I am sure there is controversy over the Federal Reserve, Many do not understand however, that the FR is privately owned and truly was created by deceiving Americans.
Now today there are plans to overhaul the system, which will give the Fed even more power. Let’s be sure we know who they are, who owns it, Who stands to gain from this. Are we in trouble economically? You be the judge….
For those that prefer to watch the history on video
Click on the links below,
History of the Federal Reserve (Money Masters)
I found this old documentary, which today is still very informative.
– 216 min –
Links to read
Now what is on the horizon today?
By Michael Grybaum
Source New York Times
The Bush administration on Monday introduced the broadest overhaul of Wall Street regulation since the Great Depression, presenting a 218-page proposal that would, for the first time, create a set of federal regulators with authority over all players in the financial system.
The plan is unlikely to be put in place anytime soon, and in presenting the blueprint, Henry M. Paulson Jr., the secretary of the Treasury, insisted the changes were intended to address long-term problems with the way Washington oversees financial markets, rather than a quick fix for the current crisis.
“Some may view these recommendations as a response to the circumstances of the day,” Mr. Paulson said at the Cash Room of the Treasury building in Washington. “That is not how they are intended.”
Still, elements of the plan — including a proposal to expand the authority of the Federal Reserve to examine investment banks and other financial institutions that have previously roamed free of federal oversight — clearly speak to the recent tumult on Wall Street that has hurt the economy. And President Bush, through his spokeswoman, urged Congress to quickly approve the proposed changes.
“Secretary Paulson has been working on this package for about a year, so it’s not like pulling a rabbit out of a hat,” Dana Perino, the White House press secretary, told reporters on Air Force One on Monday.
Democratic leaders are already drafting bills to impose tougher supervision over Wall Street, and some say that Mr. Paulson’s plan does not go far enough in reining in risky practices among banks.
The administration’s proposal will do almost nothing to regulate the alphabet soup of sophisticated financial products that have fueled the current financial crisis. And it will not rein in practices that have been linked to the mortgage crisis, like packaging risky loans into securities carrying the highest ratings.
Hedge funds and private equity firms, which have enjoyed freedom from government oversight for years, would finally fall under federal watch. But that oversight would be minimal, enabling the government to do little beyond collecting information until a widescale financial crisis has already occurred.
The checks and balances in the plan reflect the mindset of Mr. Paulson, its architect, who came to Washington after a long career on Wall Street, including a stint as chief executive of Goldman Sachs.
Mr. Paulson has worried that any effort to substantially tighten regulation could hamper the ability of American markets to compete with foreign rivals — and, in fact, the proposal stemmed from a series of policy discussions that began well before the current tumult that has rocked the nation’s economic underpinnings.
The plan began last year as an effort by Mr. Paulson to streamline the different and sometimes clashing rules for commercial banks, savings and loans and nonbank mortgage lenders.
“This blueprint addresses complex, long-term issues that should not be decided in the midst of stressful situations,” Mr. Paulson said in his remarks on Monday. “These long-term ideas require thoughtful discussion and will not be resolved this month or even this year.”
Mr. Paulson also deflected blame for the current tumult away from his administration. “I do not believe it is fair or accurate to blame our regulatory structure for the current turmoil,” he said.
Under the plan, the Fed would receive some authority over Wall Street firms, but only when an investment bank’s practices threatened the financial system as a whole. The Fed would be able to examine internal bookkeeping of brokerage firms, hedge funds, commodity-trading exchanges and any other institution that might pose a risk to the overall financial system.
The plan would also merge the S.E.C. with the Commodity Futures Trading Commission, which regulates exchange-traded futures for oil, grains, currencies and the like. And the blueprint suggests several areas where the S.E.C. should take a lighter approach to its oversight, including allowing stock exchanges greater leeway to regulate themselves.
Some agencies within Washington’s patchwork system of financial regulation would be consolidated. One new agency, which the Treasury calls a “prudential financial regulator,” would focus on the safety of financial institutions that have explicit government guarantees. The other watchdog would oversee business conduct to protect public investors and customers of financial firms.
Congress would have to approve almost every element of the proposal, and Democratic leaders are already drafting their own bills to impose tougher supervision over Wall Street investment banks, hedge funds and the fast-growing market in derivatives like credit default swaps.
Administration officials acknowledged last week that they did not expect the proposal to become law this year, but said they hoped it would help frame a policy debate that would extend well after the elections in November.
Well gang, Up to now, the Fed has played a important role in the nation’s financial system setting the country’s monetary policy and acting as one of the handful of regulators responsible for overseeing the nation’s baking industry. The plan, which would broadly expand the Federal Reserve’s powers,comes as concerns about the housing crisis and its fallout in the financial system continues to fuel calls for change in Washington. The Paulson changes, if enacted, would be largely invisible to consumers but would drastically alter how the financial services industry is regulated.
I agree something needs to be done, but as you can see, I do not trust the Federal Reserve. What is in it for them? This is a privately owned bank that is owned and operated by the wealthiest of the wealthy.
Below some quotes by a few of our founders and Presidents of old…
“History records that Money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
President, James Madison
”I have unwittingly ruined my country… We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
President, Woodrow Wilson (Under his watch and administration)
IF THE American People ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
President, Thomas Jefferson
The name of the game is as always: Follow the money honey! Who is really going to benefit here?
Congressman, Wright Patman
President, John Adams
Congressman, Louis T. McFadden
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