CNBC.com front page: Fed would be SHUT DOWN if audited, experts say.

[MsDoodahs]

I have not read it yet, wanted to get it posted here for y'all!

lol

WOULD BE SHUT DOWN IF AUDITED.

What was that Henry Ford quote?

;)

edited to add the link:

(Cowlesy - this includes the Jim Grant interview link at the CNBC site :) )

http://www.cnbc.com/id/31204170

[MsDoodahs]

Here is the text of their story:

"The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC.



With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said in a live interview.

"If the Fed examiners were set upon the Fed's own documents—unlabeled documents—to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized."

Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed.

Moreover, he criticized the way the Fed has managed the financial crisis, saying the central bank's target rate should not be around zero.



"I think zero is the wrong rate for almost any economy," Grant said, adding the Fed has "embarked on a vast experiment in moral hazard. Interest rates are the traffic signals in a market economy, and everything's green. ... You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank."

Amid a disparity between analysts predicting there will be no rate hikes soon and the fed funds futures indicating tightening by the end of the year, Grant said he thinks the Fed indeed will begin raising rates as inflation creeps into the picture.

Fed funds futures have fully priced in as much as a half-point rise in the target rate from its current range of zero to 0.25 percent.

"If the hairs on the back of your neck stand up when there's too much unanimity of opinion, then one begins to worry about this," he said. "The Fed proverbially has been late."

:D

[MRoCkEd]

dude!!

[FrankRep]

Fed Would Be Shut Down If It Were Audited, Expert Says

http://www.cnbc.com/id/31204170

[MRoCkEd]

The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC.

[acptulsa]

The weird part isn't that they said it, or that they meant it. The weird part is that CNBC is repeating it.

[MsDoodahs]

I hope the vid is of the ENTIRE segment - loved how the hosts were scratching their heads when Grant was explaining inflation. lol

[tron paul]

At this rate, the United States of America will soon pass a Ron Paul Amendment to the Constitution, repealing the 16th (IRS & income tax) and forever banning central banks like the Fed.

[MRoCkEd]

At this rate, the United States of America will soon pass a Ron Paul Amendment to the Constitution, repealing the 16th (IRS & income tax) and forever banning central banks like the Fed.
Honestly, I think we'd be better off if the only amendment was "congress shall write no laws" period so all they could do was repeal the ones already on the book.

[DFF]

The weird part isn't that they said it, or that they meant it. The weird part is that CNBC is repeating it.

Agreed. Something fishy's going on here. But they didn't mention who came up with bill to audit the Fed, so that's normal. :rolleyes:

[TER]

Agreed. Something fishy's going on here. But they didn't mention who came up with bill to audit the Fed, so that's normal. :rolleyes:

In some ways that may be an advantage because it de-politicizes it.

[MsDoodahs]

But they didn't mention who came up with bill to audit the Fed, so that's normal. :rolleyes:

You know, that is actually a GOOD thing - because so many sheep were conditioned to hear the name "Ron Paul" and instantly think "mayor of crazy town" (gee thanks, BECK :rolleyes:).

It isn't about the man, it is about the message.

I credit Ariana with being pretty savvy for having left out RP's name. Had she said, "Ron Paul's bill to audit the Fed," Carl would have jumped in and said something rude, Joe would have laughed, and the viewers would have laughed and tuned out their BRAINS.

It would have destroyed THE MESSAGE.

I think Ariana did us a favor right there by leaving out Ron's name.

[HOLLYWOOD]

The Witching hour is coming up shortly... 1PM EST / 10AM PST:

US 10 Year Bond Auction Happens... AND there's a big Selloff NOW!

I wonder how much THE FED will have to buy? We'll definitely bust through the 4% plateau.

Central Banks, who needs them? Government and the Banking industry, not the People. We've be scammed by parasites profiting off the people.

I'm truly surprise that CNBC and their bobbleheads posted this article. CNBC senior FED talking head, Steve Liesman must be crying during commercials.

Arianna Huffington brings up HR 1207 as there's abill to AUDIT THE FED! WooHoo!

Jim Grant is Very Smart and Very Good... The CFL needs to get this guy ON BOARD!!!

Huffington: What would you do with the Toxic Assets? Grant: Screwy Structures that Wall street Created... appoint a Vice President of FAILURE! hah hah

Jeffery Immelt (GE/NBC/CNBC/MSNBC CEO) is going to send a memo to Squawk Box.


At this rate, the United States of America will soon pass a Ron Paul Amendment to the Constitution, repealing the 16th (IRS & income tax) and forever banning central banks like the Fed.

[Mahkato]

http://digg.com/politics/Fed_Would_Be_Shut_Down_If_It_Were_Audited_Expert_S ays

[iddo]

I thought that the money supply more or less doubled? What was that figure that Jim Grant cited in the beginning of the interview about $20b of deposits by commercial banks being increased to $830b in several months? That's not x2 increase, that's x41 increase... Could someone elaborate on what this number means?

[Cowlesy]

muhahahaha.....That'a boy James Grant.

I'll listen to the interview afterwork, but if it is anything like other interview's with Grant, he's precise and direct in everything he says.

I can tell you from working in the belly of the beast on Wall Street, most of the big shots listen to or read everything James Grant puts up with the utmost of seriousness.

[IPSecure]

This will be spun as a national security issue... Dr. Paul will be called an enemy of the state...

[Aratus]

1207 as a bill has 223+ co-sponsors and evidently the FED and at least
ONE thorough-going audit will be debated in full on the house floor...

[malkusm]

The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC.

Why wait for the audit?

[HOLLYWOOD]

http://l.yimg.com/a/i/us/uh/bt2/fin_logov1.gif
Ron Paul's "Fed Transparency" Bill Gets Majority House Support

http://finance.yahoo.com/techticker/article/262886/Ron-Paul%27s-

Posted Jun 12, 2009 11:40am EDT by Joe Weisenthal in Investing (http://finance.yahoo.com/tech-ticker/Investing), Newsmakers (http://finance.yahoo.com/tech-ticker/Newsmakers), Recession (http://finance.yahoo.com/tech-ticker/Recession), Banking (http://finance.yahoo.com/tech-ticker/Banking) Related: dia (http://finance.yahoo.com/q?s=dia), spy (http://finance.yahoo.com/q?s=spy), xlf (http://finance.yahoo.com/q?s=xlf)
http://us.news2.yimg.com/us.yimg.com/p/fi/23/13/81.jpgFrom The Business Insider (http://www.businessinsider.com/clusterstock), June 12, 2009:
The US House of Representative has joined the Cult of Paul.
Ron Paul, the famously anti-Federal Reserve Congressman from Texas has got 221 of his colleagues to sign onto a bill (http://www.house.gov/apps/list/press/tx14_paul/audit.shtml) (via Zero Hedge (http://zerohedge.blogspot.com/2009/06/federal-reserve-transparency-petition.html)) that would require a fresh, outside audit of the Federal Reserve. That's more than enough to get the bill out of the House, though it now faces the more adult and deliberative House of Lords Senate, who are likely to have less interest in such seditious shenanigans.
The first Senate co-sponsor is rumored to be Jim DeMint of South Carolina (http://tickerforum.org/cgi-ticker/akcs-www?singlepost=1282474), a favorite among the hard right and a possible Presidential candidate.
For more coverage, see The Business Insider (http://www.businessinsider.com/clusterstock):


Report exposes Federal Reserves $2.1 trillion bailout balance sheet (http://www.businessinsider.com/federal-reserve-releases-its-first-balance-sheet-report-2009-6)
Momentum builds for Ron Paul's "Fed Transparency" act (http://www.businessinsider.com/momentum-builds-for-ron-pauls-fed-transparency-act-2009-5)

Report Exposes Federal Reserves $2.1 Trillion Bailout Balance Sheet
John Carney (http://www.businessinsider.com/john-carney)|Jun. 10, 2009, 3:23 PM|http://www.businessinsider.com/assets/images/icons/icon_comment_12x12.gif (http://www.businessinsider.com/federal-reserve-releases-its-first-balance-sheet-report-2009-6#comments)6 (http://www.businessinsider.com/federal-reserve-releases-its-first-balance-sheet-report-2009-6#comments)
Print (javascript:window.print())
Tags: Wall Street (http://www.businessinsider.com/wall-street), Ben Bernanke (http://www.businessinsider.com/ben-bernanke), Federal Reserve (http://www.businessinsider.com/federal-reserve)
http://static.10gen.com/www.businessinsider.com/%7E%7E/f?id=48eb630514b9b9ae0034f7c2&maxX=400&maxY=271From Reuters: (http://www.reuters.com/article/marketsNews/idUSN1044618220090610)
The U.S. Federal Reserve drew back the curtain on its emergency repairs to the financial system on Wednesday, showing $5.3 billion in losses on assets taken over from firms it bailed out in 2008.
In a report on its $2.1 trillion balance sheet, the Fed also said it earned $1.2 billion from loan programs and $4.6 billion in interest on its holdings of Treasury and other securities in the first three months of the year.

The Fed is making more information available about its finances, and its rescues of investment bank Bear Stearns and insurer American International Group (AIG.N (http://www.reuters.com/finance/stocks/overview?symbol=AIG.N)) in order to show the public it is using its resources wisely, a senior Fed official said, speaking to reporters on condition of anonymity.

[vegaspilot03]

+1

[malkusm]

http://l.yimg.com/a/i/us/uh/bt2/fin_logov1.gif
Ron Paul's "Fed Transparency" Bill Gets Majority House Support

http://finance.yahoo.com/techticker/article/262886/Ron-Paul%27s-

Posted Jun 12, 2009 11:40am EDT by Joe Weisenthal in Investing (http://finance.yahoo.com/tech-ticker/Investing), Newsmakers (http://finance.yahoo.com/tech-ticker/Newsmakers), Recession (http://finance.yahoo.com/tech-ticker/Recession), Banking (http://finance.yahoo.com/tech-ticker/Banking) Related: dia (http://finance.yahoo.com/q?s=dia), spy (http://finance.yahoo.com/q?s=spy), xlf (http://finance.yahoo.com/q?s=xlf)
http://us.news2.yimg.com/us.yimg.com/p/fi/23/13/81.jpgFrom The Business Insider (http://www.businessinsider.com/clusterstock), June 12, 2009:
The US House of Representative has joined the Cult of Paul.
Ron Paul, the famously anti-Federal Reserve Congressman from Texas has got 221 of his colleagues to sign onto a bill (http://www.house.gov/apps/list/press/tx14_paul/audit.shtml) (via Zero Hedge (http://zerohedge.blogspot.com/2009/06/federal-reserve-transparency-petition.html)) that would require a fresh, outside audit of the Federal Reserve. That's more than enough to get the bill out of the House, though it now faces the more adult and deliberative House of Lords Senate, who are likely to have less interest in such seditious shenanigans.
The first Senate co-sponsor is rumored to be Jim DeMint of South Carolina (http://tickerforum.org/cgi-ticker/akcs-www?singlepost=1282474), a favorite among the hard right and a possible Presidential candidate.
For more coverage, see The Business Insider (http://www.businessinsider.com/clusterstock):

Bold red font indicates propagandist, biased bullshit.

[iddo]

This article is somewhat interesting: http://www.examiner.com/x-9423-NY-Libertarian-Examiner~y2009m6d13-NYC-Congressional-Delegation-in-Minority-in-Opposing-Federal-Reserve-Audit
And it mentions that 36 of the 71 members of the House Financial Services Committee are now co-sponsors, i.e. a majority in the committee. I didn't notice that before.

[awake]

You can end the Fed but they still have the IMF. They want world central banking, so we might just helping it along.

[HOLLYWOOD]

Bold red font indicates propagandist, biased bullshit.

So looking at this Joe Weisenthal reporter/writer/editor who wrote the HR1207 RP piece, and following his info and company connections, from little fish to big fish of companies. Yeah a propagandist. Checking the employees... it appears he's writing under a different name.

BEFORE looking any further... checkout this article by Joe Weisenthal, yeah, HE's a Leftist ObamaBot:
http://www.businessinsider.com/more-believe-that-republican-chrysler-dealers-were-targeted-2009-5
Mounting Speculation That Republican Chrysler Dealers Were Targeted
Joe Weisenthal (http://www.businessinsider.com/joe-weisenthal)|May. 28, 2009, 3:19 PM|http://www.businessinsider.com/assets/gfx_RedWhiteBlue/icons/icon_comment_12x12.gif (http://www.businessinsider.com/more-believe-that-republican-chrysler-dealers-were-targeted-2009-5#comments)48 (http://www.businessinsider.com/more-believe-that-republican-chrysler-dealers-were-targeted-2009-5#comments)
Print (http://javascript%3Cb%3E%3C/b%3E:window.print%28%29)
Tags: Politics (http://www.businessinsider.com/politics), Chrysler (http://www.businessinsider.com/chrysler), Barack Obama (http://www.businessinsider.com/barack-obama), Bankruptcy (http://www.businessinsider.com/bankruptcy), White House (http://www.businessinsider.com/white-house), Cars (http://www.businessinsider.com/cars)
http://static.10gen.com/www.businessinsider.com/%7E%7E/f?id=49241cd2796c7a4f003aa096Earlier this week we mentioned an internet-borne conspiracy theory that the Chrysler dealership closings had a partisan tilt. Basically, some blogs believed that dealers who donated to Republicans were heavily represented on the list of closed dealers.
We were pretty skeptical, and we got some comments and emails wondering why we even bothered writing up that "wingnut" conspiracy story.

Joe Weisenthal
Financial & Deals Reporter
Greater New York City Area
http://www.contentnext.com/

Joe Weisenthal

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[bobbyw24]

http://www.ronpaulforums.com/showthread.php?t=195856