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Government Corruption News Articles
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Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


More Black Men Are In Prison Today Than Were Enslaved In 1850
2011-10-12, Huffington Post
http://www.huffingtonpost.com/2011/10/12/michelle-alexander-more-black-men-in...

More black men are behind bars or under the watch of the criminal justice system than there were enslaved in 1850, according to the author of a book about racial discrimination and criminal justice. Ohio State University law professor and civil rights activist Michelle Alexander..., the author of The New Jim Crow: Mass Incarceration in the Age of Colorblindness, [says] there are more African American men in prison and jail, or on probation and parole, than were slaves before the start of the Civil War. More than 846,000 black men were incarcerated in 2008, according to U.S. Bureau of Justice estimates. African Americans make up 13.6 percent of the U.S. population according to census data, but black men reportedly make up 40.2 percent of all prison inmates. The criminal justice system is the newest in a long line of societal structures that have disenfranchised people of color, Alexander argues in her book. Alexander writes that despite today's belief in "colorblindness," our criminal justice system effectively bars African American men from citizenship, treating them as a separate caste: "Denying African Americans citizenship was deemed essential to the formation of the original union. Hundreds of years later, America is still not an egalitarian democracy. The arguments and rationalizations that have been trotted out in support of racial exclusion and discrimination in its various forms have changed and evolved, but the outcome has remained largely the same."

Note: For more on the deep injustices of the prison-industrial complex, see the deeply revealing reports from reliable major media sources available here.


How the US government secretly reads your email
2011-10-11, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/commentisfree/cifamerica/2011/oct/11/us-government-...

Somewhere, a US government official is reading through a list of those who sent or received an email from Jacob Appelbaum, a 28-year-old computer science researcher at the University of Washington who volunteered for WikiLeaks. Among those listed will be my name, a journalist who interviewed Appelbaum for a book about the digital revolution. Appelbaum is a spokesman for Tor, a free internet anonymising software that helps people defend themselves against internet surveillance. He's spent five years teaching activists around the world how to install and use the service to avoid being monitored by repressive governments. Now, Appelbaum finds himself a target of his own government as a result of his friendship with Julian Assange and the fact WikiLeaks used the Tor software. Appelbaum has not been charged with any wrongdoing; nor has the government shown probable cause that he is guilty of any criminal offence. That matters not a jot, because, as the law stands, government officials don't need a search warrant to access our digital data. Searching someone's home requires a warrant that can only be obtained by proving probable cause, but digital searches require no such burden of proof. Most people are not aware of the ease with which governments – free, open and so-called democratic – can access and peruse our private communications.

Note: For key reports on government threats to privacy from major media sources, click here.


Confronting the Malefactors
2011-10-07, New York Times
http://www.nytimes.com/2011/10/07/opinion/krugman-confronting-the-malefactors...

When the Occupy Wall Street protests began three weeks ago, most news organizations were derisive if they deigned to mention the events at all. For example, nine days into the protests, National Public Radio had provided no coverage whatsoever. It is, therefore, a testament to the passion of those involved that the protests not only continued but grew, eventually becoming too big to ignore. Occupy Wall Street is starting to look like an important event that might even eventually be seen as a turning point. The protesters’ indictment of Wall Street as a destructive force, economically and politically, is completely right. Bankers took advantage of deregulation to run wild (and pay themselves princely sums), inflating huge bubbles through reckless lending. The bubbles burst — but bankers were bailed out by taxpayers, with remarkably few strings attached, even as ordinary workers continued to suffer the consequences of the bankers’ sins. Bankers showed their gratitude by turning on the people who had saved them, throwing their support — and the wealth they still possessed thanks to the bailouts — behind politicians who promised to keep their taxes low and dismantle the mild regulations erected in the aftermath of the crisis. Given this history, how can you not applaud the protesters for finally taking a stand?

Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.


Republicans Seek Big Cuts in Environmental Rules
2011-07-28, New York Times
http://www.nytimes.com/2011/07/28/science/earth/28enviro.html

With the nation’s attention diverted by the drama over the debt ceiling, Republicans in the House of Representatives are loading up an appropriations bill with 39 ways — and counting — to significantly curtail environmental regulation. One would prevent the Bureau of Land Management from designating new wilderness areas for preservation. Another would severely restrict the Department of Interior’s ability to police mountaintop-removal mining. And then there is the call to allow new uranium prospecting near Grand Canyon National Park. In fact, one measure — to forbid the Fish and Wildlife Service to list any new plants or animals as endangered — was so extreme that 37 Republicans broke ranks Wednesday and voted to strip it from the bill. Although inserting policy changes into appropriations bills is a common strategy when government is divided as it is now, no one can remember such an aggressive use of the tactic against natural resources. “The new Republican majority seems intent on restoring the robber-baron era where there were no controls on pollution from power plants, oil refineries and factories,” said Representative Henry A. Waxman, a California Democrat, excoriating the proposal on the floor.

Note: For lots more from reliable sources on government corruption, click here.


FBI lab reports on anthrax attacks suggest another miscue
2011-05-19, Miami Herald/McClatchy News
http://www.miamiherald.com/2011/05/19/2225013/fbi-lab-reports-on-anthrax-atta...

Buried in FBI laboratory reports about the anthrax mail attacks that killed five people in 2001 are data suggesting that a chemical may have been added to try to heighten the powder's potency, a move that some experts say exceeded the expertise of the presumed killer. The lab data, contained in more than 9,000 pages of files that emerged a year after the Justice Department closed its inquiry and condemned the late Army microbiologist Bruce Ivins as the perpetrator, shows unusual levels of silicon and tin in anthrax powder from two of the five letters. Those elements are found in compounds that could be used to weaponize the anthrax, enabling the lethal spores to float easily so they could be readily inhaled by the intended victims, scientists say. The existence of the silicon-tin chemical signature offered investigators the possibility of tracing purchases of the more than 100 such chemical products available before the attacks, which might have produced hard evidence against Ivins or led the agency to the real culprit. But the FBI lab reports released in late February give no hint that bureau agents tried to find the buyers of additives such as tin-catalyzed silicone polymers. The apparent failure of the FBI to pursue this avenue of investigation raises the ominous possibility that the killer is still on the loose.

Note: For key articles from reliable sources on government corruption, click here.


Obama creates indefinite detention system for prisoners at Guantanamo Bay
2011-03-08, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2011/03/07/AR20110307048...

President Obama signed an executive order Monday that will create a formal system of indefinite detention for those held at the U.S. military prison at Guantanamo Bay, Cuba, who continue to pose a significant threat to national security. The administration also said it will start new military commission trials for detainees there. The announcements, coming more than two years after Obama vowed in another executive order to close the detention center, all but cements Guantanamo Bay's continuing role in U.S. counterterrorism policy. The executive order recognizes the reality that some Guantanamo Bay detainees will remain in U.S. custody for many years, if not for life. Activists on either end of the debate over closing the prison cast the announcement as a reversal. "It is virtually impossible to imagine how one closes Guantanamo in light of this executive order," said Anthony Romero, executive director of the American Civil Liberties Union. "In a little over two years, the Obama administration has done a complete about-face." Recent legislation now makes it extremely difficult to transfer any detainee out of Guantanamo Bay even if he is believed to be no threat.

Note: President Obama has repeatedly reversed his position on key elements of his election campaign, like Guantanamo, which brought him to power. To understand how members of the power elite of our world can exert tremendous pressure on anyone who becomes president, read revealing major media reports on secret societies composed of the power elite of our world at this link.


Ex-Minn. governor sues over body scans, pat-downs
2011-01-24, Washington Post/Associated Press
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/24/AR20110124059...

Former Minnesota Gov. Jesse Ventura is suing the Department of Homeland Security and the Transportation Security Administration, saying full-body scans and pat-downs at airport checkpoints are violating his rights. Ventura filed his lawsuit [on January 24] in federal court in Minnesota. He says the new security measures violate his right to be free from unreasonable searches and seizures. He's asking a federal court to order officials to stop subjecting him to these searches. Ventura was governor of Minnesota from 1999 through 2002. He now hosts the television program "Conspiracy Theory." The lawsuit says Ventura had a hip replacement in 2008, and his titanium implant sets off metal detectors.

Note: Jesse Ventura is one of the heros of our time. Do a video search on his name to watch episodes of his amazingly revealing "Conspiracy Theory" programs.


Panel challenges Gulf seafood safety all-clear
2010-12-27, MSNBC
http://www.msnbc.msn.com/id/40494122/ns/us_news-environment

A New Orleans law firm is challenging government assurances that Gulf Coast seafood is safe to eat in the wake of the BP oil spill, saying it poses “a significant danger to public health.” Citing what the law firm calls a state-of-the-art laboratory analysis, toxicologists, chemists and marine biologists retained by the firm of environmental attorney Stuart Smith contend that the government seafood testing program, which has focused on ensuring the seafood was free of the cancer-causing components of crude oil, has overlooked other harmful elements. And they say that their own testing — examining fewer samples but more comprehensively — shows high levels of hydrocarbons from the BP spill that are associated with liver damage. “What we have found is that FDA simply overlooked an important aspect of safety in their protocol,” contends William Sawyer, a Florida-based toxicologist on Smith’s team. Five months after crude oil stopped gushing from the broken BP wellhead into the Gulf of Mexico, the federal government has reopened more than 90 percent of fishing waters that were in danger of contamination from the broken Deepwater Horizon rig. But many fishermen have yet to return to sea, and consumer confidence in Gulf seafood remains lukewarm.

Note: For important reports from reliable sources on government corruption, click here.


Britain Opens Public Inquest Into 2005 London Terrorist Attacks
2010-10-12, New York Times
http://www.nytimes.com/2010/10/12/world/europe/12britain.html

After more than five years of delay that have angered and frustrated the victims’ families, an inquest opened on [October 11] into the [attacks] on the London transit system on July 7, 2005, that killed 52 people and the four bombers, and wounded more than 700 others. The inquest ... began with the presiding judge, Lady Heather Hallett, ... pledging in her opening remarks that she would undertake to keep the inquest as open as possible while protecting Britain’s national security. Lady Hallett said she would go as far as she could to meet the demand of the victims’ families to know why the country’s security and intelligence services did not act to prevent the bombings on the basis of what they knew about the attackers beforehand. The families’ demands have echoed those of victims’ relatives after the Sept. 11, 2001, attacks in the United States, but they have been amplified by the lengthy delay in holding the London inquest, which is the first comprehensive public inquiry into what have become known in Britain as the 7/7 attacks. The delay in opening the inquest has been officially explained as necessary to allow the police and other security agencies to complete their own investigations. As with the last inquest in Britain to become a focus of attention on a similar scale, the long-delayed investigation into the 1997 death in a Paris car crash of Diana, Princess of Wales, top officials of Britain’s major police and security agencies, Scotland Yard, MI5 and MI6, are expected to be called as witnesses.

Note: For powerful, reliable information that the 7/7 bombing was manipulated, click here. For analysis of the many unanswered questions surrounding the London bombing on 7/7, click here.


McDonald's, 29 other firms get health care coverage waivers
2010-10-07, USA Today/Bloomberg News
http://www.usatoday.com/money/industries/health/2010-10-07-healthlaw07_ST_N.htm

Nearly a million workers won't get a consumer protection in the U.S. health reform law meant to cap insurance costs because the government exempted their employers. Thirty companies and organizations, including McDonald's and Jack in the Box, won't be required to raise the minimum annual benefit included in low-cost health plans, which are often used to cover part-time or low-wage employees. The Department of Health and Human Services, which provided a list of exemptions, said it granted waivers in late September so workers with such plans wouldn't lose coverage from employers who might choose instead to drop health insurance altogether. Without waivers, companies would have had to provide a minimum of $750,000 in coverage next year, increasing to $1.25 million in 2012, $2 million in 2013 and unlimited in 2014.

Note: For lots more on corporate and government corruption from reliable sources, click here and here.


BP and the Axis of Evil
2010-06-19, BBC Blogs
http://www.bbc.co.uk/blogs/adamcurtis/2010/06/post.html

BP is accused of destroying the wildlife and coastline of America, but if you look back into history you find that BP did something even worse to America. They gave the world Ayatollah Khomeini. Back in 1951 the Anglo-Iranian Oil Company - which would later become BP - and its principal owner the British government, conspired to destroy democracy and install a western-controlled regime in Iran. The resulting anger and the repression that followed was one of the principal causes of the Iranian revolution in 1978/79 - out of which came the Islamist regime of Ayatollah Khomeini. And what's more, BP and the British government were so arrogant and bumblingly inept at handling the crisis that they had to persuade the Americans help them. They did this by pretending there was a Communist threat to Iran. The American government, led by President Eisenhower, believed them and the CIA were instructed to engineer a coup which removed the Iranian prime minister Mohamed Mossadegh. The CIA, led by Allen Dulles, ... sent the CIA's top Middle East agen, Kermit Roosevelt, to run Operation Ajax. The plan, drawn up by the British and the Americans, was to bribe the street gangs of Tehran to create chaos, and then install an army general, General Zahedi, as prime minister.


Contractors Tied to Effort to Track and Kill Militants
2010-03-15, New York Times
http://www.nytimes.com/2010/03/15/world/asia/15contractors.html

Under the cover of a benign government information-gathering program, a Defense Department official set up a network of private contractors in Afghanistan and Pakistan to help track and kill suspected militants. The official, Michael D. Furlong, hired contractors from private security companies that employed former C.I.A. and Special Forces operatives. The contractors, in turn, gathered intelligence on the whereabouts of suspected militants and the location of insurgent camps, and the information was then sent to military units and intelligence officials for possible lethal action in Afghanistan and Pakistan. Some American officials say they became troubled that Mr. Furlong seemed to be running an off-the-books spy operation. It is generally considered illegal for the military to hire contractors to act as covert spies. Officials said Mr. Furlong’s secret network might have been improperly financed by diverting money from a program designed to merely gather information about the region. Moreover, in Pakistan, where Qaeda and Taliban leaders are believed to be hiding, the secret use of private contractors may be seen as an attempt to get around the Pakistani government’s prohibition of American military personnel’s operating in the country.

Note: More details of the secret war in Afghanistan and Pakistan continue to leak out steadily. As this article indicates, secret privatized death squad operations go on in the dark while the Pentagon and the press announce a scaling back of "Special Operations" out of concern for "civilian casualties."


Justice Official Clears Bush Lawyers in Torture Memo Probe
2010-01-29, Newsweek magazine blog
http://blog.newsweek.com/blogs/declassified/archive/2010/01/29/holder-under-f...

An upcoming Justice Department report from its ethics-watchdog unit, the Office of Professional Responsibility (OPR), clears the Bush administration lawyers who authored the “torture” memos of professional-misconduct allegations. NEWSWEEK has learned that a senior Justice official who did the final review of the report softened an earlier OPR finding. Previously, the report concluded that two key authors — Jay Bybee, now a federal appellate court judge, and John Yoo, now a law professor — violated their professional obligations as lawyers when they crafted a crucial 2002 memo approving the use of harsh tactics. But the reviewer, career veteran David Margolis, downgraded that assessment to say they showed “poor judgment,” say the sources. (Under department rules, poor judgment does not constitute professional misconduct.) The shift is significant: the original finding would have triggered a referral to state bar associations for potential disciplinary action—which, in Bybee’s case, could have led to an impeachment inquiry.

Note: The Obama administration continues to uphold the illegal policies introduced by the Bush/Cheney regime. For lots more on the realities of the fraudulent "war on terrorism", click here.


A National Disgrace
2009-11-11, New York Times
http://www.nytimes.com/2009/11/11/opinion/11wed1.html

Two courts, one in Italy and one in the United States, ruled recently on the Bush administration’s practice of extraordinary rendition, which is the kidnapping of people and sending them to other countries for interrogation — and torture. The Italian court got it right. The American court got it miserably wrong. In Italy, a judge ruled that a station chief for the Central Intelligence Agency and 22 other Americans broke the law in the 2003 abduction of Osama Moustafa Hassan Nasr, a Muslim cleric who ended up in Egypt, where he said he was tortured. Two days earlier, a federal appeals court in Manhattan brushed off a lawsuit by Maher Arar, a Syrian-born Canadian citizen who was seized in an American airport by federal agents acting on bad information from Canadian officials. He was held incommunicado and harshly interrogated before being sent to Syria, where he was tortured. He spent almost a year in a grave-size underground cell before the Syrians let him go. It has long been established that Mr. Arar was not guilty of anything. Canada admitted that it had supplied false information to American authorities, and in 2007, it apologized and offered Mr. Arar $10 million in damages. Written by Chief Judge Dennis Jacobs, the 59-page majority opinion held that no civil damages remedy exists for the horrors visited on Mr. Arar. The ruling distorts precedent and the Constitutional separation of powers to deny justice to Mr. Arar and give officials a pass for egregious misconduct. The overt disregard for the central role of judges in policing executive branch excesses has frightening implications for safeguarding civil liberties, as four judges suggested in dissenting opinions.

Note: For many reports from major media sources of growing government threats to civil liberties, click here.


US relinquishes control of the internet
2009-09-30, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/technology/2009/sep/30/icann-agreement-us

After complaints about American dominance of the internet and growing disquiet in some parts of the world, Washington has said it will relinquish some control over the way the network is run and allow foreign governments more of a say in the future of the system. Icann – the official body that ultimately controls the development of the internet thanks to its oversight of web addresses such as .com, .net and .org – said today that it was ending its agreement with the US government. The deal, part of a contract negotiated with the US department of commerce, effectively pushes California-based Icann towards a new status as an international body with greater representation from companies and governments around the globe. Icann had previously been operating under the auspices of the American government, which had control of the net thanks to its initial role in developing the underlying technologies used for connecting computers together. But the fresh focus will give other countries a more prominent role in determining what takes place online, and even the way in which it happens – opening the door for a virtual United Nations, where many officials gather to discuss potential changes to the internet. The new agreement comes into force immediately. It replaces the old version which had been in place since 1998 and was scheduled to expire today.


CIA doctors face human experimentation claims
2009-09-02, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/2009/sep/02/cia-usa

Doctors and psychologists the CIA employed to monitor its "enhanced interrogation" of terror suspects came close to, and may even have committed, unlawful human experimentation, a medical ethics watchdog has alleged. Physicians for Human Rights (PHR), a not-for-profit group that has investigated the role of medical personnel in alleged incidents of torture at Guantánamo, Abu Ghraib, Bagram and other US detention sites, accuses doctors of being far more involved than hitherto understood. PHR says health professionals participated at every stage in the development, implementation and legal justification of what it calls the CIA's secret "torture programme". The most incendiary accusation of PHR's latest report, Aiding Torture, is that doctors actively monitored the CIA's interrogation techniques with a view to determining their effectiveness, using detainees as human subjects without their consent. The report concludes that such data gathering was "a practice that approaches unlawful experimentation". Human experimentation without consent has been prohibited in any setting since 1947 [with] the Nuremberg Code, which resulted from the prosecution of Nazi doctors. In April, a leaked report from the International Committee of the Red Cross found that medical staff employed by the CIA had been present during waterboarding, and had even used what appeared to be a pulse oxymeter, placed on the prisoner's finger to monitor his oxygen saturation during the procedure. PHR is calling for an official investigation into the role of doctors in the CIA's now widely discredited programme. It wants to know exactly how many doctors participated, what they did, what records they kept and the science that they applied.

Note: To watch a video of a Democracy Now! segment on the PHR report, click here. For astounding information on how MDs participated in the CIA's mind control experiments in the past, click here.


Rich NYC Mayor: Drug CEOs Don't Make Much Money
2009-08-28, ABC News/Associated Press
http://abcnews.go.com/US/wireStory?id=8382748

Billionaire Mayor Michael Bloomberg defended multibillion-dollar pharmaceutical companies and their chief executives on Friday, declaring that they "don't make a lot of money" and shouldn't be scapegoats in the health care debate. The mayor — and wealthiest person in New York City with a fortune estimated at $16.5 billion — made the comments on his radio show Friday. "You know, last time I checked, pharmaceutical companies don't make a lot of money, their executives don't make a lot of money," Bloomberg said. Pharmaceutical CEOs are known to make millions, with generous salaries, stock options and other perks. Abbott Laboratories Inc. Chairman and Chief Executive Miles White's compensation was $25.3 million in 2008. The North Chicago, Ill.-based company saw profit rising 35 percent to $4.88 billion. Merck & Co.'s chief executive, Richard T. Clark, received a $17.3 million compensation package for 2008. The company's profit more than doubled to $7.8 billion. The mayor ... often battles criticism that he is out of touch with regular people. Earlier this year he declared "we love the rich people" while arguing against raising taxes on the wealthy. It was clear that Bloomberg or one of his aides realized his gaffe while he was still on the air Friday. The mayor, who has sought to cast himself as a financial and business expert, came back from a break and said he had looked up the pay of some pharmaceutical executives. "Some of them are making a decent amount, more than a decent amount of money," he said.


Speculators busier as crude oil cost spikes
2009-08-28, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/28/BU1B19EQFS.DTL

Speculators now account for half of all traders in the main U.S. oil market, and their growing presence coincided with this decade's historic rise in the price of crude, according to a new Rice University study. The study does not try to prove that speculators caused the price spike, as many politicians and consumer advocates believe. But the authors note that prices rose steadily along with the number of speculative investors, and fell with them as well. Seven years ago, speculators accounted for 20 percent of oil traders on the New York Mercantile Exchange. That number jumped to 55 percent by the time oil prices reached their all-time peak above $145 per barrel last summer. Now oil costs $72, and speculative investors account for half the traders. The government limits the number of oil contracts that each speculator can hold. But under the Commodity Futures Modernization Act [passed in 2000], trades on electronic exchanges or overseas markets don't count toward those limits. The study uses data from the Commodity Futures Trading Commission. Speculators are defined as traders who use oil strictly as a financial investment, those who will never take delivery of a tanker-full of crude. "This confirms what we and others have said for some time," said Tyson Slocum, director of the energy program at the Public Citizen watchdog group. "The good thing from the oil price run-up of 2008 is it has forced Congress to realize there's a problem in these markets, and the answer is re-regulation." The financial industry opposes tightening the regulations.

Note: To read the full study, click here.


Judge: CIA interrogations not relevant to 9/11 accused's sanity
2009-08-10, Miami Herald
http://www.miamiherald.com/news/americas/guantanamo/story/1179756.html

U.S. military defense lawyers for accused 9/11 conspirator Ramzi bin al Shibh cannot learn what interrogation techniques CIA agents used on the Yemeni before he was moved to Guantánamo to be tried as a terrorist, an Army judge has ruled. Bin al Shibh, 37, is one of five men charged in a complex death penalty prosecution by military commission currently under review by the Obama administration. But his lawyers say he suffers a "delusional disorder," and hallucinations in his cell at Guantánamo may leave him neither sane enough to act as his own attorney nor to stand trial. Prison camp doctors treat him with psychotropic drugs. Army Col. Stephen Henley, the military judge on the case, has scheduled a competency hearing for mid-September. Meantime, the judge ruled on Aug. 6 that "evidence of specific techniques employed by various governmental agencies to interrogate the accused is . . . not essential to a fair resolution of the incompetence determination hearing in this case." Prosecutors had invoked a national security privilege in seeking to shield the details from defense lawyers. Many of the techniques used on the men have already been made public. They included waterboarding, sleep deprivation and sexual humiliation methods meant to break a captive's will. But Navy Cmdr. Suzanne Lachelier, the Yemeni's Pentagon appointed defense attorney, said court-approved mental health experts -- as well as the judge -- need to know the specifics to assess her client's mental illness. If he suffers post-traumatic stress disorder as a result of his CIA interrogations, there may be PTSD treatments that could make him competent.

Note: For many reports from reliable sources on the hidden realities of "the war on terror," click here.


Let's Break up the Fed
2009-07-28, Wall Street Journal
http://online.wsj.com/article/SB10001424052970203946904574300263148640896.html

The Obama administration's plan to increase the powers of the Federal Reserve, says one critic, is like giving a teenager "a bigger, faster car right after he crashed the family station wagon." Broadening the Fed's responsibilities won't help. Instead, we should think of how best to dismantle an overextended Fed. The Fed has been incapacitated by its transformation into an omnibus enterprise with responsibilities ranging from boots-on-the-ground regulation to high-level monetary policy. The Federal Reserve Act of 1913, which created the Federal Reserve System, did so to forestall financial panics rather than pursue macroeconomic policies. The gold standard defined monetary policy. The Fed was merely meant to "provide an elastic currency" by serving as lender of last resort in times of crisis. The Act also assigned the Fed routine responsibilities for maintaining and improving the financial system – examining banks, issuing currency notes, and helping clear checks. The adoption of Keynesian and monetarist ideas by central bankers and elected officials subsequently cast the Fed in a proactive macroeconomic role. In 1977, an amendment to the 1913 Act explicitly charged the Fed with promoting "maximum" employment and "stable" prices. The Bank Holding Company Act of 1956 gave the Fed responsibility over holding companies designed to circumvent restrictions placed on individual banks. Congress further tasked the Fed with enforcing consumer-protection and fair-lending rules. While the record of the Fed's monetary policy has been mixed, its supervision of financial institutions has been a predictable and comprehensive failure. The Fed's excessively broad mandate also has thwarted accountability.

Note: The bill to audit the Fed (HR 1207) in the US Congress now has 276 co-signers -- more than 50% of all members. Yet the media is hardly reporting on this. Contact your Congressional representatives now at this link.


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