Given the trillions of dollars which the private bankers of the Federal Reserve have pillaged from the U.S. Treasury (over $4 trillion, and counting), clearly the Fed can afford to hire the best lawyers “money can buy”. Thus, when we see the pathetic excuses being put forward by these lawyers to attempt to justify the Fed's decision to continue hiding what it did with its “emergency lending” operations, it essentially confirms there is no justification.
The first “reason” cited by these lawyers to justify hiding what the Fed did with the taxpayer dollars it used to prop-up U.S. banks (primarily Wall Street) is that disclosing this information would “impair” the Fed's “ability to manage the current, and any future financial crisis.” It then warned that disclosing its actions could also “harm the U.S. economy”. It provided no explanation of any kind as to how either it or the U.S. economy would be harmed.
This is hardly surprising. For nearly a century, the Federal Reserve has acted more like the U.S.'s monarch than its central bank. It makes its decrees, which are above any branch of the U.S. government and helps itself to hundreds of billions of (taxpayer) dollars from the U.S. Treasury – any time it feels like it.
The mechanism is very simple: it prints up a truckload of U.S. dollars – backed by nothing – and uses that paper to “buy” U.S. Treasuries, and then gets U.S. taxpayers to pay interest on the bonds it “purchased” for free. This is how almost all new “money” has been “created” in the U.S. economy in recent years. Altogether, the Fed now holds over $4 trillion of U.S. debt - making it the single largest holder of U.S. IOU's.
Let me repeat this, since the absurdity and magnitude of this scam even exceeds the stealing done by Wall Street – and yet is ignored by the U.S. population (as well as the media-propagandists).
The Federal Reserve prints dollars – which belong to the American people – and then uses the money that it doesn't own to “buy” U.S. Treasuries, and then gets the American people to pay it vast sums of interest on Treasuries which it stole from the American people. U.S. taxpayers are currently paying these private bankers somewhere in excess of $100 billion per year of interest on these stolen Treasuries.
It is no wonder that the Fed feels outraged at being subjected to the same laws as the “little people”, whom it robs-blind on a daily basis.
The second excuse that the Fed used to justify refusing to disclose its lending activities is that it might not be able to find the relevant records. Perhaps the Fed's tendency to act like an 18th century monarch goes beyond its outward behavior? Perhaps it still keeps all its records on parchment?
“We don't really know what's in New York,” said the Fed's lawyer, “We don't control the system of record-keeping.”
Surely after stealing $4 trillion the Federal Reserve can afford to buy a few computers, and hire a decent accountant?
In its brief submitted to U.S. District Court Judge Loretta Preska, the Fed argued that:
Experience in the banking industry has shown that when customers and market participants hear negative rumors [emphasis mine] about a bank, negative consequences flow.”
However, the Federal Reserve has not been ordered to spread rumors, but the exact opposite. It is being ordered to release facts...facts about the “stress-tested” U.S. banks which now claim that they are so “healthy” that they are making “profits”.
The “negative rumors” are being spread by people like myself. People who argue that with all categories of U.S. loans simultaneously at record levels of delinquencies and defaults that it's only the new, fraudulent accounting rules enacted this spring which allow U.S. banks (primarily Wall Street banks) to hide their insolvency, and pretend to be profitable.
In fact, this is an opportunity for the Federal Reserve (and the Wall Street banks it represents) to refute the criticism of myself (and others) by releasing records which demonstrate it has been telling the truth, all along.
Given that Wall Street banks are “stress-tested, healthy, and profitable” - and poised to pay out tens of billions of dollars in bonuses this year – surely these banks are strong enough to survive divulging a tiny portion of their activities?