First-term (anti-bailout candidate) Democrat Alan Grayson questions Elizabeth Coleman, Inspector General of the Federal Reserve. The issue is oversight of the Federal Reserve's ever-expanding balance sheet, and the potential multi-trillion dollar loss -- that would be borne by you.
The economic crash has made many unpleasant truths about the United States apparent. Unscrupulous banking practices, and the politics that go with them, have devastated the U.S. economy, but the ride is not over yet. All sorts of shenanigans are still taking place at the very top of our financial industry.
The video above shows the shocking and unsettling testimony of Elizabeth Coleman, Inspector General of the Federal Reserve.
When Alan Grayson questions her about whether or not her office has investigated the more than $1 trillion expansion in the Federal Reserve’s balance sheet since September, 2008, she claims they are conducting a “high level review of the various lending facilities, collectively, to identify risk.” But they still have no idea who the recipients are of this one trillion dollars.
Worse yet, when questioned about the $9 trillion worth of credit extended by the Federal Reserve in the past eight months (which equals $30,000 for each man, woman and child in the U.S.), Coleman suddenly doesn’t understand English.
In conclusion, Grayson states, “I am shocked to find out that nobody at the Federal Reserve, including the Inspector General, is keeping track of this.”
Tell Your Representatives You’re Not Willing to Pay the Price for Fraudulent Banking Practices
It’s become apparent that Wall Street has a strong hold over Washington, but few answers are forthcoming as to how to end it, and I believe public awareness is still low on these issues. And, unless voters begin to voice their concerns and opinions, few politicians are likely to be willing to do the right thing.
Earlier this year, I published a fascinating Bill Moyers’ video explaining how the U.S. banking system created the financial crisis through fraudulent banking and loan practices.
In it, he interviews William K. Black, a professor of economics and law, who alleges American banks and credit agencies conspired to create a system in which risky loans could receive AAA ratings and zero oversight.
Apparently this complete lack of oversight extends all the way to the Federal Reserve itself.
Congressman Ron Paul has called the Federal Reserve “price fixers;” creating whatever money necessary to fix interest rates, and making credit available in a way that is “fraudulent.”
For an informative video on how the Federal Reserve and our monetary system works, check out http://MeetTheFED.com, featuring Gary Franchi, Managing Editor of Republic Magazine interviewing Ben Bernanke, Federal Reserve Chairman, and Jerry Nelson, Corporate Communications for the Federal Reserve.
The Collapse of the Federal Reserve – is it Inevitable?
Ever since the early 1900s, a champion has battled with the Federal Reserve:
- In 1913 it was senator Charles Lindbergh Sr.
- 1915-1933 congressman Louis Thomas McFadden
- 1929-1976 congressman Wright Patman
- 1976-today congressman, and Presidential candidate, 2008, Ron Paul
Ron Paul has expressed his concern that virtually none of our politicians understand the basics of economics, monetary policy, and free market economics.
Many people also still do not understand that the Federal Reserve has been given the power, by the U.S. Congress, to create money out of thin air that is not backed by gold.
This is in fact illegal, were we to follow the constitution of the United States.
They can make virtually any amount of credit available, but as Ron Paul explains, it’s done in a way that is akin to theft, because the money created gets its “value” by diluting the value of the money already held by others.
As a result, the people who are saving money in this system are essentially being robbed. Paul is fond of referring to inflation as a sort of hidden tax. As more and more money is created that is not backed by anything of real value, inflation goes up.
You’re paying for all this money being created when the money you have loses its value.
The people who benefit the most in this system are the ones who get the money first, generally the rich people, while the middle-class and the poor are destroyed and overtaxed.
So where did the $9 trillion the Federal Reserve printed over the past eight months go? It’s certainly a valid question, and it’s nauseating that no one has the answer.
Ron Paul has predicted the collapse of the Federal Reserve for some time now, stating he believes that’s probably what it will take before we come around to thinking seriously about our monetary policy, and why we have to revamp it. (He’s actually been a longtime champion for ending the Federal Reserve entirely, as it is in fact unconstitutional.)
Who knows, maybe that day will come sooner than we think.
How Can This Type of News Benefit You?
Now, as depressing as this all sounds, I firmly believe there is a silver lining waiting for all those who chose to wake up from the collective slumber.
Remember, great challenges offer the potential for great transformation.
If money woes have gotten the best of you this past year or two, then your best bet is to arm yourself with a toolkit for managing your stress, so that you can respond creatively to the changing times.
For many, the time is ripe to review their relationship with money, and to reassess their value systems. It’s also a wonderful opportunity to reevaluate the way you live, in terms of how you nourish yourself – physically, mentally, emotionally, and spiritually.
For most people, the first step to regain some financial peace is to take control over your personal finances and learn to live within your means. A return to sustainable basics, in every respect of the word, and in every aspect of life, may be one of the greatest hidden gifts inherent in these tumultuous times.
Helpful Resources During Stressful Times
Zen Habits has organized a list of all their best money articles as a resource for anyone trying to track finances, get out of debt, save money, or just set up a financial system that works for their own lives.
A good starting point for getting out of debt is to read the 12-step guide for getting out of debt.
I have also compiled a list of sites that offer free online tools and services to help consumers save money and manage it wisely. Go to 9 Sites That Help With Everyday Budgeting.
Your Thoughts Matter
But how do you deal with those negative thoughts that creep in, despite repeated efforts to keep them at bay?
Part of staying grounded is being in control of your thinking so that you can maintain a positive outlook, even in negative circumstances.
Remember, once you step into fear, your fearful thoughts act like magnets, drawing that which you don’t want closer to you.
There are tools that can help you to focus your mind on things you want more of in your life, so that you spend less time thinking about the negatives.
I participate in a coaching program developed by Dan Sullivan that has been very useful to me. He has an audio page, available to anyone who wishes to use it, which provides several excellent 5-minute exercises that can help shift your perspective.
Gratitude for what you DO have is one of the best antidotes for feelings of lack. I encourage you to visit Dan’s audio page and try out his first exercise, which will help you connect with feelings of gratitude.
Exercises such as these serve to decrease fear, increase peace and calm, and benefit you in many ways, physical as well as mental.
I have written many articles about the interconnectedness of mind and body. Stressing over your financial situation is a perfect example of when you must take care of your mind, in order to take care of your body.