FDIC blames Federal Reserve for severity of banking crisis!

[jmdrake]

Rats leaving a sinking ship or the pot calling the kettle black? At any rate this is good news! We can certainly use this to our advantage.

http://www.ft.com/cms/s/0/e8e2bb3a-0175-11df-8c54-00144feabdc0.html
FDIC blames Federal Reserve for severity of financial crisis

By Tom Braithwaite in Washington

Published: January 15 2010 02:00 | Last updated: January 15 2010 02:00

The Federal Reserve was blamed by a fellow regulator for contributing to the financial crisis yesterday as the central bank and one of its former chairmen fought back against congressional moves to curb its powers.

In unusually pointed criticism, Sheila Bair, chairman of the Federal Deposit Insurance Corporation, told the Financial Crisis Inquiry Commission that "much of the crisis may have been prevented" had the Fed dealt with subprime mortgages seven years before it did.

In New York, Paul Volcker, former Fed chairman and now White House economic adviser, was making the case for the defence.

He said that there was "a compelling case that central banks should have a strong voice and authority in regulation and supervisory matters".

Both Ms Bair and Mr Volcker carry weight on Capitol Hill, where the Fed has drawn blame for aspects of the crisis.

Mr Volcker told the Economics Club of New York that he was "particularly disturbed" about moves to take away the Fed's regulatory function.

Chris Dodd, Senate banking committee chairman, has proposed consolidating bank supervision into a single regulator.

The Fed published a paper yesterday, which had been sent to Mr Dodd on Wednesday, arguing that its financial stability and monetary policy roles were complemented by supervising bank holding companies.

Institutions at the centre of the crisis, such as Lehman Brothers, AIG and Countrywide, had been outside its jurisdiction and subject to "far less comprehensive" regulation, it said.

The Fed paper marks a public and proactive stance by a body whose culture and independence from Congress have made it less willing than other agencies to fight for power in the altered regulatory landscape.

It acknowledged some failures but said that the Fed was at the forefront of new and improved techniques of oversight, such as "cross-firm, horizontal exams" to assess common exposures and vulnerabilities, and "forward-looking stress testing based on alternative projections for the macroeconomy".

Mr Volcker said: "What seems to me beyond dispute, given recent events, is that monetary policy and the structure and condition of the banking and financial system are irretrievably intertwined."

[sluggo]

I tend to think that the Fed will be publicly sacrificed in the not-too-distant future, and the IMF will be positioned as its replacement.

[ItsTime]

I tend to think that the Fed will be publicly sacrificed in the not-too-distant future, and the IMF will be positioned as its replacement.

Exactly because the fed will be to big to fail so of course we need to create something bigger.

[Dieseler]

I tend to think that the Fed will be publicly sacrificed in the not-too-distant future, and the IMF will be positioned as its replacement.




Exactly because the fed will be to big to fail so of course we need to create something bigger.

That I'm afraid is the plan and was the plan all along.

[Mini-Me]

That I'm afraid is the plan and was the plan all along.

Looking at the bright side, they probably won't be able to think of anything bigger after we move on to an "End the IMF" campaign...then again, maybe they will, since the IMF is a largely western institution in its ownership, and globalists will say it wasn't "global" enough after it fails.

[Dieseler]

Looking at the bright side, they probably won't be able to think of anything bigger after we move on to an "End the IMF" campaign...then again, maybe they will, since the IMF is a largely western institution in its ownership, and globalists will say it wasn't "global" enough after it fails.

In my opinion, it's hard to cause an illusion to fail unless the illusionist wants it to fail, which is also my opinion of what is going on now.
I see a play towards total Global Economic and Monetary Control, not just U.S. monetary control.
You have to believe that its all just an illusion to begin with to come to that conclusion though and I have come to grips with that myself and do indeed believe that the whole thing is a scam.

We won't be able to audit the IMF.
Or whatever it turns out to be that is.

[YumYum]

So, how does the Fed and its bankers go out with a bang?

[Dieseler]

So, how does the Fed and its bankers go out with a bang?

Simple, they just conglomerate and offer an ultimatum.
If we don't accept it someone else will.
They bank all the wars and all the war winners.
Strong illusion they got going.

Conglomerate with all of the other International Bankers is what I mean.
World Bank.
One World Bank.
Sorry, no audits allowed.

[AmericaFyeah92]

I love power struggles

[Dieseler]

I love power struggles

It's not much of a struggle though really and that is the problem. Everything is pretty much in place now, there is just that matter of breaking the sad news to the people who all kindly believe in the illusion.
It's just that maddeningly simple to me really.

[YumYum]

Simple, they just conglomerate and offer an ultimatum.
If we don't accept it someone else will.
They bank all the wars and all the war winners.
Strong illusion they got going.

Conglomerate with all of the other International Bankers is what I mean.
World Bank.
One World Bank.
Sorry, no audits allowed.

Griffin discussed this. He said when Americans are starving and homeless they will accept a one world government out of desperation. So wouldn't the Fed have to create some horrible scenario to force Americans to accept our country's economy being under the control of a world bank? If they announced next month that the U.S. economy is being controlled by a world bank people would go nuts.

[Matt Collins]

Amazing

[Mini-Me]

In my opinion, it's hard to cause an illusion to fail unless the illusionist wants it to fail, which is also my opinion of what is going on now.
I see a play towards total Global Economic and Monetary Control, not just U.S. monetary control.
You have to believe that its all just an illusion to begin with to come to that conclusion though and I have come to grips with that myself and do indeed believe that the whole thing is a scam.

We won't be able to audit the IMF.
Or whatever it turns out to be that is.

I know what you mean, but I guess I feel like the globalists are backing themselves into a corner anyway. Once there's an overt one world government running everything, that's the end of the line for them; after that point, they'll never be able to use the excuse, "The problem is that we didn't have enough power!" again. Once the currency system collapses again under those circumstances (and it will, since they won't be able to help themselves from inflationary practices), it will become enormously difficult for them to herd people again with manufactured dialectics. At least, that's an optimistic way of looking at things...;)

[Dieseler]

Griffin discussed this. He said when Americans are starving and homeless they will accept a one world government out of desperation. So wouldn't the Fed have to create some horrible scenario to force Americans to accept our country's economy being under the control of a world bank? If they announced next month that the U.S. economy is being controlled by a world bank people would go nuts.

That's what they're doing isn't it?

[Dieseler]

I know what you mean, but I guess I feel like the globalists are backing themselves into a corner anyway. Once there's an overt one world government running everything, that's the end of the line for them; after that point, they'll never be able to use the excuse, "The problem is that we didn't have enough power!" again. Once the currency system collapses again under those circumstances (and it will, since they won't be able to help themselves from inflationary practices), it will become enormously difficult for them to herd people again with manufactured dialectics. At least, that's an optimistic way of looking at things...;)

Well the rest of the World would love to see America fall a notch or two I think and that plays into the plan.
They won't totally defang us by any means but they will force an agreement to remain firmly attached to the interest payment only World Bank Tit or else they will offer it to another who will.
Balance is key but Control is the prime concern and they will not suffer the American people any recourse against the continuance of their day to day business nor any other group of people.
In other words, if it gets to that Global Position, their mistakes won't matter anyway because you won't hear about them to begin with. There won't be any mistakes, dead men tell no tales and all that.

[nobody's_hero]

In my opinion, it's hard to cause an illusion to fail unless the illusionist wants it to fail, which is also my opinion of what is going on now.
I see a play towards total Global Economic and Monetary Control, not just U.S. monetary control.
You have to believe that its all just an illusion to begin with to come to that conclusion though and I have come to grips with that myself and do indeed believe that the whole thing is a scam.

We won't be able to audit the IMF.
Or whatever it turns out to be that is.

Then the goal should not (necessarily) be to cause the illusion to fail. The goal should be to teach people to learn how to spot illusions.

Do that, and no goofy scheme they can come up with will pass scrutiny.

That's not easy, but not impossible, either. The good news is, the establishment has little credibility left, and might even do more harm to its reputation than we can.

[Mini-Me]

Well the rest of the World would love to see America fall a notch or two I think and that plays into the plan.
They won't totally defang us by any means but they will force an agreement to remain firmly attached to the interest payment only World Bank Tit or else they will offer it to another who will.
Balance is key but Control is the prime concern and they will not suffer the American people any recourse against the continuance of their day to day business nor any other group of people.
In other words, if it gets to that Global Position, their mistakes won't matter anyway because you won't hear about them to begin with. There won't be any mistakes, dead men tell no tales and all that.

Regardless of what the papers are printing, people tend to notice when bread goes from a few bucks a loaf to a hundred fifty billion bucks a loaf. ;)

[Dieseler]

Regardless of what the papers are printing, people tend to notice when bread goes from a few bucks a loaf to a hundred fifty billion bucks a loaf. ;)

That's what I'm saying and it isn't happening on accident nor is it happening due to incompetence.
It's happening on purpose.

[bunklocoempire]

I tend to think that the Fed will be publicly sacrificed in the not-too-distant future, and the IMF will be positioned as its replacement.

I'm betting the reason given will be:

"It's a big global economy don't cha know, it's far too big for the Fed to go it alone, going it alone is what caused the global crisis"

TPTB will still retain power and join with others to exploit, just more in the open about doing it globally.

Bunkloco

[Mini-Me]

That's what I'm saying and it isn't happening on accident nor is it happening due to incompetence.
It's happening on purpose.

Right now, perhaps it is. My point though is that it will happen again under a one world government system, on "accident." It won't be so much an accident though as a natural economic consequence of bankers using any of the advantages they get from central banking in the first place. That's the irony here: By exercising their powers of tyranny and siphoning wealth from the masses, they are inherently harming the economy and undermining the very system that allows them to do so. As Mises argued, socialism is inherently unsustainable, and it will always collapse for economic reasons, sooner or later. It doesn't matter if they're doing it on purpose this time or not; they'll do it on "accident" too eventually, like the Romans did. The only way for this NOT to happen is if they somehow exercise "responsible" central banking, but then if so, only principled libertarians would even care to fight them anyway (even if everyone knew what was up), since it wouldn't be decimating the economy like central banking usually does.

[Dieseler]

Right now, perhaps it is. My point though is that it will happen again under a one world government system, on "accident." It won't be so much an accident though as a natural economic consequence of bankers using any of the advantages they get from central banking in the first place. That's the irony here: By exercising their powers of tyranny and siphoning wealth from the masses, they are inherently harming the economy and undermining the very system that allows them to do so. As Mises argued, socialism is inherently unsustainable, and it will always collapse for economic reasons, sooner or later. It doesn't matter if they're doing it on purpose this time or not; they'll do it on "accident" too eventually, like the Romans did. The only way for this NOT to happen is if they somehow exercise "responsible" central banking, but then if so, only principled libertarians would even care to fight them anyway (even if everyone knew what was up), since it wouldn't be decimating the economy like central banking usually does.

Well it's just a grand attempt at micro managing the entire world really. I personally think that it is going to happen but I dare not go into detail other than that because it might lead into other lines of debate.
I'm right there with you though, it won't work for long but it won't be for the reasons one might think, logically speaking.
You couldn't write a better script.
I've been following it for awhile.