Posted on 02/25/2010 9:30:03 AM PST by 1rudeboy
Whenever I post something negative about Ron Paul (which is just about every time I post about him), I get the NASTIEST comments and emails. He doesn't have a lot of supporters but those that do support him do so with a passion. That isn't particularly bothersome, after all people should have some passion. Problem is Ron Paul is a "drooling crazy " type. This guy must have of fallen out the crazy tree and hit every branch on the way down.
Today while he questioned Fed Chair Ben Bernanke Paul turned on his Crazy overdrive and made some absolutely batty allegations about the [F]ed, including accusing them of participating in the Watergate Scandal.
(Excerpt) Read more at yidwithlid.blogspot.com ...
When they executed swap agreements to prop up other nations’ currencies and banking systems.
Not part of their mission, not part of what the Congressional act creating the Fed authorizes them to do.
It supported the banking system. It reduced the interest rate on dollar loans. How did it support their currencies?
Not part of their mission, not part of what the Congressional act creating the Fed authorizes them to do.
Congress didn't authorize the Fed to deal with other central banks? Are you sure about that?
Per 12 USC 358, the Fed has the authorization (upon a vote of the FOMC) to open accounts with foreign banks. This does not give them the authority to support foreign currencies (or use swaps and derivatives to support the US dollar through foreign currency transactions) and/or to support foreign banking systems.
They’ve abused their authority in this area before in the 60’s through the early 70’s to support the US dollar, in concert with the US Treasury’s “Exchange Stabilization Fund.” Google (or use your favorite search engine) to go read up on the history of Roosa and Carter bonds.
The Fed’s position is that the enabling legislation doesn’t prohibit the action, and they’ve done these sorts of swaps before with the concurrence of the US Treasury, therefore it’s okey-dokey to do it again.
In the crisis of 2008, the Fed provided massive dollar liquidity to foreign banking systems because they conduct a huge amount of their international settlements in the reserve currency - the USD. These other foreign central banks allowed themselves to get into a position where they were unable to meet liquidity requirements in dollars, and without being able to access huge pools of liquidity, they faced some real sticky problems.
That’s tragic, but it isn’t our problem.
Here’s a paper from the BIS which makes this more clear:
http://www.bis.org/publ/work291.pdf?noframes=1
And here’s the money quote from therein:
“In providing US dollars on a global scale, the Federal Reserve effectively engaged in international lending of last resort. The swap network can be understood as a mechanism by which the Federal Reserve extends loans, collateralised by foreign currencies, to other central banks, which in turn make these funds available through US dollar auctions in their respective jurisdictions.33 This made US dollar liquidity accessible to commercial banks around the world, including those that have no US subsidiaries or insufficient eligible collateral to borrow directly from the Federal Reserve System.”
The Fed is in no way authorized to prop up foreign commercial banks, or foreign commercial banking systems.
Ron Paul Your Spaceship Called, They’re Ready To Beam You Up...LOL.
I think the FreeRepublic PTB keep some of these Paulbots around for entertainment purposes..
Courtesy of FReeper 50mm.
You Betcha.
Am stocking up
I thought that odd also, No Reply link
[12 USC 358. As amended by acts of Sept. 7, 1916 (39 Stat. 754); June 21, 1917 (40 Stat. 235); April 7, 1941 (55 Stat. 131).]
Relationships and Transactions with Foreign Banks and Bankers
(g) The Board of Governors of the Federal Reserve System shall exercise special supervision over all relationships and transactions of any kind entered into by any Federal reserve bank with any foreign bank or banker, or with any group of foreign banks or bankers, and all such relationships and transactions shall be subject to such regulations, conditions, and limitations as the Board may prescribe. No officer or other representative of any Federal reserve bank shall conduct negotiations of any kind with the officers or representatives of any foreign bank or banker without first obtaining the permission of the Board of Governors of the Federal Reserve System. The Board of Governors of the Federal Reserve System shall have the right, in its discretion, to be represented in any conference or negotiations by such representative or representatives as the Board may designate. A full report of all conferences or negotiations, and all understandings or agreements arrived at or transactions agreed upon, and all other material facts appertaining to such conferences or negotiations, shall be filed with the Board of Governors of the Federal Reserve System in writing by a duly authorized officer of each Federal reserve bank which shall have participated in such conferences or negotiations. [12 USC 348a. As added by act of June 16, 1933 (48 Stat. 181).]
In providing US dollars on a global scale, the Federal Reserve effectively engaged in international lending of last resort.
That's terrible.....why is it terrible?
The swap network can be understood as a mechanism by which the Federal Reserve extends loans, collateralised by foreign currencies, to other central banks
Yup, collateralised. I wonder if Alan Grayson knows what that means?
This made US dollar liquidity accessible to commercial banks around the world, including those that have no US subsidiaries or insufficient eligible collateral to borrow directly from the Federal Reserve System
Yup.
The Fed is in no way authorized to prop up foreign commercial banks, or foreign commercial banking systems.
Well I'm glad they didn't do any of that when they did those swaps.
300 supporters for his Audit the Fed ~ Ron Paul is leading the charge against Ben Bernanke and his merry band of shysters!
their action was unconstitutional and should be abrogated.
‘blog pimp’
what is a blog pimp?
If a blogger wished to inform or show people on freerepublic an article or news item, in what section should it be shown? I selected ‘Bloggers and Personal’ because Since I was referencing a blog, it only made sense. The screen caps of the stories, I have found a necessary evil because often times the stories are pulled, leaving no way to view that which I referenced.
So maybe I am missing something here.
Could you please explain what the term indicates, and if it is something that is ‘not done’ then I will try not to do it again.
Yeah, the Fed is the problem, not the jerks in Congress. LOL!
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