Wednesday, July 29, 2009

Federal Reserve is the world's largest 'Ponzi' Scheme

July 26, 2009 -- The Federal Reserve — the quasi-autonomous body that controls the US’s money supply — is a “Ponzi scheme” that created “bubble after bubble” in the US economy and needs to be held accountable for its actions, says Eliot Spitzer, the former governor and attorney-general of New York.

In a wide-ranging discussion of the bank bailouts on MSNBC’s Morning Meeting, host Dylan Ratigan described the process by which the Federal Reserve exchanged $13.9 trillion of bad bank debt for cash that it gave to the struggling banks.

Spitzer — who built a reputation as “the Sheriff of Wall Street” for his zealous prosecutions of corporate crime as New York’s attorney-general and then resigned as the state’s governor over revelations he had paid for prostitutes — seemed to agree with Ratigan that the bank bailout amounts to “America’s greatest theft and cover-up ever.”

Advocating in favor of a House bill to audit the Federal Reserve, Spitzer said: “The Federal Reserve has benefited for decades from the notion that it is quasi-autonomous, it’s supposed to be independent. Let me tell you a dirty secret: The Fed has done an absolutely disastrous job since [former Fed Chairman] Paul Volcker left.

“The reality is the Fed has blown it. Time and time again, they blew it. Bubble after bubble, they failed to understand what they were doing to the economy.

“The most poignant example for me is the AIG bailout, where they gave tens of billions of dollars that went right through — conduit payments — to the investment banks that are now solvent. We [taxpayers] didn’t get stock in those banks, they didn’t ask what was going on — this begs and cries out for hard, tough examination.

“You look at the governing structure of the New York [Federal Reserve], it was run by the very banks that got the money. This is a Ponzi scheme, an inside job. It is outrageous, it is time for Congress to say enough of this. And to give them more power now is crazy.

“The Fed needs to be examined carefully.”

Source: Information Clearing House

Some will say that the Fed doesn't know what it is doing. The Fed knows EXACTLY what it is doing and that is looting the USA of every damned bit of wealth they can get their grubby paws on and transferring it to their buds in the banking industry and that SLC in the ME, Israel.


hANOVER fIST said...

Wall Street did the Bankers' Bukkake to each other's faces when the Spitzer indictment came down.

Turns out he was RIGHT.

This is our thanks for concentrating on the wrong thing.

John said...

IT figures that JEW-Spitzer would have the goods on the "dirty little secret" (the Fed).

It's not a secret anymore, Spitzer, and you're another criminal JEW. Let's just hope they keep selling each other out at this pace. It'll make cleanup a whole lot easier.

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