"Federal Reserve: Our System Is Broken"

[WhiskeyGirl]

If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years.  The Fed creates our “booms” and our “busts”, and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates?  And 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?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nations that belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated.

The following are 11 reasons why the Federal Reserve should be abolished…

#1 The Greatest Period Of Economic Growth In The History Of The United States Happened When There Was No Central Bank

read more here - http://etfdailynews.com/2013/05/07/federal-reserve-our-system-is-broken/

'interest rates are low and the work needs to be done' - Obama

[WhiskeyGirl]

How can the Fed regulate the biggest banks when they are members?  The fox regulating the hen house?  Who owns the Fed?

"Is the Fed Afraid to Regulate the Big Banks?"

“We must end too big to fail” is the refrain now heard from regulators and big-bank representatives (seriously, they say this with a straight face). And the main mechanism that they propose is the resolution powers granted to the FDIC under Title II of the Dodd-Frank Act.
The FDIC’s proposed approach calls for losses in any part of a financial holding company to be absorbed by the holding company. Absorption here is a polite term for wiping out the equity and converting debt into equity.
Ideally, bank holding companies would be funded with a lot more equity. But the Fed has already signaled that it will wimp out on this issue -- with “we agreed to this in Basel” as a smokescreen. Equity levels will remain too low to make a difference.

How much did the biggest banks get in Fed aid during the collapse?  Who get the downside of the all the banking losses?

The Fed will draw serious political support if it moves to increase bail-in-able capital into the range of 20 percent to 30 percent of total assets for large-bank holding companies (with some colleagues, this is what I have proposed). The central bank will draw great ire if it sides with the megabanks, again.
The Fed has to decide. Should it make Title II resolution meaningful and allow a real chance of reducing the risks posed by the biggest financial institutions? Or should it shy away from a decisive victory?
On current form, the Fed seems likely to fail us, again.

Why should any private entity bail out any bank with taxpayer money?  Why should taxpayers always get the losing hand?

read more here - http://www.bloomberg.com/news/2013-05-12/is-the-fed-afraid-to-regulate-the-big-banks-.html

[WhiskeyGirl]

"The Next Bank Meltdown Won't Be an "Accident""

Big banks turned in a pretty stellar first quarter. All but one beat profits expectations. But as I told you last week, I'm now out of these stocks completely.

Do you want the truth about what shape banks are in right now? Sure you can handle it?

I'm sorry; I can't tell you the truth.

Regulators can't tell you the truth.

And the Federal Reserve won't tell you the truth.

No one can tell you the truth. That's because banks don't tell the truth. And neither does the Federal Reserve.

read more here - http://moneymorning.com/2013/04/22/the-next-bank-meltdown-wont-be-an-accident/

When do the bailout end?  The bonuses for failure?

When do everyday people come first?