Wednesday, March 26, 2008

Paulson Seeks Greater Role for Federal Reserve

Who is the Federal Reserve?

Paulson Seeks Examination of Rules; Governing Big Financial Players; By Tom Barkley; The Wall Street Journal. March 26, 2008.

From the WSJ (subscription):

Treasury Secretary Henry Paulson called Wednesday for "some type" of additional oversight of investment banks by the Federal Reserve in connection with the recent decision to give them access to the central bank's credit.

Separately, the top two members of the U.S. Senate Finance Committee have asked the Federal Reserve and Treasury Department for extensive details on J.P. Morgan Chase & Co.'s deal to acquire Bear Stearns Cos.

The Fed's move earlier this month to start providing liquidity to primary dealers for the first time since the 1930s "deserves praise," said Mr. Paulson in prepared remarks for a speech to the U.S. Chamber of Commerce. But it also raises regulatory issues, since the Fed only regulates depository institutions, he said.

"Certainly any regular access to the discount window should involve some type of regulation and supervision," said Mr. Paulson. (Read the prepared text of the speech.)

Thus, he suggests two measures to improve Fed oversight of investment banks, including greater access to information and public disclosure.

The Fed should have access to the information it needs to make lending decisions, said Mr. Paulson. The central bank should continue to work with the Securities and Exchange Commission and Commodity Futures Trading Commission, he said, and consider whether more formal cooperation is needed.

The recently created Term Auction Facility to lend more cash to commercial banks could provide a model for transparency, disclosing the eligible institutions and the magnitude and pricing structure of the lending program, he said.

Still, Mr. Paulson said it is premature to conclude that primary dealers or other nonbanks should have permanent access to Fed credit, saying the recent action "should be viewed as a precedent only for unusual periods of turmoil."

Read the rest of the article here.

Comment: Since I started studying the events that took place in 1913, the 16th and 17th Amendments, and the Federal Reserve, I believe we have been marching toward one end; despotic oligarchic tyranny aided by corporatists (fascists) and socialists. And with the information contained in this article my opinion is further bolstered.

Are we that stupid that we can’t see what’s going on? Why would we turn over further unconstitutional oligarchic authority to an entity that we have no control over nor know who has membership? Where in the US Constitution does it say anything about a Federal Reserve?

Beware folks, Treasury Secretary Henry Paulson is not a republican, conservative, or even libertarian minded; he is democrat with socialist inclinations who is close friends with Sen. Chuck Schumer of New York. These are not people that have liberty in mind when they do their work; rather it is control they seek; control of our lives, businesses, and government. He is the very kind the Founders feared, and Orwell foresaw.

Write your Congressman, Rep. Ron Paul, and Sen. Grassley and tell them you are opposed to any further control of the banking industry by the Federal Reserve. Tell them it’s time we knew more about this secretive body.

While you should contact your Senator, I believe it is useless. The Senate long ago stopped representing their respective state and US citizens, today they serve only the elites; this is why Paulson can say what he did publicly. If wasn’t the case you be reading about the US Senate calling for Paulson’s dismissal and Bush's censor.



Cross posted at One Oar in the Water


1 comment:

Republicae said...

The Bloodline of Tyranny can be traced back in this country to a mentality that formed within the circles of power that began to consolidate during the Constitutional Convention. Within those debates the desire for a federal oligarchy was planted, pruned back, yet the roots of that desire remained, living deep within the soil, ready to sprout and spread its vile contempt for the Liberty of the People. This seed of Tyrannical Oligarchy can be easily traced through various political policies and actions from the beginning until this present time.

There were several distinctions between the two groups, the two mind-sets; it is no different today as this struggle continues for our Liberty. The mind-set of oligarchy has not changed, nor have those who support such mentalities, nor has the battle that began during those formative years of our Republic.

It became evident that there were two very different rationales at work; one quickly became represented by the Federalist Party on one side, the other by the Republican-Democratic Party. While it is not my intent to delve into a detailed history of the beginning of this struggle, it will provide profiles of the men and the reasons behind the formation of those two very different camps of political thought and how we are still effected today as the same struggle continues.

While it became apparent during the Constitutional Convention that there were those who saw the opportunity to establish Imperial Government, the forces against them, thankfully, were substantial. Eventually however, the great American Monarchists represented by the Federalist Party gained power and the great struggle for the future of our Republic began in earnest in 1796 with the election of John Adams. The Federalist Party’s platform favored a highly centralized government and extremely strong Executive without the checks and balances to hinder or limit its power or scope. It was, in a very real sense, a Party of Monarchy whereas the Republican-Democratic Party was totally opposite, seeking a very decentralized government with checks and balances to limit the reach of government into the lives of the People.

As the critical formation of the Republic began, Hamilton laid eleven proposals at the Constitutional Convention of 1787 in which he sought to base the government of the Republic on, these propositions were so Monarchists in tone and substance that they received little support except from those of the New England States and were rejected. Governor Morris, a friend of Hamilton stated: “ Hamilton hated Republican Government, and never failed on every occasion to advocate the excellence of and avow his attachment to a Monarchic form of Government.”

From the very beginning of this country, the Federalist, particularly in New England, nurtured and maintained a pure hatred and fear of the ideals the Republic. While at one time Hamilton was a champion of those ideals, he soon became the leader of this group that espoused a Monarchist Oligarchy. In his opposition to Jefferson, he railed out “The People! Gentlemen, I tell you the people are a great beast!”

The hatred was so intense that during the 1796 elections, Governor Walcott of Connecticut stated: “I sincerely declare that I wish the Northern States would separate from the Southern the moment that event [the election of Jefferson] shall take place.”

The Federalist Party desired to either completely separate from the Southern States or form their own Confederacy of Northern States, or to completely destroy any and all power within the South and along with it all traces of Jeffersonian principles from the government. This desire never, ever changed through the history or the transformation of the Federalist Party, as it became the Whig Party and then the Republican Party.

As the Federalists began to wield their powers under the Administration of John Adams, the first tinge of evidence to the desire and purpose of the Oligarchist was the Aliens and Seditions Act of 1798, which provided a singular reservoir of power in the hands of the President and allow him to expel foreign citizens suspected of treason. Additionally, it made it illegal to oppose any measure of the government and any false or perceived hostile words against the government or its policies.

Thankfully, there was waiting in the defense of our Republic two men and two States that stood in the gap to defy these Monarchist who craved an American Oligarchy with an unquenchable lust that has continued throughout the history of our fair Land. Those men, of course, were Thomas Jefferson and James Madison and those courageous State Republics were Virginia and Kentucky.

After the death of Jefferson, the Republican-Democratic Party dropped Republican from the name and the Democratic Party was born and remained the Party of Jefferson and Madison until it was completely destroyed by the Reconstruction Act. The Federalist Party fought from 1796 until it’s apparent demise at the end of the War of 1812, but the Centralist Ideals found their way back into the political arena with the formation of the Whig Party, which once again sought to transform this Republic into a Centralized Oligarchy. The old Federalists and Whigs ideologies basically united and organized, taking on a name that when used would be deceptively favorable to the public. The heart of the Party still contained all of its progenitors’ creeds, doctrines, hatred and purpose. It had and continues to have a passionate desire for power and will use any necessary means to acquire its end.

As we know, the Republican Party effectively consumed that Party, but as it was transformed its platform was increasingly radicalized during the late 1850’s and during the 1860’s. Nevertheless, the Republican Party, the GOP is the inheritor of all the Centralist Ideals, the Monarchist Principles of the Federalist Party and the Whig Party before it. The Bloodline of Tyranny had been effectively passed from one generation to the next and it was this fateful generation of Centralists that saw the beginning of the fulfillment of all the desires of its progenitor Monarchists in our country’s birth.

Make no mistake about it, the Republican Party today is the Party of Lincoln, but the Democratic Party today is definitely not the Party of Jefferson.

Now, if you trace the line of this heinous ideology, you will find a direct linage down to the Republican Party. The hatred of the South and the Democratic Party of Jefferson continued, it never waned nor did its primary purpose in total control over government weaken through the decades from 1796 to the fall of the Confederacy and beyond.

In fact, if you read the works of Wendell Phillips, a New England Republican Firebrand, you will quickly learn the agenda of the Republican Party of Lincoln from the very beginning, it was keeping the flame of Oligarchy alive and would stop at nothing until it accomplished its vile goals of domination. Wendell Phillips stated: “The Republican Party is in no sense a national party. It is a party of the North, organized against the South.” Why? The South, particularly the Old South that was recognized primarily as Virginia, Kentucky, the Carolinas and Georgia, were all strongholds of the Jeffersonian Ideal for a Republic of, by and for the People. The reality is that the war on the South didn’t begin in the 1860s, but back in 1796 with the Federalist Party, it was the offspring of that Party, the Republican Party of Lincoln that finally accomplished the goals of the old Federalist Party.

To get a very detailed expose on the agenda of this group and their long-term goals you need not look any further than the Olive Branch published in 1814. In those papers you will find the following: “ A Northern Confederacy has been the objective for a number of years. They [the politicians of New England] have repeatedly advocated in public print, separation of the States. The project of separation was formed shortly after the adoption of the federal Constitution. The promulgation of the project first appeared in the year 1796 in the Pelham Papers. At that time there was none of that catalogue of grievances, which since that period, have been fabricated to justify the recent attempt to dissolve the Union. At that time there was no “Virginia Dynasty” [the description of Jefferson, Washington and Madison], no “Democratic Madness, no “war with Great Britain.” The affairs of the country seemed to be precisely according to New England’s fondest wishes. Yet, at that favorable time (1796) New England was dissatisfied with the Union and begun to plot to get out of it. The common people however, were not ready to break up the Union. The common people at that time had no dislike of the Southern States.”

It goes on to say: “For eighteen years the most unceasing endeavors have been used to poison the minds of the people of the Eastern States toward, and to alienate them from, their fellow citizens of the Southern States. The people of the South have been portrayed as “demons incarnate”, as destitute of all the “good qualities which dignify and adorn human nature”. Nothing can exceed the virulence of the pictures drawn of the South’s people, their descriptions of whom would have more suited the ferocious inhabitants of New Zealand than a polished, civilized people.”

As always, the political agenda of tyranny will always demonize what they perceive as their opponents to complete autocratic control. So, the doctrine of hatred, always used to affect the most politically expedient results, continued from 1796 until the goal was reached. In the Hartford Courant of 1796, in Extract No. 1, the clarity of this goal of tyranny was explained with little reservation: “The question must soon be decided whether we shall continue as one Nation. Many advantages were supposed to be secured and many evils avoided by a Union of States, but at that time those advantages and evils were magnified to far greater size than either would be if the question at this moment were to be settled. The Northern States can subsist as a Nation, a Republic, without any connection with the Southern. If the Southern people were possessed with the same political ideas, our Union would be more close than in separation.”

Such were the kinder and more civilized words that came from the mind of the Federalists in their concerted effort to drive a complete and absolute wedge into the heart and soul of the American Constitutional Republic. They even went as far as publishing maps for the school children of New England, with the study of the old Morris geography, these children readily accepted the slander as portrayed in the maps. The South was in black to represent the barbarous infidels, the North in white to represent the enlightenment of New England. It was, like all indoctrination, extremely effective.

In Carpenter’s Logic of History in 1864 you find the following:
“The Northeastern States early sought to create prejudice and disunion sentiment, not on account of existing fact, but to array section against section, to stimulate hate and discord for the purpose of accelerating their darling object, the dissolution of the Union and the formation of a Northeastern Confederacy. Press, politicians and preachers were continually harping on causes, which made disunion desirable. The motives which actuated New England disunionists was the desire to have what Hamilton called a strong government, understood to mean an Autocracy similar to that of England, a large standing army, a heavy public debt, owned by the favored few, to whom the common masses should pay tribute, under the guise of interest. The main public offices were to be held by the rich and noble for long periods, or for life. It was argued that a national debt would be a national blessing, and prohibitive tariff, under the guise of protection, be a blessing. These were the motives which led the early Federalist to want disunion.”

As we can see, all of the desires of this Bloodline of Tyranny have been fulfilled in this country through a long line of subversions and intrigues. This vile gospel of hatred was directed toward the South for no other reason except the Ideals of the Constitutional Republic were extremely strong in the South; it had retained the purity of the Jeffersonian Ideal. All manner of vile prejudices were used to incite the people of the North to grow in their hatred against the South.

These same voices continued with their onslaught against Jeffersonian ideals and the promise of a Free Republic. The principles upon which this Republic was created was not the goal of the Radical Republicans of the mid-1800s anymore than it was of the Whig Party or the progenitor Federalist Party. Though the Party name changed, the basic principles remained intact, the goal of an all powerful, centralized government imbued with the ability to do as it pleased, when it pleased never faded.

If you read the commentary of the day, if you read even the sermons from the New England pulpits, you will see a very concerted effort to spread discord, hate and envy toward the Jeffersonian South. If it were not for such tactics, the unholy work of Federalist Tyranny would have never taken root nor would the War of the 1860s taken place.

As time progressed, tactics continued to be employed to exact a progressive measure of success toward the goal of centralization. A corrupt system of favors, select appointments, bribes and government corporate blessings allowed for the taint of tyranny to reach even deeper into the heart of the halls of power. As with the desire for a highly centralized government was being realized, so too was the necessity for a centralized banking system, intent on completely the goal of peonage from the mass of general population.

For over fifty years, the Northern New England States were the seat of power and influence; they peddled their wears adeptly. During those years the disunionists cried for separation, it was a universal right acknowledged by all the States from the time of the Ratification of the Constitution. The doctrine of Secession was never questioned, never doubted until it became an issue that would directly affect the wealth of the federal government and those who held economic sway of the halls of power.

There was, from the time of prior to the Constitution until the months preceding the War on the South, no group or political party within this country called, at any time, for loyalty toward a national, centralized government over the State governments. The allegiance was to the States; never to the federal government because it was only a reflection of the State Republics therefore, the doctrine of Secession as a Right was never questioned. In fact, until the moment Lincoln pressed War on the South there was never any question, even in Lincoln’s mind judging from his speeches, that any State and their Citizens had the absolute Right of Secession.

The historical record of the New England States is ripe, not only with the desire for disunion, but it upheld the Right of Secession as a given until it appears that the costs of such disunion on the part of the South would prove far to expensive to the North. It is amazing that up until the beginning of the War on the South, the Republican Party advocated the principle of State Sovereignty and the Right of Secession that quickly changed as they realized that without the treasure trove of the South that the North would be bankrupted.

With victory over the South, the Northern Radical Republican Party had almost realized their long dream; the struggle to fulfill that dream continued throughout the period of Reconstruction. In a very real sense, The Reconstruction should be called the Restructuring, for its goal was to destroy the effectiveness and power of the Democratic Party throughout the South, isolate the remnant of that Party in the North and to absorb that Party into a partnership while maintaining the guise of Party differences. To this day, there are differences, but not of any real substance, both Parties have the same agenda: Oligarchy.

By the later part of the 1800s it was clear that the remnants of State Sovereignty had been wiped away, along with the checks and balances associated with such Sovereignty. During McKinley’s last campaign, Jefferson was derided as a vile visionary, damned as a French anarchist while Hamilton was lauded as a National hero. By 1881 and the election of Garfield, the Hamiltonians had finally won the prize of Nationalistic Monarchy. The Sentinel said it best: “Garfield’s rule will be the transitory period between State Sovereignty and National Sovereignty. The United States Senate will give way to a National Senate. State Constitutions and the United States Senate are relics of State Sovereignty and implements of treason. Garfield’s Presidency will be the Regency of Stalwartism; after that-REX.”

On July 3, 1881 James Garfield said: “The influence of Jefferson’s Democratic principles is rapidly waning, while the principles of Hamilton are rapidly increasing. Power has been gravitating toward the Central Government.”

Indeed, that power did not gravitate, but it was forcefully wrenched with one strong yank to the Central Government at the hands of that Hamiltonian Monarchist Mr. Lincoln.

The era of Radical Republican Nationalists effectively dominated the country from 1860 to 1912 with the one exception, the one ray of light when the Bourbon Democrat Stephen Grover Cleveland entered office from 1885 to 1897. After years of corruption, political favoritism and patronage, political bossism, Imperialism, subsidies and inflationary excesses, Mr. Cleveland ushered in a period of honesty, political integrity and sense of independence from centralized authoritarianism, indeed he ushered in a period that is as close to Jeffersonian Liberalism as had been seen in almost a century previous and none since.

The Honorable Mr. Cleveland said: "The lessons of paternalism ought to be unlearned and the better lesson taught that while the people should patriotically and cheerfully support their Government its functions do not include the support of the people.”

"This vigilance on the part of the citizen, and an active interest and participation in political concerns, are the safeguards of his rights; but sluggish indifference to political privileges invites the machinations of those who wait to betray the people's trust."

"Parties may be so long in power, and may become so arrogant and careless of the interests of the people, as to grow heedless of their responsibility to their masters. But the time comes, as certainly as death, when the people weigh them in the balance."

The promise of a resurgence of the Jeffersonian ideals soon faded with the election of McKinley.

During McKinley’s last campaign, Jefferson was derided as a vile visionary, damned as a French anarchist while Hamilton was lauded as a National hero. McKinley then effectively turned the Radical Republican Nationalism into a force that called for Radical Interventionism and Imperialism.

With the election of Wilson, the transformation of the Democratic Party was complete. Wilson instituted policies that would be as close to Hamiltonian Nationalism as could be, on all fronts Nationalism, Centralization of both government and finance was achieved under Wilson. While the passage of the Federal Reserve Act and the 16th Amendment are often considered be the most devastating elements implemented by the Wilson Administration; in fact the most devastating element was the 17th Amendment, which effectively completed the Nationalization of the Senate. This completed the extermination of State Sovereignty and put the Senate on the open market of political corruption. The Wilsonian Democrats might as well have been Lincolnite Republicans.

With the election of FDR, the Nationalist came into their own, with a reach and scope of powers that Mr. Lincoln could have only dreamed about. The policies of FDR consolidated all government into the hands of the few, into the Political Nobility where the people’s dependence upon government was made possible and complete.

Upon the Nationalist Foundation the two parties now rest. There truly is not a nickel’s worth of difference between the two. Each Party has, in effect, become a hybrid of the other, in form and essence their politics only pretend to contradict each other on the shallowest levels. They use emotional issues to tug upon the electorate during the elections, but the fundamental foundation of each Party is now the same.

Both modern Parties have effectively divided America into two very distinct classes; one are the office-holders, the power-brokers, the corporatists who are little more than the new nobility and then there are the peons, which support the seats of power on which our rulers, our lords now sit and rule. The laboring peonage, who toil and labor to create the wealth that our rulers and their patrons revel in just as any nobility of old. Not only has the Republican Party, and now thanks to the Reconstruction, the Democratic Party as well, been that of high taxation both hidden and overt, but high benefits for its upper membership, despotic legislations, usurpation of powers, but as we have seen the last century and a half have seen more bloodshed and more misery around the world and here at home then should have ever been tolerated by any civilized people who value Liberty.

The Roots of Tyranny are deep and wide spread, we must never make the mistake of thinking that we can graft a branch of liberty onto the rootstock of Tyranny for all we will get is a tasteless fruit that can never nurture Freedom and can never reproduce itself. The Roots of Tyranny must be completely dug out of the fertile ground of our country, every leader root destroyed otherwise it will simply take root again and spread its vile influences over good government and the lives of our People.



In Liberty,
Republicae-Seditionist