Federal Reserve is a Ponzi Scheme an Inside Job

The Federal Reserve — the quasi-autonomous body that controls the USs 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 MSNBCs 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 Yorks attorney-general and then resigned as the states governor over revelations he had paid for prostitutes — seemed to agree with Ratigan that the bank bailout amounts to Americas 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, its 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] didnt get stock in those banks, they didnt 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.

Spitzer resigned as governor of New York in March, 2008, after news reports stated he had paid for a $1,000-an-hour New York City call girl.

At the time, Spitzer had been raising the alarm about sub-prime mortgages. In the wake of the economic meltdown triggered last fall by sub-prime loans, some observers have suggested that Spitzer may have been targeted by law enforcement because of his high-profile opposition to Wall Street financial policies.

Investigative reporter Greg Palast wrote that federal agents revealing of Spitzers identity as a call-girl customer was no coincidence.

Palast wrote that the principle of prosecutorial discretion is often used to keep the names of high-profile persons out of the media when they are tangentially linked to a criminal investigation. In the case of Spitzer, the Justice Department chose not to invoke prosecutorial discretion. Funny thing, this discretion. For example, Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him in diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him. Naming and shaming and ruining Spitzer rarely done in these cases - was made at the discretion of Bushs Justice Department.

Spitzer recently told Bloomberg News that President Obamas regulatory reforms of the financial sector are irrelevant because regulatory agencies have not been enforcing corporate laws to begin with.

Regulatory agencies already had the power to do everything they needed to do, he said. They just affirmatively chose not to do it.

Daniel Tencer

This video was broadcast on MSNBCs Morning Meeting, Friday, July 24, 2009, and uploaded to YouTube

Category:

News & Politics

Tags:

• Eliot Spitzer
• Ron Paul
• Federal Reserve
• Ben Bernanke
• Freedomwatch
• Napolitano
• NLE 09
• End the Fed
• Roche
• Mike Shanklin
• HR1207
• S604
• Paulson
• Obama

[eurohim]

And that 13.9 trillion allows the bank to loan out 125.1 trillion at interest. That's a nice business to be in.

[navtel]

congress is bought and paid for.. they are useless.. the whole government needs a revamp..

[jnar7]

We need to get back to our roots, get back to our Constitution. Benjamin Franklin said THE most violent actions occur when you place in front of a man a seat of honor and financial gain. That seat of honor and financial gain is exactly what our politicians are campaigning for now'a days

RON PAUL 2012!!!

[idrobinhood]

mafia, illegal, Jew banksters, schemes, money laundering, falsely holding up the USA economy.

[BikiniBabe1985]

Peter is not getting hammered in the polls, he is beating Dodd and starts his campaign headquarters later this week. He is only losing to Rob Simmons and Linda McMahon because of name recognition. Once it becomes exposed how much Peter understands the economic situation, and how little the other fools do not, he will surely catch them. He has more than enough money to compete.

[soundmoneyfan]

I'm not rich! haha. I'm thinking of starting to give my donations I have been giving to Peter to RJ or double up on Rand. Peter is getting hammered in all of the polls since he doesn't do enough real campaigning since he is so busy. Until the majority of Americans agree with the analysis of Chris Hedges and Robert Higgs, I don't get too excited. Without the understanding of what is wrong in the corporate state, we will never get real solutions. I bet more war before we see the end of the Fed

[BikiniBabe1985]

You forgot about RJ Harris, another Ron Paul Republican with a legitimate chance at victory. We dont have the numbers at this point but we do have greater passion and intensity than the neocons and liberals. The reason for this greater intensity is that we are right and they are wrong. Obama fans had no idea what the man stood for when he ran; now that he is expanding the war and furthering the destruction of the economy they do not know what to think. The country is ready for a new direction

[soundmoneyfan]

haha, I suggest you start to dig in to works of Robert Higgs. I support everything you mention above and I donate to Rand Paul, Schiff, and Kokesh. I also worked for the 2008 Ron Paul campaign. All the things you listed above will never happen. The American Public is too immoral and undereducated to end this corporatism regime. The TEA parties have been hijacked by repubs. Our "leaders" will take us to a large scale war before they admit that have been leading us down the wrong path.

[BikiniBabe1985]

Wrong soundmoneyfan. The big money will be right here in the U.S. after the patriots of liberty overthrow the crooks in D.C. and restore the constitution. We shall abolish the Federal Reserve, the IRS, and every other counterproductive bureaucratic institution funded by those evil organizations. We shall end the military industrial complex. We shall eliminate the federal income tax and shift the money back in the hands of the citizens to be better allocated through the private sector.

[SmokePropaganda]

END THE FED

[BrittPhillips]

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[kosai19]

Maybe Dylan left CNBC cause he couldn't take continually lying to people. Good for him.