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The US Congress is made up of a bunch of dumbshits. They want to not have to take any responsibility for anything whatsoever.

Elijah Cummings just referred to Bernanke as a "Superstar"


No, they're not dumbshits. They're evil, corrupt, traitorous and paid-off.


Interesting read in Bloomberg on the Fed handover of Bear Stearns to JP Morgan:
Fed Should Clarify Link to Bear Stearns Assets: Caroline Baum
April 2 (Bloomberg) -- When the Federal Reserve brokered a weekend deal last month for JPMorgan Chase & Co. to purchase Bear Stearns Cos. before it collapsed, many of the terms of the agreement were murky...

At the time, the Fed said it was taking control of the $30 billion portfolio, that it wasn't purchasing the assets. The Fed was assuming the risk if the eventual liquidation of the securities produced further losses -- losses that accrue to the taxpayer since the Fed turns over its profits to the U.S. Treasury. It also stood to benefit if the portfolio appreciated in value.

That doesn't pass the lender duck test. Lenders don't profit from the appreciation of an asset against which they extend credit. Only an equity owner does.

``They get the residual -- that almost always defines ownership,'' said Paul DeRosa, a partner at Mt. Lucas Management Co. ``The disclaimer of ownership is purely semantic.''

If the Fed is the residual owner of these securities, which seems likely based on its assumption of both risk and reward, it could be in violation of its charter. According to the 1913 Federal Reserve Act, which has been amended over the years, the Fed can buy U.S. Treasury and agency securities, foreign government securities, bankers acceptances, bills of exchange, certain municipal debt, foreign currency and gold.


cont'd....Ownership Society

Nothing in there about collateralized debt obligations, private mortgage-backed securities or other derivatives of questionable quality.

Of course, if the Fed structured its loan as a ``discount'' -- the Fed is authorized to discount drafts, notes and bills of exchange, redeeming them at maturity -- then it would be a lender and a residual owner, said Vince Reinhart, former director of the Fed's Monetary Affairs Division and now a scholar at the American Enterprise Institute in Washington.

Most of today's loans from the Fed are ``advances,'' secured by ``acceptable collateral'' (the level of acceptability keeps declining). The collateral is returned to the borrower after a specified time.

If it seems like a distinction without a difference, it is.

``From an economic perspective, they are the residual claimant,'' Reinhart said. ``They have equity ownership.''

In the spirit of increased transparency, why can't the Fed come out and say that?

Fact(less) Sheet

On March 24, the New York Fed posted a summary of the terms and conditions of the loan on its Web site. In essence, the Fed created an off-balance sheet vehicle -- specifically a Delaware limited liability company -- to hold illiquid securities, and with no capital, funded by a $29 billion loan from the Fed and a subordinated $1 billion loan from JPMorgan, Reinhart said.

The Fed is nothing if not a quick study.

BlackRock Inc. has been retained as the manager.

The summary outlined the maturity of the loan (10 years, renewable at the discretion of the New York Fed); the interest rate on the loan (the primary credit rate, currently 2.5 percent, on the Fed loan; the primary credit rate plus 4.5 percent for JPMorgan); and the repayment terms. It skirted the ownership issue other than to say in the last line that ``any remaining funds resulting from the liquidation of the assets will be paid to the New York Fed.''

Legal Cover

Watching the evolution of Fed policy in the last six months from focused on inflation to fearful of systemic risk; the series of aggressive, rapid-fire rate cuts; the creation of an alphabet soup of new lending facilities; and the orchestration of a fire sale of Bear Stearns to JPMorgan, one has to wonder about the Fed's M.O. It all has a make-it-up-as-you-go-along quality.

Faced with what it thought would be a series of cascading financial failures if Bear Stearns went down, the Fed probably knew what it wanted to do, knew it had to do it quickly, and then had to figure out ``how to get it done within the confines of its legal structure,'' DeRosa said. ``The Fed used legal sleight of hand to reconcile what they wanted to do with what they're permitted to do by law.''

Bernanke is sure to be grilled about his actions when he testifies before the Joint Economic Committee of Congress today and the Senate Banking Committee tomorrow. A wee bit more transparency would be nice.

Then again, if the Fed is acting first and finding legal cover later, there's a benefit to keeping the details murky.


agree. now, how can i make some dough the honest way, and plow it into gold and community investment... sigh


Many interesting things have been brought together in your latest. Numbers, having an influence other than being mere quantities, are a function of the construction of the cosmos/universe. Apparently these can be used for good or evil and are mostly the private reserve of the secret cabals.

Scientists have discovered and wondered over various unique 'constants' which appear in established natural law. Check out the website markrodin.com for a totally new take on number theory that is having the scientists/mathematicians taking notice and is clearly not yet mentioned in our educational venues.

Speaking of dragons and caves and monetary matters reminds one of warnings given long ago of the dark masters mentioned in the last book of the Bible who use merchandise as a hook and become ecstatic over ultimate and universal control by promoting destruction. Seems to fit the scenario developing today. How do we thank the remote viewers of 2000 or 2500 years ago?

When addressing the validity of Christian or Jewish or even Islamic faith, it is wise to consider who or what has inserted itself as the inspiring entity at the center of these faiths. The early Christian faith was very soon eclipsed by the so-called church fathers' traditions. For those wanting the real story from a marvelous academic of the last century who researched this question and still remains the unchallenged authority, please check out the book ' Marcion, The Gospel of the Alien God' by Adolph von Harnack. It is considered heretical! You'll love it, Elaine.


Elaine, I believe this is your most important post EVER.

Most alternative news sites are basically just like sportscasters calling the play by play of these guys looting the country without any comprehension or analysis of why.

I find play by play of baseball, football and looting of the country to be interesting for a short while until you realize you are losing all the time and finally realize the games are rigged.

But you are right when you noted that your attempts to explain anything like this to the masses is pointless as they do not understand or care. The would rather watch WWF 'sports' or Jim Cramer on TV.

But I believe it is critical to get this information back into the thought stream of intelligent people who care, like most your readers, before we are all fed into the wood chipper.

Elaine Meinel Supkis

The statue here was given to me by the King of Sikkim back in 1967. It is the emblem of the royal household. It is Pegasus with the Pisces fishes on his wings.

Yes, the connection between magic and money is immensely strong and is acknowledged only passingly.

And of course, the Fed has oozed over the entire land, bit by relentless bit. It is a real eye opener to see how it was restrained at the beginning but how they used various schemes and tools to expand the Fed and cut it off from government restraints.

Frankly, the more I dig, the more annoyed I am. Which is why we will visit the 19th century again to look at the issue of gold and paper money.

Jim B

Hi Everyone,

The Secret Architecture of Washington, D.C., is a book of Masonry, of layouts according to longitude and latitude. The Columbine shooting has been analyzed that way. Likewise, Diana's demise, with dates, and times figuring preeminently. I find it fascinating, the more I study it. My friend in Austin, Freeman (freemantv.com), shows his findings on this site.

Elaine Supkis

Jim, the surveyor of Washington, DC, was one of my ancestors. Our family has had many astronomers.


The Court case actually involved an Appellate Court, not the Supreme Court:

Below are excerpts from a court case proving the Federal Reserve system's status. As you will see, the court ruled that the Federal Reserve Banks are "independent, privately owned and locally controlled corporations", and there is not sufficient "federal government control over 'detailed physical performance' and 'day to day operation'" of the Federal Reserve Bank for it to be considered a federal agency:

Lewis v. United States, 680 F.2d 1239 (1982)
John L. Lewis, Plaintiff/Appellant,
United States of America, Defendant/Appellee.
No. 80-5905
United States Court of Appeals, Ninth Circuit.
Submitted March 2, 1982.
Decided April 19, 1982.
As Amended June 24, 1982.

Plaintiff, who was injured by vehicle owned and operated by a federal reserve bank, brought action alleging jurisdiction under the Federal Tort Claims Act. The United States District Court for the Central District of California, David W. Williams, J., dismissed holding that federal reserve bank was not a federal agency within meaning of Act and that the court therefore lacked subject-matter jurisdiction. Appeal was taken. The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.


Elaine Meinel Supkis

Yes, it didn't have to go any higher. But whatever does make it up there, the Fed expands its isolation and freedom. It is NOT brought under control.


ok so let me get this straight.

The US banks made a lot of bad bets and selling useless fancy financial papers that really have no value. (mainly fueled by cheap Yen loan, cheap chinese import, lax US comsumer loan) The war makes gas price spikes and slow the economy. This affect housing. The housing collapse made people call out all this bad debt and funny paper.

The banks can't pay, big daddy Federal Reserve come in and bailing out the banks.

And we are talking about massive amount of "cheap loan/free money". The big excuse is "we need to save the system by injecting liquidity"

But this liquidity is creating gigantic global inflation. Because how current US/global trade is structured. Most 3rd world exporter can't absorb all those liquidity

But they have no other choice except handing more and more money since increasing interest rate will raise consumer debt cost, housing rate. But pumping so much money also create massive spike in commodity price.

So far, by running the dollar global system on overdrive, it seems some of the lost has been digested. But we are not nearing half of the estimated $600-800T bad loans yet. While at the same time at least $200-300B more cash will be thrown into the system in order to make it go even faster.

One think I still can't understand:

where do all those free money coming from? Because by now, the treasury liability will go through the roof. The world market will ask if we can pay all this new loan when it all comes due right? So they won't take treasury bill much longer.

Also: how long can they keep doing this? potentially what's the limiting factor? How much longer can Bush and his gang run the money printer?


Wave the white flag and pray for a good harvest,but keep hoeing.

Elaine Meinel Supkis

Infinity is the theoretical limit. Zimbabwe has 600,000% inflation.


Thats not a Trojan Horse! Thats an Hindu Girraffe!


oh yeah. this is not pretty. Now the inflation will hit electricity bill.


Northern Appalachian coal just hit $110/ton. In 2007, it bottomed out at less than $45/ton, meaning it has nearly tripled in ONE YEAR.

Elaine Meinel Supkis

No, Dutch, He is Pegasus. The long neck is amusing, though. When I was given Him at 16 years old, I told everyone, 'Pegasus is my protector.'

I had him with me throughout my global travels. One day, a man decided to break into my room and attack me sexually.

I picked up Pegasus by the neck and clocked him with my Iconic God. Heh. Worked like a charm. My friends loved to joke about that afterwards.

I said, 'I was merciful. I didn't impale that guy with the ears of Pegasus.' Those ears are SHARP AS KNIVES. When packing him, I had to wrap them or they would stab through my luggage.


I just figured it out yesterday! The Federal Reserve officials all INSIST that it is an agency of the federal government. And some smart-ass people on economics sites make fun of anyone who claims otherwise.

Iff the Federal Reserve is part of the federal government, then, it's chairman, board members, and other officers can be IMPEACHED by Congress. Otherwise not. Can they be impeached?

Off topic. One of the very select few websites I have a reasonable amount of faith in is:


This site is apparently run by the Sorcha Faal, which, apparently is the title of the head of a Roman Catholic Order of nuns. I read this at other sites, and I believe it because everything about the site suggests that it is a liberal Catholic operation. I used to volunteer for the Archdiocese of Bridgeport, Connecticut in the '60s, and I know the mind-set.

Yesterday's entry by the Sorcha Faal is a bit alarming:

April 2, 2008

Russia ‘Alarmed’ As US Readies April Nuclear Attack On Iran


By: Sorcha Faal, and as reported to her Western Subscribers (Traducción al Español abajo)

~~Russian Foreign Ministry Officials are reported to be ‘alarmed’ today over a ‘presentation’ made by the United States War Leaders to President Putin at this weeks NATO summit in Romania and which details the Americans plan to begin a nuclear attack against Irans atomic facilities in the next two weeks.~~

~~Most disturbing of these reports, according to Foreign Ministry Analysts, are the United States ‘offers and threats’ towards Russia to ‘remain neutral’ in this conflict or face the combined weight of the American and EU central banks deliberate collapsing of the Western banking system, and US dollar, and which is estimated will cause the loss of nearly $800 billion of Russian foreign reserves.~~

Paul S

Elaine: What is your opinion of William Greider's book on the Federal Reserve? I believe its title is, "How The Federal Reserve Runs the Country"? Greider has written other books on govt. What is your opinion on his writings in general?


Paul S, You should read this comment below from Amazon; it is dead on correct.

You MUST read "The Creature from Jekyll Island" if you want to have ANY hope of figuring out what is going on.

From Amazon reviews: 1 star, Tom Potts

"Good propaganda must be mostly truth to work. As I write, this book has a rating of 4 1/2 stars out of 5. This is an indication that the majority of reviewers have bought into the well spun propaganda Greider delivers.

The Federal Reserve is a 100% privately owned corporation, carefully set up to appear as though it is an arm of government. It was created solely for the benefit of it's shareholders, a significant proportion of which are foreign. Greider could have mentioned this extremely important fact at the outset. Instead he deliberately helps perpetuate the myth that "The Fed" is public.

He spends the rest of the 700+ pages going into excruciating detail about The Fed's decisions and their direct effects on the economy, with a focus on the time of Volcker's reign. If that's what you're looking for, this is the book for you. If you're looking for true insight into The Fed, its origins, who it benefits, and how it directly controls the largest economy in the world (and indirectly many other economies through their privately owned central banks) at the expense of everyone else, then I'd suggest reading "The Creature from Jekyll Island".

Elaine Supkis

A lot of people hated Volker. I must be one of the few who understands why he did what he had to do. I will now write my response to all this. In a parable.


High interest rates are absolutely wonderful for savers and my cash gets almost 9% here in New Zealand. I go where my money gets respected.

Interest rates are the price of money. The beauty of a free market for money is that the interest rates rise when there is a high demand for money, and drop when there is too much money saved.

It is a painfully beautiful system. However, we have given a MONOPOLY PRICING POWER OVER THE PRICE OF MONEY TO THE FEDERAL RESERVE.

It is like giving the right to set the price of oil to the FEDERAL OIL RESERVE.

Once you give someone this power it is IRRESISTABLE to drop it to increase demand wildly (cheap loans), and then raise it to get things back under control again (credit crunch).

In a free market for money there ARE business cycles but they are NATURAL and very shallow as it self corrects. As too many people save, interest rates drop and people start borrowing and spending. If people save too little, interest rates rise to tempt them to save.

But when the FEDERAL RESERVE LLC has control of the process, and they know exactly how, when and by how much interest rates will change, they can make virtually INFINITE amounts of money going short and long the bond market.

People going bankrupt and defaulting on their loans makes virtually no difference to them.

A trick question they ask you when you interview in Wall Street straight out of the ivy league is "Which way do you think interest rates will go?" Any answer other than 'I Don't Know' is incorrect. Because if you knew where interest rates were going you could make INFINITE amounts of money limited only by your avarice and chances of getting caught by the population.

So, while the high interest rates in NZ are nice, I am clearly aware that the NON-FREE market could drop them on a whim and crush the value of their currency as money flees to higher interest rates.


In twenty years, the Oil runs out. Then, there will be no more of this bullmanure "free market" theology! The trucks will simply stop bringing up the lettuce! Reality doesn't give a damn about the economic theology of the goofy humans.

Paul S

Hi Elaine. Thanks for the tip on "The Creature from Jekyll Island". I purchased it today. Browsing through it, seems like quite a eye-opening read, like you said. (This won't put me on some sort of watch list will it? j/k.) But seriously, do those who control the Fed EVER get nervous, that their looting of national treasuries may be discovered and thwarted? I'm not referring to a loss here and there, but a serious defeat. I wouldn't think they would be worried.

Paul S

http://www.bigeye.com/griffin.htm That is a link to a talk by "The Creature From Jekyll Island" author, G. Edward Griffin. The talk summarizes what is in the book. If some here have not already accessed this site, I think it is well worth the time to read this trnscript of Mr. Griffin's talk. I'm wondering: is there ANYTHING that can rattle these guys' cage? Or are they so egotistical they feel untouchable? I don't mean a setback here or there, but a real, serious cut to their power, one(s) they can't weasel around? Think they are capable of murdering someone who gets a little close for his/her own good?

Elaine Meinel Supkis

They use the media to call people like me, 'conspiracy theorists'. And if you really want to be mocked, talk about the Real Rulers and point out the places they gather.

If you want to be come a non-person, go to those places and raise a ruckus. The meet in places surrounded by troops who have orders to kill anyone who gets past the lines of armed guards.

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