By Drew Zahn
© 2009 WorldNetDaily

Federal Reserve

The Federal Reserve Board, despite being ordered to disclose to whom it awarded roughly $2 trillion in discount “stimulus” loans, is fighting to keep the information under wraps as a protected “trade secret.”

Earlier this week, a U.S. district court judge rejected the Fed’s argument that the names of borrowers are exempt from disclosure under the Freedom of Information Act and ordered the board to release the information by Monday, Aug. 31.

The Fed’s board of governors, however, has now filed a motion asking the judge to delay enforcement of the order, seeking time to appeal and arguing that disclosing which banks borrowed the funds could lead to a backlash from the banks’ customers and stockholders.

Demand the money managers come clean by signing the petition in support of an audit of the Federal Reserve now!

“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.”

Bloomberg LP, which sued the Fed on behalf of its Bloomberg News unit for not complying with a FOIA request last year, disagrees.

“Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer who represents Bloomberg.

“What has the Fed got to hide?” said Vermont’s Sen. Bernie Sanders in an email reported by Bloomberg. “The time has come for the Fed to stop stonewalling and hand this information over to the public.”

When the banking system threatened collapse last year, the Fed invoked its emergency lending powers to make discount loans to banks that now total into the trillions of dollars with the intent of stimulating the economy and preventing further financial meltdown. The names of the borrowing institutions were kept anonymous.

Bloomberg reporter Mark Pittman then filed a FOIA request in an attempt to get the Fed to disclose the borrowing banks and to identify the assets it accepted as collateral.

In return, Federal Reserve Board Secretary Jennifer Johnson sent Pittman a five-page response, telling him the Fed was withholding over 2,000 pages of information deemed protected against disclosure as “trade secrets” and “inter-agency or intra-agency memorandums or letters.”

On Nov. 7, 2008, Bloomberg filed a suit seeking full disclosure, and earlier this week, Judge Loretta A. Preska of the U.S. District Court, Southern District of New York, ruled the Fed had until Monday to release the information.

The Fed’s motion to delay enforcement of Preska’s order argues the board’s “ability to effectively manage the current, and any future, financial crisis” would be impaired by releasing the information and “significant harms” could befall the U.S. economy, as disclosure might unsettle shareholders and set off a run on the borrowing banks by worried depositors.

As WND has reported, a majority within the U.S. House called for greater transparency of the Fed by cosigning onto H.R. 1207, the Federal Reserve Transparency Act of 2009. The Act demands an audit of the Fed, a private institution that virtually controls U.S. interest rates, money supply and other economic influences.

U.S. Rep. Ron Paul, R-Texas

“To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have,” wrote the bill’s sponsor, U.S. Rep. Ron Paul, R-Texas, in a recent Straight Talk commentary. “They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability.”

“The tremendous grass-roots and bipartisan support in Congress for H.R. 1207 is an indicator of how mainstream America is fed up with Fed secrecy,” said Paul. “I look forward to this issue receiving greater public exposure.”

Sen. Jim DeMint, R-S.C., has also pushed in the Senate for greater transparency at the Fed.

“The Federal Reserve will create and disburse trillions of dollars in response to our current financial crisis,” DeMint said. “Americans across the nation, regardless of their opinion on the bailout, want to know where the money has gone.

“Allowing the Fed to operate our nation’s monetary system in almost complete secrecy leads to abuse, inflation and a lower quality of life,” he said, according to Reuters.

Now we have obtained a video to confirm what The Liberty Tree Lantern had informed our readers would happen months and years before it happened and at the time it was happening.  This event could have been labeled the day our economy stopped.  But folks, we are here to tell you that The Matrix has to collapse in order for us to regain our freedom, power and individual prosperity that has been usurped from us by the U.S. Congress and The Federal Reserve “System” the private banking company whose owners are the creators of The Matrix - the economy that only exists in our minds – as our dollar is little more than monopoly money and we have accepted it for payment of our labor and we have bought everything we “think” we bought with monopoly money.  We have been programmed to believe that the dollar is worth a dollar, when this private company can print as much of it out of thin air as they want, anytime they want, for whatever reason they want.  Why do we believe that monopoly money is really money?  We must be mad or brain dead.  How did we let them beguile us into this illusion?; This Matrix that give them ultimate power and control over our economy, our finances, our Government and our daily lives?

Watch this video that tells you about the day, September 15th, 2008, ”The Matrix” almost entirely collapsed:

VOICE: It was about September 15th. Here’s the facts, and we don’t even talk about these things. On Thursday at about 11:00 in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to the tune of $550 billion was being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there and that’s what actually happened. If they had not done that, their estimation was that by 2:00 that afternoon, $5 1/2 trillion would have been drown off the money market system of the United States, would have collapsed the entire economy of the United States and within 24 hours the world economy would have collapsed.

 Capt.Karl: I imagine that right now, you’re feeling a bit like Alice. Hmm? Tumbling down the rabbit hole?
You say: You could say that.
Capt. Karl:  I see it in your eyes. You have the look of a man who accepts what he sees because he is expecting to wake up. Ironically, that’s not far from the truth. Do you believe in fate?
You say: No.
Capt. Karl: Why not?
You say: Because I don’t like the idea that I’m not in control of my life.
Capt. Karl: I know *exactly* what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world. You don’t know what it is, but it’s there, like a splinter in your mind, driving you mad. It is this feeling that has brought you to The Liberty Tree Lantern. Do you know what I’m talking about?
You Say: The Matrix?

Capt. Karl: Do you want to know what it is?
You reply: Yes.
Capt. Karl:  The Matrix is everywhere. It is all around us. Even now, in this very room. You can see it when you look out your window or when you turn on your television. You can feel it when you go to work… when you go to church… when you pay your taxes. It is the world that has been pulled over your eyes to blind you from the truth.
You say: What truth?
Capt. Karl: That you are a slave.  Like everyone else you were born into bondage. Into a prison that you cannot taste or see or touch. A prison for your mind.

The truth that you need to realize is that  nothing you can see, taste, touch or smell has been paid for.  You have never been paid, nor have you paid for anything you “think” you own.  The hard reality is that the dollar is little more than monopoly money.  The Federal Reserve prints wealth out of thin air with little more than paper and ink  and gives it or, mostly, lends it to whomever in the world they want. In addition the IRS “Agents”, you know the guys in the dark suits and dark sunglasses with the ear pieces, according to The, publicly available,  Grace Commission Report of 1983 to President Reagan, all Income Taxes from every soul in America goes directly to The Federal Reserve company, the largest privately held corporation in the world by far, in the form of interest on U.S. Government debt.  The U.S. Treasury never receives “Income Taxes”.  They borrow from “The Fed” for every single thing they spend money on, at additional taxpayer  interest of course.  Hell of a business model hey?  BTW:  Why are we so dumb as to pay money to a private company?   Why are we paying taxes to a private company who does nothing for us but turns us into taxation slaves, like millions of financial generator bodies in vats of clear financial slime for sustenance and we have embilical cords in the back of our heads where they suck out financial power that is replaced with programming fed directly into our minds – they call it our “economy”,  for their personal super gross profit and to fulfill their megalomaniac desires for world domination?  Why do we let them take our money and use it against us in the form of oppressive legislation? How can we be such fools?  When are we going to do something about it?

I’m trying to free your mind, so you can fight and break free of The Matrix that is controlling and manipulating you and stealing your earnings in taxation.   But I can only show you the door. You’re the one that has to walk through it. -  – Capt. Karl

 BY MITCH ALBOM
 FREE PRESS COLUMNIST
 OK. It’s a fantasy. But if I had five minutes in front
 of Congress last week, here’s what I would’ve said:
 Good morning. First of all, before you ask, I flew
 commercial. Northwest Airlines. Had a bag of peanuts for
 breakfast. Of course, that’s Northwest, which just
 merged with Delta, a merger you, our government, approved –
 and one which, inevitably, will lead to big bonuses for
 their executives and higher costs for us. You seem to be OK
 with that kind of business.
 Which makes me wonder why you’re so against our kind of
 business? The kind we do in Detroit. The kind that gets your
 fingernails dirty. The kind where people use hammers and
 drills, not keystrokes. The kind where you get paid for
 making something, not moving money around a board and
 skimming a percentage.
 You’ve already given hundreds of billions to banking
 and finance companies — and hardly demanded anything. Yet
 you balk at the very idea of giving $25 billion to the
 Detroit Three. Heck, you shoveled that exact amount to
 Citigroup — $25 billion — just weeks ago, and that place
 is about to crumble anyhow.
 Does the word “hypocrisy” ring a bell?
 Protecting the home turf?
 Sen. Shelby. Yes.
You. From Ala bama. You’ve been
 awfully vocal. You called the Detroit Three’s leaders
 “failures.” You said loans to them would be
 “wasted money.” You said they should go bankrupt
 and “let the market work.”
 Why weren’t you equally vocal when your state handed
 out hundreds of millions in tax breaks to Mercedes-Benz,
 Hyundai, Honda and others to open plants there? Why not
 “let the market work”? Or is it better for Alabama
 if the Detroit Three fold so that the foreign companies –
 in your state — can produce more?
 Way to think of the nation first, senator r.
 And you, Sen. Kyl of Arizona. You told reporters:
 “There’s no reason to throw money at a problem
 that’s not going to get solved.”
 That’s funny, coming from such an avid supporter of the
 Iraq war. You’ve been gung ho on that for years. So how
 could you just sit there
when, according to the New York
 Times, an Iraqi former chief investigator told Congress that
 $13 billion in U.S. reconstruction funds “had been lost
 to fraud, embezzlement, theft and waste” by the Iraqi
 government?
 That’s 13 billion, Senator. More than half of what the
 auto industry is asking for. Thirteen billion? Gone? Wasted?
 Where was your “throwing money at a problem that’s
 not going to get solved” speech then?
 Watching over the bankers?
 And the rest of you lawmakers. The ones who insist the auto
 companies show you a plan before you help them. You’ve
 already handed over $150 billion of our tax money to AIG.
 How come you never demanded a plan from it? How come when
 AIG blew through its first $85 billion, you quickly gave it
 more? The car companies may be losing money, but they can
 explain it: They’re paying workers too much
and selling cars for too little.
 AIG lost hundred of billions in credit default swaps –
 which no one can explain and which make nothing, produce
 nothing, employ no one and are essentially bets on failure.
 And you don’t demand a paragraph from it?
 Look. Nobody is saying the auto business is healthy. Its
 unions need to adjust more. Its models and dealerships need
 to shrink. Its top executives have to downsize their own
 importance.
 But this is a business that has been around for more than a
 century. And some of its problems are because of that,
 because people get used to certain wages, manufacturers get
 used to certain business models. It’s easy to point to
 foreign car makers with tax breaks, no union costs and a
 cleaner slate — not to mention help from their home
 countries — and say “be more like them.”
 But if you let us die, you let our national spine collapse.
 America can’t be a country of lawyers and financial
 analysts. We have to manufacture. We need that
 infrastructure. We need those jobs. We need that security.
 Have you forgotten who built equipment during the world
 wars?
 Besides, let’s be honest. When it comes to blowing
 budgets, being grossly inefficient and wallowing in debt,
 who’s better than Congress?
 So who are you to lecture anyone on how to run a business?
 Ask fair questions. Demand accountability. But knock it off
 with the holier than thou crap, OK? You got us into this
 mess with greed, a bad Fed policy and too little regulation.
 Don’t kick our tires to make yourselves look better.

Capt. Karl Responds:

Mr. Schmidt:

I think you originally posted this under the wrong thread. But I am glad to have you as a reader. We need to talk these things out because according to The Constitution and the vast majority of the writings of our Founding Fathers, what is to be done is up to us, the taxpayers and the MASTERS of our “Servant” Government but within the realm of a “republic” and not a democracy (which is where 51% of the people steal from and control the other 49%). According to the Supreme Court cases quoted in other posts on this blog, the Sixteenth Amendment did not give the U.S. Government any additional taxing powers beyond what they had before it was (supposedly) ratified. The apportionment clause of the Constitution, the LAW of our land, is still, in reality, in full force and effect according to The Supreme Court. Additionally the 9th and 10th Amendment does not allow for the “Federal” Government to do anything of this “bailout” nature as it is far outside of their limited powers “enumerated” in the Constitution.

Secondly, in addition to being completely illegal for the U.S. Government to do on several Constitutional issues, the Auto Makers aren’t going anywhere and will not completely close. Trust me. All that is going to happen is chapter 11 bankruptcy which will allow sanity to prevail at the UAW and supplier levels. This is wonderful for the Big Three Automakers because they can hire back employees who will be “onboard” and get the ball and chain of Union thuggery U.S. Government supported, market out of touch wages, pensions and insane benefits that are far and above anything the common American citizen has or could ever dream of. The “king’s ransom” pension program is completely unviable and nothing less than lunacy. We all have to live within a realistic world and once we touchdown back on the planet Earth we can all proceed in “freedom”, which means, according to the majority of the Founding Fathers, means “self government” or “freedom from government”, to become INDIVIDUALLY prosperous from within a basis of reality and not perception or a Matrix like world that only exists in our minds.

Our entire country is about to undergo changes whereby “The Matrix” created by The Federal Reserve company, a cartel of twelve privately owned banks, will collapse because there have not been enough assets or resources created to support it from a “realistic” sense. There could have been enough assets and resources to support everything we have AND MORE, if the U.S. Government would have only obeyed the LAW as set forth in The Constitution. But the bastards in both houses of Congress just couldn’t resist the personal benefits of power, corruption and pure outlawism as they have been headed down the wrong path, away from freedom, since the Federal Reserve Act of 1913 with unscrupulous powerful private bankers. The fact is the vast majority of the money that the Federal Government spends is supposed to be ours and our economy’s. Just think how much more money we would have, as a people and an economy, if all the money that the Federal Government steals from us yearly which goes directly, as reported in The 1983 Grace Commission Report to President Reagan, from the IRS to a mammoth private corporation called “The Fed” for short. The U.S. Treasury gets no money from Income Taxes. They, the Federal Government, borrows all the money they spend from the BIG private bankers of The Federal Reserve, of which we additionally pay interest besides the principle.
Wake up and smell the coffee Mr. Schmidt. None of us will be able to avoid reality, sooner or later “The Matrix” that only exists in our minds, as we have been programmed by public education, the Government, and ultimately The Fed, will collapse. This is a good thing in the long run because our population will eventually realize that it is the Government that caused this entire financial crisis by not obeying The LAW to the very WORD, spirit and intent AS MEANT on THE DAY OF ITS DRAFTING and not what the creators of “The Matrix” want it to mean or corruptively twist it to mean today to further their own megalomaniac power hungry desires.

The Matrix also takes God out of the equation and I personally believe that he doesn’t appreciate that. Our prayers and hopes are being offered to the Almighty U.S. Government instead of to our Lord, who created the entire universe. If you were God, how would you feel about that?

It is time to force both houses of Congress to obey the LAW; which means that the Federal Government is hardly to even exist (see 9th and 10th amendment) but to be little more than an agent of The Free and INDEPENDENT States. State and local governments are supposed to be quite large and very powerful because we as individuals can better control them and then, additionally, we will always be able to run away from a corrupt State government that has to many goofy freedom and prosperity killing laws or taxes too much. In this way WE CAN HAVE EVERYTHING with the vast majority of us being INDEPENDENTLY prosperous “within the realm of reality” by the sweat of our brow and the blessings of Almighty God, instead of the handouts of the cold corrupt greedy disgraceful hand of a Godless Government where all the money ultimately is stolen out of our paychecks.

Just imagine how many cars we could buy from you if we had in our hands all the money that the Federal Government Constitutionally contemptuously spends in direct contradiction of The Constitution.

We have a rendezvous with destiny, a time for choosing. We, as people can choose whether we believe in our capacity for self-government or whether we abandon the American Revolution and confess that a little intellectual elite in a far-distant capitol can plan our lives for us better than we can plan them ourselves. Those who would trade our freedom for the soup kitchen of the welfare state have told us they have a utopian solution of peace without victory. They call their policy “accommodation.”

Well we as a people have a choice to make. We’ll preserve for our children this, the last best hope of man on earth, or we’ll sentence them to take the last step into a thousand years of darkness. We must think about not only our lives but the lives of our children and posterity. What of them?

We the people must force the U.S. Government to obey every single word in The Constitution, which will effectively give us individually the vast majority of the money that Government steals from our paychecks and earnings, to buy cars and anything else we need and provide for happiness and real freedom.

If we want to maintain and greatly enhance our our economy and our individual prosperity over time, Mr. Schmidt, we need to stand united against the Federal Government and protect our individual earnings from confication to give to “The Fed” a humongous private corporation, where they dole out our earnings from our work effort to other big banks, big corporations and big unions.  And, we must use the canons of The Constitution and The Declaration of Independence to protect our freedom from which “individual” prosperity and power over big government, the foundation of problems of our current situation, is created.