Monday, August 24, 2009

Conflicts of Interest: End the Fed

Ron Paul's Audit the Fed bill has the support of half of House of (Non) Representatives and has 23/100 Senators cosponsoring the sister bill in the Senate. Despite the populist uprising, it is highly unlikely that there will be any favorable coverage from the major financial media outlets, most notably by any NBC affiliate including CNBC. Why? Because the NY Fed has GE's CEO as a director on the board. It would be a massive conflict of interest for Jeff Immelt to help bring down the organization that he helps run. So Immelt and fellow board member, JPM Morgan CEO, Jamie Dimon will fight the End the Fed bill until it's smoldering defeat by bribing the remaining 77 Senators.

This does provide an opportunity for networks such as Fox, ABC, or Viacom to make a populist statement and push for this audit, and expose the conflicts out for all the public to see. I don't see any of them having the balls to do it though. Fox is the most likely to do it, but I haven't seen anything that says they are willing to lose advertising revenue from investment and insurance companies.

In the meantime, the Imperial Federal Government is pushing bankrupt Fannie Mae and Freddie Mac to become the aggregator bad bank to purchase all of the big banks' mortgage backed 10 cent securities at face value in lieu of any fair price discovery mechanism, aka the market. This backdoor mechanism to bypass the public PPIP is the least transparent way to rid JPM, Wells, MS, BofA, and Goldman of any toxicity on their balance sheets and pump up their profits at the expense of the Treasury, aka ignorant taxpayers. BofA and Citigroup are also basically being forced at gunpoint to purchase Treasuries while the Imperial Federal Government attempts to ride the moonshot called the national debt. The Fed is monetizing the rest of the debt that Citi and BofA can't buy up while buying the rest of the toxic Fannie Mae and Freddie Mac debt.

What an unbelievable fleecing!

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