Wednesday, September 28, 2011

I Have Finally Decided to Act on a Herman Cain Suggestion

During various campaign stops, Republican presidential candidate Herman Cain has suggested that there is no need for another audit of the Fed, that sufficient audits have been conducted. He also has said that if there were any questions about how the Fed works, that one should just call up a Fed public relations department and that they would go over concerns.

My specific concerns center around trades the New York Fed has conducted with Primary Dealers (e.g Goldman Sachs). I have heard from sources that the New York Fed, at times, has conducted trades with Primary Dealers that have been hugely profitable for the dealers, at the time of the trades. It would be nice to sit down with the Fed and go over these concerns as Herman Cain suggests can be done.

I have thus contacted the New York Fed and spoke to Eric Pajonk in the NY Feds public relations department. He asked that I put my request in an email. The email is below and is self explanatory. I'll keep you posted with the Fed's response

from Robert Wenzel rw@economicpolicyjournal.com
Sent at 11:56 AM (GMT-04:00).
to xxxxx@xx.frb.org

date Wed, Sep 28, 2011 at 11:56 AM


Dear Mr. Pajonk,

As per your request I am sending this email as a follow up to our phone conversation. This is to advise that I would like to set up an appointment to review the trading that the Federal Reserve has done over recent years with Primary Dealers. Specifically, I am interested in looking at individual trades conducted that show, the security involved, the date of trades, the Primary Dealer involved (e.g. Goldman Sachs) and the price at which individual trades were executed, for the years 2008 to date. I believe this would be an important way to determine if the rumors I have heard that the NY Fed "shoveled" money to the Primary Dealers through these trades has any validity.

I am making this request at the suggestion Herman Cain. You noted in our conversation that you did not know who Mr Cain is. As background, he is the former Chairman of the Board of the Federal Reserve Bank of Kansas City and also a candidate for the Republican nomination for the presidency.

I have viewed various YouTube videos where Mr. Cain has told the audience that there is no need for an additional audit of the Federal Reserve , that individuals should just call up the Public Relations departments of the Fed and set up appointments to go over any concerns.

I want to commend the new openness program the Federal Reserve has adopted, as indicated by Mr. Cain. I would have thought that the prices at which Primary Dealers conducted trades with the Federal Reserve is something that would have only been uncovered via an audit, but the new openness as indicated by Mr. Cain is a great thing.

I am thinking of starting my review of the transactions on Friday. Do the offices open at 8:00 AM or 9:00 AM?

Best Regards,

Bob Wenzel

---
Robert Wenzel
Editor & Publisher
EconomicPolicyJournal.com

23 comments:

  1. While you're at it, you might ask to see "the acquisition file for the BlackRock Maiden Lane contract containing the officer approval and justification notes, as well as the minutes of the director meeting with Friedman, Dimon, Immelt et al."

    http://english.economicpolicyjournal.com/2011/08/more-on-how-gaos-phony-fed-audit-failed.html

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  2. Did you cc Cain's office?

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  3. The funny thing about this e-mail, I'm sure the flunkie who never heard of Herman Cain is gonna have his boss shove the e-mail over to the legal department.

    You probably just cost them a few hundred dollars before you get a nice email back saying "sorry, we can't help you".

    lol...nicely played Wenzel.

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  4. This comment has been removed by the author.

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  5. Ha! Now THIS is entertainment.

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  6. Cha-ching!

    This article is already making its way across the net. Just saw it posted elsewhere.....

    Open mouth, insert foot Herman.

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  7. Wait a minute.... you're sending an email to xxxxx@xx.frb.org....

    Shouldn't that be xxxxx@xx.frb.GOV!!?

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  8. This is funny for entertainment. But this is ultimately pointless. It's like a child trying to throw a stone at a giant steel-plated military tank.

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  9. @Chris

    The Fed branches use .org. Only the D.C. Fed uses .gov

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  10. Could you also check the gold at Fort Knox?

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  11. Of course they use ".org" as it is a private bank!

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  12. @Anon 1:35

    Yes it's pointless as far as the Fed goes, but not in making Mr. Cain look like the dolt he is.

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  13. Wayne Goodfellow, OttawaSeptember 28, 2011 at 5:36 PM

    The spreading of truth by the internet is killing Cain, Perry, Romney, Backmann, etc. The Republican Party establishment is in a state of absolute panic. The simple reality is that they cannot stand being exposed by the net for hypocrisy, corruption, ignorance and just plain stupidity. The MSM is losing its power to control the election and is becoming increasingly irrelevant. Have we reached the tipping point?

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  14. Bob, perhaps you should ask Mr. Pajonk if the NY Fed has had any dealings with Larry Fink, CEO of Blackrock, Inc. Of note, in April 2008, BlackRock Inc. received a no-bid contract worth $71.3 million from Geithner to manage the $30 billion in assets the New York Federal Reserve acquired from Bear Stearns to facilitate its buy-out by JP Morgan Chase.

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  15. What about the arguments that there are already audits done on the Fed, as seen here:

    http://www.federalreserve.gov/publications/annual-report/2010-federal-reserve-system-audits.htm

    Are they not complete enough? What is the difference in what Ron Paul is calling for, and what would it find differently from those already done?

    This is a serious question, so I would appreciate Wenzel or anyone else responding.

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  16. Wayne Goodfellow, you are correct, sir. A top Republican fundraiser in my state reports the party can't raise any money. They are just apoplectic.

    And the Republican party has no monopoly on hypocrisy, corruption, ignorance and just plain stupidity. The Democrat rank and file are steamed at their leaders, too. They were promised the anti-George W Bush, and on their 2 hot button issues, the wars and the economy, they got George W Bush II.

    Ordinary Americans of all political stripes are learning the truth, that there is not a dime's worth of difference between the 2 parties. They are both tools to prop up the system that loots the wealth of the citizens, spending it on unconstitutional programs and perpetual wars. Both parites lie to their constituents, debase the currency, spend us into oblivion, and tax our wealth when we earn it, when we spend it, and when we die.

    The system is kept afloat by screwing the common person to the wall. We are all victims of the biggest rip off in history. It is a worldwide rip off. The media is complicit in the scam.

    Most people I know are fed up. It remains to be seen if we have truly reached the tipping point.

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  17. You'll have as much luck contacting the DOJ and ask Holder how involved he was with project gun runner. I like Cain, but he is part of the status quo, and therefore the problem. Protecting the Fed is ridiculous at this point and polls have shown a majority of Americans want it audited, but Cain the insider will protect the elitists he served, one can be guaranteed of that!

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  18. haha.unlike Don boudreaux letters ,this one might actually elicit some pretentious reply at least!
    well done.

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  19. LoL! Good luck with that one!

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  20. Tipping point, what tipping point?

    I do smell a bumpersticker/campaign slogan/talking point brewing though.
    As in it seems like there are two sides to the common coin of the realm.
    There's not a dimes worth a difference between the two parties - Go Geo Wallace - and Ron "One Thin [Silver] Dime" Paul - Go 10 Cent Gasoline.

    The Repuglicrats are apoplectic as well they ought to be. The shimshimaree is coming down around their ears already and we really haven't seen nothin yet.

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  21. To the commenter who asked why the currently performed Fed audits aren't sufficient may I present to you the person in charge of those audits during the time period when the Fed lent out 16 trillion dollars to parties it refused to name (until Bloomberg sued them via the Freedom of information act and won in a landmark law suit)

    http://www.youtube.com/watch?v=oehX9eq-78o

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