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View Full Version : Economics Geithner: Auditing the Fed is a “line that we don’t want to cross”


KILLER_CLOWN
08-25-2009, 02:56 PM
James Corbett
The Corbett Report
Tuesday, August 25, 2009

In an interview released today by Digg and the Wall Street Journal, Treasury Secretary Timothy Geithner was pressured about the growing popular movement to Audit the Fed spearheaded by Texas Congressman Ron Paul. A visibly uncomfortable Geithner attempts to dismiss the question by stating “I’m sure people understand that you want to keep politics out of monetary policy.” When Geithner is again pressed on the issue, he makes the stunning assertion that conducting an audit of the Federal Reserve—something never before done in its 96 year history—is a “line that we don’t want to cross,” proclaiming that such a move would be “problematic for the country.” Watch the interview in the player below:

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Geithner’s response that auditing the Fed would give politicians dangerous control over American monetary policy is mistaken at best and a deliberate lie at worst. Allowing the public to know what happened to their $24 trillion in bailout money does not give undue control of monetary policy to the people’s elected representatives. Instead, such an audit would finally allow the public to see how their money has been spent in the midst of the largest spending binge in the history of the world’s economy, hardly an unreasonable demand given the well-documented revolving door between the Treasury and Goldman Sachs, the main recipient of bailout funds. Ultimately, the Treasury Secretary is left spewing the absurdity that “I think even the sponsor of that bill recognizes how important it is to us to have the Fed independent of politics,” which can only be said to be true insofar as Ron Paul—the sponsor of House Resolution (HR) 1207— wants to abolish the Federal Reserve system altogether.

That the Wall Street Journal would even pressure the Treasury Secretary on serious issues like the Audit the Fed movement may be surprising, given that the Wall Street Journal is a mouthpiece of the financial oligarchy and that editor Paul Gigot, like Geithner himself, is a Bilderberg attendee. Needless to say, this was not a typical inside-the-beltway interview. Instead, questions were submitted and voted on by the Digg community, with the top 10 questions being posed to Mr. Geithner.

As a result, the Secretary was bombarded by pointed questions about his documented tax evasion from 2001-2004, the wisdom of spending trillions of dollars in the light of long-term dollar devaluation and even, in the words of one particularly irate questioner, “Why are you running the Treasury Department?” Despite presumably having had time to prepare responses to each question well in advance, Geithner is still visibly discomfited by the entire exchange, picking at his shirt cuff and coughing nervously throughout the interview.

In one particularly telling moment, Geithner even admits “We have been forced to do just extraordinary things and, frankly, offensive things to help save the economy.”

That these questions are only being asked now, almost a year into the bailout and several months after the new administration has taken office, further highlights how the controlled corporate media is doing everything in its power to keep to well-trodden and uncontroversial areas in their interviewing of key administration officials. This interview is testimony to the power of the citizen journalism movement that is attempting to hold those in power accountable for their actions. We can only hope that the Obama Administration lives up to their promise to be the “cyber” administration by allowing more such question-and-answer sessions in the future.

http://digg.com/dialogg/Timothy_Geithner_1

http://www.auditthefed.com/

http://www.prisonplanet.com/cost-of-bailout-hits-a-whopping-24-trillion-dollars.html

http://www.nytimes.com/2008/10/19/business/19gold.html?_r=3&ref=business

http://www.ronpaul.com/on-the-issues/audit-the-federal-reserve-hr-1207/

http://www.lewrockwell.com/paul/paul504.html

http://www.wnd.com/index.php?fa=PAGE.view&pageId=98469

http://blogs.telegraph.co.uk/news/alexspillius/8174427/Tim_Geithners_tax_evasion_/

http://www.corbettreport.com/index.php?ii=156&i=Documentation

http://www.corbettreport.com/articles/20090825_geithner_audit.htm

Taco John
08-25-2009, 02:57 PM
Hahahaha!

Taco John
08-25-2009, 02:59 PM
Last I heard, the bill is a sure thing to make it through the house, but is going to find resistance in the senate.

KC Dan
08-25-2009, 03:02 PM
It's coming and he knows it! This is hilarious.

Geithner even admits “We have been forced to do just extraordinary things and, frankly, offensive things to help save the economy.”

He is trying to warn Congress and the administration that they had better not allow an audit to occur otherwise many things they (congress, Wall St. & admin) DO NOT want to come out - will.

wild1
08-25-2009, 03:02 PM
Just like auditing your tax returns is a line you don't want to cross, eh Geithner?

KILLER_CLOWN
08-25-2009, 03:03 PM
I bet he regrets doing this interview.

Chiefshrink
08-26-2009, 12:51 AM
Just like auditing your tax returns is a line you don't want to cross, eh Geithner?

You nailed it BIG DOG!!!:thumb:ROFLROFLROFLROFLROFLROFL

Guru
08-26-2009, 01:08 AM
God forbid we hold the fed accountable like they hold John Q. Public accountable.

RINGLEADER
08-26-2009, 07:36 AM
This guy is a tax-cheating tool who wouldn't have been confirmed if they had tried a few months earlier or a few months later then when they tried.

memyselfI
08-26-2009, 07:41 AM
He is the Cheney of Lite's administration. Breaking laws when he should be taking prisoners...led by himself.

KILLER_CLOWN
08-27-2009, 06:16 PM
Federal Reserve Says Disclosing Loans Will Hurt Banks (Update1)

Aug. 27 (Bloomberg) -- The Federal Reserve argued yesterday that identifying the financial institutions that benefited from its emergency loans would harm the companies and render the central bank’s planned appeal of a court ruling moot.

The Fed’s board of governors asked Manhattan Chief U.S. District Judge Loretta Preska to delay enforcement of her Aug. 24 decision that the identities of borrowers in 11 lending programs must be made public by Aug. 31. The central bank wants Preska to stay her order until the U.S. Court of Appeals in New York can hear the case.

“The immediate release of these documents will destroy the board’s claims of exemption and right of appellate review,” the motion said. “The institutions whose names and information would be disclosed will also suffer irreparable harm.”

The Fed’s “ability to effectively manage the current, and any future, financial crisis” would be impaired, according to the motion. It said “significant harms” could befall the U.S. economy as well.

The central bank didn’t say when it would file its appeal.

Fed lawyer Kit Wheatley told Preska in a conference call today that she did not know how long it would take for the Fed board to search the New York Fed for records.

“We really don’t know what’s in New York,” Wheatley said. “We don’t control the system of record-keeping in New York.”

The Standard

The Fed’s lawyer went on to say that she did not know what records would fall under a “delegated function,” which would be a task assigned to the New York Fed.

Preska interrupted Wheatley, saying that “Ms. Wheatley, I held that’s not the standard. You didn’t search under the regulation. You’re supposed to search under the regulation.”

Preska scheduled another conference call for 2:30 p.m. today to discuss the schedule for a search of the New York Fed.

“Nobody is going to deny you your right to an appeal,” Preska said on the call, “We’re going to do it expeditiously, not in a piecemeal fashion and hand it all off to the Second Circuit.”

The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under the emergency programs, saying disclosure might set off a run by depositors and unsettle shareholders.

Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 under the Freedom of Information Act on behalf of its Bloomberg News unit.

Public Interest

“Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer with New York-based Willkie Farr & Gallagher LLP who represents Bloomberg.

Preska’s Aug. 24 ruling rejected the Fed’s argument that the records should remain private because they are trade secrets and would scare customers into pulling their deposits.

“What has the Fed got to hide?” said Senator Bernie Sanders, a Vermont independent who sponsored a bill to require the Fed to submit to an audit by the Government Accountability Office. “The time has come for the Fed to stop stonewalling and hand this information over to the public,” he said in an e- mail.

The Clearing House Association LLC, an industry-owned group in New York that processes payments between banks, filed a declaration that accompanied the request for a stay.

Negative Consequences

“Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow,” Norman Nelson, vice president and general counsel for the group, said in the document. “Our members have accessed the discount window with the understanding that the Fed will not disclose information about their borrowing, especially their identity.”

Members of the Clearing House are ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc.Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

http://search.bloomberg.com/search?q=Loretta+Preska&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

http://search.bloomberg.com/search?q=Kit+Wheatley&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

http://search.bloomberg.com/search?q=Michael+Bloomberg&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

http://search.bloomberg.com/search?q=Thomas+Golden&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

http://search.bloomberg.com/search?q=Bernie%0ASanders&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

http://search.bloomberg.com/search?q=Norman+Nelson&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1

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