct access. Let me put it this way to you, if you ask your bank to put money into an account and you take it out from there: how is your bank supposed to know what you did with it?

And, there is nothing stopping Congress from sending some auditors to check the books of the Fed, in fact any majority of US states could demand such an audit. I have the feeling it won't happen because there is a skeleton for everyone in those accounts.

except congress

this is what i was referring to.

edit - for the mods, this topic is already in discussion in the politics forum.

Edited June 20, 2009 by expandmymind

[questionmark]

except congress

this is what i was referring to.

edit - for the mods, this topic is already in discussion in the politics forum.

We are talking about the bailouts...well the fed only passed out the money...they did not distribute it, so it s the bank analogy we had before. There are others who have to answer where the billions went THEY have received from the fed. Sorry, but that bloke was asking the right questions to the wrong person.

There has been quite a big controversy about the Fed, coming from the Ron Paul corner. So far, besides non constructive criticism and reinstating the gold standard I have seen nothing coming from there to make it any different than it is now. The gold standard would really be fun, your whole life in one ounce (see the threat in the alternate history forum).

[ExpandMyMind]

There has been quite a big controversy about the Fed, coming from the Ron Paul corner. So far, besides non constructive criticism and reinstating the gold standard I have seen nothing coming from there to make it any different than it is now. The gold standard would really be fun, your whole life in one ounce (see the threat in the alternate history forum).

i posted in that other thread after reading your post. i believe a wide range of commodities would be a better choice than backing money up with only gold.

don't you think that the government allowing the fed to lend money to them at interest is really quite silly? when it could be done by the government, minus the interest and extensive debt?

the last country, as far as i know, to take the bankers out of the equation was germany pre-WW2. they went from being in one hell of a mess to become just about the richest country in the world in half a decade or so.

the benefits of taking the bankers out of certain parts of the equation are many. that was one of the things that american founding father took note of and this power has only been relinquished a couple of times due to weak presidents, most notably woodrow wilson.

[questionmark]

i posted in that other thread after reading your post. i believe a wide range of commodities would be a better choice than backing money up with only gold.

don't you think that the government allowing the fed to lend money to them at interest is really quite silly? when it could be done by the government, minus the interest and extensive debt?

the last country, as far as i know, to take the bankers out of the equation was germany pre-WW2. they went from being in one hell of a mess to become just about the richest country in the world in half a decade or so.

the benefits of taking the bankers out of certain parts of the equation are many. that was one of the things that american founding father took note of and this power has only been relinquished a couple of times due to weak presidents, most notably woodrow wilson.

In Germany there is the Bundesbank. Except being a little more independent than the FED and only having to fulfill a mandate (that can be changed by the parliament if so needed) it is not any different than the FED.

The European Central Bank(or: the blokes with the Euro) , that is phasing out the Bundesbank, was modelled after that. Their primary task is to keep the inflation down and the monetary value stable. They decide how to do that without anybody having a right to meddle with it. In fact, so far they have resisted any pressure (no matter if from France, Spain or Italy) to run an interventionist course, such as the Fed does.

[acidhead]

Responding to the Obama administration’s new regulatory reform plan, which will officially hand the Federal Reserve complete dictatorial control over the U.S. economy, Congressman Ron Paul told MSNBC that the Fed was now more powerful than Congress.

Paul emphasized that no amount of regulation could compensate for a financial system created and controlled by the Federal Reserve that was completely unstable to begin with.

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress,” said Paul.

“They’re giving a tremendous amount of more power to the Federal Reserve - the very institution that created our problem. That’s about the way Washington works,” said the Congressman

“Too much regulations to begin with, so they give it more. The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply - you can’t solve the problems that way.

That’s like saying you can take care of a drug addict by just giving them more drugs,” concluded Paul, adding that the lack of understanding about how the Federal Reserve created the problem and how the free market ought to work was the root of the crisis.

Watch Ron Paul Slam Obama's new Federal Reserves Dictatorial Powers:

[Karlis]

President Obama has decided to grant the Federal Reserve greater powers to regulate our economy. WSJ reports that the greater powers will include the power to unwind and shut down large institutions such as the FDIC. ... power to oversee from top to bottom almost any financial company in the country, including the firms' foreign affiliates." This will give private bankers interest greater control over our financial system.

Read more...

One may agree or disagree with Ron Paul, but one can't simply ignore the man.

Karlis

"... They [Federal Reserve Bank] can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this.

They’re more powerful than the Congress

, They’re giving a tremendous amount of more power to the Federal Reserve - the very institution that created our problem. That’s about the way Washington works. Too much regulations to begin with, so they give it more. The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply - you can’t solve the problems that way. That’s like saying you can take care of a drug addict by just giving them more drugs”

The Fed continues to print money out of thin air to bail out Wall Street, subsidize our nation building overseas, as well as to pay our debt to private bankers. With the recent financial crisis and the bailouts of Wall Street, Congressman Ron Paul's warnings about our unsustainable financial policies have been vindicated. Ron Paul believes that the Federal Reserve should be abolished all together and replaced with a Constitutional sound currency such as a gold standard. The Constitution grants Congress the right to issue currency, therefore the Federal Reserve in Unconstitutional. ..."

[KRS-One]

One may agree or disagree with Ron Paul, but one can't simply ignore the man.

Karlis

"... They [Federal Reserve Bank] can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this.

They’re more powerful than the Congress

, They’re giving a tremendous amount of more power to the Federal Reserve - the very institution that created our problem. That’s about the way Washington works. Too much regulations to begin with, so they give it more. The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply - you can’t solve the problems that way. That’s like saying you can take care of a drug addict by just giving them more drugs”

The Fed continues to print money out of thin air to bail out Wall Street, subsidize our nation building overseas, as well as to pay our debt to private bankers. With the recent financial crisis and the bailouts of Wall Street, Congressman Ron Paul's warnings about our unsustainable financial policies have been vindicated. Ron Paul believes that the Federal Reserve should be abolished all together and replaced with a Constitutional sound currency such as a gold standard. The Constitution grants Congress the right to issue currency, therefore the Federal Reserve in Unconstitutional. ..."

"The Fed" has been more powerfull than Congress for over a century. Stop deluding yourself in thinking this is some new ideal.

Aside from the current recession, how's it worked out for every single member of your family since the early 1900's?

Ron Paul's ideas are pretty neat-o until you realize that he want's to return us to the gold standard.

Even that sound's pretty cool. A dollar is worth a dollar in gold. I'd advise you to ask China how much a dollar in gold is worth. Hint: China will laugh at you.

What's that you say? You don't care what China has to say about the worth of a dollar? Ok! Well. I guess we can just **** capitalist trading up the *** then and take what we can get.

Edited June 21, 2009 by KRS-One

[ExpandMyMind]

double post... which is weird because you're the last person to comment on the other one karlis

[Karlis]

double post... which is weird because you're the last person to comment on the other one karlis

I did think about posting it with my previous OP -- 'but' -- this article had so much more new info , I thought it more suitable for a new thread.

NOTE to moderators: if my above post would be better on my earlier thread, please merge them.

Audit the Federal Reserve

Ron Paul gives reasons for need of audit ~~ (Posted 15 June)

Thanks,

Karlis

[AztecInca]

Topics merged.

Edited June 21, 2009 by AztecInca

[ExpandMyMind]

Topics merged.

ahh, i thought this was a triple post but i couldn't see karlis' first post. there is another one in the politics forum also, posted 4 days ago.

Edited June 21, 2009 by expandmymind

[danielost]

I know I have a great idea lets make the mob legal and then let them watch themselves to make sure they don't do anything illegal.

[el midgetron]

you mean Obama is serving the international bankster's interests? Wow, my world is crumbling...............