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Regional Fed Chiefs: Elite Insiders Have "Usurped
Authority"
Federal Reserve regional bank presidents describe invocation
of ‘war powers’ by Board of Governors in Washington
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Regional bank presidents of the Federal Reserve have described
the ongoing financial policy making of Washington officials as
a complete usurpation of authority and an invocation of emergency
powers.
The district chiefs’ authority over borrowing
costs has been marginalized in the past two months as Chairman
Ben S. Bernanke and the Fed Board of Governors in Washington made
their own decisions on emergency measures to flood the economy
with cash, reports
Bloomberg News.
Several former and current regional bank presidents
have intimated that they now have little to no influence over
the Federal Reserve's actions and that the central bank has effectively
been completely hijacked by high ranking insiders.
“The Board has usurped authority,” said
William Poole, former president of the St. Louis Fed and now a
senior fellow at the Cato Institute in Washington. “This
dramatic change in policy direction has not been announced or
even acknowledged.”
James Bullard, Poole’s successor at the St.
Louis Fed, has described the shift as a move toward a "new
world" and clearly holds out little hope that the situation
will improve. “Whatever our communications problems are
now, they are going to be magnified in this new world we are going
to be in,” Bullard has said.
“If I am a regional Fed bank president, I have had my power
diminished a lot,” said Ethan Harris, co-head of U.S. economic
research at Barclays Capital Inc. in New York, who used to work
at the New York Fed. “I think of it as war powers for the
Board of Governors.”
(ARTICLE CONTINUES BELOW)
The Fed has twelve regional presidents that are
supposed to offer a counterbalance to the central board of governors,
however, the regional presidents have recently not even been offered
the opportunity to vote on initiatives such as a new $600
billion program to buy mortgage-related debt and
securities and a $200 billion facility to support consumer debt
securities.
This trend is likely to continue at a meeting next
week when regional presidents could be told to just go along with
a Fed announcement that it is set to lower interest rates again
in order to allow increased borrowing at a cheaper rate.
Fed chairman Ben Bernanke hinted
last week that the Fed will likely also purchase
Treasury or agency securities in “substantial quantities.”
Since the Original bailout bill was passed in early
October, the Fed has swallowed up all manner of new regulation
powers. As we reported in our September
25th article, the bill set a precedent to allow the
government and the Fed carte blanche to do whatever they want
to long as it is done in the name of stabilizing financial markets.
The Fed can nationalize any company or industry
and use taxpayer money for whatever purpose is deemed necessary,
without any oversight. The policy is also unreviewable
by any court, it will remain in perpetuity.
This is not just about continued seizure of taxpayers'
money and the continued sacking of the dollar, it's about the
imposition of a giant new infrastructure of control and regulation
on behalf of the private, run for profit, Federal Reserve.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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