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Bernanke Must Testify Under Oath

Written by Gary North on July 30, 2013

In September 2008 the Federal Reserve Bank of New York, a privately owned entity, paid $182 million to buy 80% of the busted insurance firm AIG.

Why would any privately owned company pay par value for the shares of a company that had only hours to live?

That’s what the court wants to know. Why? Because — you’ll love this — the former CEO of the almost busted insurance company says he was cheated. The value of his stock was diluted. How? By all that money. All that money let an outside agency — the New York FED — buy 80% of his worthless shares. He wants payback.

From whom? “The U.S. government.”

But wait! Isn’t the New York FED privately owned? “Yes.” By whom? “None of your business.”

Then why is Bernanke being forced to testify under oath? “Because he was the top man at the Federal Reserve?” But the Federal Reserve is part of the government. What does this have to do with a privately owned bank in New York? “Don’t ask.”

Why did the New York FED pay face value for the shares? Because AIG owed billions of dollars to major New York banks. These banks had been imprudent. They had paid AIG lots of money for insurance on certain obscure financial transactions that AIG did not understand and could not cover, which was why it faced bankruptcy. So, the New York FED counterfeited $182 billion — which it is allowed to do by law — and bought the shares. Then AIG paid off the New York banks.

Dr. Bernanke now gets to testify under oath as to why he authorized this, if he did authorize it. Did he even understand this?

He will be cross-examined. He will be under oath. This is the first time that he has been cross-examined under oath. He will face an expensive team of attorneys this time. This will not be like dealing with Congress.

I don’t recall any FED chairman being compelled by a court to testify under oath and then be cross-examined by hostile lawyers.

I would sure like to see this on cable TV. But I would settle for YouTube.

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6 thoughts on “Bernanke Must Testify Under Oath

  1. The Fed is just the elites private bank shored up by the taxpayers…..bailing out all their buddies who were too stupid to see the ills of their ways!!! But…who cares the taxpayer will pay us!!!! I think things are coming to light year after year after the 2008 BS financial crisis…people are starting to get wise to the big game being played on us!!!

  2. . . . “required to testify under oath” . . . Is that something like an audit?

  3. Was that Million or Billion?
    It could make a difference, maybe.!?

  4. The blog said, "In September 2008 the Federal Reserve Bank of New York, a privately owned entity". This is one of the biggest scams of all history. Make the American people believe that the government money-printing scheme is attributable to a 'private bank'. Well folks, all you have to do is find out WHO owns the printing presses and WHERE they are located. YOU can even tour the money factory yourself at the UNITED STATES DEPARTMENT OF THE TREASURY, in the BUREAU OF ENGRAVING AND PRINTING, in Washington DC (http://moneyfactory.gov) which operates under the authority of the OCC (Office of the controller of the currency, created by Abraham Lincoln). The GOVERNMENT prints the money, and the GOVERNMENT controls the 'fed', it's the private bank of CONGRESS! Please stop the lies. Bernanke was appointed by the POTUS, not a private corporation.

  5. Old School Repub says:

    Erm, the printed green bills are only a small part of the money supply. The Fed credits banks with electronic digits. Yes, the Fed is privately owned and creates and issues the lion's share of what we call "money" in the US.

  6. No need to watch. Bernanke will just do like Holder and Obama, and say "I don't know anything. I just work there."