Tag Archives: fractional reserve banking

Civil Lawsuit, Allran vs. New York Fed, alleges cartel & Ponzi

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Via Zerohedge, a suit has been filed in the US district court for western North Carolina by a group of citizens alleging that the Federal Reserve is an unconstitutional cartel and Ponzi scheme. Also named as defendants are several large banks and their CEOs, Geithner, Bernanke, Hank Paulson, Greenspan, John Snow, Shiela Bair and several other hacks and oligarchs.

The suit enumerates various “evils” committed over the last 97 years, but reaches way too far and dilutes the case by stringing together an overarching theory of a grand plot against the American way. Since it doesn’t stick to clear-cut issues of constitutionality such as the legal tender laws it is unlikely to get traction, but there can’t be a better place for it than in Western NC.

I take it as a sign of the times. It’s heartening to see people channel their anger about the economy into the study of banking history and take action that will at least open some more eyes.

Allran v NY Fed Reserve http://d1.scribdassets.com/ScribdViewer.swf

That great economist, Ben S. Bernanke

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For your amusement, here’s Bernanke a couple of years ago doing his best to downplay our problems:

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To the dismay of many a fair-minded observer, Bernanke the Fool has been nominated for another term as Fed chairman. My comment is, so long as there is a Fed, who cares who runs it? The chairman, like the US President, is nothing but a figurehead. He provides lip service for policies that exclusively benefit the cartel of big banks.  Thus it has been since the Morgan, Schiff, Warburg and Rockefeller syndicates conspired in 1913 to draft the Federal Reserve Act and ram it through Congress two days before Christmas.

I’m a little bit surprised that Bernanke was nominated again, since there is such low public opinion towards him and his employer. I thought that he might be thrown to the dogs to satisfy the public’s urge for ‘change,’ but I guess the logic is that by keeping him on they can better preserve the fiction that the Fed saved the world. He is also very lucky that the nomination schedule coincided with the likely peak in Wave 2 sentiment (2nd waves are characterized by the near consensus that the old trend is back to stay, in this case, the Great American Bull Market).

Along the same line, I’m also surprised that the campaign to audit the Fed hasn’t found more support from the White House, since it would be the perfect PR opportunity for them to pretend that they were independent of the bankers. I half expect to see the audit happen, with the results decided in advance of course, something akin to past Congressional “investigations.” Maybe they will have to do something like this once mood sours again with the next wave of foreclosures, bank failures and panic selling in the markets.

The real campaign should be to end the Fed, not audit it. We already know what it does, and they are actually surprisingly transparent for such a sinister institution. It’s all right there on their website.