Racketeering 102: Fed's Lacker Threatens With Mutually Assured Destruction If Fed Audited

Racketeering 102: Fed's Lacker Threatens With Mutually Assured Destruction If Fed Audited

It was a four short months ago that the Clearing House Association, in a court filing, threatened with untold destruction if the Fed was ordered to submit to an audit that would expose all their dirty laundry in the form of undervalued assets used as collateral by the Federal Reserve. We recall the direct threat used back then:

If the names of our member banks who borrow emergency funds are publicly disclosed, the likelihood that a borrowing bank's customers, counterparties and other market participants will draw a negative inference is great. Public speculation that a financial institution is experiencing liquidity shortfalls - which would be a natural inference from having tapped emergency funds - has caused bank customers to withdraw deposits, counterparties to make collateral calls and lenders to accelerate loan repayment or refuse to make new loans. When an institution's customers flee and its credit dries up the institution may suffer severe capital and liquidity strains leaving it in a weakened competitive position.

and a bit more into the article...

While Mr. Lacker's testimony is indeed self-serving, it is also patently flawed. There is nothing in the proposed Fed Transparency law that would imperil the Fed with direct political intervention, and nothing that would impact its monetary policy decision-making appartus. Perhaps it is about time someone highlighted the actual truth behind the various Ron Paul et al proposal, which seek not contemporaneous information of decision-making to the GAO or otherwise, but a delayed, 6 month-lagged disclosure. How this impairs monetary policy independence is incomprehensible.

Furthermore, the claim that the Fed's "balanced, hybrid governance structure has given us a good record over the better part of three decades" is very much subject to a recount. If Mr. Lacker deems that Fed's actions over the past three decades, which culminated with the implosion of the biggest credit and housing bubbles this country has ever seen, courtesy of self-serving (that phrase again) monetary flaws, are indicative of a "good record" then we certainly agree. We also would recommend that the Fed president immediately seek a medical prescription for Geodon or, if that particular medicine will not be covered by the soon enacted "new and improved" nationalized healthcare system, any other over-the-counter antipsychotic medication that is freely available.

Read the full article here

All I have to say is that the Fed will never be audited, and if by some chance it does happen, it will be a complete pile of lies that I wouldn't spend 1 minute looking into. The truth is out there, we all know it, but it is never going to be published by a large media source. My opinion - figure this stuff out for yourself and make your own minds up. But I guess we can wait and see how far all of this really goes.

Explanation: S&F!

Personal Disclosure: Bumped because its VERY IMPORTANT!

P.S. That blokes testiomony sounds like a clear case of insider trading!
EPIC FAIL! :shk:

reply to post by OmegaLogos


Glad you picked up on the whole insider trading thing as well, because I sure did. It seems to me a truth serum given to that man, and a decent quality camera recording the conversation would be able to ruin the Fed completely. Too bad torture and kidnapping is illegal... well at least for us 'citizens' it is

But on a more serious note, screw the Fed. That is all.

On the contrary, I believe it is inevitable it WILL be audited and its sins exposed to the world, as a sacrifice for someones plans. There is far too much information 'leaked' about it for it not to lead to something epic, and I think the only possibility is that it will be exposed as a criminal entity, and people will demand it be eliminated, and what is put in place will be much worse.

I find it hard to believe something so central to the economy could not be a major part of the plan, meant to fail or not, there is foresight involved in its position.

reply to post by Ridhya


How long do you think it will be, in your opinion, until this audit happens and the truth comes out?

As much as I wish to believe this will happen, I don't think it ever will. I think this country will die along with it secrets eventually (just as every great civilization falls). Our 'golden years' are gone, and we are going down economically and socially at a steady pace now and have been for a while.

We are doomed to fail; that is inevitable.

How could the FED possibly be audited? They can just print 100 million dollars and give it to anyone seeking to audit them and no one would know but them!

Oh wait! Could it be we have a real human being in congress that cares about the good of the nation and world?

Uhem Uhem, Ron Paul!

The fed will move it's operations to the IMF or some other "global" banking network before this happens, let itself be audited, allow a few ofit's employees to take the fall, and continue on business as usual, only with a different name. It's the old bait and switch. Mark my words.

They'll keep stalling until about 2016, because thats when the Baby Boomers will start cashing out on their retirement funds. I'm sure those funds are long gone, so rather than pay up, they'll let the whole she-bang go down the toilet.

Originally posted by highlyoriginal
How long do you think it will be, in your opinion, until this audit happens and the truth comes out?

2012
That's my guess.

There really is no way the US won't fail. Doesn't matter to the people at the top, they will be long gone when things go to #.

reply to post by highlyoriginal


Few years, my guess would be within 3, before 2016 at least. I mean its a bit off but better than nothing.

I understand you thinking it wont, I think that is not underlying the plans though. Dont despair, the US is going down it bit off more than it could chew, or, maybe they wanted it to fail? Again, theres a saying in politics, if it happened you can bet it was meant to happen. You can bet this evidence of fed activities will go somewhere, the reason WHY is what you should look for.

Dont feel bad either. We also have a saying, everything's okay in the end. If everythings not okay, its not the end. Keep positive!