There will be more on wikileaks and the upcoming Bank of America leak in January.

From all of us at Young Americans for Liberty:
Merry Christmas
…and a Happy New Year!

Twas the night before Christmas, and in the YAL house.
Not a creature was stirring, not even a mouse.
A semester was finished, projects complete,
And Dr. Paul once again won his congressional seat.

YAL interns were nestled, all snug in their beds,
While visions of liberty danced through their heads.
With students on break, and a lager on tap,
The staff was ready for a long winter’s nap.

When out on the lawn, there arose such a clatter,
We sprang from our beds to see what was the matter.
Away to the window I flew like a flash,
Tore open the shutters and was blinded by cash.

The moon shined bright on the light-falling snow,
It gave luster to objects located below.
What appeared before me was quite the surprise,
It was ol’ Ben Bernanke, with malice in his eyes.

His sleigh made of dollars, his suit paper bills,
The Fed Chairman looked at me, and it gave me the chills.
“You think you’re so clever with your liberty,” he sneered.
“But I’ll inflate and inflate, even more than you’ve feared!”

“Now Geithner! now, Congress! now, Senate and House!
We’ll make the dollar too weak for even a mouse!”
His fury was frightening, his power unmatched.
But I knew Mr. Bernanke’s plan had a catch.

“Excuse me, sir Chairman,” I quietly said.
“But I have some info which may turn you red.”
“Oh yes, Mr. Frazee?” he answered with glee.
“What could you possibly say that might bother me?”

“YAL members are young, and they are eager too.
“They know what they believe and certainly don’t like you.
“With strong donor support and the winds at their backs,
“I can assure you this, they’re planning to attack.”

“This Fall I saw them training, they’re incredibly smart.
“They’ve turned liberty activism into a science and an art.
“Many volunteered for campaigns to express their strong voices.
“And came Election Day, the results reflected their choices.”

“The TEA Party is for real, don’t you know what this means?
“Say goodbye and good riddance to your printing machines.
“Ron Paul has a new job - and, oh, I’m sure you will care,
“He’s the new Domestic Monetary Policy chair.”

Bernanke’s jaw quivered, and fear filled his eyes.
He knew I was serious, and that we had uncovered his lies.
And just then he noticed the snow was starting to stick,
His paper sleigh was melting, this was the end of his shtick.

“Jeff Frazee!” he yelled, “you have made an enemy of me!”
“Don’t you dare think this is the last of the Fed that you’ll see!”
I smiled and shrugged as I checked the date.
“Congress starts on January 3rd, so we’ll see what’s your fate.”

In the meantime, vacation is sweet, and I believe it’s well-earned.
YAL’s network is growing and there’s so much that we’ve learned.
The R3volution continues as Ron Paul’s fortunes now take flight.
So Merry Christmas to all, and to all a good night!

Here is my response:
CUTE..
But donate.. when you really get it I will,
till then I am sitting perfectly still

Why is that, you ask
is it we have we fallen short of the task?

Absolutely, is my quick little reply
for example the ” Tea Party” is really a lie.

Murdoch bought the “Tea Baggers” out
Congress will not change to that there is not doubt

Bankers run our lives not politicians
Mafia tactics and quant math magicians

Get off the gold standard and prosecute for treason
or sooner then later we will have no reason

Liberty and freedom will be history of the past
incarceration and fear will accelerate fast…

So get ALL the facts and network the solutions
only one way will end this toxic pollution.

Happy Holidays to all and to all a GOOD FIGHT!

Respectfully
Nina Ground

I really don’t need to say anything else. If you still think the stock market is a good place for your pension, then I guess you really can not fix stupid.

Do you even know what that means, “to integrate” the following equation ?
Do you recognize this equation ?

If the answer to ANY of these questions are no then you have no business trading in wall street. If you are responsible for a pension account, pull it out now and put it into something a little more sane. Legally of course this is not investment advise, but merely a “No duh” statement.

Get to know what and who Quants are on Wall Street. They are not the bad guys. However, they work for the big boys. Because of this, the big banks have so much more of an advantage then you, the little guy/gal, will ever have.

Presenting your movie of the month:
Quants: The Alchemists of Wall Street

This is a rap battle that everyone should watch. Credit: econstories.tv

F.A Hayek schools Kenyes in this video. Please keep in mind that modern Federal Reserve policy, much less the justification for the fed itself, is based on Keynes’ theory of economic. Go figure that the economy is in the trash yet again.

Without futher ado, here it is:

Sound Money with Andrew McElroy & Nina Ground

Sound Money with Andrew McElroy & Nina Ground.

In this episode we introduce who we are.
We also set the expectations for this show.

Specifically, this will not be a money management or stock tip show.
Rather this is a “definitions, who is, and what rules” style show.

Music Credits: I dunno - Grapes on ccmixter.org

According to this report [pdf link], titled:
Federal Reserve Bank
of Atlanta
Financial Statements as of and for the Years
Ended December 31, 2008 and 2007, and
Independent Auditors’ Report

It states, amongst other things including material weaknesses and deficiencies at the fed, that the Federal Reserve uses the FAM account system– as opposed to GAAP.

From this report:

Accounting principles for entities with the unique powers and responsibilities of a nation’s central bank have not been formulated by accounting standard-setting bodies. The Board of Governors has developed specialized accounting principles and practices that it considers to be appropriate for the nature and function of a central bank. These accounting principles and practices are documented in the Financial Accounting Manual for Federal Reserve Banks (Financial Accounting Manual or FAM), which is issued by the Board of Governors. All of the Reserve Banks are required to adopt and apply accounting policies and practices that are consistent with the FAM, and the financial statements have been prepared in accordance with the FAM.

It goes on to say:

Differences exist between the accounting principles and practices in the FAM and generally accepted accounting principles in the United States (GAAP), primarily due to the unique nature of the Bank’s powers and responsibilities as part of the nation’s central bank. The primary difference is the presentation of all SOMA securities holdings at amortized cost rather than using the fair value presentation required by GAAP.
U.S. government, Federal agency, and GSE securities, and investments denominated in foreign currencies comprising the SOMA are recorded at cost, on a settlement-date basis, and are adjusted for amortization of premiums or accretion of discounts on a straight-line basis. Amortized cost more appropriately reflects the Bank´s securities holdings given the System’s unique responsibility to conduct monetary policy.

One other statement that is of interest is that on page three we find this statement:

Because of the inherent limitations of internal control over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

I wanted to bring this quote into the discussion before delving fully into FAM because without this statement, it is easy to want to believe that the reports coming out of the Federal Reserve have some ounce of truth to them.

If this statement is indeed true, and I don’t believe Deloitte & Touche, LLP were dishonest in the least, than shouldn’t an audit of the New York and Washington D.C fed, along with the board of governors be MANDATORY on a 24 month basis.

Let’s return back to the first couple of quotations. The Federal Reserve does not use GAAP according to this report from the Atlanta Fed. They use FAM. How is it that they get away with this? Every business in the US is required to use one account standard, and yet the Fed has their own?

So what’s the big difference?

The difference is that GAAP is based on valuing assets by market value, where as the Federal Reserve gets the amortize their assets. If you though Enron’s mark to market was bad, that isn’t even the 1/2 of what the Fed can legally do!

So, you might be wondering, where can I see the FAM standard?

Look no further than here!

http://www.federalreserve.gov/monetarypolicy/files/BSTfinaccountingmanual2009.pdf

Be sure to save this to your computer.
You can right click and hit save.
I understand this article has been a bit long and highly technical, but please try to understand that this is how the fed gets away with what it gets away with.

• What is a financial audit?
• What is GAAP?
• What is IFRS?
• What accounting standard does the Federal Reserve use? (FAM)
• What was an independent auditor’s assessment of the IRS in 2007?
• What was an independent auditor’s assessment of the Treasury Dept in 2007?
• Corporate language you need to know?
• What is Coso?
• What was an independent auditors disclaimer of their audit of the St. Louis Fed in 2007?
• Much more!

Let’s start with what a financial audit is.

From Wikipedia,

“A financial audit, or more accurately, an audit of financial statements, is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.”

I want to make it very clear that a financial audit will not reveal whether or not a company is part of the government or private– that’s not the focus or point of an audit.

While this may seem obvious to most people, there are those in the Ron Paul camp that believe that “auditing the fed” will reveal that they are private– it will not!

Besides, we already have the list [warning: doc file from .gov website] of who is part of the government. As we talked about on June 1,2009 on Democracy Deception, the Federal Reserve System is private. The only part that is federal is the Board of Governers– that’s it!

The list that I am referring to is one that is maintained by NIST. It is the official list for everyone who is part of the government. In order to obtain a .gov website, you must be on this list.

We will conclude this post in a part two. Stayed tuned!

Thank God at least local news stations are willing to cover real 9/11 news.
Here is the scientific paper that engineer,Richard Gage, was talking about.