{"id":168692,"date":"2010-01-12T04:54:57","date_gmt":"2010-01-12T09:54:57","guid":{"rendered":"http:\/\/nw0.eu\/2010\/01\/12\/ron-paul-geithner-should-be-fired-over-bankergate.html"},"modified":"2010-01-12T04:54:57","modified_gmt":"2010-01-12T09:54:57","slug":"ron-paul-geithner-should-be-fired-over-bankergate","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/168692","title":{"rendered":"Ron Paul: Geithner Should Be Fired Over Bankergate"},"content":{"rendered":"
\n
\n
\n
\n

Congressman says scandal proves need to strip Federal Reserve of its powers<\/p>\n

\"Ron<\/p>\n

Paul Joseph Watson<\/a>
\nPrison Planet.com<\/a>
\nMonday, January 11, 2010<\/p>\n

Congressman Ron Paul has called for Treasury Secretary
\nTimothy Geithner to be fired for his involvement in the AIG bailout
\nscandal, adding that the fiasco proves the Fed should be stripped of
\nits powers and audited.<\/p>\n

Explosive emails released last week<\/a> could see Treasury secretary Timothy Geithner become embroiled in criminal charges for his role in a cover up that exposes the monumental criminality behind the $182.3 billion bailout of American International Group Inc.<\/span><\/p>\n

In November and December 2008, The Federal Reserve Bank of New York
\ninstructed the bailed out AIG to hide from the public details regarding
\npayments the insurance giant made to banks, including Goldman Sachs
\nGroup Inc. and Societe Generale SA.<\/p>\n

Using Fed secured taxpayer bailout money, AIG paid several banks 100
\npercent of the face value of credit-default swaps, as other financial
\ninstitutions were negotiating deep discounts for the unregulated paper
\nassets that do not have to be backed by cash.<\/p>\n

Via his Texas Straight Talk phone update, Congressman
\nPaul said today that Geithner had helped hide from taxpayers the fact
\nthat banks were compensated for \u201cmaking some horrifically bad
\ndecisions\u201d.<\/p>\n

\u201cThese banks should have suffered the
\nconsequences of the huge risks they were taking,\u201d said the
\nCongressman. \u201cAfter all, they kept plenty of rewards when times
\nwere good. Instead, the Fed found a way to socialize these major losses
\nso these banks could survive and continue making more bad decisions, at
\nthe expense of the American people and the value of the dollar.\u201d<\/p>\n

Paul pointed out that claims the bailout helped save
\nthe economy are directly contradicted by the latest job figures, which
\nshow 85,000 job losses in December and the unemployment rate, which
\naccording to traditional calculations stands at a whopping 22 per cent.<\/p>\n

\u201cIt is hard to argue that this sort of government<\/a>
\nwaste has done anything but harm to our economy,\u201d said Paul.
\nRaiding Main Street to bail out Wall Street is a foolish idea. Main
\nStreet productivity and the strength of the dollar is the bedrock of
\nthe economy. You cannot gut this foundation without eventually toppling
\neverything else. This is what too many policy makers either don\u2019t
\nunderstand or refuse to face. Or even worse, perhaps they do
\nunderstand, but don\u2019t care!\u201d<\/p>\n

The Congressman added that the whole fiasco only
\nunderlined the preposterousness of the claim that the Federal Reserve
\nshould retain its independence.<\/p>\n

\u201cThis claim that the Fed should have
\n\u201cindependence\u201d is a canard,\u201d said Paul. \u201cThey
\nvery much enjoy their comfortable pattern of bailing out friends and
\ndevaluing the currency with no oversight and no accountability.
\nGeithner specifically asked officials at AIG not to disclose to the SEC
\nor to the public particulars about this special deal for his friends.
\nWe only know these details now because AIG was eventually forthcoming
\nwhen Congress demanded some answers.\u201d<\/p>\n

Paul said that Geithner has been \u201cpraised and
\nthanked\u201d for his actions but instead should be \u201crebuked and
\nfired,\u201d while the scandal proves that the Fed should be stripped
\nof its power to engage in \u201cexperimental\u201d monetary policy in
\nthe future.<\/p>\n

Watch a clip of the Congressman\u2019s comments below.<\/p>\n

<\/embed><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\n

Related Posts:<\/h3>\n