because

Why does Rahm defend the Fed? Because he is as dirty as Bernanke, and he fears that if Bernanke tells the truth, a lot more is going to fall than just the Fed.

John F Kennedy On June the 4th 1963 John F Kennedy signed Executive Order 11110 which returned to the US Government the power to issue currency, without going through the Federal Reserve. On November-22- 1963 John F Kennedy was assassinated. The Fed mob will do anything to keep their secrecy practices.

Geitner,is a former goldman-sachs exec.. He is well aware that the fed is part of what is keeping Goldman Sachs flush with the blood (cash) of the US! Along with the other blood sucking mega banks,foreign,and domestic... The U S is about to fail! Watch out world! You are about to be taken too! There is an evil,rotten,nasty, elite banking system that is going to own you!

Why open a can of worms that has been kept firmly shut for decades? Even those with the best of intentions may feel that some lids are best left unopened. If the lid is eventually opened, the worms may crawl all over the international banking system and cause problems of unknown magnitudes. I don't think the USA (or the Europeans) are ready to cope with what may happen if all those worms begin crawling out - so the lid will stay shut for as long as they can keep it shut.

I agree with Old Man, keep the lid shut until we have a plan of replacement for the monetary system. LarouchPac has a good plan for a credit system, the question is; will the media spread a message that will help people. The government is controlled by corperations, the corperation are controlled by god knows who. People view money as wealth, this is the greatest deception. True wealth is how much you produce vs. how much paper you push around on a desk. Currently in the US we have 23 million people working for government, and in all of maufacturing 17 million. The more people who have making stuff, the more stuff we have to consider wealth. The problem is not the fed, the problem is they idea of money in the first place.

The Federal Reserve typically tries to do what it can to push the economy into the green in the short-term, and its powers for doing so are quite formidable. Without the federal reserve making huge commitments in the tens of trillions of dollars the present financial crisis would've turned into a depression. Increased oversight of the Fed weakens its ability to shore up the economy because if it requires congressional support to do things, particularly in the present hyper-partisan political environment, its ability to act will be severely hampered. The Obama administration doesn't want that. Many people, above all others Libertarians, like to argue that the Federal Reserve frequently plays a disastrous role in exacerbating the boom-bust cycle. There is something to this, the Fed seems to often overheat the economy by excessively boosting the money supply, but I think libertarians often use it as a sole scapegoat so that they can ignore other catalysts which are ideologically untenable for them to acknowledge like the danger of leaving a dubious capital market tens of trillions of dollars in size completely unregulated. Garry, Your confusing Geithner with Paulson. Neither Bernanke nor Geithner have ever worked in the for profit banking industry. They are both very high achieving academic economists who find themselves at the apex of long careers in academia, government, and the federal reserve; they ren't wall-street men. But, many wall-street men have come out very well from the financial crisis despite their role in creating it to begin with. The argument from the Obama administration is that if the government hadn't bailed out the banks, main-street would've been hit just as hard, if not harder, as wall-street was and that this in turn means it was in everyones interest to save the banks. It is a nuanced argument; detractors prefer the more simplistic and sensationalist argument that everyone with power is out to get the common man.

I do not have any God given special talent to see through large scale government or particular groups' machinations, but I keep being convinced that Obama's election was a well conceived smoke' screen, hiding something huge. This happened at an appropriate time; when our greedy cynical masters realized that the average European and American workers were too costly and had to be replaced by the cheap millions, more en more skillful employee, now available in the fast developing nations. Since the decisions-makers and stocks' holders profiters are still the same, our working class, as well as Russia's who now close quickly the gap with the western standard of living, will have to reduce their expectations. This sad reality is compounded by the actual financial trafficking which ruin nation after nation. This is, when MONEY is the only value and priority; and that no Worldwide average labor price has never been set; a simple materialistic logic. Nothing much can be expected from our actual leaders. Sorry Future Generations. Best Regards...Jean-Claude Meslin

I'll give the author the benefit of the doubt and assume he's just misinformed. Sadly, this editorial employs the sensationalist tactics frequently employed by the more liberal factions of the media, without introducing sound, well-articulated arguments or supporting those arguments with facts or research. While I understand the tendency to respond with equally obfuscated "facts", this approach does little to shed clean light on an admittedly confusing topic. Moreover, such methods only make genuine the concern about "other people getting into the debate when they know far less than we do." With that said, before you accept the premise that Federal Reserve is afraid to "sweat through a public audit of it’s [sic] finances", please take a moment to click on the following link: http://www.federalreserve.gov/monetarypolicy/files/BSTcombinedfinstmt2009.pdf . Note that rather than using the GAO, the government agency that Ron Paul would have responsible for the audit, an independent public accounting firm performs this task. Perhaps you think the GAO, (nominally independent but reliant on Congress for funding and housed in the Executive branch) is better suited to this task. For those of you who still not satisfied, you might also note that interim financial statements are released weekly, which is far more often than any public company in which you might be a part owner. As you read the audit report, you might also note that while the Fed does "lend" money to the Federal government (which it really does only through the purchase of Treasury securities), it also pays interest to the Treasury - $47 billion in 2009. Before you endeavor to give Congress more responsibility for monetary policy, bear in mind how they've wielded their responsibility for fiscal policy. Or reflect on whether FRS oversight had more to do with the economic downturn than the fair housing policies and thin capital requirements for Fannie and Freddie.

This is becoming one of the most ideological scary times in our nations history (USA) and the world. No longer is the Church playing the important role of binding the people together. (Alexis de Tocqueville) We have given the government or the Fed the ability to do whatever they perceive is right without being connected to a community. People go home and drive right into their garages and turn on their TV and never talk with the community. The problem is becoming great because of the lack of open and honest debate which used to occur all the time in this country. We are too busy now to discuss any thing at length. There is no way around the continually decay of our country and our ideals. Greed and selfishness have taken over. I desire a silver and gold standard so that no one is in charge of the printing press. I trust the market over the oligarchy. It doesn't matter though, no one is asking normal people. We are in trouble and my family is growing a garden and getting involved with the poor. We need to get involved with our community. Do it now, or the whole thing is going to explode. Ask Russia how that process was for them. I am sure that it was extremely painful.

I wonder how many people making comments here actually know how the federal reserve system was brought into being and its reason for existence apart for the creating of wealth through debt issuance. Even those who are the most servile ignorant and submissive and easily led astray by what they understand by their own misinterpretations of mainstream garbage..yes even those clueless people if they new the truth about how money is created and value of such redeemed in assets ...those fools would not be as indifferent or dwell in lazy apathy as their very existence is decided upon by a few powerful and dominant men. The gentleman in question defends the institution mentioned because he has little choice but to shed good light and praise upon his masters.

May 11, 2010, 04:09, Elijah wrote > I wonder how many people making comments here actually know how the federal reserve system was brought into being and its reason for existence apart for the creating of wealth through debt issuance. > Even those who are the most servile ignorant and submissive and easily led astray by what they understand by their own misinterpretations of mainstream garbage..yes even those clueless people if they new the truth about how money is created and value of such redeemed in assets ...those fools would not be as indifferent or dwell in lazy apathy as their very existence is decided upon by a few powerful and dominant men. > The gentleman in question defends the institution mentioned because he has little choice but to shed good light and praise upon his masters. It is impossible to dispute your logic, since logic is totally absent from your argument. Let's count: Personal attacks - 10 Logical arguments - 0 I assume your reliance on methods other than reason to "prove" your point results from your inability to construct a meaningful argument to support your position. I think you tried, with a inference that the only purpose of the FRS is the creation of wealth through debt issuance. Sadly, you fail to explain how you arrive at this conclusion. I suppose I could make some assumptions. But we see where those got you. You also fail to dispute any argument I made, other than by saying I'm an idiot for disagreeing with you. I feel a little bad decontructing your flawed argument into it's ignorant pieces.

@Truth Elijah made good argument and told the truth, most of the people have no idea where the fed came from and how they print money from thin air! You on the other hand said nothing new or helpful to put the puzzle toghether! On personal note i will add that these organisation called Federal Reserve, is much bigger than just a main bank of U.S! It's like a spider web of underground organisations that no one would dare to speak bad about! Not even presidents, whom are puppets themselves!