Omarova, Biden’s nominee, has a published plan to transfer all bank deposits to the Fed and allow short shares to the New York Fed. – News Couple
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Omarova, Biden’s nominee, has a published plan to transfer all bank deposits to the Fed and allow short shares to the New York Fed.


Pam Martens and Ross Martens: October 26, 2021

Solly Omarova

This month, the Vanderbilt Law Review published a 69-page paper by Saul Omarova, President Biden’s nominee to head the Office of the Comptroller of the Currency (OCC), the federal regulator of the nation’s largest banks that operate across state lines. The title of the paper is “The Ledger: How to Democratize Money and Finance the Economy.”

The paper seriously suggests the following:

(1) moving everyone commercial bank deposits from commercial banks to the so-called FedA accounts at the Federal Reserve;

(2) to allow the Federal Reserve, in “extreme and rare circumstances, when the Federal Reserve is unable to control inflation by raising interest rates,” to confiscate deposits from these federal accounts in order to tighten monetary policy;

(3) Allow the most speculative regional Fed on Wall Street in the country, the New York Fed, when there are “rises in market value at rates suggestive of a bubble,” as with technology stocks today, “in short these securities and consequently downward pressure on their prices.”

(iv) Abolish the Federal Deposit Insurance Corporation (FDIC) insuring bank deposits;

(5) Consolidation of all organizational functions of the bank in the OCC – for which Omarova was nominated to head.

Republican Senator Pat Tomy was running a red-figure campaign against Omarova, who was born in the Kazakh SSR (now Kazakhstan) and attended Moscow State University with a personal Lenin academic scholarship.

The real threat Umarova poses to the financial stability of the United States, which Democrats must call out, is that she wants to further concentrate all major aspects of the American banking system in the hands of the Federal Reserve, a regulator that has been captured from among its 12 regional banking tentacles. literallyowned by banks. (See These are the banks that own the New York Fed and its money button.) Omarovia doesn’t offer a single glimpse of a proposal about restructuring the Fed so that it is no longer owned or controlled by banks.

In her paper, Umarova describes the current relationship between the Federal Reserve and banks as running a “franchisor ledger” to help grantee banks. But as the Fed’s secret $29 trillion rescue plan for massive Wall Street banks and their foreign-derivative counterparts in the wake of the 2008 financial meltdown has proven, it’s actually the banks that break the whip and the Fed is bidding amicably. This means that the big banks are the franchisees and have passed on fake bank tests and phony stress tests to the Federal Reserve, for appearances in order to appear.

This point is further illustrated by the fact that during the Fed’s 2007-2010 bailouts, most of the Fed’s emergency lending programs were offered in no-bid contracts to the same banks being bailed out. JPMorgan Chase, the five-man offender, continues his contract with the Fed to act as custodian of more than $2 trillion from the Fed’s Mortgage-Backed Securities (MBS) agency.

As further evidence of who owns who, the Federal Reserve Board of Governors has outsourced its main tasks to the privately owned New York Fed, and its largest private shareholders are mega banks, JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and New York Mellon.

Carmen Segara, a New York Fed auditor, was so angry at what she saw at the New York Fed that she went to the spy store, bought a small tape recorder, and secretly recorded 46 hours of audio. Segarra filed a federal lawsuit, accusing that when she attempted to write a negative Goldman Sachs test, she was first bullied by her colleagues at the New York Fed and then fired for refusing to change her exam results.

As further evidence that the New York Fed does nothing like a public servant, the President of the New York Fed receives a salary greater than that of the President of the United States. According to the Federal Reserve Board’s 2020 annual report, the President of the Federal Reserve Bank of New York, John Williams, earns a salary of $506,300. The President of the United States and the Commander in Chief, who is elected by the people, earns $400,000. The chief executives of the huge Wall Street banks alternate on and off the board of directors of the Federal Reserve Bank of New York.

The New York Fed is so engrossed with the mega-banks on Wall Street that instead of using a false analogy between franchisor and franchisor, Omarova should have thought along the lines of Stockholm Syndrome: the Fed is completely infatuated with its captors. We were struck, in fact, that one of the first things former Fed Chair Janet Yellen did after leaving the Fed was register at the speakers’ desk and seize millions of dollars in speaking fees from Wall Street.

With that as background, this is what Omarova suggests in her research paper:

Deposits in commercial banks will be replaced by FedA accounts:

“In principle, federal accounts could be made available as an alternative to bank deposit accounts, upon request of the person. However, as described below, the most effective option would be to transfer all deposits to the Federal Reserve. Functionally, all federal accounts would be essentially the same. However, for purely administrative purposes, it would be desirable to distinguish between “individuals” and “entities” accounts. For US citizens, individual federal accounts will be opened automatically at birth or naturalization. These accounts will also be automatically added to federal benefits received. Regular: Social Security payments, tax refunds, and all other payments that depend on an individual’s citizenship status.For eligible resident aliens, individual federal accounts will be opened and closed on demand, rather than automatically, but otherwise will work the same.Entity accounts can also be split Federal is administratively divided into separate categories, depending on whether the holder is a governmental unit, non-profit organization, or business entity incorporated or operating in the United States NS “.

The Federal Reserve Bank of New York will publicly list itself in the stock market:

Under this proposal, the Federal Reserve Bank of New York (“FRBNY”) will conduct regular purchases and sales of a wide range of securities and other tradable financial assets with a clear view of adjusting for volatile volatility at what has been defined elsewhere as “significant level prices.” the system.

To this end, the Federal Reserve Bank (FRBNY) will create a separate trading portfolio that will duplicate, as far as possible, the market portfolio. In fact, this portfolio will be an index fund that reflects the relative values ​​of all classes of financial assets that make up the financial market as a whole. Once the fund is established, the Federal Reserve will conduct its current daily tracking of the nation’s financial markets.

“If a particular asset class – such as mortgage-backed securities or technology stocks – rises in market value at rates that suggest a bubble trend, the FRBNY will sell those securities, putting downward pressure on their prices. This tends to The kind of action will tighten the flow of speculative credit to the asset class in question, because (1) the speculative earnings prospects are diminished by a price fall; and (2) the Federal Reserve’s engineering of a downturn will signal the market to determine that the current prices of the asset in question are artificially inflated and thus better suppressed. Conversely, the FRB will buy into certain asset classes that appear to be artificially undervalued in order to avoid unnecessary market turmoil. It will follow the same process of targeting broader market price volatility.”

One can only imagine what hedge funds face on a field day with this idea. They can simply jump on board whatever the New York Fed is doing on the short and drive the stock price to zero. The fact that Omarova specifically refers to tech stocks as a potential sale has led Google and Microsoft to call an emergency session with their lobbyists.

The Fed is already artificially suppressing interest rates by buying up to $120 billion a month in Treasuries and mortgage-backed securities (MBS). Omarova will now add to her portfolio the ability to manipulate stock market prices. The fact that Omarova would commit this idea to paper, let alone publish it in a law journal, shows incredible naivety about how members of Congress, investors, and even ordinary Americans react to the idea of ​​bureaucratic control of stock prices.

The Fed’s ability to seize funds from federal depositors’ accounts:

“The implementation of contractionary monetary policy by debiting the federal accounts, in turn, offers a different set of prior institutional options aimed at minimizing the economic and political ramifications of what is likely to be seen as government ‘taking’ people’s money. This instrument should be reserved only for extreme circumstances. And rarely, when the Fed is unable to control inflation by raising interest rates and using its new asset-side tools, discussed below.However, it is important to have a mechanism for draining excess liquidity from these accounts with minimal disruption. productive activity.

The most important question Democrats must ask now is who screened this Biden nominee.



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