yesterday regarding a bill to open the GSE’s to the FOIA:
H.R.
463, introduced by Representative Chaffetz, would subject the
Enterprises to the Freedom of Information Act (FOIA). FOIA’s “core
purpose” is to:1) Enhance “public understanding of the operations or activities of the government;”
2) FOIA is “often explained as a means for citizens to know what their Government is up to."
This core purpose is not served by applying FOIA to Fannie Mae and Freddie Mac, which are still private companies operating in conservatorship. They did not cease to be private legal entities when they were placed into conservatorship, nor did they become part of FHFA.
Still private companies? That’s the reason they are shielded? After the taxpayers shelled out $200b (and counting)? Bullshit.
I’m going to give DeMarco a D- on this one. I can think of a half dozen
areas in Fan’s and Fred’s checkered past that should be exposed and made
public. There is no way the dirt over at F/F should remain hidden.
There is one area of inquiry that I think should be correctly viewed in
the history books. Allow me a ramble.
In
his memoir, former Treasury Secretary “Hank’ Paulson made the following
comments. (This covers a time period May – August 2008)
Treasury had been getting nervous calls from officials of foreign countries that were invested heavily with Fannie and Freddie.
Foreign investors held more than $1 Trillion of debt issued or
guaranteed by the GSEs, with big shares held in Japan, China and Russia.
Okay. We know this. The likes of China and Russia had Paulson by the balls. And they squeezed.
Hank does not give a source for the following information. It was
conveyed to him August 8th – 10th , 2008. Hank was in Beijing watching
Michael Phelps win medals at the time. Take a stab at where he might have learned this:
Russian
officials had made a top-level approach to the Chinese suggesting that
together they might sell big chunks of their GSE holdings to force the
U.S. to use it’s emergency authorities to prop up these two companies.
Here’s how I think this went down. Paulson was connected in China. He
was the CEO of Goldman. He was Treasury Secretary. He had his own access
to “top-level” Chinese officials. One of them called and invited him over for a tea.
Russians see that you are vulnerable. They want to take you out
financially. They want to force you to default as they did in 1998. They
want China to join them and push you to your knees. There are some
leaders here who are in favor of this plan. Others are not. Can you
offer me something that I can use to change the outcome of this?
Paulson:
understand your position. Try to understand mine. Not one penny of the
F/F bonds that you hold is guaranteed by the US government. It says so
right on the front of the Bond Indenture.
know the law. But now I tell you our law. If you stiff us with these
bonds we will be at economic war with America, and we will win.
okay, okay. I got you. I see the picture. Here is my response. I will
make a promise to you. I will make you money good on these bonds. I will
arrange a buyback. I will get the Fed to do this. I
will see to it that the amount of the buyback is a bit over the $1T
that is now in foreign hands. The US will eat what it does not deserve
to eat. You have my word that this will get done before I leave office.
me four months. I will get this buyback agreed to as soon as I can. But
I, I mean the Fed, can’t go public with it until, say, two weeks after
the big election. Give me till the end of November.
Four months later, two weeks after that big election; we get this:
Here is how the Fed describes the goal of QE1 (the F/F buyback):
Nothing about balls getting squeezed and side deals with China. If I’m right that this tale played a hand in the how and why of QE1 then it would add a great deal of ‘color’ to the story.
Let’s be clear on few facts. A) The US was never on the hook for F/F. B)
If the Fed thought it was necessary to provide a monetary jolt it could
have bought Treasuries versus Agencies (that is what they did with
QE2). QE1 was a debt buyback that was forced on us. That is a very
different kettle of fish than how it was sold to the public. If Paulson
had a hand in how this played out it would taint the Fed and the way
they conducted policy. There is nothing in the Fed’s duel mandate that says they are supposed to being doing buybacks to bail foreign central banks.
Like I said, this is all just my read of the history. I don't want to
see that our good pals at F/F get a free ride on this. If there were a
FOI window for these bums I would be most anxious for them to open their
files on who said what to whom regarding these buybacks. My guess is
that it started back in August of 2008. Right after Hank got back from China.
Let me remind Mr. DeMarco of the purpose of the FOIA:
A means for citizens to know what their Government is up to.
The details of the GSE buyback need to be known and understood. I want
to know what my government, in particular the Fed, is up to. I want to
know what brought about QE1. I flat out don’t trust them. That’s why the FOIA in the first place.
I need an esquire to File Suit in Federal Court Against the U.S. Government.. more over the President of the United States of America. Pro Bono in the name of Fight Club!
The Law Suit is for breach of the Constitution for bringing home the U.S. Army and now Training the U.S. Army to operate Against "We the People".
Who wants to get some T.V. face time for themselves and for Tyler here.. we want warm bodies to educate we have to up our visible profile.
I am looking for feedback and ideas to make as big a splash as possible! so if you have something that will help, speak up! even if you think its small! speak up! every little thing matters and helps! SO PLEASE!!! Speak Up!
I need an esquire to File Suit in Federal Court Against the U.S. Government..
Get a small-time lawyer for cheap to show you where it says that the U.S. Government cannot be sued. Or perhaps a local librarian. No court would accept your case.