Fed Official Confronted Over Bailout Spending Secrecy (VIDEO)

Where's the bailout money going? If the federal government told you, then banks might stop taking it.

That's the argument made by Federal Reserve Vice Chairman Donald Kohn in this overlooked clip from Tuesday's House Financial Services Committee hearing on the bailout funds.

In response to pointed questioning from Rep. Alan Grayson (D-Fla.), Kohn laid out the reasoning.

"I'd be very concerned, Congressman, that if we published the individual names of who was borrowing from us, no one would borrow from us," he said. "The purpose of our borrowing is not to support individual institutions but to support the credit market."

Grayson couldn't believe it. "Has that ever happened? Have people ever said we won't take your $150 billion because people might find out about it?" he asked.

Watch Grayson v. Kohn:

Comments

[Citizen4Justice]

The Federal Reserve can loan out as much money as it wants. Why? Because they have the power to make as much of this worthless fiat currency as they please. They loan it out and charge interest on it. In this way they can gain benefit from our collective labors, like parasites. The fed is owned by men who have shares in it, like a corporation. I wish we could find out who these men are. It's an old scam, our country fell for it in 1913.

[beaupritchard]

It is a very old way of life that hasn't changed in 5 thousand years.

[DragonFly]

Absolutely!

Because this privately owned bank uses the word 'federal' in it's name, most people do not question it's legitimacy or it's power.

It's time this nation's people learn of how the Federal Reserve came into existence, and to pry the perpetrators of this massive scam out of their guarded marble halls and into the sweltering streets of humanity.

[TheIndependenceParty]

Morgan Stanley buys CitiGroup's brokerage division with what? Guess!!! Three months ago they were on the ropes and now they are in acquisition mode once again. This pathetic oversigt is Paulson's, Kashkari's and Bush's fault! I pray that DC will be bathed in pink slips next Wednesday from the top down. Send these skunks packing and open the windows to air out these branches of government before we all become sick!

Too Large to Fail? No, ... I think it is more like "Too much our friends to say NO"!

Oh I am feeling the hangover from 2008!

[oktober]

You know who's too large to fail, The Fed. Badabing!

[beaupritchard]

Incestuous isn't it ... Federal Reserve ... Treasury ... AIG ... Bear Stearns ... Citigroup. Accident you think ... coincidence maybe.

[bluemike]

WHAT HAVE THEY DONE ???

[commonsensor]

The sickest part of this whole scenario is that they accepted this load of s&%t as an answer.

WHY DO WE HAVE THESE COMMITTEES!?!? WHY THE "F" does this Kohn guy have a job. AND WHY ARE WE GIVING THEM MORE.

Geez! Will anybody stop this madness??????

[ohsaydidyousee]

Cracks in the FED reserve are beginning to break open.

At the start of the questioning Kohn appeared nervous and hessitated to speak with the confidence of a vice chairman.

Many do not realize that from the late 1700's to 1913, the price of a loaf of bread was five cents. It didn't change until the Fed reserve was created in 1913 by Woodrow Wilson. It was also the Fed reserve that initiated The IRS in order to collect the interest on money it printed, loaned and circulated into our banking system. As a result the American Banking system is run by a small group of individuals and foreign interests that has enslaved the American worker while lining it's pockets with our hard earned tax dollars. Shortly after Wilson signed the Fed Reserve act he was said to have written a friend explaining that he had sold out America and asked for God's forgiveness.

Dennis Kucinich recently stated that the Fed Reserve is no more federal than Fed Ex. Wake up people. If you want transparency, end the Fed Reserve!

[vippy]

Too bad we did not vote for REAL CHANGE. Maybe these elections are all fixed from the
beginning, who knows.

[TheIndependenceParty]

I have seen it written hear that the Fed is really a quasi private bank. Seems to me the Government can seize and manage insolvent banks, and that should have been our move in the Fall. When a government does not directly manage the issuance of its own currency, mayhem WILL follow. That we have seen this occur twice in less than 100 years should be a sign that it is time to relinquish the fed's control over the nation's currency, as it has failed to manage it properly.

[beaupritchard]

Its actually easier to see than this.

When AIG Bear Stearns Federal Reserve et al say they either made or lost billions on derivatives or bundled bonds what do you think they mean. None including the federal reserves produce a product like cars or pencils or popsicles ... none of these companies produce a service like car washing or typing or washing machine repair ... where do you think the money comes from. That's right all those elaborate financial instruments gathered together like little drops of rain are interest on loans to companies that actually make goods and services.

To stay cost effective something has to be taken away from the product itself ... the cost of producing the product as in foreign low cost workers or the actual ingredients in the product like substituting synthetics for cotton in close or fructose for real oranges in orange juice.

It is self sustaining in that the lower the labor cost the less workers can afford the more willing they are to buy synthetic products.

Those billions of dollars in financial instruments represent a loss to american public in terms of what is real. It is the selling of a lie ... it is a very very old way of living off a society.

[Geovan]

The Fed is a PRIVATE BANK. Could we not think of a better thing to do with our $4,000 per person gift than to give it to private banks?

[TheIndependenceParty]

So was WaMU. We should have declared the Fed insolvent and seized its assets before re-funding it in teh Fall.

[Donns]

So if the Banks stop stealing our tax money (or our government stops forcing it on tham whichever it is) how is that a bad thing?

[nirek]

This guy was arrogant ! We do not want to scare off the borrowers ! Give me a break !

[captainindustry]

Bernard L. Madoff for President!!!

[solarian]

wonder where they will work when bush is gone could it be wall street

[breakingpoint]

Stop the theft! - Why are we bailing out Swiss Banks?

'End The Federal Reserve' Rep Denis Kucinich OH
http://jischinger.wordpress.com/2009/01/14/kucinich-end-the-federal-reserve
Dennis Kucinich will soon introduce legislation to put the Federal Reserve under the U.S. Treasury.

"The Federal Reserve is no more "Federal" than Federal Express!" -Kunicich

Ron Paul - 'The Chair of the Federal Reserve and Head of the FDIC skipped Congress and headed to Switzerland.'

[Carolab]

DK is a wonderful Congressman. Of course he never gets any support.

Re: Paul's statement--Does he mean that Bernanke and Bair went to Basel?

[breakingpoint]

they thought the Swiss were more important than the U S Congress - 2nd time they blew The People off - wonder if I can blow the bank off when my credit card bill is due?

[beaupritchard]

It's the last straw ... get rid of the Federal Reserve. Go to gold overnight ... just get rid of them. Ignorant pompus arrogant S.O.B's.

[solarian]

except golds price is dropping

[TheIndependenceParty]

And the dollar's is not?

[Bjarni]

Look at the dollar index, and take into consideration that inflationary elements take months to move through the system. The general trend of gold is up year by year.

[beaupritchard]

That's OK ... gold doesn't wake up one morning and decide to start effing with our economy ... gold doesn't place an arbitrary value like the productivity of a nation as its way of measuring societal worth.

Gold either is or isn't ... one can not speculate on its existence ... one can not borrow on its future production ... gold lives in the now and so resist manipulation.

The federal reserve meddles ... they are in our heads and in our minds and they haven't the right.

[beaupritchard]

"I'd be very concerned, Congressman, that if we published the individual names of who was borrowing from us, no one would borrow from us,"

I want to know ... there's really only one country people would just stop borrowing from if it was known the federal reserve was lending it money. And I'm sick of protecting it.

[SiberianRat]

Wow, this Grayson is earning HIS tax-dollar salary though--excellent! Our Congress has been dismally ineffective in the last years--nice to see someone is on the ball.

[ZellaBee]

Un-fuching believable, Nobody's home in our government! They do absolutely nothing to enforce to control or audit.They know how to collect taxes and make us accountable, but not them selves. What a sham and a scam.

[voltage356]

This scam and sham has been going on for sometime now.

[vippy]

Exactly, just look what kind of ridiculous laws they pass in congress/senate and nothing is ever
in favor of the people. Just look at the new Credit Card Revision, and then Barney Frank had the
audacity to say that they had a lot of pressure from the banks, well DUH, yes and who is on our
side? They are so worried about their re-election funds that they could not careless about us
people! Let us all vote them out of office.