In November 2008, Bloomberg filed a Freedom of Information Act lawsuit to force the Federal [sic] Reserve to ‘disclose emergency loan deals’. Monday, a federal judge ruled against the FED.
Judge Loretta Preska’s ruling was in favor of a suit where Bloomberg LP claimed that FED activities turn the public into “involuntary investors” in Wall Street. Mark Pittman’s at Bloomberg News on Tuesday reported that Ms. Preska wrote that, “The central bank ‘essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed’:
The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.
Manhattan Chief U.S. District Judge Loretta Preska ruled against the central bank yesterday, rejecting the argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions.
The FED has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under 11 programs, most put in place during the deepest financial crisis since the Great Depression, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 on behalf of its Bloomberg News unit.
“The Federal Reserve has to be accountable for the decisions that it makes,” said Representative Alan Grayson, a Florida Democrat on the House Financial Services Committee, after Preska’s ruling. “It’s one thing to say that the Federal Reserve is an independent institution. It’s another thing to say that it can keep us all in the dark.”…
The central bank “essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed,” Preska wrote. “Conjecture, without evidence of imminent harm, simply fails to meet the Board’s burden” of proof….
Bloomberg said in the suit that U.S. taxpayers need to know the terms of FED lending because the public became an “involuntary investor” in the nation’s banks as the financial crisis deepened and the government began shoring up companies with capital injections and loans. Citigroup Inc. and American International Group Inc. are among those who have said they accepted FED loans….
The FED’s balance sheet about doubled after lending standards were relaxed in the wake of the collapse of Lehman Brothers Holdings Inc. on Sept. 15, 2008. For the week ended Aug. 19, Fed assets rose 2.3 percent to $2.06 trillion as it continued to buy mortgage-backed securities under a program allowing the central bank to purchase non-government securities for the first time….
The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).
The so-called “healthcare debate” is the sexy topic of the summer, but those involved are ignoring the real issue and the cable news network wasting the most time on this moot debate is financially benefiting from the FED’s tyranny. The fact is that all healthcare reform [sic] efforts include increasing the FED’s tyrannical privilege to print money out of thin air, hold a monopoly on that privilege, loan U.S. taxpayers their own money at interest, and further damage the purchasing power of that money — at a time when people are struggling enough to keep their jobs and afford everyday living expenses, as it is.
usdebtclock.org has the public liable for over $11,908,782,000 in bailouts by the FED — almost $12 trillion — as of 10:15 CST today. That number is rising tens of thousands every second because of the interest coerced on the public. The Clock estimates currency and credit derivatives over an absolutely astounding nearing $645 trillion — a total liability rising millions of dollars every minute.
Though, we can’t quantify human life and the blowback of U.S. foreign policy in dollars, compare this to the over $517 trillion spent on war, over $417 trillion on social security, and over $404 trillion spent on Medicare/Medicaid.
Theft and coercive odious debt are always evil and should never permissible in anything that could closely resemble a just society, no matter what ends these evil means seek to meet.
The FED’s monopoly privilege to exist and coerce odious debt is only possible by the State exploiting its monopoly on violence to violently enforce that privilege.