So today here in Florida Federal Reserve Chairman Ben Bernanke praised lenders and services for their work in helping with the plummeting housing market right before saying, “More can and should be done.” This more that can be done would be, “Principle reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.” John Reich who directs the Office of Thrift Supervision (the government has a thrift office!?) proposed that borrowers could refinance mortgages at current home values and then receive a negative equity certificate which could be redeemed when the house is sold. Question – so who is paying for this? Does writing down a mortgage just make the money owed disappear? In reality it is the investors who bought the bonds that are going to suffer. Hmmm…is that why the stock market continues to plummet?
Let’s face it, the Federal Reserve is a farce that is finally being revealed in the light of the struggling economy. The Federal Reserve is a privately owned entity that has no oversight from any government body including the United States Treasury. The bulk of the FED’s ownership are the following banks: Rothschild Bank of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lazard Brothers of Paris, Israel Moses Seif Banks of New York, Chase Manhatten Bank of New York, Goldman Sachs Of New York, Lehman Brothers of New York and Kuhn Loeb Bank of New York. Notice how many are not American banks. The FED controls interest rates- which it plays like a fiddle-and controls the money. This is unConstitutional in that Congress is suppose to take care of the issuing of money. The FED has also made sure that our money is no longer on a gold or silver standard and that it is simply backed by the faith of the people in the government. That makes our money worthless. Wonder if that is why you get almost two pounds to each of our dollars. Money is printed at will as if it will help bolster the economy. The FED is nothing more than private control of a central bank – something Thomas Jefferson warned against. When banks have losses, this private entity has the taxpayer to back it by using our income taxes.
The FED also has been playing a double speak game. Last week, Bernanke predicted a wave of new bank failures, but the Vice-Chairman of the FED, Donald Kohn, today made no such predictions. Following in those footsteps, the Treasury Secretary, Henry Paulson, continues to downplay the seriousness of falling home values. He believes that lenders should modify loans. One week we are in a recession, the next things are fine, but could enter into a recession. Obviously dropping interest rates has not helped anything either and yet the FED continues to do that and will probably cut them again on or before their March 18th meeting.
In a 1963 Federal Reserve publication the function of the FED was stated, “To foster a flow of money and credit that will facilitate orderly economic growth, a stable dollar and long-run balance in our international payments.” Anyone think they have succeeded?