Audit

Donald Trump Is Right – Here Are 100 Reasons Why We Need To Audit The Federal Reserve

Donald Trump - Photo by Marc NozellWhen one of our major politicians gets something exactly right, we should applaud them for it.  In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct.  Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama.  Financial markets all over the planet gyrate wildly at the smallest comment from Fed officials, and virtually every boom and bust cycle over the past 100 years can be traced directly back to specific decisions made by the Federal Reserve.  We get all excited about what various presidential candidates say that they “will do for the economy”, but in the end it is the Fed that is holding all of the cards.  The funny thing is that the Federal Reserve is not even part of the federal government.  It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago.  It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.

The Fed has been around for so long that most people assume that we need it.

But the truth is that we don’t actually need the Federal Reserve.  In fact, the greatest period of economic growth in United States history happened during the decades before the Federal Reserve was created.

A little over 100 years ago, very powerful forces on Wall Street successfully pushed for the creation of an immensely powerful central bank, and since that time the value of the U.S. dollar has fallen by about 98 percent and our national debt has gotten more than 5000 times larger.

The Federal Reserve does whatever it feels like doing, and Fed officials insist that the institution must remain “independent” and “above politics” because monetary policy is too important to entrust to the American people.

To me, this is absolutely ridiculous.  Everything else, including our national defense, is subject to the normal political process, and yet the decisions made by the Fed are so “important” that the American people can’t have a voice?

It is high time that the American people begin to learn what the Federal Reserve is really all about, and that can start with a full, comprehensive audit of all of the Federal Reserve’s activities.  Yesterday, Donald Trump came out in favor of such an audit…

Previously, Trump has made quite a few comments that were very critical of the Fed.  For example, last year he told Bloomberg News that he believed that the Federal Reserve was “creating a bubble”…

“In terms of real estate, if I want to develop … from that standpoint I like low interest rates. From the country’s standpoint, I’m just not sure it’s a very good thing, because I really do believe we’re creating a bubble.”

And of course Trump was exactly right about that too.  By pushing interest rates to artificially low levels and creating billions upon billions of dollars out of thin air during the quantitative easing era, stock prices were driven to ridiculously high levels.  Now that the artificial support has been withdrawn, stocks are beginning to crash, and the financial collapse which is starting to happen is going to be far worse than it otherwise would have been because of the Fed’s actions.  The following comes from one of my previous articles…

As stocks continue to crash, you can blame the Federal Reserve, because the Fed is more responsible for creating the current financial bubble that we are living in than anyone else.  When the Federal Reserve pushed interest rates all the way to the floor and injected lots of hot money into the financial markets during their quantitative easing programs, this pushed stock prices to wildly artificial levels.  The only way that it would have been possible to keep stock prices at those wildly artificial levels would have been to keep interest rates ultra-low and to keep recklessly creating lots of new money.  But now the Federal Reserve has ended quantitative easing and has embarked on a program of very slowly raising interest rates.  This is going to have very severe consequences for the markets, but Janet Yellen doesn’t seem to care.

I don’t understand why so many Americans continue to support the Federal Reserve.

We don’t need a bunch of central planners setting interest rates and determining monetary policy.  We are supposed to have a free market system, and the free market should be setting interest rates – not the Federal Reserve.

Unfortunately, just about every nation on the entire planet now has a central bank.  Even though the nations of the world can’t agree on much, somehow central banking has been adopted virtually everywhere.  At this point, more than 99.9% of the population of the world lives in a country that has a central bank.

There are still some minor island countries such as the Federated States of Micronesia that do not have a central bank, but the only major nation not to have one right now is North Korea.  And nobody in their right mind would ever want to live there.

So how in the world did this happen?

Did the people of the world willingly choose this debt-based system or was it imposed upon them?

To my knowledge, there has never been a single vote where the population of a nation has willingly chosen to establish a central bank.  I could be wrong about this, but I have never heard of one.

It is the elite that have always wanted central banking, and now they pretty much have the entire planet in their grasp.

That is why we should applaud Donald Trump when he stands up to the elite.  And it isn’t just regarding the Fed that he has done this.  The following comes from an excellent article that was just written by Dan Lyman…

Ultimately, Trump knows it is the global elite who have pried our borders wide open. He knows it is THEY who are responsible for the tens of millions of Third Worlders pouring into our nations. He knows that THEY are the monsters who need the world to be constantly at war. He knows THEY are radically altering our food supply with GMOs and poisonous chemicals. He knows THEY are responsible for poisoning our drinking water, filling our skies and air supplies with toxic waste, genociding our unborn children, collecting data on all citizens to implement the Orwellian police state, forcing poison into our babies’ veins – and soon the rest of us, redistributing what remains of our wealth under the guises of ‘saving the planet’ or ‘refugee aid,’ allowing and funding the ISIS Islamofascists to decimate places like Syria and Iraq in Satanic fashion, promoting the psychotic LGBT Nazis to goose-step all over our religious liberties and gender-privacy in school bathrooms. If there is a societal cancer metastasizing somewhere, it can usually be traced back to the same sources.

Yes, there are many things that we can criticize Trump and the other Republican candidates for.  But when they nail something, we should be willing to admit that they got something right.

In this case, Donald Trump is absolutely correct to call for an audit of the Fed.  As I promised in the title of this article, I want to share 100 reasons why the Fed should be audited.  The following list has been adapted from one of my previous articles…

#1 We like to think that we have a government “of the people, by the people, for the people”, but the truth is that an unelected, unaccountable group of central planners has far more power over our economy than anyone else in our society does.

#2 The Federal Reserve is actually “independent” of the government. In fact, the Federal Reserve has argued vehemently in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.

#3 The Federal Reserve openly admits that the 12 regional Federal Reserve banks are organized “much like private corporations“.

#4 The regional Federal Reserve banks issue shares of stock to the “member banks” that own them.

#5 100% of the shareholders of the Federal Reserve are private banks. The U.S. government owns zero shares.

#6 The Federal Reserve is not an agency of the federal government, but it has been given power to regulate our banks and financial institutions. This should not be happening.

#7 According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. So why is the Federal Reserve doing it?

#8 If you look at a “U.S. dollar”, it actually says “Federal Reserve note” at the top. In the financial world, a “note” is an instrument of debt.

#9 In 1963, President John F. Kennedy issued Executive Order 11110 which authorized the U.S. Treasury to issue “United States notes” which were created by the U.S. government directly and not by the Federal Reserve. He was assassinated shortly thereafter.

#10 Many of the debt-free United States notes issued under President Kennedy are still in circulation today.

#11 The Federal Reserve determines what levels some of the most important interest rates in our system are going to be set at. In a free market system, the free market would determine those interest rates.

#12 The Federal Reserve has become so powerful that it is now known as “the fourth branch of government“.

#13 The greatest period of economic growth in U.S. history was when there was no central bank.

#14 The Federal Reserve was designed to be a perpetual debt machine. The bankers that designed it intended to trap the U.S. government in a perpetual debt spiral from which it could never possibly escape. Since the Federal Reserve was established 100 years ago, the U.S. national debt has gotten more than 5000 times larger.

#15 A permanent federal income tax was established the exact same year that the Federal Reserve was created. This was not a coincidence. In order to pay for all of the government debt that the Federal Reserve would create, a federal income tax was necessary. The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers.

#16 The period prior to 1913 (when there was no income tax) was the greatest period of economic growth in U.S. history.

#17 Today, the U.S. tax code is about 13 miles long.

#18 From the time that the Federal Reserve was created until now, the U.S. dollar has lost 98 percent of its value.

#19 From the time that President Nixon took us off the gold standard until now, the U.S. dollar has lost 83 percent of its value.

#20 During the 100 years before the Federal Reserve was created, the U.S. economy rarely had any problems with inflation. But since the Federal Reserve was established, the U.S. economy has experienced constant and never ending inflation.

#21 In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent. In the century since the Federal Reserve was created, the average annual rate of inflation has been about 3.5 percent.

#22 The Federal Reserve has stripped the middle class of trillions of dollars of wealth through the hidden tax of inflation.

#23 The size of M1 has nearly doubled since 2008 thanks to the reckless money printing that the Federal Reserve has been doing.

#24 The Federal Reserve has been starting to behave like the Weimar Republic, and we all remember how that ended.

#25 The Federal Reserve has been consistently lying to us about the level of inflation in our economy. If the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.

#26 Since the Federal Reserve was created, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.

#27 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.

#28 The Federal Reserve created the conditions that caused the stock market crash of 1929, and even Ben Bernanke admits that the response by the Fed to that crisis made the Great Depression even worse than it should have been.

#29 The “easy money” policies of former Fed Chairman Alan Greenspan set the stage for the great financial crisis of 2008.

#30 Without the Federal Reserve, the “subprime mortgage meltdown” would probably never have happened.

#31 If you can believe it, there have been 10 different economic recessions since 1950. The Federal Reserve created the “dotcom bubble”, the Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.

#32 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks during the last financial crisis. The following is a list of loan recipients that was taken directly from page 131 of the report…

Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion

#33 The Federal Reserve also paid those big banks $659.4 million in “fees” to help “administer” those secret loans.

#34 During the last financial crisis, big European banks were allowed to borrow an “unlimited” amount of money from the Federal Reserve at ultra-low interest rates.

#35 The “easy money” policies of Federal Reserve Chairman Ben Bernanke have created the largest financial bubble this nation has ever seen, and this has set the stage for the great financial crisis that we are rapidly approaching.

#36 Since late 2008, the size of the Federal Reserve balance sheet has grown from less than a trillion dollars to more than 4 trillion dollars. This is complete and utter insanity.

#37 During the quantitative easing era, the value of the financial securities that the Fed has accumulated is greater than the total amount of publicly held debt that the U.S. government accumulated from the presidency of George Washington through the end of the presidency of Bill Clinton.

#38 Overall, the Federal Reserve now holds more than 32 percent of all 10 year equivalents.

#39 Quantitative easing creates financial bubbles, and when quantitative easing ends those bubbles tend to deflate rapidly.

#40 Most of the new money created by quantitative easing has ended up in the hands of the very wealthy.

#41 According to a prominent Federal Reserve insider, quantitative easing has been one giant “subsidy” for Wall Street banks.

#42 As one CNBC article stated, we have seen absolutely rampant inflation in “stocks and bonds and art and Ferraris“.

#43 Donald Trump once made the following statement about quantitative easing: “People like me will benefit from this.”

#44 Most people have never heard about this, but a very interesting study conducted for the Bank of England shows that quantitative easing actually increases the gap between the wealthy and the poor.

#45 The gap between the top one percent and the rest of the country is now the greatest that it has been since the 1920s.

#46 The mainstream media has sold quantitative easing to the American public as an “economic stimulus program”, but the truth is that the percentage of Americans that have a job has actually gone down since quantitative easing first began.

#47 The Federal Reserve is supposed to be able to guide the nation toward “full employment”, but the reality of the matter is that an all-time record 102 million working age Americans do not have a job right now. That number has risen by about 27 million since the year 2000.

#48 For years, the projections of economic growth by the Federal Reserve have consistently overstated the strength of the U.S. economy. But every single time, the mainstream media continues to report that these numbers are “reliable” even though all they actually represent is wishful thinking.

#49 The Federal Reserve system fuels the growth of government, and the growth of government fuels the growth of the Federal Reserve system. Since 1970, federal spending has grown nearly 12 times as rapidly as median household income has.

#50 The Federal Reserve is supposed to look out for the health of all U.S. banks, but the truth is that they only seem to be concerned about the big ones. In 1985, there were more than 18,000 banks in the United States. Today, there are only 6,891 left.

#51 The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.

#52 The U.S. banking system has 14.4 trillion dollars in total assets. The six largest banks now account for 67 percent of those assets and all of the other banks account for only 33 percent of those assets.

#53 The five largest banks now account for 42 percent of all loans in the United States.

#54 We were told that the purpose of quantitative easing was to help “stimulate the economy”, but today the Federal Reserve is actually paying the big banks not to lend out 1.8 trillion dollars in “excess reserves” that they have parked at the Fed.

#55 The Federal Reserve has allowed an absolutely gigantic derivatives bubble to inflate which could destroy our financial system at any moment. Right now, four of the “too big to fail” banks each have total exposure to derivatives that is well in excess of 40 trillion dollars.

#56 The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.

#57 Federal Reserve Chairman Ben Bernanke has a track record of failure that would make the Chicago Cubs look good.

#58 The secret November 1910 gathering at Jekyll Island, Georgia during which the plan for the Federal Reserve was hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and a whole host of representatives from the upper crust of the Wall Street banking establishment.

#59 The Federal Reserve was created by the big Wall Street banks and for the benefit of the big Wall Street banks.

#60 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.

#61 There has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.

#62 The Federal Reserve system has been described as “the biggest Ponzi scheme in the history of the world“.

#63 The following comes directly from the Fed’s official mission statement: “To provide the nation with a safer, more flexible, and more stable monetary and financial system.” Without a doubt, the Federal Reserve has failed in those tasks dramatically.

#64 The Fed decides what the target rate of inflation should be, what the target rate of unemployment should be and what the size of the money supply is going to be. This is quite similar to the “central planning” that goes on in communist nations, but very few people in our government seem upset by this.

#65 A couple of years ago, Federal Reserve officials walked into one bank in Oklahoma and demanded that they take down all the Bible verses and all the Christmas buttons that the bank had been displaying.

#66 The Federal Reserve has taken some other very frightening steps in recent years. For example, back in 2011 the Federal Reserve announced plans to identify “key bloggers” and to monitor “billions of conversations” about the Fed on Facebook, Twitter, forums and blogs. Someone at the Fed will almost certainly end up reading this article.

#67 Thanks to this endless debt spiral that we are trapped in, a massive amount of money is transferred out of our pockets and into the pockets of the ultra-wealthy each year. Incredibly, the U.S. government spent more than 415 billion dollars just on interest on the national debt in 2013.

#68 In January 2000, the average rate of interest on the government’s marketable debt was 6.620 percent. If we got back to that level today, we would be paying more than a trillion dollars a year just in interest on the national debt and it would collapse our entire financial system.

#69 The American people are being killed by compound interest but most of them don’t even understand what it is. Albert Einstein once made the following statement about compound interest…

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

#70 Most Americans have absolutely no idea where money comes from. The truth is that the Federal Reserve just creates it out of thin air. The following is how I have previously described how money is normally created by the Fed in our system…

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

#71 What does the Federal Reserve do with those U.S. Treasury bonds? They end up getting auctioned off to the highest bidder. But this entire process actually creates more debt than it does money…

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

#72 Of course the U.S. government could actually create money and spend it directly into the economy without the Federal Reserve being involved at all. But then we wouldn’t be 17 trillion dollars in debt and that wouldn’t serve the interests of the bankers at all.

#73 The following is what Thomas Edison once had to say about our absolutely insane debt-based financial system…

That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.

#74 The United States now has the largest national debt in the history of the world, and we are stealing roughly 100 million dollars from our children and our grandchildren every single hour of every single day in a desperate attempt to keep the debt spiral going.

#75 Thomas Jefferson once stated that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing…

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

#76 At this moment, the U.S. national debt is sitting at $18,141,409,083,212.36. If we had followed the advice of Thomas Jefferson, it would be sitting at zero.

#77 When the Federal Reserve was first established, the U.S. national debt was sitting at about 2.9 billion dollars. On average, we have been adding more than that to the national debt every single day since Obama has been in the White House.

#78 We are on pace to accumulate more new debt during the 8 years of the Obama administration than we did under all of the other presidents in all of U.S. history combined.

#79 If all of the new debt that has been accumulated since John Boehner became Speaker of the House had been given directly to the American people instead, every household in America would have been able to buy a new truck.

#80 Between 2008 and 2012, U.S. government debt grew by 60.7 percent, but U.S. GDP only grew by a total of about 8.5 percent during that entire time period.

#81 Since 2007, the U.S. debt to GDP ratio has increased from 66.6 percent to 102.98 percent.

#82 According to the U.S. Treasury, foreigners hold approximately 5.6 trillion dollars of our debt.

#83 The amount of U.S. government debt held by foreigners is about 5 times larger than it was just a decade ago.

#84 As I have written about previously, if the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.

#85 If Bill Gates gave every single penny of his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.

#86 Sometimes we forget just how much money a trillion dollars is. If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.

#87 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

#88 In addition to all of our debt, the U.S. government has also accumulated more than 200 trillion dollars in unfunded liabilities. So where in the world will all of that money come from?

#89 The greatest damage that quantitative easing has been causing to our economy is the fact that it is destroying worldwide faith in the U.S. dollar and in U.S. debt. If the rest of the world stops using our dollars and stops buying our debt, we are going to be in a massive amount of trouble.

#90 Over the past several years, the Federal Reserve has been monetizing a staggering amount of U.S. government debt even though Ben Bernanke once promised that he would never do this.

#91 China recently announced that they are going to quit stockpiling more U.S. dollars. If the Federal Reserve was not recklessly printing money, this would probably not have happened.

#92 Most Americans have no idea that one of our most famous presidents was absolutely obsessed with getting rid of central banking in the United States. The following is a February 1834 quote by President Andrew Jackson about the evils of central banking…

I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, (bringing his fist down on the table) I will rout you out.

#93 There are plenty of possible alternative financial systems, but at this point all 187 nations that belong to the IMF have a central bank. Are we supposed to believe that this is just some sort of a bizarre coincidence?

#94 The capstone of the global central banking system is an organization known as the Bank for International Settlements. The following is how I described this organization in a previous article…

An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe. It is called the Bank for International Settlements, and it is the central bank of central banks. It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City. It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws. Even Wikipedia admits that “it is not accountable to any single national government.” The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system. Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does. Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”. During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on. The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

#95 The borrower is the servant of the lender, and the Federal Reserve has turned all of us into debt slaves.

#96 Debt is a form of social control, and the global elite use all of this debt to dominate all the rest of us. 40 years ago, the total amount of debt in our system (all government debt, all business debt, all consumer debt, etc.) was sitting at about 3 trillion dollars. Today, the grand total is approaching 60 trillion dollars.

#97 Unless something dramatic is done, our children and our grandchildren will be debt slaves for their entire lives as they service our debts and pay for our mistakes.

#98 Now that you know this information, you are responsible for doing something about it.

#99 Congress has the power to shut down the Federal Reserve any time that it would like. But right now most of our politicians fully endorse the current system, and nothing is ever going to happen until the American people start demanding change.

#100 The design of the Federal Reserve system was flawed from the very beginning. If something is not done very rapidly, it is inevitable that our entire financial system is going to suffer an absolutely nightmarish collapse.

 

An Even Bigger Scandal: Why Are IRS Audits Being Used To Punish Obama’s Political Enemies?

Obama Using IRS Audits To Attack His Enemies?Is it right for Barack Obama to use IRS audits to punish his political enemies?  As crazy as that sounds, there is a mounting body of evidence that indicates that this is actually happening.  And if this can be proven, it is a much, much larger scandal than the IRS giving “extra scrutiny” to the applications of conservative non-profit groups.  Let me be clear – if Barack Obama has been using IRS audits to punish his political enemies, that is an impeachable offense.  Of all of the other scandals that are out there right now, this is the one that could actually bring down the presidency of Barack Obama.  That is how serious this is.  As you will read about below, there is a huge amount of circumstantial evidence that political enemies of Barack Obama have been singled out for IRS audits.  We need to find out who initiated these audits.  Whether you are a Republican, a Democrat or an Independent, this kind of abuse of government power should sicken and horrify you.  If it can be proven that Barack Obama has been using IRS audits to attack his enemies, every single U.S. citizen should be calling for him to resign.  This is something that is beyond politics – this is a direct threat to the very integrity of our system.

The recent revelation that the IRS has been specifically targeting patriot groups and Tea Party organizations for “extra scrutiny” has opened up the floodgates.  In recent days, a large number of highly respected people have come forward claiming that they were the subject of IRS audits that were politically motivated.

For example, Larry Conners, a respected local news anchor at KMOV Channel 4 in St. Louis, Missouri says that he was hit with an IRS audit almost immediately after he conducted an interview with Barack Obama in April 2012…

Shortly after I did my April 2012 interview with President Obama, my wife, friends and some viewers suggested that I might need to watch out for the IRS.

I don’t accept “conspiracy theories”, but I do know that almost immediately after the interview, the IRS started hammering me.

At the time, I dismissed the “co-incidence”, but now, I have concerns … after revelations about the IRS targeting various groups and their members.

Originally, the IRS apologized for red-flagging conservative groups and their members if they had “Tea Party” or “patriot” in their name.

Today, there are allegations that the IRS focused on various groups and/or individuals questioning or criticizing government spending, taxes, debt or how the government is run … any involved in limiting/expanding government, educating on the constitution and bill of rights, or social economic reform/movement.

In that April 2012 interview, I questioned President Obama on several topics: the Buffet Rule, his public remarks about the Supreme Court before the ruling on the Affordable Care Act. I also asked why he wasn’t doing more to help Sen. Claire McCaskill who at that time was expected to lose. The Obama interview caught fire and got wide-spread attention because I questioned his spending.

I said some viewers expressed concern, saying they think he’s “out of touch” because of his personal and family trips in the midst of our economic crisis.

The President’s face clearly showed his anger; afterwards, his staff which had been so polite … suddenly went cold.

That’s to be expected, and I can deal with that just as I did with President George H. Bush’s staff when he didn’t like my questions.

Journalistic integrity is of the utmost importance to me. My job is to ask the hard questions, because I believe viewers have a right to be well-informed. I cannot and will not promote anyone’s agenda – political or otherwise – at the expense of the reporting the truth.

What I don’t like to even consider … is that because of the Obama interview … the IRS put a target on me.

Can I prove it? At this time, no.

But it is a fact that since that April 2012 interview … the IRS has been pressuring me.

Reverend Franklin Graham, the son of Reverend Billy Graham, recently wrote a letter to Barack Obama claiming that the Billy Graham Evangelistic Association and Samaritan’s Purse were both hit with IRS audits very shortly after they ran full-page ads supporting North Carolina’s Marriage amendment.  In fact, both organizations were notified about the audits on the same day.  The following is from a recent article posted on redstate.com…

The man known as America’s pastor was among those targeted by the Internal Revenue Service after the Billy Graham Evangelistic Association ran newspaper advertisements promoting traditional marriage and biblical values.

“I am bringing this to your attention because I believe that someone in the Administration was targeting and attempting to intimidate us,” wrote Franklin Graham in a letter to President Obama. “This is morally wrong and unethical – indeed some would call it ‘un-American.’”

Graham is president of the Billy Graham Evangelistic Association as well as the international charity Samaritan’s Purse. Both organizations received word of audits on the same day – not long after they ran full –page ads supporting North Carolina’s Marriage amendment.

The ads encouraged voters to “cast our ballots for candidates who base their decisions on biblical principles and support the nation of Israel.”

The ad concluded with the words, “Vote for biblical values this November 6, and pray with me (Billy Graham) that America will remain one nation under God.”

Graham said on Sept. 6, 2012 they received notification that the IRS would audit their taxes.

“In light of what the IRS admitted to on Friday, May 10, 2013, and subsequent revelations from other sources, I do not believe that the IRS audit of our two organizations last year is a coincidence – or justifiable,” Graham wrote.

You can find a full copy of Franklin Graham’s letter to Barack Obama right here.

The Blaze is reporting on another example of this phenomenon.  A respected Catholic professor that had written things critical of the Obama administration was hit with an IRS audit that she believes was politically motivated…

On Wednesday, Dr. Anne Hendershott, a devout Catholic and a noted sociologist, professor and author, exclusively told The Blaze that she believes she may have been one of the IRS’s targets.

According to Hendershott, the IRS audited her in 2010 and demanded to know who was paying her and “what their politics were.”

It all started with a phone call she received at her home in May of that year — a call during which Hendershott was told she would be audited. A letter that followed on May 19, 2010 solidified the IRS’s request to meet her in person two months later in July.

Unfortunately, these are not just isolated incidents.  In fact, attorney Cleta Mitchell recently told Newsmax that she has seen a systematic pattern of politically motivated IRS harassment that only began once Barack Obama entered the White House…

In the case of one such client, she and her family subsequently became targets for audits to their personal and business tax returns, and were even visited by three different government agencies. She also knows of other groups who had surprise visits from the FBI after they applied for IRS status.

Mitchell said she doesn’t believe the president or the White House was uninvolved in the IRS activities, as the administration has claimed.

“I’ve thought for some time that this is politically motivated and that’s the reason it was happening. And, as I said, I’ve been doing this for more than 20 years and I’ve never seen anything like this until 2009, 2010. And the only thing that changed was we had a different administration,” she said.

There are some that have been trying to bring awareness to these politically motivated audits for quite some time.  One of these individuals is a former classmate of Obama’s named Wayne Allyn Root…

“I feel like a million bucks. I feel absolutely vindicated. I knew this was going on,” Wayne Allyn Root told WND.

Root, the Libertarian Party vice-presidential candidate in 2008 who has claimed Obama was strangely unknown to him and his fellow Columbia University classmates, recounted his story to WND last October of becoming the target of unusual audits, beginning in January 2011, despite a “spotless” 30-year tax record.

He charged in October that the order to audit him came from Obama himself, and he is even more convinced now.

“I believe this is not rogue agents, who would be risking their pension and careers,” he said.

In October, Root said the order to audit him “must have come from the highest levels of government.”

“Obama is using the power of the IRS and other government agencies to punish his political opposition and intimidate and silence his critics,” Root charged at the time.

In that same article, a number of other examples of this phenomenon were cited…

Last year, billionaire Frank VanderSloot became the target of investigations by both the IRS and the Labor Department after he gave $1 million to a super PAC that supported Republican presidential nominee Mitt Romney. The GOP’s biggest donor, Las Vegas casino magnate Sheldon Adelson, said a federal criminal investigation into his company’s business practices was politically motivated. Another casino giant, Steve Wynn, also has been investigated.

This week, Root has received many emails from people who identify as conservative and believe the IRS has been harassing them for political reasons.

What happened to businessman Frank VanderSloot is particularly noteworthy.  The following is from an article that Rob Bluey authored last year…

On April 20, President Obama’s campaign named VanderSloot to the first presidential “enemies list” since the Nixon era. Eight private citizens were singled out for their donations to Romney. They committed no crimes, sought no attention, and yet they became the subject of Obama’s scorn.

VanderSloot is now facing persecution from the federal government. Kimberly Strassel reveals in The Wall Street Journal that two federal agencies — the Internal Revenue Service and Labor Department — both launched investigations of VanderSloot after his name appeared on Obama’s enemies list.

No matter what you think of Obama’s politics, shouldn’t we all be deeply alarmed that he has an “enemies list”?

With each passing day, the similarities between Barack Obama and Richard Nixon become more glaring.

And Obama has even joked about sending the IRS after people that he does not like.  When Obama found out that he was not going to be receiving an honorary doctorate from Arizona State University, he made the following statement…

“President [Michael] Crowe and the Board of Regents will soon learn all about being audited by the IRS.”

The IRS is not supposed to be used as a weapon, and the White House is not allowed to use information gathered by the IRS for political gain either.  But apparently last year someone at the IRS was leaking tax information to someone within the Obama campaign.  The following is from a recent article by Matt K. Lewis…

A little over a year ago, I reported that, ”It is likely that someone at the Internal Revenue Service illegally leaked confidential donor information showing a contribution from Mitt Romney’s political action committee to the National Organization for Marriage, says the group.”

Now — on the heels of news the IRS’s apology for having targeted conservative groups — NOM is renewing their demand that the Internal Revenue Service reveal the identity of the people responsible.

“There is little question that one or more employees at the IRS stole our confidential tax return and leaked it to our political enemies, in violation of federal law,” said NOM’s president Brian Brow, in a prepared statement. “The only questions are who did it, and whether there was any knowledge or coordination between people in the White House, the Obama reelection campaign and the Human Rights Campaign. We and the American people deserve answers.”

The IRS has been doing all sorts of things that they should not be doing.  They are a rogue agency that is completely out of control.

In fact, one new lawsuit alleges that the IRS stole the health records of approximately 10 million Americans…

The Internal Revenue Service is now facing a class action lawsuit over allegations that it improperly accessed and stole the health records of some 10 million Americans, including medical records of all California state judges.

According to a report by Courthousenews.com, an unnamed HIPAA-covered entity in California is suing the IRS, alleging that some 60 million medical records from 10 million patients were stolen by 15 IRS agents. The personal health information seized on March 11, 2011, included psychological counseling, gynecological counseling, sexual/drug treatment and other medical treatment data.     “This is an action involving the corruption and abuse of power by several Internal Revenue Service agents,” the complaint reads. “No search warrant authorized the seizure of these records; no subpoena authorized the seizure of these records; none of the 10,000,000 Americans were under any kind of known criminal or civil investigation and their medical records had no relevance whatsoever to the IRS search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of the searched premises, and the company executives each warned the IRS agents of these privileged records,” it continued.

And guess what?

The IRS is going to be the primary government agency in charge of implementing Obamacare.

Will we soon see the IRS use health information to attack the political enemies of the man or woman sitting in the White House?

Unfortunately, thanks to new “Big Brother” technology that the IRS has been implementing, pretty soon there will be very little about us that the IRS does not know.  The following is from a recent article by Richard Satran of U.S. News & World Report…

Consumers are already familiar with Internet “cookies” that track their movements and send them targeted ads that follow them to different websites. The IRS has brought in private industry experts to employ similar digital tracking—but with the added advantage of access to Social Security numbers, health records, credit card transactions and many other privileged forms of information that marketers don’t see.

“Private industry would be envious if they knew what our models are,” boasted Dean Silverman, the agency’s high-tech top gun who heads a group recruited from the private sector to update the IRS, in a comment reported in trade publications.

So what is the IRS going to do with all of this information?

Well, the following are just a few of the things that they have already said that they plan to do with it…

• Charting and analyzing social media such as Facebook

• Targeting audits by matching tax filings to social media or electronic payments

• Tracking individual Internet addresses and emailing patterns

• Sorting data in 32,000 categories of metadata and 1 million unique “attributes”

• Machine learning across “neural” networks

• Statistical and agent-based modeling

• Relationship analysis based on Social Security numbers and other personal identifiers

So are you alarmed by all of this?

You should be.

As I discussed in my previous article entitled  “100 Years Old And Still Killing Us: America Was Much Better Off Before The Income Tax“, Congress should close the doors of the IRS and throw away the key.  It is a deeply, deeply corrupt government agency that has gotten wildly out of control.

After what you have just read above, is there anyone out there that would disagree with me?

Mainstream Reporter Tells The Truth About Audit The Fed And The Creation Of The Federal Reserve

When someone in the mainstream media goes out on a limb to tell the truth, then the rest of us should go out of our way to applaud that effort.  Reporter Ben Swann of Fox 19 in Cincinnati is one of the few local television reporters in the United States that consistently tackles the tough issues.  As you can see from his “Reality Check” archives, he regularly does reports on the Federal Reserve, the emerging police state, the loss of our freedoms and liberties, the advance of globalism, the economic collapse, political corruption, etc. etc.  That is one reason why his YouTube channel is rapidly approaching a million views.  In his most recent Reality Check, Ben Swann asked this question: “Is auditing the Federal Reserve really necessary?”  In just four minutes, Swann covered the creation of the Federal Reserve, where money comes from, the 16 trillion dollars in secret loans given out by the Fed during the last financial crisis, and why an audit of the Fed is so important.  It really was extraordinary to watch a local mainstream news reporter tell the truth about these things.  We could definitely use about 1000 more reporters just like him.

The video of Ben Swann’s recent Reality Check is posted below.  If you have not seen it yet, it is definitely worth the 4 minutes that it takes to watch it….

What in the world would this country look like if we had hundreds of other real journalists such as Ben Swann that were willing to tackle these kinds of issues head on?

Certainly nobody is perfect, but when a reporter like Swann is willing to go out on a limb and attack the Fed we need to applaud his efforts.

The mainstream media is supposed to hold those in positions of power accountable.

But most in the mainstream media treat the Federal Reserve with kid gloves.  It is incredibly rare to hear any real criticism of the Fed by mainstream reporters.

If the mainstream media was actually doing their job, then perhaps we could get some answers to some questions that have gone unanswered for a very long time.

For example, Zero Hedge has published a “smoking gun” that proves that the Federal Reserve was heavily involved in manipulating the price of gold long after the gold standard was abandoned.  If you have not read that piece yet, you can find it right here.

I would love to know to what extent this is still going on today, and why nobody ever asks Federal Reserve Chairman Ben Bernanke about this.

Another mystery that I would like to see addressed is the trillions of dollars of “off balance sheet transactions” that are unaccounted for at the Federal Reserve.  This was brought up once during a Congressional hearing, but nobody seemed to have any answers.  Video from this hearing is posted below….

As you can see from the video, nobody in the federal government seems to have any idea what is really going on over at the Fed.

But the Fed has more power over our economy and over our financial system than anyone else does.

Isn’t it about time that the American people got some answers?

The Federal Reserve is at the very heart of our debt-based financial system that was created by the big Wall Street banks and for the benefit of the big Wall Street banks.

The Federal Reserve (and virtually every other central bank in the world) is not accountable to the people.  The Federal Reserve has created a perpetual debt bubble that is designed to systematically transfer the wealth of the American people to the banks.  In this system, the total amount of money and the total amount of debt is designed to continually expand.

Since the Federal Reserve was created, the value of the U.S. dollar has declined by well over 95 percent and the U.S. national debt has gotten more than 5000 times larger.

But nobody seems to want to hold the Federal Reserve accountable for any of this.

Just what in the world is going on here?

In a previous article about auditing the Fed, I listed some more questions that I would like to see someone ask the Federal Reserve….

If the Federal Reserve is supposed to prevent shocks to our economy, then why have there been 10 different economic recessions since 1950 and why are we about to enter another one?

Was the Federal Reserve involved in the manipulation of Libor?

What role did the Federal Reserve play in creating the housing bubble that resulted in our unprecedented housing crash?

Why has the value of the U.S. dollar fallen by 83 percent since 1970?

Why is the Federal Reserve paying U.S. banks not to lend money?

Why did Barack Obama nominate Ben Bernanke for a second term as head of the Federal Reserve when Bernanke has a track record of failure that makes the Chicago Cubs look like a roaring success?

Why is the U.S. national debt more than 5000 times larger than it was when the Federal Reserve was created in 1913?

Why were the Federal Reserve and the personal income tax both pushed through Congress in the same year in 1913?

Why does the Federal Reserve argue that it is “not an agency” of the federal government in court?

Why do all 187 nations that belong to the IMF have a central bank?

Most Americans are pinning their hopes for an “economic turnaround” on the upcoming election in November.

But the truth is that until something is done about the Federal Reserve it isn’t going to matter very much who is in the White House.

As I wrote about yesterday, the total amount of all debt in America has grown from about 2 trillion dollars to nearly 55 trillion dollars over the past 40 years.

Yes, we should blame the American people for being really stupid about debt, but we also need to keep in mind that this is exactly what the debt-based Federal Reserve system was designed to do.

We have been enslaved by design and most Americans do not even realize what has happened.

Let us encourage reporters like Ben Swann to keep speaking out about the Federal Reserve, and the rest of us need to keep speaking out about the Fed too.

The Audit The Fed Bill Gets Passed By The House But Obama And The Democrats Are Going To Kill It

On Wednesday, Ron Paul’s bill to audit the Federal Reserve was overwhelmingly passed by the U.S. House of Representatives.  The vote was 327 to 98.  You would think that a bill with such overwhelming support would easily become law.  But it won’t, because Barack Obama and the Democrats plan to kill it.  Senate Majority Leader Harry Reid has already said that the Senate will not even consider the bill.  But of course if Barack Obama called Harry Reid and told him that he wants this bill to get through the Senate so that he could sign it then Harry Reid would be singing a much different tune.  Sadly, we all know that is not going to happen.  Barack Obama’s good buddy Ben Bernanke called the Audit the Fed bill a “nightmare scenario” last week, and Obama is certainly not going to do anything to upset Bernanke – especially this close to the election.  Obama needs Bernanke to do everything that he possibly can to stimulate the economy so that Obama will look as good as possible in November.  The sad truth is that there is absolutely no chance that the Audit the Fed bill will become law and that is a crying shame.

So why is an audit of the Federal Reserve so important?

Why does Federal Reserve Chairman Ben Bernanke consider an audit of the Federal Reserve to be a “nightmare scenario” that must be avoided at all costs?

Well, perhaps it is because there has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.

The Federal Reserve has more power over the economy than anyone else in the country does, and yet they are virtually unaccountable and the American people have very little idea what has been going on behind closed doors over at the Fed for the past 100 years.

A very limited audit of the Fed that was passed a couple of years ago that examined transactions during the last financial crisis discovered that the Federal Reserve had actually loaned out more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010.

Keep in mind that U.S. GDP for the entire year of 2011 was only slightly more than 15 trillion dollars.

The Federal Reserve loaned out trillions upon trillions of dollars to their friends and never told the American people about it.

Whoa.

You would think that Congress would be quite eager to see what else has been going on over at the Federal Reserve.

But instead, many Democrats are completely and utterly opposed to auditing the Fed any further.

U.S. Representative Barney Frank (a Democrat) seemed to regard the bill as a joke even after it overwhelmingly passed in the House.  Frank stated that “nobody here thinks this will ever become law“.

According to Politico, there is zero chance that the bill will get through the U.S. Senate….

Senate Majority Leader Harry Reid (D-Nev.) has said the Senate will not consider the bill, effectively killing its chances of becoming law.

But we all know that if Obama wanted this bill to become law that it would be a done deal.

If Barack Obama came out tomorrow in front of the television cameras and declared his support for this bill it would sail right through the Senate.

Unfortunately, the Obama administration has made it very clear that it considers a comprehensive audit of the Federal Reserve to be a really, really bad idea.

For example, Treasury Secretary Timothy Geithner once stated that auditing the Fed is a “line that we don’t want to cross” and that if we did audit the Fed it would be “problematic for the country”.

So what exactly did he mean by that?

That is a very good question.

In any event, people should take this as an opportunity to confront Barack Obama about the Audit the Fed bill wherever he goes.

Perhaps Obama will prove me wrong.

Perhaps Obama will show that he is willing to stand up to the Federal Reserve.

In fact, if Obama gets this bill pushed through Congress and signs it into law, I will not criticize him for an entire month.

But we all know that will never happen.

The Federal Reserve is going to be able to continue to keep their secrets hidden from the American people.

The following is what Ron Paul had to say following the vote on Wednesday….

“I think the whole idea that they can deal in trillions of dollars and know that nobody is allowed to ask them a question is a moral hazard.”

And Ron Paul is right.

If the Federal Reserve can zap trillions of dollars into existence out of thin air and loan that money to their friends at the big banks and to central banks in other countries, then it should not be too much to ask them to be accountable to the American people.

Over the coming months, the American people will heatedly debate whether Barack Obama or Mitt Romney would be better for the U.S. economy.

But the truth is that the Federal Reserve has far more power over the U.S. economy than the president of the United States does.

The Federal Reserve has been called the “fourth branch of government” because of how much power it has.  The Federal Reserve sets our interest rates, it determines the level of our money supply, it regulates and secretly bails out our banks, it determines the “target rates” for unemployment and inflation, and every small move the Fed makes causes global financial markets to swing wildly.

The Federal Reserve does all of this without ever having to be accountable to the American people.  In fact, whenever a bill is introduced that would shed some light on their activities they whine and cry about how important their “independence” is.

In a previous article, I described how preposterous this all is….

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to.  Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress.  Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit.  Does that sound preposterous?  Well, such an organization actually exists.

The American people need to stand up and demand an audit of the Federal Reserve.

We deserve to know what is going on over there.

Sadly, the mainstream media makes it sound as if hell has a better chance of freezing over than this bill does of becoming law.  The following is from a USA Today article that was posted on Wednesday….

The bill stands no chance of becoming law because the Democratic-controlled Senate will not take it up. The vote, however, served as a symbolic swan song for Paul, who is not seeking re-election. It is also an indicator of how Paul’s economic views have gone more mainstream, particularly within the Republican Party, in the wake of the 2008 financial crisis that shook Americans’ confidence in Wall Street and the federal government.

Well, let us hope that this kind of a bill keeps getting introduced in Congress.

Perhaps someday we actually will get a real audit of the Federal Reserve.

When that happens, the following is a list of questions that I would like to see asked by those auditing the Fed….

If the Federal Reserve is supposed to prevent shocks to our economy, then why have there been 10 different economic recessions since 1950 and why are we about to enter another one?

Was the Federal Reserve involved in the manipulation of Libor?

What role did the Federal Reserve play in creating the housing bubble that resulted in an unprecedented housing crash?

Why has the value of the U.S. dollar fallen by 83 percent since 1970?

Why is the Federal Reserve paying U.S. banks not to lend money?

Why did Barack Obama nominate Ben Bernanke for a second term as head of the Federal Reserve when Bernanke has a track record of failure that makes the Chicago Cubs look like a roaring success?

Why is the U.S. national debt more than 5000 times larger than it was when the Federal Reserve was created in 1913?

Why were the Federal Reserve and the personal income tax both pushed through Congress in the same year in 1913?

Why does the Federal Reserve argue that it is “not an agency” of the federal government in court?

Why do all 187 nations that belong to the IMF have a central bank?

Do you have any other questions that you would like to have asked during an audit of the Federal Reserve?  Please feel free to post a comment with your thoughts below….

Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail Out European Commercial Banks Once Again

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to.  Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress.  Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit.  Does that sound preposterous?  Well, such an organization actually exists.  It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe.  The Congress cannot overrule this decision.  Neither can Barack Obama.  Because it has so much power, many refer to the Federal Reserve as “the fourth branch of government”, but unlike the other three branches of government, there are basically no significant “checks and balances” on the Federal Reserve.  If you don’t like the fact that the Federal Reserve is racing in to help big foreign banks survive the European debt crisis that is just too bad.  The Federal Reserve pretty much gets to do whatever it wants to do, and the folks over at the Fed simply do not care whether you like that or not.

So what in the world just happened today?  The following is how an article on CNBC explained it….

Just ahead of the Wall Street open Thursday, the European Central Bank, along with the U.S. Federal Reserve, Bank of England, Bank of Japan and Swiss National Bank announced they would offer three-month dollar loans to Europe’s commercial banks, easing dollar funding constraints.

It must be nice to do whatever you want without having to get the approval of anyone else.

What do you think Barack Obama would give for such power right about now?

The Federal Reserve and other major central banks around the world decided that lending big European banks gigantic piles of dollars would be a good idea, so they are just doing it.

No debate, no votes and no democracy – they just tell us how things are going to be and that is that.

It is a bit ironic that all of this happened on the third anniversary of the collapse of Lehman Brothers.  It is almost as if the central bankers of the world are trying to send some sort of a message.

So how much money is going to be loaned out?

Well, according to an article in The Daily Mail, big European banks are going to be able to borrow an “unlimited” amount of money….

The deal announced yesterday means banks will be able to borrow ‘any amount’ of money in three separate auctions in October, November and December. Banks will have to put up collateral, or security, to tap the emergency funds.

Wow – I wish someone would offer to lend me an “unlimited” amount of money.

But of course this really is not going to solve anything in the long run.  You can’t solve a raging debt problem with more debt.

Yes, it will help the big European banks with their short-term liquidity problems, but it will do nothing to fix the long-term structural problems that are tearing Europe to pieces.

Win Thin, a senior currency strategist at Brown Brothers Harriman, said essentially the same thing to CNBC today….

“They’re taking care of the symptoms, but the underlying illness is still out there. On the margin, it’s positive. Until Greece defaults and we clear this whole thing up, they’re still treading water”

So, no, the financial problems of Europe have not been solved.

Just think of this latest move as a temporary band-aid.

So why get upset about it?

Well, what all of this shows is just how arrogant the Federal Reserve is.

The Federal Reserve gets to throw around trillions of dollars without any accountability to the American people.

As I have written about previously, the Federal Reserve made $16.1 trillion in secret loans to their friends during the last financial crisis.

This was revealed in a GAO report, and members of Congress such as Ron Paul and Bernie Sanders tried to get people to pay attention to this.  The following is a statement about this report that was taken from the official website of Senator Sanders….

“As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world”

So how much of that money went overseas?  Well, it turns out that approximately $3.08 trillion of that money was loaned to big banks and major financial institutions in Europe and Asia.

Barack Obama can’t lend trillions of dollars to foreign banks.

So why does the Federal Reserve get to do it?

Sadly, most Americans know very little about the Federal Reserve.  In the United States today, most Americans graduate from high school without ever learning much of anything about the Fed.

But if you really want to understand what is going on with our economy, it is absolutely critical that you understand the Federal Reserve.

The following are some more reasons why you should be upset about what the Federal Reserve has been doing….

*The Federal Reserve is a perpetual debt machine.  Today, the U.S. national debt is 4700 times larger than it was when the Federal Reserve was created back in 1913.

*The Federal Reserve has recently been actually paying banks not to make loans.  Right now banks can park money at the Federal Reserve and make risk-free income without having to make loans to the American people.

*Current Federal Reserve Chairman Ben Bernanke has a track record of failure that is legendary, and yet George W. Bush and Barack Obama both backed him 100%.

*The Federal Reserve system is designed to create inflation.  The truth is that the United States has only had a persistent, ongoing problem with inflation since the Federal Reserve was created back in 1913.

*Since 2008, what the Federal Reserve has been doing to our money supply has been absolutely insane.  Eventually this is going to have very serious consequences for us.

*The U.S. government has handed over the task of “centrally planning” our economy to the Federal Reserve.  The Fed decides what the target rate of inflation should be, what the target rate of unemployment should be, what interest rates are going to be and what the size of the money supply is going to be.  This is quite similar to the “central planning” that goes on in communist nations, but very few people in our government seem upset by this.

*The Federal Reserve picks “winners” and “losers” in the financial system.  For example, when the last financial crisis hit, the Fed bent over backwards to help out the big Wall Street banks, but hordes of small banks were left out in the cold.

*As mentioned above, the Federal Reserve has become way, way too powerful.  The Fed is able to do a lot of things that the three branches of government are simply not able to do.  Fortunately, there are a few of our leaders that are alarmed by this.  For example, Ron Paul once told MSNBC that he believes that the Federal Reserve is now more powerful than Congress…..

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”

As long as we continue to use a debt-based currency that is controlled by a privately-owned central bank, we are going to continue to have permanent inflation and government debt that expands at an exponential pace.

The “central planning” done by the Federal Reserve has created bubble after bubble after bubble.  Our dollars is on the verge of dying and our financial system is about to collapse.

The Federal Reserve system simply does not work.

Hopefully we can start sending more politicians to Washington D.C. that will be willing to stand up to the Federal Reserve.

But for now, the Federal Reserve is going to keep running around doing whatever it wants to do whether we like it or not.