Yet another reason to support Ron Paul’s H.R. 1207 legislation to bring transparency to the Federal Reserve. The Fed destructs the possibility of a free economy, transfers wealth to the banks who carry a monopoly control over money and credit, and through inflation of a worthless paper currency the living standards of the poor and middle class decrease. The Fed is an enemy of liberty.

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April 1 (Bloomberg) — After months of litigation and political

scrutiny, the Federal Reserve yesterday ended a policy of secrecy over

its Bear Stearns Cos. bailout.

In a 4:30 p.m. announcement in a week of congressional recess and

religious holidays, the central bank released details of

securities bought to aid Bear Stearns’s takeover by JPMorgan

Chase & Co. Bloomberg News sued the Fed for that information.

The problem is this: The Fed is not authorized to BUY

anything other than those securities that have the full faith and

credit of The United States.

In addition Ben Bernanke has repeatedly

claimed that these deals would not cost anyone money.  But the current

value looks differently:

Assets in Maiden Lane II totaled $34.8 billion, according to the Fed,

which set their current market value in its weekly balance sheet at

$15.3 billion. That means Maiden Lane II assets are worth 44 cents on

the dollar, or 44 percent of their face value, according to the Fed.

Maiden Lane III, which has $56 billion of assets at face value, is

worth $22.1 billion, or 39 cents on the dollar, according to the Fed’s

weekly balance sheet. A similar calculation for the Bear Stearns

portfolio couldn’t be made because of outstanding derivatives trades.

In other words, they have lost more than half of their

value.

This was and remains a blatantly

unlawful activity.

The Fed has effectively usurped Article 1 Section 7 of The

Constituion which reads in part:

All bills for raising Revenue shall originate in the House

of Representatives; but the Senate may propose or concur with Amendments

as on other Bills.

http://market-ticker.denninger…..e-Law.html
http://www.bloomberg.com/apps/…..&pos=4
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