Want To Control A Country? Control The Money

Do you remember when TurboTax Timmie as president of the NY Federal Reserve brokered the original AIG deal of $85 Billion, the sale of Bear Stearns,  and allowed Lehman Bros to fail?  Since that time, AIG has sucked $182 Billion out of our wallets with somewhere between $62 Billion and $90 Billion going to foreign banks. TTTimmie now wants to be able to seize any large company, and control the flow of money even more, with control being split between the Treasury,  the Federal Reserve, and Congress; the institutions that appear to be the three founders of the current economic meltdown.  TTT and the Obama administration are dancing on the fine edge in their appearances to the world right before the upcoming G20 meeting on April 2nd.

I was expecting what I read two days ago in the Washington Post:

U.S. Seeks Expanded Power to Seize Firms

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury’s role, are still in flux.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

The administration’s proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed’s other responsibilities, particularly its control over monetary policy.

The government also would assume the authority to seize such firms if they totter toward failure.

Besides seizing a company outright, the document states, the Treasury Secretary could use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake. Such authority also would allow the government to break contracts, such as the agreements to pay $165 million in bonuses to employees of AIG’s most troubled unit.

And then this morning, once again from the Washington Post:

Geithner to Propose Vast Expansion Of U.S. Oversight of Financial System

Treasury Secretary Timothy F. Geithner plans to propose today a sweeping expansion of federal authority over the financial system, breaking from an era in which the government stood back from financial markets and allowed participants to decide how much risk to take in the pursuit of profit.

The administration’s signature proposal is to vest a single federal agency with the power to police risk across the entire financial system. The agency would regulate the largest financial firms, including hedge funds and insurers not currently subject to federal regulation. It also would monitor financial markets for emergent dangers.

The administration yesterday detailed its proposed process, under which the Federal Reserve Board, along with any agency overseeing the troubled company, would recommend the need for a takeover. The Treasury secretary, in consultation with the president, then would authorize the action. The firm would be placed under the control of the Federal Deposit Insurance Corp. The government also would have the power to take intermediate steps to stabilize a firm, such as taking an ownership stake or providing loans.

One important difference is that the decision to seize a bank is made by agencies that have considerable autonomy and are intentionally shielded from the political process. Some legislators have raised concerns about providing such powers to the Treasury secretary, a member of the president’s Cabinet.

Our financial system has now been placed in the political arena alongside abortion and taxes….just more items for the politicians to use during elections.  Thomas Jefferson is SPINNING in his grave…

If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children wake up homeless on the continent their fathers conquered – Thomas Jefferson

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Comments
One Response to “Want To Control A Country? Control The Money”
  1. lee M. says:

    Diamond, When Geithner floated the first bail-out for AIG when he was President of the NY Fed Reserve Bank, he had to know about the bonus clause. He was either in on the deception or dumber than horse pucky. To then be appointed Treasury Secretary and retained in that position even after it became known that he was a tax cheat, it has to be obvious to even the least informed individual that this guy has been chosen as part of the crew, not for how intelligent he is, (NOT), but for his connections to TPTB.

    As for the Federal Reserve being the leading candidate to head this new assignment..”But some critics warn this could conflict with the Fed’s other responsibilities, particulary its control over monetary policy”

    This would indeed be a conflict of interest and would give the Fed dangerous control over finances and commerce in the United States. But then isn’t that the raison d’etre for the Federal Reserve in the first place? Since 1913 they have been grabbing more and more, and with the aiding and abetting of various presidents they have already become so powerful that when the Chairman speaks, EVERYBODY listens.

    This is just another step in the furthering of global finance and commerce. One World Order.

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