The Federal Reserve and Junk-Bonds

Ludwig von Mises once wrote: "Economics, as a branch of the more general theory of human action, deals with all human action, i.e., with man's purposive aiming at the attainment of ends chosen, whatever these ends may be."

Essentially, market participants act in their self-interest. For this reason, I find it hard to believe that the Federal Reserve actually thought the assets it purchased and stored in Maiden Lane would remain investment-grade. After all, if the assets were so valuable, JPMorgan Chase and Co. (JPM) would have kept them for themselves. The fact that JPM was not interested in the assets should have sent a clear message to the Federal Reserve that the assets were not worthwhile.

Instead, as this Bloomberg article points out, the "Fed Made Taxpayers Unwitting Junk-Bonds." According to Bloomberg, "more than 88 percent of Maiden Lane’s CDO [collateralized debt obligation] bonds and 78 percent of its non-agency residential mortgage-backed debt are now speculative grade... as of Jan. 29."

Yes please!

Seconds on a failed fiscal policy? Who can say no to that?

Federal Reserve Chairman Ben Bernanke is up for renomination, so we're headed for another wonderful term of fiscal recklessness, bailouts, and denials. Time and time again we're told that nothing is wrong. That the recession is over and the dollar is sound. Yet they continue to print fiat money and spend countless millions on foreign wars in which we should not be involved.

Alan Greenspan and Ben Bernanke are evil men, though some argue the latter is just a scapegoat. My answer to that is:  Anyone who would take the position as Chairman of the Federal Reserve is by definition a grasping, power-hungry enemy of the people. He constantly steals from our pockets -- not only with taxes or rulings but by devaluing our money with his constant printing of a fiat currency.

There is only one way to stop this and to show the American people that the Federal Reserve is a wasteful and destructive branch of the government:  to support a bill to audit the Fed.  H.R. 1207, introduced by Congressman Ron Paul (R) of Texas, will let the citizens of the United States know what is happening to their money. To tear down government walls of secrecy that have been standing for too long. Once the people see and understand the corruption in the Fed they will know why this institution must be abolished.

Originally posted at Government Fail!

Adam Kokesh discusses the Fed

YAL supporter and Congressional Candidate Adam Kokesh talked with RT on Monday regarding the Federal Reserve.  Adam gives a great explanation for why the Fed really needs to be audited.