[stoney]

Link to source: http://www.zerohedge.com/article/federal-reserve-loses-bloomberg-foia-lawsuit-sensitive-disclosures-forthcoming

Copy/past from Zerohedge below. This is big. Really big. For the Fed to appeal this, they are effectively stating that they have secrets that need to be kept hidden, and that they feel they are above the law.

Secondly, if they push back, it might be enough to get HR 1207 pushed through (audit the fed).

Just out from Bloomberg:

Aug. 24 (Bloomberg) -- The Federal Reserve must make public reports about recipients of emergency loans from U.S. taxpayers under programs created to address the financial crisis, a federal judge ruled.

This is in relation to a lawsuit filed by Bloomberg LP against the Federal Reserve on November 7, 2008, in Southern District of New York (08-09595), in which Bloomberg sought material loan and collateral data in relation to emergency loans released by the Fed, and which were previously claimed to be non-FOIAble.

This is a large blow against the Fed and specifically against organizations using FOIA loopholes from providing critical information, specifically in cases involving trillions of taxpayer dollars bailing out huge, systematically and politically embedded financial organizations.

The conclusion from the order just issued by District Judge Loretta Preska is as follows:

The Board's Motion for Summary Judgment is DENIED, and Bloomberg's Motion for Summary Judgment is GRANTED. Specifically:

1. The Board shall produce forwith the Remaining Term Reports within five business days of the date hereof;

2. The Board shall search forthwith records at the FRBNY that constitute "Records of the Board" within the meaning of 12 C.F.R. # 231.2(i)(1); and

3. The parties shall confer following their review of the results of the search and inform the Court by letter no later than September 14, 2009 how they propose to proceed.

The beneficial outcome means that many more FOIA-based lawsuits against the Federal Reserve will now spring up, and with case law on their side, the outcomes of most will likely be on behalf of the plaintiffs. This could detour any short-circuit attempts by either Congress or Senate to prevent a Fed audit, as it may suddenly not be necessary, now that there is this alternative venue to get various pieces of information, previously not available to the general public.

 

[kidwoo]

The kimono opens...

Thank god it's not greenspan wearing it anymore.


eesh

 

[DaveW]

Secondly, if they push back, it might be enough to get HR 1207 pushed through (audit the fed).

I suspect that auditing the fed would pretty much anally rape your currency and government bonds on the international markets.

 

[Pesqueeb]

I suspect that auditing the fed would pretty much anally rape your currency and government bonds on the international markets.

Aren't we doing a pretty good job of that anyway? I don't know much about the finance world, so I don't understand how some accountability is a bad thing here. Anyone care to clear the air on this issue for me?

 

[stoney]

I suspect that auditing the fed would pretty much anally rape your currency and government bonds on the international markets.

Pretty much, but until the debt is actually cleared, the economy can not get better. It's all smoke and mirrors until the source (bad debt) is gone. Giant ponzi scheme.

 

[jimmydean]

Giant ponzi scheme.

Isn't that what the Fed is for?

 

[X3pilot]

Didn't they just name some AFL CIO teamster boss to the NY Fed position? I am completely ignorant on high finace but that can't really be a good idea, can it?

Does he HAVE to wear a kimono?

 

[dante]

Isn't that what the Fed is for?

Ponzi scheme's only collapse when the money runs out. When you have the ability to take on unlimited debt (Fed), the money never "runs out"...

(what is Japan's debt to GDP level these days? and the Bank of Japan holds most of it...)

 

[stoney]

Or when the buyers of your debt leave the table. The complete devaluation of a fiat is enough to effectively collapse the ponzi as the value of the fx goes worthless.

 

[Pesqueeb]

But where else will China buy debt from?

 

[stoney]

A solvent country? The USD is going to lose it's lock as the world currency. The Chinese are pushing for a basket of currencies, and I just read that the Central banks, for the first time since 1987, became net buyers of gold.

I would love to see the Fed's role in outstanding gold swaps and the massive (~35%) short position on gold.

I"m moving out our GLD and into the Canadian Gold & Silver trust, as I just read a very scary analysis of gold holdings by the etfs.
1. You can pay gold contracts deliveries in ETF shares
2. Most ETF's have duplicate serial #'s, from the same manufacturer to the tune of 5%. So they are actually holding 5% less gold than stated.
3. Many (not all) Gold etf's are holding paper, not gold. Just contracts for delivery.