Ron Paul: Federal Reserve Audit Legislation ‘Gutted’, ‘There’s Nothing Left’

Recent polls have shown that more than 75 percent of Americans support efforts to audit the Fed, something which my bill, HR 1207, the Federal Reserve Transparency Act, aims to do. HR 1207 has the support of 304 members of Congress, and the Senate version of the bill, S. 604, is supported by 31 U.S. senators.
Source: Rep. Ron Paul: Let the dollar prove itself

The people want a real audit. Now look what the government is doing! Criminals!


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Oct. 30 (Bloomberg) — Representative Ron Paul, the Texas Republican who has called for an end to the Federal Reserve, said legislation he introduced to audit monetary policy has been “gutted” while moving toward a possible vote in the Democratic-controlled House.

The bill, with 308 co-sponsors, has been stripped of provisions that would remove Fed exemptions from audits of transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff, Paul said today.

“There’s nothing left, it’s been gutted,” he said in a telephone interview. “This is not a partisan issue. People all over the country want to know what the Fed is up to, and this legislation was supposed to help them do that.”

The Fed, led by Chairman Ben S. Bernanke, has come under greater congressional scrutiny while attempting to end the financial crisis by bailing out financial firms and more than doubling its balance sheet to $2.16 trillion in the past year. The central bank is also buying $1.25 trillion of securities tied to home loans.

Paul, a member of the House Financial Services Committee, said Mel Watt, a Democrat from North Carolina, has eliminated “just about everything” while preparing the legislation for formal consideration. Watt is chairman of the panel’s domestic monetary policy and technology subcommittee.

Keith Kelly, a spokesman for Watt, declined to comment and said Watt wasn’t immediately available for an interview. Watt’s district includes Charlotte, headquarters of Bank of America Corp., the biggest U.S. lender.

Original Language

Paul said he intends to introduce an amendment to the bill when it comes to the House floor for a vote restoring the legislation’s original language.

Read moreRon Paul: Federal Reserve Audit Legislation ‘Gutted’, ‘There’s Nothing Left’

CIT Bankruptcy Filing Expected in Days; $2.3 Billion Taxpayer Money to Be Wiped Out; Goldman Sachs Receives $285 Million In Termination Fees

Update:

CIT Approaches Bankruptcy After Striking Icahn, Goldman Accord (Bloomberg):

Oct. 31 (Bloomberg) — CIT Group Inc., the 101-year-old commercial lender seeking to avoid collapse, may file for a prepackaged bankruptcy as soon as this weekend after striking deals with billionaire Carl Icahn and Goldman Sachs Group Inc.

A prepackaged bankruptcy “is probably going to go through,” Icahn said yesterday. He will supply a $1 billion loan for “supplemental liquidity” that can be used as bankruptcy financing, the New York-based company said. CIT also said it reached an agreement with Goldman Sachs to keep a credit line open should the lender file for court protection.

CIT’s agreement with New York-based Goldman Sachs will reduce a $3 billion credit facility to $2.13 billion and keep the line open should CIT file for bankruptcy.

Goldman Sachs Agreement

In exchange, Goldman Sachs received $285 million in termination fees, CIT said yesterday in a filing with the U.S. Securities and Exchange Commission. Under the terms of the two companies’ original agreement, Goldman Sachs would have been due a $1 billion termination payment to close the credit line after a CIT bankruptcy.

——————

Before Goldman Sachs would have received a $1bn ‘windfall’ if CIT fails:

Goldman Sachs to be paid $1bn if CIT fails, while US taxpayers would lose $2.3bn (Financial Times)

Goldman Sachs stands to receive a payment of $1bn – while US taxpayers would lose $2.3bn – if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.

The agreement with Goldman states that if CIT defaults or goes bankrupt, it “would be required to pay a make-whole amount” that totals $1bn, the people familiar with the matter said.

Goldman said: “This would not be a windfall payment. The make-whole payment is simply the present value of the spread to be earned over the life of the facility.”

The US taxpayer loses $2.3 billion, Goldman Sachs gains $1 billion $285 million.

I told you before that the real crisis has only just begun. This is the ‘Greatest Depression.’


CIT’s Swoon Hits Taxpayers

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CIT would be the fifth-largest bankruptcy filing in U.S. history

The $2.3 billion in taxpayer money spent to save CIT Group Inc. is likely to be wiped out, as the lender prepares to file for bankruptcy protection in a high-stakes restructuring plan aimed at keeping the firm in business.

People familiar with the plan said CIT, a major lender to small businesses, intends to file for bankruptcy-court protection in New York within days, perhaps as early as Sunday or Monday. Financial firms such as CIT have historically been sold off or wound down after a Chapter 11 filing, for fear that customers will draw down lending lines and cause a run on the bank. But CIT expects to have enough creditor support to complete a prepackaged reorganization by year-end, a relatively short period for a bankruptcy case of its size.

In a move smoothing its restructuring, the company said Friday that it had persuaded billionaire investor Carl Icahn to support its prepackaged bankruptcy plan. Mr. Icahn, who wanted to push CIT into liquidation, failed to persuade other bondholders to derail CIT’s restructuring plan.

With $71 billion in assets, CIT would have the fifth-largest bankruptcy filing in U.S. history, trailing only those of Lehman Brothers Holdings Inc., Washington Mutual Inc., Worldcom Inc. and General Motors Corp. CIT’s Utah bank, which has about $10 billion in assets, wouldn’t be part of the bankruptcy filing.

Read moreCIT Bankruptcy Filing Expected in Days; $2.3 Billion Taxpayer Money to Be Wiped Out; Goldman Sachs Receives $285 Million In Termination Fees

Study: Junk food as ‘addictive as drugs’

Junk food is almost as addictive as heroin, scientists have found.

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Eating junk food can be addictive Photo: GETTY

A diet of burgers, chips, sausages and cake will programme your brain into craving even more foods that are high in sugar, salt and fat, according to new research.

Over the years these junk foods can become a substitute for happiness and will lead bingers to become addicted.

Dr Paul Kenny, a neuroscientist, carried out the research which shows how dangerous high fat and high sugar foods can be to our health .

“You lose control. It’s the hallmark of addiction,” he said.

The researchers believe it is one of the first studies to suggest brains may react in the same way to junk food as they do to drugs.

“This is the most complete evidence to date that suggests obesity and drug addiction have common neuro-biological foundations,” said Paul Johnson, Dr Kenny’s work colleague.

Read moreStudy: Junk food as ‘addictive as drugs’

$160,000 Per Stimulus Job!?! The White House Calls That ‘Calculator Abuse’

(Infinite Unknown) Before I get started, here is where some of the stimulus money went:

Stimulus dollars going to accused contractors (Washington Post):

President Obama and members of Congress told federal agencies earlier this year to avoid awarding funds under the American Recovery and Reinvestment Act to contractors with troubled histories of work for the federal government.

But that isn’t happening at numerous agencies, a Washington Post analysis shows. So far, 33 federal departments and agencies have awarded more than $1.2 billion in stimulus contracts to at least 30 companies that are ranked by one watchdog group as among the most egregious offenders of state and federal laws.(!!!)

The taxpayer money went to criminals.

$160,000 Per Stimulus Job!?! That is called government efficiency!

These from taxpayer money ‘created jobs’ are only short term effects and remember that the stimulus money has to be paid back through higher taxes or to be financed through US Treasuries, which is nothing more than “a promise of a tax increase in the future,” because that debt has still to be paid back plus interest.

Once nobody trusts that the US will be able to pay back its debt the US is finished. And if the Fed monetizes the debt that means that foreign investors will have to get out of the US dollar, because their investment is losing value all of the time. Investors will have to sell their US Treasuries to get out of the dollar and the dollar will be toilet paper.

Keynesianism or deficit spending is outdated and ‘the’ dead wrong economic policy. In the long-term Obamanomics (and the Fed) will not only kill jobs but it will destroy the US dollar and turn the US into a Third World country.

Let’s see what Obama had to say about deficit spending or stimulus packages:

‘Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
– Barack Obama

Here is what Obama did:

US budget deficit tripled to a record $1.4 trillion in 2009

Obama tripled George W. Bush’s deficit!

Now the Obama administration is after UNLIMITED bailout power!!!:

Rep. Brad Sherman: Geithner rejects $1 trillion limit on bailout power (Section 1204 is unlimited in dollar amount!):

“Section 1204 is unlimited in dollar amount and is a permanent grant of power to the executive branch. TARP contained some limits on executive compensation and an array of special oversight authorities. Section 1204 contains absolutely no limits on executive compensation and no special oversight.”

“When I asked Geithner whether he would accept a $1 trillion limit on the new bailout authority (if the executive branch wanted to spend more, it would have to come back to Congress), he rejected a $1 trillion limit, insisting that the executive branch be able to respond without coming back to Congress.”

Barack Hussein Obama is such a fraud and an insult to anybody understanding sound economics and politics, that is not bought and paid for by the elite criminals that ruin this (once) great country.

Take a look at long-term unemployment for signs of recovery and weep:

(Click on image to enlarge.)
us-unemployment

Related article:
Stimulus Created/Saved 650000 Jobs? There’s No Way to Know for Sure (Wall Street Journal)

Watch: Fall Of The Republic – The Presidency Of Barack H. Obama (The Full Movie HQ)



$160,000 Per Stimulus Job!?! The White House Calls That ‘Calculator Abuse’

white-house

Posting its results late this afternoon at Recovery.gov, the White House claimed 640,329 jobs have been created or saved because of the $159 billion in stimulus funds allocated as of Sept. 30.

Officials acknowledged the numbers were not exact, saying that states and localities that reported the numbers have made mistakes.

In recent days, the Recovery Act board has been reviewing all the numbers, with many inaccurate ones having been posted. California’s San Joaquin Regional Rail Commission received $5 million in stimulus funds to hire workers to build addition train track for the Union Pacific Railroad in an economically tarnished spot of the Golden State.

Brian Schmidt, director of planning and programming for the commission said that his staff originally reported to the Obama administration that the stimulus money saved 250 jobs. Then, realizing they had mistakenly double credited, they later changed that to 125 jobs. Tuesday, they updated it again to 74 jobs.

Ed DeSeve, senior advisor to the president for Recovery Act implementation, said he’d been “scrubbing” the job estimates so much since they came it at the beginning of the month that he now has “dishpan hands and my fingers are worn to the nub.”

White House officials heralded the unparalleled transparency in reporting job numbers to the public, but acknowledged there is no consistent standard across states or localities, or among federal agencies giving out stimulus funds, in differentiating between a “saved” job and a “created” job.

The White House argues that the actual job number is actually larger than 640,000 — closer to 1 million jobs when one factors in stimulus jobs added in October and, more importantly, jobs created indirectly, such as “the waitress who’s still on the job,” Vice President Biden said today.

So let’s see. Assuming their number is right — 160 billion divided by 1 million. Does that mean the stimulus costs taxpayers $160,000 per job?

Jared Bernstein, chief economist and senior economic advisor to the vice president, called that “calculator abuse.”

He said the cost per job was actually $92,000 — but acknowledged that estimate is for the whole stimulus package as of the end of 2010.

Read more$160,000 Per Stimulus Job!?! The White House Calls That ‘Calculator Abuse’

Ukraine closes all schools, cinemas, bans all public gatherings over swine flu

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KIEV (AFP) – Prime Minister Yulia Tymoshenko on Friday ordered a three-week closure of Ukraine’s schools and cinemas in the toughest measures adopted yet to combat the swine flu virus in Europe.

“From today, all the school establishments in Ukraine — be they private or public — will be put on three weeks of holiday,” she told her cabinet in comments carried on Ukrainian television.

Tymoshenko said the government would also be banning “all public gatherings, every concert and every cinema showing for three weeks.”

Read moreUkraine closes all schools, cinemas, bans all public gatherings over swine flu

Ukraine: 40,000 contract serious flu virus, kills at least 30

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As the world enters the H1N1 Swine Flu Pandemic season, another possible virus emerges as 30 people in the Eastern European country of Ukraine have died from this latest flu.

Each country is dealing with their own cases of the H1N1 Swine Flu and many have even taken the vaccination but is H1N1 the only flu out there? A viral infection in Ukraine has taken the lives of 30 people and at first it seemed like an ordinary flu but after a week the symptoms became worse.

Radio Netherlands Worldwide reports 40,000 Ukrainians have contracted the disease and at least 100 are in the hospital. Tests are currently being conducted and all is known is that it is not the H1N1 Swine Flu. A large number of schools and childcare facilities are being shut down, especially in the city of Lvov.

Also, government agencies are handing out surgical masks and gloves to people in the western part of Ukraine.

However, Russia Today is reporting that it is A/H1N1 or Californian Flu and the total number of deaths is closer to 40. Prime Minister Timoshenko stated, “Express-tests cannot provide a hundred percent verification of the virus, they give only 50% accuracy.

That’s why blood probes of those who died were sent to special laboratories for further testing. And only this morning it was confirmed that at least 11 deaths were caused by the A/H1N1 virus.”

Read moreUkraine: 40,000 contract serious flu virus, kills at least 30

Autumn record-setting snowstorm wallops Rockies, Plains

As a sign of global warming!


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A record-setting snowstorm that dumped nearly 4 feet of snow across parts of the Rockies by Thursday will threaten parts of the Midwest and South today with heavy rain and flooding.

The powerful fall storm forced hundreds of flights to be canceled in Denver and closed schools and major highways. Heavy snow fell as far west as northern Utah’s Wasatch Front to western Nebraska’s northern border. In South Dakota, snow shut down the Mount Rushmore National Memorial. A blizzard warning was in effect until morning in northwest Kansas.

The heaviest snow was reported in the foothills west of Denver, near Pinecliffe, Colo., with 43.8 inches by midday Thursday, according to the National Weather Service. October snow records were set for Cheyenne, Wyo., and Fort Collins, Colo.

“Big storms like these, they seem to come around every 10 to 12 years,” said Kyle Fredin, a weather service meteorologist in Denver.

Read moreAutumn record-setting snowstorm wallops Rockies, Plains

US: 9 more banks fail; $2.5 billion hit for FDIC fund

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.


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SAN FRANCISCO (MarketWatch) — Nine more U.S. banks, all owned by the same Illinois holding company, were closed Friday by regulators, and the Federal Deposit Insurance Corp. said U.S. Bank of Minneapolis would assume their deposits.

The closings brought the total to 115 in 2009 — the first year since 1992 that more than 100 banks have gone under.

The banks as of Sept. 30 had combined assets of $19.4 billion and deposits of $15.4 billion, the FDIC said.

The deposit insurance fund will take an estimated $2.5 billion hit, the FDIC said.

All nine banks were subsidiaries of FBOP Corp., a holding company based in the Chicago suburb of Oak Park, Ill., according to the FDIC.

Read moreUS: 9 more banks fail; $2.5 billion hit for FDIC fund

US: Home Vacancies Rise to 18.8 Million on Defaults

Recovery!


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Plywood covers the windows of a vacant home in Denver on Oct. 27, 2009. (Bloomberg)


Oct. 29 (Bloomberg) — About 18.8 million homes stood empty in the U.S. during the third quarter as banks seized properties from delinquent borrowers and new home sales fell in September.

The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.

The worst U.S. housing crash since the Great Depression has led to a record number of foreclosures and shaved almost a third off property values. The S&P/Case-Shiller Index of 20 cities in August was 29 percent below its 2006 high, after rising for four consecutive months.

“We are bumping along the bottom of the housing market,” said James Lockhart, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency. “There is the potential for another swing down.”

Sales of new U.S. homes fell 3.6 percent in September to an annual pace of 402,000, the Commerce Department said yesterday. That was lower than the 440,000 median forecast of 75 economists surveyed by Bloomberg News.

Read moreUS: Home Vacancies Rise to 18.8 Million on Defaults

US: Consumer Spending Declined in September

Recovery!

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Long-term unemployment


Oct. 30 (Bloomberg) — Spending by U.S. consumers fell in September for the first time in five months after the government’s auto-rebate program expired.

The 0.5 percent decrease in purchases matched the median estimate of economists surveyed by Bloomberg News and followed a 1.4 percent jump in the prior month, Commerce Department figures showed today in Washington. Incomes were unchanged, while the savings rate climbed.

Stagnant wages and concern over mounting unemployment are causing confidence to wane, raising the risk that consumers will retrench in coming months as government assistance programs run out. The report also showed inflation was lower than the Federal Reserve’s long-term projection, indicating the policy makers can keep rates low.

Read moreUS: Consumer Spending Declined in September