What becomes of our culture, if "we the people" continue letting the elitist political class behave as beastly tyrants?  Will voting "Republican" really be enough?  And please ... don't tell me you're still in denial over the fact that our government is running a criminal cabal.

the-godfather-movie-in-textEvery American should be no less than outraged!

We’ll Make Them An Offer They Can’t Refuse:

One person with knowledge of the meetings called it a “take it or take it offer”:

The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.

And when the CEOs began to object, Paulson’s consigliere explained that it was ‘in their best interest’ not to protest too much ...

Nice Little Bank You Got There; Shame If Anything Happened to It:

Some years ago I wrote an article titled “The Gun behind the Law.” (Not online, but it appears in The Politics of Freedom.) It began with a photograph of 50 or so helmeted policemen storming the doors of a large and institutional building. As it turned out, the photograph depicted a bank nationalization in Peru during the first and disastrously leftist presidency of Alan Garcia. I noted that the Peruvians were helping us understand the real import of the term “bank nationalization”: “What really occurred there is that some people forced other people to give up their property at the point of a gun….As the bankers of Peru have learned, every law is enforced at the point of a gun.”

And I noted that things are very different here: “When we Americans hear the words ‘bank nationalization,’ we are apt to imagine a piece of paper being signed by a bank president and a deputy assistant treasury secretary.”

Well, I was a little off. It was actually nine bank presidents and the secretary himself. But the general scene was right:

The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.

“They weren’t allowed to negotiate. Mr. Paulson requested that each of them sign. It was for their own good and the good of the country, he said, according to a person in the room.”

Bundling the Banks Into a TARP:

I honestly believed that he was actually trying to become President because he wanted to improve outcomes, not just drive the train. I was sure, of course, that Obama was going to be pointing us the wrong direction, but I thought he was at least going to try to do so carefully, efficiently, and taking input from all sides before doing so. In short, I knew I wasn’t going to like him, but I thought he was going to be reasonable.

Not so much. He wants to control the financial sector. He doesn’t just want to fix it, he wants to remake it according to his own ideology. He doesn’t want them to succeed without government; he wants them to be dependent on government ...

The Feds have the banks in the grasp of their talons and they’re squeezing. And by god they won’t let up until submission is complete.

Government Abandons Lying; Resorts To Pure Naked Threats:

(emphasis added)

In testimony to the committee, Paulson said he told Lewis last year that reneging on his promise to purchase Merrill Lynch would show a “colossal lack of judgment.”

Paulson said that “under such circumstances,” the Federal Reserve would be justified in removing management at the bank.

“By referring to the Federal Reserve’s supervisory powers, I intended to deliver a strong message reinforcing the view that had been consistently expressed by the Federal Reserve, as Bank of America’s regulator, and shared by the Treasury, that it would be unthinkable for Bank of America to take this destructive action for which there was no reasonable legal basis and which would show a lack of judgment,” Paulson said.

Paulson said he believed his remarks to Lewis were “appropriate.”

Federal Reserve Chairman Ben Bernanke has denied threatening to oust Lewis and said he never told anyone else to, either. But another Fed official suggested otherwise in an e-mail obtained by House investigators.

Jeffrey Lacker, president of the Richmond Federal Reserve Bank, said in a December 2008 e-mail that Bernanke had planned to make “even more clear” that if Bank of America backed out on the deal, “management is gone.”

Paulson said Bernanke never asked him to relay the message. But, he added, he believed he was expressing the Fed’s opinion that dropping the deal “would raise serious questions about the competence and judgment of Bank of America’s management and board.”

Washington is a criminal organization, with the Federal Reserve Bank as ring-leader.  It's time to Audit the Fed, and shut it down!

Oh, and about those Beltway talking heads and their "Petition for Fed Independence"?  Don't believe a word they say, they're nothing but ... audit-the-fed

Shills for the Fed:

Here’s another proof that the anti-Fed movement is gaining new ground: a long list of prominent economists–many of them recipients of Fed preferment and largesse, of course–who say, in effect, “Don’t question the central bank!” They actually claim that questioning the Fed can lead to inflation, when they all endorse it in their teaching and writing. The Fed was founded to inflate; it exists to inflate. These economists claim inflation — a constant increase in the money supply — is necessary to economic growth, when it is the greatest enemy of prosperity ever invented by the state and its friends, like these economists. It is even more damaging than direct state looting, that is, taxation, since inflation distorts economic calculation. Of course, by strengthening the state and its allies, inflation has benefited men and women like this, but not the producers in society. Ron Paul’s Audit the Fed bill, the progress of which alarms these members of the power elite, is a reflection of a change in the climate of opinion. So is this ad, which the Fed obviously requested through its new lobbyists. And folks, we haven’t seen anything yet, both in establishment demonization of Fed opponents, and in decline in its tacit support among the people. Look forward to this battle. It is one we will win, thanks to the great Austrian economists. Rothbard, thou should’st be living at this hour!

Update - Double Secret Probation:

Yesterday’s Wall Street Journal reports on a secret “memorandum of understanding” that apparently orders Bank of America to replace a majority of its board of directors (after already replacing former Chairman Ken Lewis). And the Financial Times reports that Citigroup is near a “secret deal” with the FDIC to restructure its operations and board. Citi’s secret deal with FDIC would apparently be in addition to an existing undisclosed agreement with another banking regulator, the Office of the Comptroller of the Currency (OCC). Citi, at least, appears about to fall subject to double secret probation.

Like Dean Wormer in Animal House, federal regulators appear to prefer cloaking their restructuring orders to the private sector in secret. Maybe Citi needs to have a toga party.

  • http://feedyouradhd.blogspot.com Dr. Dave

    It doesn't matter what party someone's from.

    He who controls the money....

    You know the rest.

    (Particularly when they're conjuring it from thin air.)

  • theCL

    It's crazy what's going on.

  • http://westernexperience.wordpress.com/ Jason

    You know that Ron Paul is pushing a bill to audit the fed. From what I hear it is picking up surprising support. Something needs to be done. This mess is getting scarier each passing year.

  • theCL

    I've talked about the Audit the Fed bill quit a bit. It's a small step, yet still a significant one.

    And it is scary! Because there's no way to look at it with any common sense, and not see the tremendous amount of blatant criminal activity taking place in Washington and at the Fed.

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