9/27/09 The Fed Is Fighting The Audit With All Its Might

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

Ron Paul’s pending Bill to audit the Fed just found more support from none other than Barney Frank. There is a large majority now, but just several powerful Senators are blocking the audit. The fact is that the very existence of the Fed could withstand a true audit. Years of criminality could potentially be revealed including the sham that it is nothing more than a printing press for several wealthy families in the US and Europe. They create money out of thin air and then we pay them interest on this franchise money making operation. But in addition to the obvious evils of our Central Bank, there are several other factors you need to be aware.

The tragedy of modern day central banking, a franchise in total failure, has been the hidden destruction of capital with their full blessing. The central bankers cheered the dispatch of US factories to China so as to exploit cheaper labor, labeling ‘Low Cost Solutions’ as the myth chapter. Debt replaced income. They cheered the raid of equity from US homes after urging a housing bubble creation. Foreclosures resulted. They justified the absurd legitimacy of a US Economy structured atop a housing bubble, calling home equity wealth. Bank system insolvency resulted. They justified the horrendous US trade gaps and current account deficits, recycled back to the US from Asian and OPEC finance of the US Treasurys. Credit dependence and now monetization dependence resulted. They cheered the ultra-low rates to stimulate an economic rebound that has not occurred, to their frustration. They endorsed the US bank stock rally, aided and abetted by fraudulent bank balance sheet accounting. Lofty stock valuations (amidst a 97% profit decline) and heavy executive insider selling resulted. They cheered the stupid Clunker Car program that used $9 of US Govt funds for every $1 in fuel costs. A Detroit basket case resulted.

The latest shameful disgraces for the US Fed are three. 1) The US Fed monetizes US Treasurys during auctions by using the primary dealers as temporary holders before permanent open market operations, and by using foreign central bank sales of US Agency Mortgage Bonds in addition to the USDollar Swap Facility. 2) The US Fed just admitted publicly that it had consistently been hiding its Gold Swap Agreements, thus rendering Greenspan a perjury perpetrator and the institution in violation of its contract. 3) New York Fed president Jan Hatzius (another GSax plant) expects the US Fed balance sheet to expand by over $1 trillion more.

The Fed will not go out without fighting the dirtiest fight imaginable. Just ask J. Kennedy. We are probably closer today than ever before. Regardless of how the possible audit turns out, one thing is for certain and that is the transgressions of the US Fed will ensure gold will hit $2000 at sometime soon.

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