Political Metals

Three years in the waiting, and after an unprecedented court order requiring the Federal Reserve to release its tightly guarded secrets over the “Discount Window”  emergency lending during the height of the 2008 financial crisis, they’re finally out - all 29,000 pages! Preliminary study of this pile of documents by Bloomberg reveals that$110.7B was loan to banks, many of which were foreign. The Fed had earlier refused to reveal their identities, even when requested by Congress.

In a Bloomberg interview, Texas congressman and chairman of the Domestic Monetary Policy Subcommittee that overseas the Fed, Ron Paul lamented how out of control this monetary system has become. With congressional hearings scheduled in May, he plans to show how this out of control system is connected with the bad economy. Some other key points raised in the interview:-

Just the exposure of this is a tremendous insight into what’s going on.

It’s not true wealth they’re dealing with… they’re dealing with a secret organization that creates money out of thin air and bail certain individuals out at the expense of others.

Lender of last resort shoud not exist.. Discount Window is a moral hazard because that makes bankers and lenders become reckless as they can take more risk

Helps in short run, [but in the] long term contributes to malinvestments and creating buble sensation.

As usual, he talked about his long held intention to legalize the constitution which states that only gold and silver can be legal tender. Read “Central Banking and the Federal Reserve System” to find out how the elites behind the formation and operation of the Federal Reserve System managed to displace this constitutional provision and create for itself the monopoly of printing America’s currency. Unfortunately for most of us living outside the US, what’s been printed by the Fed happens to be the world’s reserve currency.