Oops! Turns Out the Financial System Is A Scam After All!
Our thinking has been shaped by 40 years relentless propaganda of the financial media. Time to step back and pull back the curtains.
It is a confidence game.."trust" is the word. The less you know..the better for them.
A strong Dollar policy can't only come from the Dollar! A weak gold price is also more than welcome. So why not help gold weakness a bit by leasing, swapping or selling gold over a hundred times in the market...on paper of course....in the meantime claiming that the US Dollar is "as good as gold". Read the explanation of the thinking of the monetary underbelly below. What will follow is "hot fury" as finally the people will realise that The Emperor has no clothes...that it is all a BS story...that pensions and savings just do not exists. This is exactly the reason why big companies and financial institutions are not allowed to go bankrupt. To keep the music going....just for a little while. I bet Obama goes on his knees every night and asks The Good Lord to please let the economy grow with 10% soon as only with positive growth figures they can re-start the economy - borrow from our grand children...and cover-up a criminal financial system with the words: -you see, you can trust us, we have nothing to hide-.
Auditing The Fed's Gold
[Note to auditors: pursue this phrase in the FED's statements: "deep storage gold." As to why, read this.]
The Congress has recently discussed proposals to expand the audit authority of the Government Accountability Office (GAO) over the Federal Reserve. As you know, the Federal Reserve is already subject to frequent reviews by the GAO. The GAO has broad authority to audit our operations and functions.
Operations at each Federal Reserve Bank also are subject to review by the Government Accountability Office (GAO), the audit arm of the U.S. Congress. However, GAO auditors are restricted by law from reviewing monetary policy operations and transactions carried out by the Federal Reserve on behalf of foreign central banks. This restriction was imposed by Congress to assure the independence of the Federal Reserve from political influence.
The Congress recently granted the GAO new authority to conduct audits of the credit facilities extended by the Federal Reserve to "single and specific" companies under the authority provided by section 13(3) of the Federal Reserve Act, including the loan facilities provided to, or created for, American International Group and Bear Stearns. The GAO and the Special Inspector General have the right to audit our TALF program, which uses funds from the Troubled Assets Relief Program.
The Congress, however, purposefully – and for good reason – excluded from the scope of potential GAO reviews some highly sensitive areas, notably monetary policy deliberations and operations, including open market and discount window operations. In doing so, the Congress carefully balanced the need for public accountability with the strong public policy benefits that flow from maintaining an appropriate degree of independence for the central bank in the making and execution of monetary policy.
Financial markets, in particular, likely would see a grant of review authority in these areas to the GAO as a serious weakening of monetary policy independence. Because GAO reviews may be initiated at the request of members of Congress, reviews or the threat of reviews in these areas could be seen as efforts to try to influence monetary policy decisions. A perceived loss of monetary policy independence could raise fears about future inflation, leading to higher long-term interest rates and reduced economic and financial stability. We will continue to work with the Congress to provide the information it needs to oversee our activities effectively, yet in a way that does not compromise monetary policy independence.
In particular, gold may be double counted with either a gold swap or gold loan/deposit if the party acquiring the gold were to on-sell it outright, because both the original owner and the outright purchaser would report ownership of the gold. In addition, there is the difficulty of having monetary gold being used in these transactions for purposes other than for reserve assets, and how (de)monetization would apply if the gold is sold for industrial purposes. Moreover, there is a proposal to treat (some) nonmonetary gold as a financial asset, rather than a commodity, and the outcome of that discussion may have further implications on the treatment of gold swaps and gold loans/deposits. Finally, how the "fee" for gold swaps and gold loans/deposits should be treated has yet to be resolved. All these matters are being considered by the Committee and a report will be taken to the AEG in due course.
. . . GAO auditors are restricted by law from reviewing monetary policy operations and transactions carried out by the Federal Reserve on behalf of foreign central banks.