The Federal Reserve Considers Making Billions in Repo Loans Available to Hedge Funds, Essentially Bailing Out the ‘Fat Cats’

Hedge funds, globally, are in a financial tail spin, and many have already blocked investors from withdrawing their money. True to form, the Federal Reserve is preparing to infuse these firms with super low-cost loans that will help to bail them out – at taxpayer expense, of course. [When the repos prove to be insufficient, then what?] -GEG

One hurdle to a possible fix for recent volatility in the short-term cash markets: hedge funds.

Federal Reserve officials are considering a new tool to ease stresses in the market for Treasury repurchase agreements, or repos. Through the repo market, banks and hedge funds borrow cash overnight, while pledging safe securities such as government bonds as collateral. In September, an unexpected shortage of available cash to lend sparked a surge in the cost of repo-market borrowing, prompting the Fed to intervene for the first time since the financial crisis.

One potential solution is to lend cash directly to smaller banks, securities dealers and hedge funds through the repo market’s clearinghouse, the Fixed Income Clearing Corp., or FICC.

Hedge funds currently borrow through a process called sponsored repo, in which they ask a large bank to act as a middleman, pairing their government bonds with money-market funds willing to lend cash. The bank then guarantees that the parties will fulfill their obligations—repaying the cash or returning the securities. Firms trading through the FICC contribute to a fund that would cover a borrower’s default. Critics of the new plan say if the Fed lends cash directly through the clearinghouse, it could end up contributing to a hedge-fund bailout.

The Fed’s aim, according to analysts, is to step back from temporary efforts to quell repo-market volatility and increase financial reserves. After September’s volatility, officials succeeded in suppressing year-end swings with temporary measures, such as offering short-term repo loans and buying Treasury bills.

Yet the new approach could also create political problems for policy makers, analysts said. The problem centers on the central bank lending directly to hedge funds, the little-regulated investment vehicles that tend to serve wealthy or institutional investors.

The political backlash that followed crisis-era bank rescues hangs over policy makers’ approach to the current problem, analysts said, even as officials work to ensure the smooth functioning of a key piece of the infrastructure underpinning financial markets. Some fear that lending directly to hedge funds could lead to the perception the Fed is fueling risky bets.

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“There’s a strong aversion to fat cat bailouts,” said Glenn Havlicek, chief executive of GLMX, which provides technology to repo trading desks.

Many hedge funds trade in the cash market through sponsored repos. The clearinghouse sits between buyers and sellers to ensure that neither party backs out of the transaction. Records of cleared trades also are publicly available, improving the market’s transparency.

The idea of using the clearinghouse appeals to some investors and analysts because the Fed has had trouble getting cash into the hands of the smaller banks, securities dealers and investors who need it the most.

That is because the Fed trades exclusively with a small group of large banks and securities firms, known as primary dealers. Even among these firms, activity is tightly concentrated. A study recently published by the Bank for International Settlements said that liquidity in the repo market rests in the hands of the four largest banks in the U.S. system.

Though hedge funds are key participants in the market—where they both borrow and lend cash—lending to them directly through the FICC would raise questions about whether the government was backstopping their bets, analysts said.

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Additional source:

New York Fed Considering Becoming Sugar Daddy to Hedge Funds as their Distress Grows




New York Showers Criminals With Gifts As They Leave Rikers Island Prison

New York Mayor Bill de Blasio authorized workers on Rikers Island to give all departing inmates gifts, including $25 debit cards, Mets tickets, free transit passes, movie tickets, and various gift cards. Although de Blasio originally touted the gifts as an incentive to get people to show up to court, they’re now being bestowed upon all exiting criminals. As many as 15,000 inmates are expected to rake in the prizes supplied by the incentive program.

Even inmates who have wrapped up their sentences are benefiting from the so-called incentive program.

Bronx, NY – New York Mayor Bill de Blasio has stationed workers on Rikers Island to dole out gifts to all departing inmates.

Carrying all of the taxpayer-purchased rewards, including $25 debit cards, Mets tickets, free transit passes, movie tickets, and various gift cards, has become such a burden that the city is working to purchase drawstring bags so criminals can pack their prizes out more easily, the New York Post reported.

There are even plans in the works to kick in some prepaid cell phones as part of New York’s soft-on-crime criminal justice reform law changes.

Over $500,000 has been used to purchase additional items, such as winter coats, the New York Post reported. The Steve Madden shoe company has also donated footwear to the cause.

Although de Blasio originally touted the gifts as an incentive to get people to show up to court, they’re now being bestowed upon all exiting criminals – including those who have wrapped up their sentences and have no further court hearings in connection with their latest round of offenses, the New York Post reported.

The city is using taxpayer dollars not only to shower criminals with gifts, but also to pay the workers from nonprofit groups that are doling everything out to them.

The program will expand beyond the boundaries of Rikers to all city courthouses during the week of Jan. 6.

“It’s a sad state of affairs when the city bends over backward to reward criminals instead of protecting the victims of their crimes,” one law enforcement source told the paper. “What’s next? Free limo service back home?”

As many as 15,000 inmates are expected to rake in the prizes supplied by the incentive program, according to the New York Post.

“2020 is going to be the year of the perp,” one law enforcement source told the paper.

Critics argued that doling out movie tickets, subway passes, and various store gift cards will reward criminal behavior, but New York Mayor Bill de Blasio said that the incentive program will be a success, according to WCBS.

“In a world where we want speedier trials and we want the justice system to work, if small incentives are part of what actually makes it work, then that’s a smart policy,” de Blasio told WCBS on Wednesday. “It’s not something we developed. It’s something that has been worked on by experts over time and proven to work and proven to be a good investment.”

As confident as the mayor may be in the plan, many of those who have actually worked with offenders disagreed.

Staten Island District Attorney Michael McMahon said the program is part of a “deranged mandate,” the New York Post reported.

“We are reaching the point of the absurd when those who are accused of serious offenses are free to roam the streets or even rewarded with gifts while the rights of victims continue to be ignored,” McMahon railed.

“They are tying our hands, they’re tying our feet and they’re gagging victims from coming forward to stand up for their rights,” McMahon added, according to the New York Post. “Many people accused with violent crimes, serious felonies, are going to be back on the street.”

Beginning on Thursday, prosecutors will have just 15 days from the time of arraignment to hand over all evidence pertaining to a case – including victim and witness information, WSTM reported.

Cases can be dismissed if prosecutors fail to meat the deadline, Albany County District Attorney David Soares told the news outlet.

“’By the way, I have to provide your cell phone number to his lawyer in a few weeks,’” Soares used as an example of what he will be forced to tell crime victims. “I don’t know how I’m going to have these conversations with a victim.”

Under the law change, the court can also require crime scenes to remain unchanged so that defendants can be allowed to visit them, the New York Daily News reported.

McMahon has been speaking out about the myriad of problems the sweeping changes will have throughout the state since they were passed back in April, the Staten Island Advance reported.

“We will undoubtedly see a chilling effect on cooperation by those impacted by crime, choosing instead to protect their own privacy and avoid being re-victimized,” McMahon warned. “While there certainly was room to improve New York’s criminal justice system, the ‘reforms’ to our bail and discovery statutes supported by our state Legislature and Governor Cuomo blew past any semblance of fairness or justice.”

Soares noted that some aspects of the law changes are essentially impossible to comply with, such as being mandated to turn over DNA or toxicology results that won’t even be back from the lab within the 15-day period.

“When we pointed it out to the governor’s office that they need to increase staffing at the labs, they just shrugged their shoulders,” he told WSTM.

New York Governor Andrew Cuomo’s spokesperson, Jason Conwall, argued that prosecutors can simply file a request for a 30-day extension if there is a valid reason why evidence can’t be obtained within the 15-day window.

“We carefully considered the views of law enforcement to ensure we enacted balanced reforms that were long overdue and will bring greater fairness to New York’s criminal justice system,” Conwall declared.

Soares said his office has been scrambling to digitize all of its evidentiary files, including some that date back for decades, in order to meet the Jan. 1 deadline.

But the ramifications of the criminal justice reform laws are even more wide-reaching.

Offenders found in possession of a wide array of weapons – including guns, switchblades, swords, machetes, and stun guns – will now be issued a “desk appearance ticket” and “set free,” the New York City Police Benevolent Association (PBA) pointed out in a Facebook post on Dec. 3.

Lawmakers also eliminated cash bail for hundreds of other criminal charges.

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$1.5-Trillion In US $100 Bills Are Being Hoarded by Investors To Protect against Bank Confiscation of Deposits

While central banks have been injecting $100-billion into the economy every month in electronic money to prop up sagging markets, a similar amount in physical currency, mostly $100-dollar bills, is disappearing from circulation. US Treasury Secretary Steven Mnuchin says that negative interest rates in other countries are causing people to hold American dollars as an investment. So-called negative interest rates is a deceptive way of describing a process whereby failing banks cover their losses by simply taking money from their depositors’ accounts. That’s why people of wealth are taking their money out of the banks where they cannot be stolen in this fashion. ZeroHedge says that the top 0.001% are cashing out and hoarding their US Dollars in secret vaults as central banks do everything in their power to replace physical currency with credit and debit-card accounts that can be accessed by banks without permission of depositors. -GEG

Last week we reported that something strange was going on at the same time that central banks are injecting $100 billion each month in electronic money to crush volatility and ramp markets: a similar amount in physical currency and precious metals was literally disappearing.

The mystery, in a nutshell, was as follows: while banks are printing more bank notes than ever, these seem to be “disappearing off the face of the earth” and nobody knows where or why, or as the WSJ notes, “central banks don’t know where they have gone, or why, and are playing detective, trying to crack the same mystery.”

And while readers can read up much more on the topic of disappearing hard assets here, a few days after, Fox Business picked up on this thread, writing that almost $1.5 trillion of the world’s physical cash, with $100 dollar bills making up the vast majority, was reportedly unaccounted for.

So what happened to the money?

To get to the bottom of this mystery, this was the question FOX Business anchor Lou Dobbs asked the man who literally signs every single US dollar bill, Treasury Secretary Steven Mnuchin. The response” “Literally, a lot of these $100 bills are sitting in bank vaults all over the world,” Mnuchin said.

Mnuchin pointed to the negative interest rates causing people to turn to American dollars as a solid investment.

The dollar is the reserve currency of the world, and everybody wants to hold dollars,” Mnuchin said on “Lou Dobbs Tonight.” “And the reason why they want to hold dollars is because the U.S. is a safe place to have your money, to invest and to hold your assets.”

Mnuchin said it’s interesting that, in a increasingly digital world, “the demand for U.S. currency continues to go up.” adding that “there’s a lot of Benjamins all over the world.”

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Accused Child Trafficking Gang Walks Free from Court in Romania

A Romanian court upheld the acquittals of a gang of 25 men who were accused of child-trafficking across Europe and were arrested in London in 2010. The case centered on the trafficking and exploitation of more than 160 children, in which the ringleaders were accused of forcing minors to beg and steal for the gang across Europe. Human rights groups are upset that all of the suspects have been definitively cleared of charges of child trafficking, laundering, creating a criminal group and violating the arms law.

Human rights groups have criticised the decision of a Romanian court to uphold the acquittals of a gang accused of child-trafficking across Europe.

The 25 men were arrested in London in 2010, but following an investigation lasting nearly a decade, they were formally acquitted earlier this year. An appeal court has upheld that decision, causing a torrent of criticism from child rights advocates.

The case centred on the trafficking and exploitation of more than 160 children, in which the ringleaders were accused of forcing minors to beg and steal for the gang across Europe.

All suspects have been definitively cleared of charges of child trafficking, laundering, creating a criminal group and violating the arms law, according to a court statement.

Human rights groups have criticised the decision of a Romanian court to uphold the acquittals of a gang accused of child-trafficking across Europe.

The 25 men were arrested in London in 2010, but following an investigation lasting nearly a decade, they were formally acquitted earlier this year. An appeal court has upheld that decision, causing a torrent of criticism from child rights advocates.

The case centred on the trafficking and exploitation of more than 160 children, in which the ringleaders were accused of forcing minors to beg and steal for the gang across Europe.

All suspects have been definitively cleared of charges of child trafficking, laundering, creating a criminal group and violating the arms law, according to a court statement.

Judges in denial?

A prosecutor expressed his surprise to AFP at the “denial of reality” of the judges, who did not justify their decision and transform the evidence into “fiction”.

In 2010, more than 300 British and Romanian police officers had carried out an investigation to dismantle an alleged network originating from a deprived town in Tandarei, southern Romania.

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Senator Rand Paul Released His 2019 ‘Festivus’ Waste Report that Shows How the US Government Burned through $50-Billion on Scandalous Programs


Republican Senator Rand Paul has an annual tradition of revealing how much money the US government wastes in what he calls ‘Festivus airing of grievances.’ Senator Paul unleashed a tweetstorm linking to his waste report that accuses the US government of squandering over $50-billion dollars in 2019 on outrageous programs. Some of the spending included: $466,991 on studying frog mating calls in Panama, $1.2-million on the studying habits of online dating app users, tens of millions spent ‘green growth’ for Peru, $22-million spent on bringing Serbian cheese up to international standards, and more. Paul wrote, “These are only a few examples, but you get the idea. But we couldn’t possibly cut spending right? No waste here, no sir!”

Senator Rand Paul (R-KY) has an annual tradition of revealing how much money the US government wastes in what he calls ‘Festivus airing of grievances.’

Senator Paul unleashed a tweetstorm on Monday linking to his waste report that alleges the US government wasted over $50 billion dollars in 2019 on outrageous programs.

Below is just a handful of programs the government wastes millions of dollars on while our veterans battle homelessness and shoddy healthcare.

“That reminds me of some of my favorite waste report grievances – your government is terrible and you should really have a lot of problems how you spend it,” Rand Paul said revealing the US govt spent $466,991 on studying frog mating calls in Panama.

US govt spent more than $33 million on textbooks for students in Afghanistan while US teachers use their own money for supplies here.

Also, $1,200,000 on studying habits of online dating app users.

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Insane Lawmakers Pass $1.4-Trillion in Spending Bills While Ignoring Staggering US Debt that Tops $23 Trillion

Last year, Trump Shut down the government when Democrats refused to fund the border wall. Last Spring, he vowed to never sign another last-minute spending bill. But now he plans to sign two new bipartisan spending bills totaling $1.4-trillion. The legislation contains more than 2,300 pages. Meanwhile, US national debt is over $23-trillion. Trump’s allowance for the border wall remains at $1.4 billion. The failed war in Afghanistan will get a $4-billion boost. $40 billion will establish Trump’s Space Force as a sixth branch of the military. $25 million will go for research into gun violence that will provide a pretext for more gun control. Federal civilian employees will receive a 3.1% pay raise, There is no money to pay for any of this. The word insanity comes to mind.-GEG

https://youtu.be/uqFdZ8w4CaY?t=123

Lawmakers released the details Monday of a bipartisan spending deal that would rain down $49 billion in extra funding upon nearly every facet of the federal government during the next nine months.

The more than 2,300 pages of bill text are expected to be signed into law before week’s end, cementing a total of $738 billion in fiscal 2020 funding for the military and $632 billion for non-defense departments such as Education, Housing and Urban Development, and Health and Human Services.

The House plans to pass the fiscal 2020 spending bills in two packages on Tuesday, likely followed by Senate passage before federal funding runs out at midnight on Friday. With President Donald Trump’s signature, the measures would dissolve the threat of a government shutdown until Oct. 1 and negate the need for more stopgap spending measures that keep funding levels static.

One package contains four bills, including the Defense, Homeland Security, Commerce-Justice-Science and Financial Services spending measures. The other “minibus” holds eight bills to fund the departments of Agriculture, Labor, Health and Human Services, Education, Energy, Interior, Transportation, Housing and Urban Development, Veterans Affairs and State, as well as the EPA, congressional operations and water projects.

Following a late-breaking deal early Tuesday morning, congressional leaders and the White House agreed to include language extending a slew of expiring tax provisions. That so-called “extenders” legislation will be rolled into the bill text before the House votes to pass the eight-measure package.

The agreement between Democrats and Republicans includes long-sought money for research into gun violence, permanent repeal of three major health insurance taxes, no new funding for international family planning help, millions for election security grants, billions in added Pentagon cash and a 3.1 percent pay raise for federal civilian employees. Also on tap are billions more than requested by the White House to help carry out the 2020 census and record funding for the Head Start program for at-risk young children.

The impasse over border wall funding was solved this time with a trade-off. Money for the U.S.-Mexico barrier will stay static during the current fiscal year, at about $1.4 billion, rather than the president’s request for $8.6 billion. Budgets for the nation’s two immigration enforcement agencies — Customs and Border Protection, and Immigration and Customs Enforcement — are also largely flat-lined.

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Students Want ‘Free’ Tuition for Illegals, But Won’t Donate Their Own Money

Campus Reform interviewed students at the University of South Florida about free tuition for illegal immigrants and many agreed that education is a human right and should apply to illegal immigrants. Most of the students said that illegal immigrant students should have free tuition. However, when asked if they would contribute to a fund to provide illegal immigrants tuition, many students claimed they don’t have the money to do so.

 

Campus Reform’s Eduardo Neret recently went to the University of South Florida to ask students about free tuition for illegal immigrants. 

Neret initially asked students if they believe education is a human right, a notion with which many students agreed. 

“It shouldn’t be my duty to raise the money”   

“Education is for everyone. It’s not just for selected people,” one student said.

After these responses, Neret asked students if this applied to illegal immigrants, and whether illegal immigrants deserve free tuition. Most students said that illegal immigrant students should have free tuition. 

“These kinds of resources shouldn’t be limited to people who are documented,” another student added. 

“Immigrants deserve, be it illegal, deserve education as a human right.”  

However, when asked if they would contribute to a fund to provide illegal immigrants tuition since illegal immigrants currently do not have access to federal financial aid, many students claimed they don’t have the money to do so. 

Read full article here…




Hospitals Are Suing President Trump Over a New Rule Requiring Them to Publish Their Prices


US health care costs are among the highest in the world, which is due, in part, to hospitals hiding prices from patients, thus, making it impossible for patients to seek less expensive options. Hospitals privately negotiate with insurance companies to set the price of procedures. Alex Azar, Secretary of Health and Human Services, says Trump’s mandate simply requires that the hospital disclose the cost of the service before the patient accepts it. He says so-called ‘non-profit’ hospitals make a lot of money from lack of transparency. The new rule will go into effect in 2021. -GEG




Tucker Carlson Investigates Who Is Behind ‘Vulture’ Hedge Funds that Are Destroying Rural America

Fox News Host Tucker Carlson blasts Wall Street billionaire, Paul Singer, and shows how hedge funds, like Singer’s Elliot Management Fund, have destroyed American small towns and economies in their quest for quick profits. Carlson explains how hedge funds, like Singer’s Elliott Management company, have made billions by buying large stakes in American companies, then firing workers, driving up short-term share prices because of their improved balance between revenue and expenses, and then selling out quickly before the companies collapse. In some cases, they even take government bailouts.

To clarify how this works, Carlson presents a case study in Sidney, Nebraska that was home to the headquarters of the mega-sporting goods store Cabela’s. After buying a stake in Cabela’s, Singer pushed the company to sell, despite the company’s profit of more than $1 billion a year. One year after Singer entered the equation, Bass Pro Shops announced the purchase of Cabela’s. This news caused the the company’s stock price to surge. Within one week, Singer cashed out with a profit of at least $90-million, but 2,000 workers lost their jobs and the economy of the town was destroyed. -GEG

Fox News Host Tucker Carlson dedicated a segment of his show Tuesday night to torching the Wall Street billionaire Paul Singer. Carlson’s show featured an investigation into how hedge funds, like the the one Singer manages, have destroyed American towns and economies for the sake of lining their pockets.

Carlson described how Singer and his hedge fund Elliott Management has made billions of dollars from their style of “vulture capitalism,” exploiting financially distressed countries and American companies.

“Elliott Management has made billions by buying large stakes in American companies, then firing workers, driving up short-term share prices, and in some cases taking government bailouts,” he said.

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Veterans Community Project (VCP) Is Building Tiny Home Neighborhoods to Help Homeless Vets Living on the Streets

Veterans Community Project is building tiny homes for homeless veterans, and creating a healing network, with the goal of transitioning the vets into permanent housing. Their first community includes 49 tiny home units built on five acres is in Kansas City, Missouri. A community center with a doctor’s office, dentist office and fellowship hall is planned. The Veterans Community Project is building more neighborhoods in St. Louis, Orlando and Denver.




These Are the Banks that Own the New York Fed and Its Money Button that Has Reportedly Pumped $3 Trillion into Other Banks in Just 63 Days

According to this report, the New York Fed has now pumped out upwards of $3 trillion in a period of 63 days to unnamed trading houses on Wall Street to ease a liquidity crisis that has yet to be credibly explained. The largest shareowners of the New York Fed are the following five Wall Street banks: JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon. Those five banks represent two-thirds of the eight Global Systemically Important Banks in the US that are able to inflict systemic contagion on the entire global banking system (as happened in 2008) and thus must be monitored closely for financial stability.

JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley are also four of the five largest holders of high-risk derivatives.

During the financial crisis (2007 – 2010), the New York Federal Reserve, one of 12 Federal Reserve regional offices, was reported to have been given unprecedented powers by the Federal Reserve Board of Governors in Washington, DC to create over $29 trillion in electronically-engineered money to bail out Wall Street.

The New York Fed has now pumped out upwards of $3 trillion in a period of 63 days to unnamed trading houses on Wall Street to ease a liquidity crisis that has yet to be credibly explained. In addition, it has launched a new asset purchase program, buying up $60 billion each month in U.S. Treasury bills. Based on the continuing escalation of its plans, it appears to be testing the limits of what the public will tolerate. We thought it was time to answer the question: who exactly owns the New York Fed and its magical money spigot that can pump trillions of dollars into Wall Street at the press of a button.

The largest shareowners of the New York Fed are the following five Wall Street banks: JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon. Those five banks represent two-thirds of the eight Global Systemically Important Banks (G-SIBs) in the United States. The other three G-SIBs are Bank of America, a shareowner in the Richmond Fed; Wells Fargo, a shareowner of the San Francisco Fed; and State Street, a shareowner in the Boston Fed.

G-SIBs have the ability to inflict systemic contagion on the entire global banking system (as happened in 2008) and thus must be monitored closely for financial stability. JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley are also four of the five largest holders of high-risk derivatives. (Bank of America is the fifth.)

The five mega banks that are the major shareowners of the New York Fed are also supervised by the New York Fed, despite participating in the election of two-thirds of its Board of Directors. James Gorman, Chairman and CEO of Morgan Stanley, currently sits on the New York Fed Board. Jamie Dimon, Chairman and CEO of JPMorgan Chase, previously served two three-year terms on the Board.

These same Wall Street banks also participate in various advisory groups with the New York Fed where they hash out “best practices” for their industry. Those “best practices” were not sufficient to prevent JPMorgan Chase from becoming a three-count felon, Citigroup a one-count felon, and four of the banks (all but Bank of New York Mellon) from actively engaging in creating and selling subprime investments that blew up the U.S. financial system, the nation’s economy and a good swath of Wall Street in 2008.

There are 12 regional Federal Reserve banks of which the New York Fed is only one. But during the financial crisis, the New York Fed was given unprecedented powers by the Federal Reserve Board of Governors in Washington, D.C. to create over $29 trillion in electronically-engineered money to bail out Wall Street. A significant portion of the $29 trillion went to loans that were collateralized by stocks and junk bonds – an unprecedented action for the Federal Reserve. In some instances, the Fed threw its rule book under the bus and didn’t make loans at all, opting instead to buy up toxic assets outright through Special Purpose Vehicles it created. And despite its mandate to make properly collateralized loans to only solvent banks, it made over $2.5 trillion in loans to Citigroup, much of that after the bank was clearly insolvent.

The $29 trillion created electronically by the New York Fed from 2007 to the middle of 2010 is astronomical compared to the loans made by the Federal Reserve following the 1929 financial crash and early years of the Great Depression. Those Fed loans aggregated to only $1.5 million or approximately $25.5 million in today’s dollars.

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The NY Federal Reserve Bank Refuses to Disclose Which Banks Are Receiving Trillions in ‘Repo’ Cash For At Least Two Years

The Federal Reserve Bank of New York has refused to inform GATA, a watchdog group, which investment houses have been getting the infamous “repo” loans, and informed them that they must wait two years to discover the identity of the loan recipients. The NY Fed advised GATA that it is exempt from the federal Freedom of Information Act but tries to comply with its spirit. The Federal Reserve has zero oversight by elected representatives, news organizations, and ordinary citizens.

Dear Friend of GATA and Gold:

If you want to know which investment houses have been getting the infamous “repo” loans from the Federal Reserve Bank of New York in recent weeks, as GATA has wanted to know, you’ll have to wait two years, according to a letter received from the bank today in response GATA’s request for the information.

The delay, the New York Fed’s letter says, is authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Perhaps more interestingly, the New York Fed’s letter, signed by Corporate Secretary Shawn Elizabeth Phillips, contends that the bank is exempt from the federal Freedom of Information Act but tries to comply with its spirit.

Such a claim of exemption was not made by the Federal Reserve’s Board of Governors during GATA’s FOI lawsuit against it in 2011, in which GATA sought access to the board’s gold-related documents. GATA technically won the case when U.S. District Judge Ellen Segal Huvelle ruled that one such document was illegally withheld and ordered the board to disclose it to GATA and pay the organization court costs of $2,670:

http://www.gata.org/node/9916

What kind of system of government is it when every week an entity created by ordinary legislation can create enormous amounts of a nation’s currency and disburse it to unidentified parties without any oversight by the people’s elected representatives, news organizations, and ordinary citizens? It sure doesn’t sound like “the land of the free and the home of the brave.”

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