Spitzer: Federal Reserve is ‘a Ponzi scheme, an inside job’


By Daniel Tencer

Published: July 25, 2009



The Federal Reserve — the quasi-autonomous body that controls the US’s money supply — is a “Ponzi scheme” that created “bubble after bubble” in the US economy and needs to be held accountable for its actions, says Eliot Spitzer, the former governor and attorney-general of New York.

In a wide-ranging discussion of the bank bailouts on MSNBC’s Morning Meeting, host Dylan Ratigan described the process by which the Federal Reserve exchanged $13.9 trillion of bad bank debt for cash that it gave to the struggling banks.

Spitzer — who built a reputation as “the Sheriff of Wall Street” for his zealous prosecutions of corporate crime as New York’s attorney-general and then resigned as the state’s governor over revelations he had paid for prostitutes — seemed to agree with Ratigan that the bank bailout amounts to “America’s greatest theft and cover-up ever.”

Advocating in favor of a House bill to audit the Federal Reserve, Spitzer said: “The Federal Reserve has benefited for decades from the notion that it is quasi-autonomous, it’s supposed to be independent. Let me tell you a dirty secret: The Fed has done an absolutely disastrous job since [former Fed Chairman] Paul Volcker left.

“The reality is the Fed has blown it. Time and time again, they blew it. Bubble after bubble, they failed to understand what they were doing to the economy.

“The most poignant example for me is the AIG bailout, where they gave tens of billions of dollars that went right through — conduit payments — to the investment banks that are now solvent. We [taxpayers] didn’t get stock in those banks, they didn’t ask what was going on — this begs and cries out for hard, tough examination.

“You look at the governing structure of the New York [Federal Reserve], it was run by the very banks that got the money. This is a Ponzi scheme, an inside job. It is outrageous, it is time for Congress to say enough of this. And to give them more power now is crazy.

“The Fed needs to be examined carefully.”

Spitzer resigned as governor of New York in March, 2008, after news reports stated he had paid for a $1,000-an-hour New York City call girl.

At the time, Spitzer had been raising the alarm about sub-prime mortgages. In the wake of the economic meltdown triggered last fall by sub-prime loans, some observers have suggested that Spitzer may have been targeted by law enforcement because of his high-profile opposition to Wall Street financial policies.

Investigative reporter Greg Palast wrote that federal agents’ revealing of Spitzer’s identity as a call-girl customer was no coincidence.

Palast wrote that the principle of “prosecutorial discretion” is often used to keep the names of high-profile persons out of the media when they are tangentially linked to a criminal investigation. In the case of Spitzer, the Justice Department chose not to invoke prosecutorial discretion.

Funny thing, this ‘discretion.’ For example, Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him in diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him.

Naming and shaming and ruining Spitzer – rarely done in these cases - was made at the ‘discretion’ of Bush’s Justice Department.
Spitzer recently told Bloomberg News that President Obama’s regulatory reforms of the financial sector are “irrelevant” because regulatory agencies have not been enforcing corporate laws to begin with.

“Regulatory agencies already had the power to do everything they needed to do,” he said. “They just affirmatively chose not to do it.”

– Daniel Tencer

The following video was broadcast on MSNBC’s Morning Meeting, Friday, July 24, 2009, and uploaded to YouTube July 25, 2009:

http://rawstory.com/08/news/2009/07/25/spitzer-federal-reserve-is-a-ponzi-scheme-an-inside-job/

this kind of stuff doesn't surprise me at all

just another distorted mirror in the < not so > fun house

just another layer of deception another flimsy attempt

on the already peeling many layered mask of deceit

"ponzi scheme"????

Isn't the Us deficit the biggest "ponzi scheme" of all time?

2 words for you-

Social Security.

However, what the fed gets to do, in our name, without our approval or oversight is just flat out dangerous.

It's like our government is borrowing money from the Mafia.

The real truth of the matter is that a financial element in the large center has owned the government since the days of Andrew Jackson.

Franklin D. Roosevelt

Yep, the Emperor is jay-bird nekkid.

And no, this didn't come about with Obama. It's been going on for a very long time. This country's economy has been held up by card houses for ages. Now all the chickens are coming to roost.

I'm constantly surprised at how anyone can seriously blame all this mess on the current president. The wheels of the economy take a long long time to grind.

What an awesome quote!

The blame doesn't fall on who started and how, but why continue it instead of fixing it? Just because he didn't start it , he continues with this game. If somebody starts killing off all the whales, and I continue killing the whales, am I right to say "Hey I wasn't the first one!"

I believe that banking institutions are more dangerous than standing armies..
If the American people ever allow private banks to control the issue of currency...the banks and corporations that will grow up around them will deprive the people of their property until the day their children wake up homeless in the continent their fathers conquered.

Thomas Jefferson

Here is the video. It explains it well, very basic, very easy to understand.

http://www.youtube.com/watch?v=gAtSmR7Z-Kg

I have more...

A World Banking System was being set up here... A superstate controlled by international bankers... acting together to enslave the world for their own pleasure. The FED has usuped the government.

Former Congressman Louis McFadden

The squeaky wheel gets the grease...so it's up to us...the individual citizens...to voice our disgust and distress. We don't have the lobbying voice, but we have the voting voice. And don't tell me one vote doesn't count, because if every person who says their vote doesn't count voted.....

Interesting quote. Especially since Andrew Jackson was the only president to pay off our national debt. BTW he abolished our second Federal Reserve bank to do it...

Wanna see something kinda freaky? Google "Executive Order 11110".

Thomas Jefferson is my favorite of all.


“If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless”
-T.J.

"I believe that banking institutions are more dangerous to our liberties than standing armies.
Already they have raised up a monied aristocracy that has set the government at defiance. The
issuing power (of money) should be taken away from the banks and restored to the people to
whom it properly belongs." — Thomas Jefferson, U.S. President.

Thomas Jefferson eliminated the first national bank for this very reason.

You'll need to find a way to discuss that quote with Mr. Roosevelt.....

Don't think i can. Doesn't mean it's not true though.

Maybe you can get medium and channel him... yea, I made it up.