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Ron Paul Your Spaceship Called, They're Ready To Beam You Up
yidwithlid.blogspot.com ^ | February 24, 2010 | Sammy Benoit

Posted on 02/25/2010 9:30:03 AM PST by 1rudeboy

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To: Toddsterpatriot

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.


41 posted on 02/25/2010 3:46:42 PM PST by NVDave
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To: NVDave
When they executed swap agreements to prop up other nations’ currencies and banking systems.

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?

42 posted on 02/25/2010 3:50:20 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

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.


43 posted on 02/25/2010 6:37:35 PM PST by NVDave
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To: 50mm; Allegra; SoCalPol; 1rudeboy

Ron Paul Your Spaceship Called, They’re Ready To Beam You Up...LOL.


44 posted on 02/25/2010 6:40:11 PM PST by onyx (BE A MONTHLY DONOR - I AM)
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To: 1rudeboy
Soon to be released movie "The Crazies" is a documentary of his followers...


45 posted on 02/25/2010 6:55:06 PM PST by darkwing104 (Lets get dangerous)
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To: Mase

I think the FreeRepublic PTB keep some of these Paulbots around for entertainment purposes..


46 posted on 02/25/2010 6:59:55 PM PST by ejonesie22 (Palin bashers on freerepublic, like a fart in Church...)
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To: onyx; 50mm; SoCalPol; 1rudeboy
We're going to need a lot of this:

Courtesy of FReeper 50mm.

47 posted on 02/25/2010 7:10:15 PM PST by Allegra (It doesn't matter what this tagline says...the liberals are going to call it "racist.")
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To: Allegra

You Betcha.
Am stocking up


48 posted on 02/25/2010 7:15:05 PM PST by SoCalPol (Reagan Republican for Palin 2012)
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To: SoCalPol; onyx; ejonesie22; fieldmarshaldj; AmishDude; Darksheare; darkwing104
Weird...there was no discussion enabled on this thread. But here it is...the article SoCalPol linked earlier.

I wasn't able to post on it.

49 posted on 02/25/2010 7:35:04 PM PST by Allegra (It doesn't matter what this tagline says...the liberals are going to call it "racist.")
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To: Allegra

I thought that odd also, No Reply link


50 posted on 02/25/2010 7:42:42 PM PST by SoCalPol (Reagan Republican for Palin 2012)
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To: NVDave
Foreign Correspondents and Agencies
(e) To establish accounts with other Federal reserve banks for exchange purposes and, with the consent or upon the order and direction of the Board of Governors of the Federal Reserve System and under regulations to be prescribed by said board, to open and maintain accounts in foreign countries, appoint correspondents, and establish agencies in such countries wheresoever it may be deemed best for the purpose of purchasing, selling, and collecting bills of exchange, and to buy and sell, with or without its indorsement, through such correspondents or agencies, bills of exchange (or acceptances) arising out of actual commercial transactions which have not more than ninety days to run, exclusive of days of grace, and which bear the signature of two or more responsible parties, and, with the consent of the Board of Governors of the Federal Reserve System, to open and maintain banking accounts for such foreign correspondents or agencies, or for foreign banks or bankers, or for foreign states as defined in section 25(b) of this Act. Whenever any such account has been opened or agency or correspondent has been appointed by a Federal reserve bank, with the consent of or under the order and direction of the Board of Governors of the Federal Reserve System, any other Federal reserve bank may, with the consent and approval of the Board of Governors of the Federal Reserve System, be permitted to carry on or conduct, through the Federal reserve bank opening such account or appointing such agency or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the board.

[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.

51 posted on 02/25/2010 7:43:45 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: 1rudeboy

300 supporters for his Audit the Fed ~ Ron Paul is leading the charge against Ben Bernanke and his merry band of shysters!


52 posted on 02/26/2010 12:13:15 AM PST by jd777
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To: 1rudeboy

their action was unconstitutional and should be abrogated.


53 posted on 02/26/2010 12:18:40 AM PST by jd777
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To: darkwing104

‘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.


54 posted on 02/26/2010 5:34:16 AM PST by 51773photo
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To: jd777
Ron Paul is leading the charge against Ben Bernanke and his merry band of shysters!

Yeah, the Fed is the problem, not the jerks in Congress. LOL!

55 posted on 02/26/2010 7:13:20 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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