Dark Skinny

From the WSJ
Author Jon Hilsenrath

The Senate signaled that lawmakers could push for a shake-up of the 12 regional Federal Reserve banks that are central players in the Fed’s decision-making process and market oversight.

In a non-binding resolution that passed 96-2, the Senate called for “an evaluation of the appropriate number and the associated costs of Federal reserve banks.”

In addition to the Federal Reserve Board in Washington, the Fed system has 12 regional Fed banks around the country. They rotate on the Federal Open Market Committee in casting votes on Fed interest-rate policy. The New York Fed also has been at the center of government financial-rescue efforts.

Currently, Congress has no say in the naming of bank presidents. But given the New York Fed’s prominent role in rescue efforts, some lawmakers are keen to re-evalute the system.

The resolution was sponsored by Sen. Christopher Dodd, (D., Conn.), the chairman of the Senate Banking Committee, and Sen. Richard Shelby, (R., Ala.), the ranking Republican on the committee.

In two other resolutions, the Senate called for the central bank to disclose more information about its loans to firms during the financial crisis.

Well, well…you could knock me over with a feather on  this one. Many have tried this in the past - in government attempts to force the Fed to be accountable and more transparent in its dark, secretive and tilted monetary dealings - but all have failed. Ron Paul has been  trying for decades. I guess Senator Dodd is pretty pissed about being caught red-handed signing off all those bonuses to the AIG execs, and has to get his credibility back somehow.

But it remains to be seen whether this proposed law actually becomes law. If this does happen - this will be a tremendous blow against all those very powerful and untouchable “shadow banking” elements that so  heavily permeate and influence the decisions and workings of both Wall St and the US govt.

To be sure, this possible erosion of private Fed control will also  greatly piss off the Rockefeller and Rothschild financial clans and cartels - who are the real “owners” of the Fed now. I will reserve and, perhaps,  shed a tear later  for these rapacious shadow-financial clowns….much later. I’ve also read somewhere that financial power and greed must always have their own limits, checks and balances within a democracy. And I suspect that this most admirable of tenets derives from the ancient and true passages of The US  Constitution whose steady and guiding influence, even in these raw and  depleted economic times,  must now contribute and convey its own sparkling, diamond honesty more urgently than ever before towards the proper defense, protection and fulfillment of American Democracy today.

So, as we breath a small sigh of relief and trust,  the bail-out remedy has been dissolved into the financial institutions — still fizzing –  and we wait for its effect. My blind and shaky faith in both Paulson’s and Bernanke’s economic capabilities reminds me of the Marx Brother’s film Monkey Business, wherein  Groucho quips, “Sure I’m a doctor, where’s the horse ?”.

The secretive, adhoc and shadow-agenda-tilted remedies of these two “government employees” does not stir any faith from my bowels whatsoever. Their continued verbal flatulence - telling us nothing really - makes me wonder whether the coming Depression is, indeed, stoppable - or is it like those multitude of assured and very expensive allopathic cancer “cures”, where it is so difficult to determine whether the poor and trusting cancer patient was - in the end - killed by the cancer or the vicious “cure”. Meanwhile, the advising doctors and drugs companies get fatter and richer. I’m sure even Hippocrates himself would shudder with disgust and horror at this sick ruse…

First Paulson. His background and pure essence is Wall Street. He was an Ivy Leaguer, East coast, and was a star wrestler and footballer at college.  He has a B. A. in English from Dartmouth College. Disappointingly, I can’t find any learned references to Economics within his education at all. Paulson began his work in government, moving up to work as assistant secretary to Jon Ehrlichman in the Nixon administration from 1972 - 73. From here he joined Goldman Sachs, eventually succeeding Jon Corzine to become CEO in 1998. In Wikipedia his achievements may be further summed up:

“His net worth has been estimated at over US$700 million.^[9] Paulson has personally built close relations with China during his career. In July 2008 it was reported by The Daily Telegraph that: “Treasury Secretary Hank Paulson has intimate relations with the Chinese elite, dating from his days at Goldman Sachs when he visited the country more than 70 times.”"

Just before the bailout vote in the senate, Goldman Sachs (together with other major financial institutions) contributed significant funds to both McCain and Obama as well as to other major players including Senator Dodd, Head of the Senate Banking Committee. Perhaps they did this to assure safe passage of the Bailout Bill through the Senate ? See it here :

Here is evidence of who Paulson really works for :

[youtube:http://www.youtube.com/v/BEumrdHOq0w]

Evidence of Political Manipulation by Goldman Sachs:

“Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve System. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”