Posted on 02/09/2025 5:51:02 AM PST by hardspunned
Why is Elon Musk supporting Ron Paul leading an audit of The Federal Reserve such a big deal?
Because The Fed has NEVER had a full audit, or full disclosure of monetary policy decisions
Example: The Fed got caught doing HALF A TRILLION in swaps overseas with no oversight
Federal Reserve Chairman Ben Bernanke was even questioned about giving this half a trillion in swaps to the central banks overseas:
No one gave the approval and he says he doesn’t need approval, “We have a longstanding legal authority to do swaps with other central banks — It's not an emergency authority of any kind — Section 14 of the General Federal Reserve Act”
“Half a trillion dollars. And you don't know who got the money?”
This level of corruption is beyond comprehension and it’s been going on for decades.
(Excerpt) Read more at x.com ...
hmmmm. it’s like an audit of Fort Knox- it’s all just gold-plated Tungsten. An honest audit would just hammer home the fact that we have nothing. Maybe not a great idea.
Every transaction should be tokenized on a Blockchain for all to see the immutable record of what occured. We have the technology, let’s use it
Probably just the tip of the iceberg.
My brother, long passed, worked in cryptography and said we had then no idea haw many "secret" were really just to hide stuff that shouldn't have been secret to begin with, like favoritism and penny-ante fraud and the like.
Contrary to popular belief, the gov't doesn't just "print" money. Rather, it issues Treasury Bonds to float increased spending, which the Fed sells in the open market. Where the train goes off the rails is that the gov't doesn't care what the cost of that spending is. High interest rates that temper business borrowing means nothing to the gov't because it's carte blanche for the gov't. They aren't motivated to spend wisely or well. And if you think differently, just looked at what you've paid for recently via USAID spending.
Just think of our national debt. Created by unelected criminals. This country could be independently wealthy if we only had a few honest men.
The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public. So is the Fed private or public?I'm not sure if the executive branch of the US government has the authority to audit the Fed.The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations.
Congress does, but they are, how shall I put it?, direct and personal beneficiaries of Fed corruption!
Bump
The Russian national debt is $300 billion, ours $37Trillion.
In 2023 the Russians spent less than $100 billion on defense! With that money they continued the largest military mobilization since WWII, kicked NATO’s arse on every battlefield and deployed IRBMs and air defense systems that are one or two generations advanced over our trillion dollar, obsolete MIC junk.
NATO spent $1.7 Trillion on defense.
$1.6 Trillion is a heck of a lot of MIC profits and mismanagement.
Bravo. Indeed, the vast majority of M2 creation happens through banks extending credit. When a bank makes a loan, the loan appears on the asset side of the balance sheet and an equal sized deposit pops up on the liability side. Shazam - money!
Now, that deposit winds up being deployed for various needs - equipment purchases, working capital needs, consumer spending or investment, etc. In general, it serves an economically-beneficial interest.
The Federal Reserve has been in place for what, 110 years, and it has NEVER been audited. For some odd reason, I thought they were accountable to us who pay their bills.
Time to get Congress to amend the Federal Reserve Act.
A surprising number of Democrats might actually support this...
Exactly! Friedman’s Quantity Theory of Money explains all this easily:
MV= PQ
Where M is the money supply, V is velocity of money (i.e., the rate the money supply “turns over” each year—leterally constant for the past 5 decades), P is the price level, and Q is the output of goods and services (GNP) produced during the year. Under Biden, Q shrunk and Biden asked Fed Chair to put more money in the system. Do the math: M going through the roof and Biden doing his best to curb output, the inevitable result is inflation. If you don’t believe it, track M (actually M1+M2) during the Biden years.
HOW MUCH ROOM IS CURRENTLY AVAILABLE AT LEAVENWORTH PRISON???
…but a half a trillion on overnight swaps by “the Fed” is low on my list of Things That Get my Blood Boiling.
The Treasury had about $12 trillion in outstanding debt held by the public at the end of Sept 2009 -this is when Bernanke made the statement. There is a TON of interest rate risk on that debt. It would be imprudent to not hedge at least SOME of that risk.
Also, the notional amount of a hedge isn’t a dollar loan; the actual pre-settlement exposure (which is akin to a loan) is a fraction of that notional. That is, if the Fed was swapping variable rate payments for fixed rates, and if rates fell, the Fed may be paying the swap providers, say, 10% of the notional (in practice it’s prolly less) Parenthetically. If rates rose the swaps would be “in the money” and result in a cash inflow to the Fed.
If the notional amount of hedging about which Musk is talking is $0.5t overnight, that’s peanuts.
Now….the absence of any records-keeping or controls on that hedging activity….THAT is a problem. Parenthetically, I suspect Bernanke was just ill-prepared for that line of questioning and SOMEWHERE was a detailed list of counterparties, trading limits, utilization of limits, and other cool risk management details. I hope…
There is also the broader question of oversight. As nully writes above, there is the TREASURY, the Federal Reserve banks, and the Board of Governors. WHO is doing what and which entity has which power should be clarified. Congress created the Federal Reserve as an independent agency to enable the central bank to carry out its responsibilities protected from excessive political and private pressures. At the same time, by law and practice, the Federal Reserve is accountable to Congress. The seven members of the board are appointed by the President with the advice and consent of the Senate.
We need a traffic cop. And Musk and his cluster of 19-21 year olds are good at some things. In this case, they may need to hire a capital markets expert or two.
The key takeaway from this, to me anyway, is not that Musk is uncovering massive corruption in many corners of the gov’t, but rather Musk needs more help to bring the corruption to light, especially in areas of where financial expertise is limited.
Well….we should send him you my FRiend….
You hit upon an important element in what we’ve experienced in the past 5 years. As the MSM and “experts” have frittered away their long-curated Authority Bias, a pile of ‘alternative’ reporters and media across a plethora of platforms have popped up.
Some of them are magnificent. Arguably, Druge started it. FR did its part. Breitbart is in the vanguard of that alternative.
Some of them, however, suck colossally. Slay News, Confounded Interest, Gateway Pundit, and a few others produce a feast of outright nonsense. People here lap it up simply because it’s not ABC et al. - an enemy of my enemy is NOT my friend.
It’s also a little worse here in FR due to pimps. A few years ago, NewsBusters published a real stupid one about Jim Cramer and SVB. https://freerepublic.com/focus/f-bloggers/4137820/posts?page=24#24. I ripped the article and got into it with the FR poster who defended the sophistry…upon reflection, the poster was likely the NewsBusters guy who wrote the daft article.
Only Jesus is an expert on everything. We all need help. Your post is a helpful reminder to keep our thinking caps on. Thank you and God bless you.
I think JFK’s executive order to withdraw from the Federal Reserve should be enacted. We shouldn’t be paying trillions in interest to use our own money. Everything should go through the treasury, and it should begin with a zero balance.
Social Security monies were supposed to go into an interest bearing account so the funds would increase. Instead, the money went into the general account where it was used and abused. Now, the elderly are being threatened by a shortage of funds when they were the bulk of the social security monies that should have been invested. And yet, it’s only a tiny amount of thè overall budget according to the graphs and charts posted here on the forum.
I would say that a bunch of the mismanagement of tax dollars isright in fromt of our faces, in the open, and directly affects us, all.
They're audited every year.
https://www.federalreserve.gov/aboutthefed/files/combinedfinstmt2023.pdf
I thought they were accountable to us who pay their bills.
The Fed pays their own bills.
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