Save America

July 29,2009 By Save America

Ohio Democrat Congressman Dennis Kucinich wants to know if the TARP (Troubled Asset Relief Program) isn’t about providing credit to the engine of America (small business) or keeping people in their homes, what’s it for?

The White House doesn’t know how TARP funds were used, so the House Domestic Policy Subcommittee plans a probe of the these funds. Expressing his frustration Dennis Kucinich suggested the Federal Reserve may be paying banks to hoard money and avoid making loans. He’s gone on to say, “if the banks are parking a historic amount of taxpayers’ money in the Federal Reserve while the businesses and consumers across America are starved for credit”, and questioned if the Federal Reserve is paying the banks to avoid making these loans?

A Bloomberg report recently released states Banks excess reserves at the Federal Reserve rose to a record amount of $877.1 billion daily average in the two weeks ended May 20, from $2 billion a year earlier. This should raise your eyebrows at a time in American history when unemployment is at a 68 year high.

If the TARP funds isn’t about keeping people in their homes or providing credit to the starved and strangled businesses right now, then what’s it for? Americans will be outraged to learn their tax dollars could possibly be hoarded at the Fed while increasing profits for banks. We’ve suggested follow the money and watch the banking cartels.

Congressman Kucinich has said the House Domestic Policy Subcommittee  will probe just how the $700 billion  was used, despite the Fed’s continued non-disclosure. This combined with Ron Paul’s pressure to audit the Federal Reserve is of peak interest of the American people, especially since $3.6 billion of these funds were used in a bonus package for the Merrill Lynch and Company employees. Congressman Paul has been a huge thorn given his bill House Resolution 1207- Audit the Federal Reserve which has 274 co-sponsors.  The American public is rightly concerned about how the recipient firms have used TARP monies and how well the Federal Government has closely monitored the use of these funds.

With respect to this, Donald Kohn Federal Reserve Deputy argued earlier this month, “although the Federal Reserve officials regularly explain the rationale for their policy decisions in public venues, the process of vetting and proposals, many of which are never incorporated into policy decisions, could suffer the threat of public disclosure.” It would be interesting to see during this audit of TARP monies  who may be benefiting  and the amount  of safeguarding from waste and abuse.  Reported in Reuters, Donald Kohn threatened to jack up interest rates if Congress continues to expose some of the US central banks most sensitive decisions to political scrutiny. “Any substantial erosion of the Federal Reserve’s monetary independence likely would lead to higher long term interest rates as investors begin to fear inflation. “ Kohn’s threat came as Ron Paul’s bill to audit the Federal Reserve (HR1207) has picked up steam with additional co-sponsors, to the tune of over 55% of the House of Representatives. The companion bill S604 has attracted attention in the Senate also with several co-sponsors. Seems Kohn and his boss Bernanke are obviously concerned over the prospects of the American people having a chance to take a look at the books.

Since this administration keeps talking about transparency, we’ll have to wait and see the level of honest disclosure.

On June 16, Goldman Sachs operative Timothy Geithner said, “When you have too many people involved, there’s an accountability problem.” What this means is Congress and the American people need to mind their own business. The Federal Reserve is an institution owned by the banksters, not the American people. In 1910 before the passage of the Federal Reserve Act, the federal debt was a mere $1 billion or $12.40 per citizen. Currently the overall debt is over 80% of the annual output of the entire US economy, measured by the gross domestic product. When government obligations are considered, the debt balloons to an astronomical $56 trillion, or roughly $184,000 per American (according to the Peter S. Peterson Foundation).

The bottom line is simple, the larger the debt, the richer and more powerful the international banksters become. The Federal Reserve is the front organization and it runs roughshod over Congress. The passage of HR 1207 faces a strenuous battle in the Senate, however at this point it is America’s only hope of auditing the Federal Reserve which may reveal and expose the injustices played upon the American people.