Guest Post: Corporate Entities As Modern-Day Street Gangs

Tyler Durden's picture

Submitted by Gonzalo Lira

This past Monday, June 14, 2010, the Unites States Supreme Court let
stand without comment or dissent the Second Circuit Appeals Court
decision to dismiss Maher Arar's suit against the U.S. Government.
(Arar v. Ashcroft, No. 09-923)

Mr. Arar was
illegally detained by U.S. officials while in transit back to his home
in Canada, and then handed over to Syrian intelligence officials using
“extraordinary rendition”. The Syrians kept Arar for ten months,
interrogating him using torture, and finally releasing him when they
concluded that Mr. Arar was neither a terrorist, nor in possession of
any relevant intelligence.
Once free, Mr. Arar
sued both the Canadian government (which peripherally assisted in his
kidnapping and torture) and the U.S. government. The Canadian
government issued him an unequivocal apology, and $10 million Canadian
in compensation.
Mr. Arar did not get any
similar justice from the U.S. government, though. The Second Circuit
Appeals Court quashed his suit by stating that Congress had not
authorized such suits as Mr. Arar’s. (!)
letting stand the Appeals Court decision to quash the suit Mr. Arar
brought against the U.S. Government, the Supreme Court effectively
ruled that the Government cannot be held accountable by private
citizens for its actions. The Government can do as it pleases to any
individual—including assassinating one of its own citizens—and there is
no legal remedy.
Now let's compare how
the U.S. Government dealt with BP, regarding the oil spill disaster in
the Gulf of Mexico: President Obama met with BP officials, and as a
product of that meeting, BP promised to set up a “compensation fund” of
$20 billion over the next two years.
how this was agreed to outside of the ordinary judicial process. There
was no suit. Neither did this agreement follow the law. It was simply a
deal the White House made with BP. A Republican politician is receiving
a lot of grief over having characterised the meeting and subsequent
deal as a “shake down” of BP by the Government. This politician is
being censured because apparently he sided with BP, the party
responsible for the oil spill disaster—clearly the guy is an idiot.
Be that as it may, the politician’s characterization is in fact accurate: The Government did “shake down” BP for the money, in a manner no different from a street gang shaking down a neighborhood grocery store.
the Arar case, one of the Government’s arguments in favor of quashing
the case was that the suit would bring under scrutiny “the motives and
sincerity of the United States officials who concluded that petitioner
[Mr. Arar] could be removed to Syria.” In other words, the Government
was deploying its full weight and power to protect the individuals who
had actually ordered Mr. Arar’s detention and deportation to Syria.
in the “compensation agreement” whereby BP acquiesced to pay $20
billion, the company as a whole was acting to protect the executives
and personnel responsible for the oil spill disaster. (I have yet to
read the actual deal memo, but I wouldn't be surprised to learn that,
as part of the deal, the Government agrees not to prosecute any BP
executive or personnel, either in criminal or civil court. This is pure
supposition on my part—but it ought to be the first thing scrutinized
once the actual deal memo comes out.)
As a
third example, during the financial crisis, when AIG, Fannie Mae and
Freddie Mac were all bailed out, none of the executives actually
responsible for the firms being in the position that they were in were
indicted or punished in any way. The corporations assumed the
responsibility of the individuals who had made the bad decisions.
a fourth example, the unions, in both the public sector and the
private. GM’s unions forced the company to assume pension and health
care liabilities which any actuarian would have realized would
eventually bring about GM’s bankruptcy—which of course is exactly what
happened. Teacher's unions across the U.S. refuse to implement basic
competency tests on their members, threatening to strike if such tests
are imposed, even going so far as to protect not merely incompetent
teachers, but pedophiles—and these are the people who are supposed to
be educating America’s youth.
A fifth
example: The U.S. military. Soldiers routinely violate human rights of
Iraqis and Afghans, in the most despicable, egregious manner
imaginable. Yet they get away with it, the military going out of its
way to protect its soldiers, under the rationale that to prosecute
gross human rights violations would “erode the morale of the troops”.
In the Abu Ghraib torture scandal, a half-dozen non-commissioned
officers were jailed—but apart from a lone Lieutenant Colonel being
tried and acquitted of a couple of minor charges, no officer was tried,
and none jailed.
All of this underscores the
same problems we are having throughout our society in the
Industrialized West: Corporate entities, be they corporations, unions,
the military, or the government, act lawlessly—anarchically—trampling
the individual without hesitation, yet coming to accomodations between
one corporate entity and another.
In other
words, our society has become a neighborhood where
street-gangs—corporate entitites—battle one another for position. Even
the Government is just another street gang.
People allied with a particular corporate entity have rights and the
full protection of the corporate entity to which they belong, much as
street gangs are fiercely loyal to their individual members. The higher
up in the corporate entities’ hierarchy—CEO, General, President—the
more untouchable he or she is.
unaffiliated members—such as Mr. Arar, such as myself—have no such
protection. Neither do they have recourse to the courts, as the Arar
case proves. Courts and the so-called “justice system” are busy
policing individuals. Individuals’ rights are more curtailed and restricted than ever before. But corporate entities are freer than ever before.
such a lawless neighborhood, what can an individual do? Obvious: Join a
gang—any gang. To remain unaffiliated is to be begging to be set upon
by members of one gang or another, be it the various gangs that make up
the government (TSA, IRS, ICE, Homeland Security, etc.), or the various
corporations who have made sure that unaffiliated individuals are
fleeced in health care, insurance, financial services, etc. (As an
individual, health insurance is prohibitive in the U.S.—but as a
corporate cog of a big corporation? That’s another story. How often do
we hear of corporate employees kowtowing to their corporate masters in
order to hang on to their health-care coverage?)
what happens to a neighborhood where gangs dominate? Why, that’s quite
simple: The neighborhood is destroyed. The gangs don’t disappear, as
the neighborhood is slowly ruined. The gangs stay put, feeding off the
corpse of the neighborhood, until it's nothing but a husk—kind of like
digger wasps.
This is what's happening to the “Free World”—our world. Fun, ain’t it?

Update I:
An article in the New York Times,
about a Cameroonian man married since 2005 to an American woman who was
about to be wrongly deported, gives another example of this street-gang
style of protection: The man would have been deported, had not the ICE
been pressed by the NY Times. The Times pressed the ICE because the woman happened to work for an advertising company which presumably did business with the Times. After being contacted by the Times, not only was the man not deported, he was released with promises to have his case “taken care of”.

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Apostate's picture

This is a solid analysis. Corporations are government-recognized legal entities (authorized to use the force of law against other entities).

If you're against the initiation of the use of force, you must also note that corporations regularly initiate force through the court system, occasionally using nominally governmental security forces as proxy mercenaries.

Note how even supposedly powerful Senators were humbled when they attempted to gun down a lowly trader, Mr. Tourre. It wasn't even much of a fight.

It really is "join a gang or die." 

Atomizer's picture

It starts from birth. You are a revenue stream for Government expansion plans. When a Government is desperate, it writes new laws to suck in more revenue from its peasants.

When the peasants are well behaved, the Government scrambles to write more laws to suck the peasants financially dry and draw you into their system.

Vicious circle for control. Don't make TPTB playbook look so complex. It's quite transparent.

downwiththebanks's picture

Of course you exonerate the corporations, who run the government and decide how laws are applied.

Oh regional Indian's picture

It really is, is it not Atomizer? In your face, in plan sight.

From the link:

"Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity.

That about says it all.

Add to this the Admirality law that IS the governing law of the land ( I suspect everywhere, not just in the US). India is so weak on good research that it is well nigh impossible to find out. Totally opaque.

We are living in a pen that has been a long time in the making.

Get wise, then act, that is how I would go about getting out of the system.

Fighting it without knowing the rules they play by is just plain foolish.

By the way, I'd highly recommend doing getting updated on Admiralty law in the US. Gold fringed flags etc. etc.

Just google and go.

Good luck.

I have a brilliant expose, not sure how to share it with this audience. (biggish pdf).


sgt_doom's picture

Negative, at no time in modern history has Karl Marx it been more correct than today:

The state (government) is "the executive committee of the ruling class."

While I appreciate and applaud the post, it is somewhat circular reasoning, consider.

Anyway, please continue on, con brio, Mr. Lira!

septicshock's picture

I am surprised we are still allowed free speech.

This country was founded on the principle of protecting EACH individual.  When did we lose our way?  Is there no one in power/club/gang that can make this right?

As winston churhill said:  "all it takes for evil to triumph is for good men to do nothing..."

Winston Smith 2009's picture

"I am surprised we are still allowed free speech."

You're allowed your free speech until it appears that you might be an actual threat to the system's status quo.  Then you'll be dealt with in some fashion.

ToNYC's picture

Corporate Communications is today's equivalent of Plantation Education in the 1850s

SteveNYC's picture

The large corporations should be starved at every opportunity. It really is simple for us to make a difference in this regard. Just do it, spread it, tell everyone. Set an example.

Although it is truly scary how brainwashed the corporations have the masses. Many people are addicted to their shit.

Won't buy from them, won't work for them, won't let them touch my healthcare, won't support them in any way, shape or form.

"The Machine" needs to be starved of bodies.

Atomizer's picture

If we pull the plug on this ponzi scheme, the global/sovereign communities can rebuild and prosper.

We all can see the cancer patients on TV everyday. These patient's are begging for a few more days of life or threaten to cause a new crisis.

The days of these cancer patients is nearing. The global/sovereign community will not resuscitate this dying patient.

Flash from the past.

Obama: G-20 Summit Good Time to Assess Economy

septicshock's picture

Wow atomizer, cancer patients begging for a few more days of life...  excellent comparison.   its so true, chemotherapy prolongs death a little longer in terminally ill cancer patients but it does so in an excruciatingly painful way.  There is no longer a person left after some chemotherapy drugs, just a semblence of what once was... 

The death and destruction that will surely come from worldwide desperation could have been avoided if people just opened their eyes and worked together... I fear of things to come.

breezer1's picture

people do and are working together. a candidate for mayor where i live recently lost the election because the community feared his austerity platform. city workers said they would face layoffs and those provincial workers who lived in the city backed their municipal brothers. after all, if there are cutbacks there then someone might think there should be cutbacks here. can't have that. with strong union backing and a fearful population( most at least knowing one government worker personally) he didn't have a chance the poor bastard.

consequently the government parasites have completely taken over the host. eventually there will only be a corpse. won't be long now. one union just got 4% pa. plus bonuses.

knukles's picture

Some are more equal than others.  Whazza problem?

moneymutt's picture

SCOTUS rulings are consistent with this reading of our times. Corporate entities' liberties are always protected and sided with, say like corporations apparent right use the muscle of their money to corrupt our govt disguised as a right of free speech, meanwhile they gut individual rights, like Miranda, which is simply making sure someone facing criminal justice system remembers their specifically given constitutional rights.

But conversely, SCOTUS does not see corporate entities responsible for their actions, while individuals are routinely jailed for relatively minor harms to society.

Someone will always have power, if it is not the people thru democratic controls and rule of law, then it is the biggest bullies that rule. Only alternative to functional democracy with strong, clean govt that is working for the greatest good for the most people and responds to the will of the people, is to let the Wall Street gangs and their serf organizations run the show.  Insider, crony orgs, be they businesses, govt agencies, militaries, royalties, oligarchies will take power unless people form a union and control them, by treating all people equally and consistently under the rule of law.

ZerOhead's picture

Spot on the money mutt! (And I don't even know what a SCROTUM ruling is!)

seventree's picture

I don't even know what a SCROTUM ruling is!

See Websters definition: Slang, US Eng., an upleasant and inescapable circumstance. Ex: They've got us by the balls.

ZerOhead's picture

Ha! Good one.

The inescapable truth however when you think about it is that We have Them by the Balls... they (and we as well) just haven't realized it yet.

Mistakes were made and they broke the magic ATM that was both their 'cash cow' and this economy.

A reset (or worse) is now inescapable. They should be terrified. They will be.

(And no I'm not entirely nuts but thanks for asking in advance! :)

septicshock's picture

Well, call me nuts too cause I too believe a reset is inevitable.

There is no more IF, just a WHEN.

Everyone that comes to this site believes that on one level or another.  The only people that think you and I to be nuts are those people who are in denial... they will clutch onto the financial/credit/debt/slavery "dream for some/nightmare for others"  scenario till the brutal end.

Well, I appreciate Tyler Durden and team for keeping all of us updated... I would like to know what scenario/situation Tyler and his team see this world in... two years/five years from now... I wonder if there is a ten year scenario that won't be farming/milking/horse-riding. 


ZerOhead's picture

Ironically the worse it gets (and I see no change in course of this rocketing shitmobile...) the easier it will be to reform what remains of the system into something resembling a democracy. However the apathy that must be overcome is apparently... well... astounding!

If not it will be the same sociopathic fucktards in control that got us into this mess... game, set, match... over!

Oh regional Indian's picture


A bad democracy is as bad as a bad republic.

Things must be bad when you have to use bad that many times in a row eh?

Take India, my country as a shining example of a Kleptocracy and a Thugocracy masquerading as a democracy.

In a strange (or not so strange way after all) way, I am tending more and more towards monarchies.

Big disclaimer though is that I'm saying Philosopher Kings in their truest form.

Otherwise, you take a large enough group of people, a rag-tag, amorphous bunch if you will and sooner rather than later, a pyramid will form. Based on who has the most of what is most desirable in said grouping.

In this current paradigm though, we are acculturated to look for leaders. We have lost our own bearings, our selfhood to the dominant "leader" for the day.

To read my take on our state of the world, please see:


ZerOhead's picture

Goddamn it! Is there no place on the face of this planet that isn't corrupt?

This will not end well...

declineNfall's picture

@Oh regional Indian

dont even think about monarchy. look at the british who are trapped in a feudal mind set. every man shall have a lord. one cannot be free with such a yoke.

the US presidency was modelled on the monarchies of europe, essentially he is the king of the USA. France has a far more modern, relevant and less dangerous presidential system.


Oh regional Indian's picture

D&F, that is why I set the rider, Philosopher kings. The kind who breathed the Tao Teh Ching, not the Art Of War.

Call me a dreamer.


WaterWings's picture

Supreme Court Rape Of The United 'Merica.

LeBalance's picture

The corporation is a body, a "person" with full rights of a person, that the UCC (Universal Commerical Code) can interact with in a Court on Commerce, which is what this whole thing is about.  (I am kind of new to this area and would appreciate a kick in the tail over what I get wrong.  Not a masochist, just like to learn.)  So that is why each person has a strawman corporation (SSN, brith certificate).  We are each governed by moral rules and commercial rules and are stated assets of various corporations, some of which are in bankruptcy (US, etc).  As such we are chattel, knowingly and unknowingly.  For the unknowing the world is a very weird place.  Many things and lack in consistency of judicial rules and liquidity of same are unbelievable.  But for chattel or monsters, who are just owned property, there is no need for a sense of honor or justice.  We are to be used.

With this background, an illusory corporation, created as a shield by men, can have any bylaws it wishes.  Any.

(1) Make as money for the share holders as possible.

(2) Have a stated moral code, but within the moral code state that the moral code may be junked under certain circumstances.

I think we all recognize GS, right?

So it is not at the outset that GS's SOP or operating code is examined.  Like a business creation SOP bureaucracy right?, Mack. What is your biz?  Ok. Operating sequence?  Dude!!!  You can't do that!  Think of the children!!

Right?  So under our present merchantile system the GS and similar SOPs are good to go.

Just my $0.02 to possibly add some value to the discussion.  But I haven't explored the Law (fluid as it is) much, but I plan to.

ZerOhead's picture

Awesome insight LeBalance. Everyone seems really focused today.

I too am exploring the Law... is has been a very illuminating excercise.

There are gaping holes in them that scream at me...

Atomizer's picture

Past History: City of London = Boston Tea Party

Just another historical event for power grabbing. Salt, butter and Popcorn handy, watching the latest reality TV series called "Epic Failure"

When is Obama expected to read/talk on live TV again?? Stand-up comedy is a sound career choice for a one term President.

Carl Marks's picture

Interestingly, BP subjected itself to an extra legal shakedown by the Obama Administration despite the fact that BP is essentially a lawless entity which routinely bribes and/or assassinates foreign heads of state in order to secure drilling rights. One must assume that the shakedown was accomplished in concert with the British Government, else, Obama could have faced the wrath of big oil. Give a little here, take a lot  later.

LeBalance's picture

totally a PR move.  They realized they needed to bend.

Cursive's picture

Agreed that it was BP's pre-emptive PR move.  I don't think it was a "shakedown" because the Obama White House has bent over for BP.  In this relationship, BP is the dominatrix and BHO is the gimp.

sgt_doom's picture

Not to mention that BP, along with Goldman Sachs and Morgan Stanley, will easily recover said monies with further speculation on ICE Futures (which they own), along with other futures leveraged speculating.

TuesdayBen's picture

I predict that the $20B never gets fully escrowed.

I predict that well under 100% of what does get escrowed goes to those harmed by BP's failings in this matter.

I predict that we'll never have a detailed, accurate, "open and transparent" accounting of where those monies escrowed wind up.

Biden 4 President.

Apostate's picture

It was a pricey $20B bribe.

But the puny sovereigns need the oil companies far more than the oil companies need them.

All the oil companies need to do is elect to reduce production. The sovereigns would be able to do little more than bitch and moan.

It sucks to be the king. 

DosZap's picture

Nah, they(BP), have contributed more money to Obama than any other member of Congress, this is/was all a public spectacle, photo op.

 A Feel Good measure, and the only thing that won't go away is the 2 Billion gallons of oil left in the well, streaming into the Gulf, if no way is found to capture/stop it.

cossack55's picture

I may be wrong, but I believe I read that APCs estimates of the well to be 2 to 2.5 billion BARRELS.

Dburn's picture

The Anderson Accounting Death Penalty from Enron days may have served as a "incentive" for setting up a settlement fund. I have no objections with this use of force becuase ultimately BP would have been Exxon Squeared in dragging out the cases while sucessfully forcing the plantiffs to use assets they really don't have to secure a independent protection gang commonly referred to as plaintiff attorneys. In some cases attorneys would use their own funds if they were confident they had the assets to withstand a drawn out process or in some cases accept settlement as a small percentage of what should have been given if it had been adjudicated. Fast settlements beget bigger settlements as plantiffs retain attornies that can put as much food on the table as quickly as possible.

So we probably have one gang somewhat pissed that we haven't heard from and that's the Plaintiff attorney gang. If this settlement fund is similar to the 9/11 fund, plaintiffs will be given the choice of settling for x now or waiting years for the possibility of more. Once opportunity cost + desperation is factored in, BP was probably more than satisfied as are the bulk of the potential plaintiffs other wise knows as the small people.

So we had the Big Gang = Govt, a Smaller but still powerful gang= corporation and a potential gang of small people teamed with plaintiff attorneys who may have been stopped temporarily from forming as th4e Plaintiff attorneys must seek much higher and expensive fruit to make money from this. So new gangs will be formed to lay claim to all the free cash flow that BP can produce which , in reality, is fine as the selling price of the production has to pass though the hands of the operators who will take their cut leaving the shareholders empty handed. In other words there will never be a dividend again and the share price will go down as the realization sets in that the corporation now has a new set of owners that isn't the shareholders. Nevertheless, BP as a entity will survive for a long time in order to pay claims from their reserves and serve the operators and directors. A captive Gang with a benevolent prison warden.

The big hurdle thathelped create the captive gang would have been an agreement of no Criminal penalties. Once freedom becomes an issue, carrying costs , borne by shareholders , for the freedom fund for the operators of the gang was good to go at virtually any cost as long as they can continue to produce oil, live the high life and stay out of prison. Shareholders are usually an ineffectual and weak gang if they can ever form into one,so for them to lose their dividends and equity is probably less damaging than when Fannie and Freddie , a one time reliable pair of pension and WA stocks, ceased to exist. The operators are still making out fine here too.

The Gangs analogy works really well.Those of us that are unaffiliated like small business people , traders, normal people and not so normal will always be at the mercy of the larger gangs unless we can form a formidable gang ourselves. The truth won't set us free, but it may incent us to form a new gang armed with larger area denial devices to present a clear and present danger to the established gangs .

In short, the country we once knew is gone forever and at least for the time being a civilized Mad Max society has taken it's place.

moneymutt's picture

according to conservative critics, Obama is a strong, all-powerful man that transformed our center right country, (most rightward of all developed countries) into the most leftist, socialist government in just a years time, he apparently can take over whole sectors of economy to be run and he can take on arguably the most powerful lobby of all, Big Oil, and shake them down.

All I see is a wimp, a weak leader who keeps compromising while his political opponents stand their ground.

FTWBTWFY's picture

The Untited States once was known as the "Home of the Free and  Land of the Brave".  Now it is becoming known as the home of the heartless, lying, manipulative, eco-destroying corporation.  It's government lies and murders on a global basis without apology, while the vast majority of its citizens sit on their hands and cry "Who us?"  The only solace for those witnessing and affected by this perverted nation's dissemination of evil, is that it's all coming home to roost.

yakmerchant's picture

Let us not go start blaming the corporation and captalism again.   I agree with you that the corporation is running amok, and to make numbers the corporations have ignored any sort of ethics so there is plenty of blame to go around,  but I think it should be made clear that the problem with the system is corruption which starts elsewhere.   The politicians and bureaucrats on the take with just about every one in the government encouraging the game is the problem.  And I won't even get into the courts.  Until the rule of law is returned and law breakers are jailed (and maybe even a few public hangings) we are on the fast track to Mad Max.  That being said, today's fight is about educating the retarded moron public of the United States, and there is already enough "the corporation is evil" going around.  I'll be damned if the ass clown "Workers of the World United" crowd is going to pin this on anyone other than the kleptocrats.   There is a reason the douchebags in power are siding with the marxists.  It's because they are too stupid to realize who is screwing them.   Do a little research on who was allowed in the Communist Party in the soviet union, you'll soon realize that TPTB love to recruit unable to think for themselves drones. 


SilverIsKing's picture

Ummm, that would be, "Land of the Free and Home of the Brave" but we got the point...LOL

declineNfall's picture

beautifully put. and incidentally it was never a home of the free. black suffrage arrived only with the Voting Rights Act of 1965, that restored and protected voting rights for minorities.

also a reading of bueno de mesquite (co author with condaleeza rice) explains why education is kept to a low level in the US.

america was born out of protection of businessmen not desire for freedom. the boston tea party was about the introduction of competition in the tea trade, not unfair taxes. see A Splendid Exchange by William Bernstein.

FTWBTWFY's picture

By the way, I do have American friends I love and respect...not surprisingly, most of them no longer reside in their homeland.

drwells's picture

Out of curiosity, where did they decide to go?

TuesdayBen's picture

Prolly moved involuntarily to a location six feet under.

DosZap's picture


I remember two cases where this did not apply, and the Government where held LIABLE, and PAID.

"the Government cannot be held accountable by private citizens for its actions. The Government can do as it pleases to any individual—including assassinating one of its own citizens—and there is no legal remedy."

Randy Weaver, and the Branch Davidians, where's the difference?.

Rusty_Shackleford's picture

That's a good point, but I think these 2 cases outline that the State did something because it felt it was politicially expedient to do so, rather than because they were being held accountable by any "system" of laws.  It's a subtle point, but when the State can arbitrarily make it's own decision as to whether or not it can be held responsible for something, it really becomes meaningless.  Do you see what I mean?

JR's picture

Excellent article.

The lawlessness is eminating from the most powerful street gang in our nation’s history—the private international bankers who own both the central bank and our centralized government.  This takeover has allowed the corruption to spread from the county courthouse to the halls of Congress.  And, like dominos, to the Supreme Court.  When Americans lose their representaiion, the gangs take over.

When private interests take over the government and control the money supply, then the principles of capitalism and protection for private citizens are destroyed. Why? Because only those private interests who now own the government have the advantage of monopoly--using the government laws and regulations they create to eliminate competition and dissent.  If a private citizen cannot find protection of his rights and his property from the Supreme Court, then the corruption has become tyranny.

This favoritism extended by the government to the central bank money power has no resemblance to the principles of capitalism, representative government or the American Dream.

Throughout all these years of gathering together more and more power, more and more intervention and more and more government control, the money power finally has lawfully achieved the ability to reward its friends and punish its enemies—selectively and in secret.  The money power can reward Best Buy and punish Circuit City, reward Israel with its WMDs and punish Iraq with its lack of WMDs—if it wants; this explains why it moves Heaven and Planet Earth to get this power—why its members cheat, lie, blackmail, threaten, assassinate…  It is not so that they can be patriots, so that they can help America with her economic well being, or fertilize the fruits of capitalism and free-market competition.

Think about it.

And, now, the Fed has New Powers, as a result of the 2008 Bank Panic.  Says Kirk MacKenzie in Money, Defending Your Prosperity (copyright 2010):

“A remarkable new feature of these expanded powers is the ability of Fed to selectively give differential advantage to specific companies of its choosing.  This violates any standard for fair and equitable treatment.

“The People pick up the junk securities and pay the tab.  Their incomes are reduced, and a portion of their savings are taken, by means of an inflated money supply that benefits the Chosen.”

Here is MacKenzie’s list of the Fed’s “New Powers”:

1.  The Term Auction Facility (TAF) allows member banks to anonymously convert problem (junk) securities into money at low interest rates.  Thus freed of their losses, the member banks can use the new money to make new loans.

2. The Term Securities Lending Facility (TSLF) allows primary dealers to dump problem residential mortgage-backed loans in exchange for Treasury securities.

3. The Primary Dealer Credit Facility (PDCF) allows primary dealers a further competitive advantage by converting other, non-mortgage problem securities into new money at low interest rates.

4. The Asset Backed Commerical Paper Money Market Mutual Fund Liquidity Facility (AMLF) allows selected financial institutions a competitive advantage by obtaining low interest rate loans directly from the Fed.  The Fed decides who and thus far has refused to disclose who the recipients were.

5. The Commerical Paper Funding Facility (CPFF) allows selected non-financial corporations a competitive advantage by borrowing low interest loans directly from the Fed.  The Fed decides who.

6. The Money Market Investor Funding Facility (MMIFF) allows selected money market mutual funds a competitive advantage by borrowing low interet funds from the Federall Reserve Bank of New York.  The FRB-NY decides who.

7. On top of all these new powers, Chairman Ben Bernanke seeks expanded powers to directly control the banking system.  (emphasis mine)