WOAH! Fed power consolidation battle goes public!

OK folks, this seemingly bureaucratic news is anything but: The NY branch of the Federal Reserve has had big bank oversight ripped from its claws by Daniel Tarullo, a federal reserve governor.  The NY federal reserve is often regarded as the most powerful of the federal reserve branches since Wall St falls under its jurisdiction.  That is real power there folks.  It's the power to look the other way with your eyes while corrupt cash is placed in your outstretched hand.  It's the power to have political favors done and it is the power to punish using the blunt weapon known as law anyone who doesn't play ball.  It's even the power to get others to commit crime on your behalf lest their inaction piss off "the Don".

Worse yet, the article asserts that fed governor outright accused the head of the NY fed, Bill Dudley, of being "too cozy with the bankers he supposed to regulate".  Talk about a public smack down.  That is an overt accusation of collusion.  It is hinting that felonies have taken place, real jail-able events.  Talk about a vote of no confidence by the boss! The article also cites as an example of this collusion that no big banks failed the recent stress test, something that is now the laughing stock of those in the know.

And so it begins.  As I said many times before, you will know it is all working its way through the Ponzi collapse phase when the insiders begin infighting for turf.  In one example from Feb 2011 I wrote: "Yeah, these are the kinds of things that happen during the wind down of any corrupt system.  All the dirty money that was available to be made has been made.  Now we are in cutting back mode, at least in speeches to the public.  In any case, some showing of austerity must be made in order to calm the herd and you can bet that some of the criminals out there are not going to get what they thought they were going to get and this fact will set them at each other's throats.   Watch and see."

Well those who are smart enough to watch are now seeing. This is a big, big step!  Al Capone essentially just stole the most lucrative territory from one of his top made men.  So why did this happen??  Well, it's just like I have been saying for years, the whole thing is a big criminal enterprise and so if you understand the organized crime model then you will understand this.  When territories are expanding and the people still have something left to take, being a gangster is damned good business.  But when everyone who has something to take is packing a shotgun and when everyone who has nothing not only has nothing to take but rather they are asking you to support them, then there just isn't so much need for middle management anymore, is there?  This is what the infighting is about.

The NY fed and Bill Dudley thought it was God's gift to the financial world. It was taking bribes and favors from all the big banks IMVHO (I don't have proof but that is what criminals do and the proof is likely coming).  But as the public began to go hungry, the public began to start caring about what the leadership was doing (finally) and now there are a LOT of people talking about auditing the fed.  Clearly it was time to shake things up.  It was time to shut down welfare for bankers (QE) and to show the American people that the board of governors have it all under control and are working to remove the excesses from the system.  With this kind of progress the fed can keep Rand Paul at bay for another year or two!  This move is for no other purpose than to prop up confidence in a dying con game.

There are several important take-aways from this:

• The fed is scared or they would not be doing this.  The timing of this move is not coincidental!
• The fed is doing something to appease its detractors and thus we know, we are 100% sure,  that important people are now really attacking them for being in bed with Wall St.
• You cannot accuse someone of being too cozy with Wall St and then grab control throwing their worthless ass out and then proceed to do nothing.  NO WAY.  The conservative wave even affects the liberal fed.  Check that, not even affects but rather especially affects.  If the governors are not seen as governing going forward, they will be replaced or eventually disbanded.  Thus, this move virtually guarantees that the big banks are now going to come under real and full attack.
• The attack will take two main thrusts
1. Revenue generation in the many tens of billions of dollars through fines and legal action.  Government always goes after those with the ability to pay and the big banks have the ability to pay.  Notice how Tarullo didn't care about the small banks.  Why work hard for your money when there are pots of gold on the balance sheet of the big banks?
2. Weapons of mass distraction.  The fed needs to have a PR program for itself and what better way than to go dig up some of the skeletons that it already knows exist?  What better way then to appear to be a friend of the people?  Folks, the people are so disillusioned that apologies and speeches just aren't doing it anymore.  This power grab is an early installment of "heads will roll".  Bill Dudley is watching his head roll down the road right now.  Oh, and all those favors that the big banks paid him off to receive?  I don't think those are going to transfer so well to Tarullo.  He's going to say "I owe you Wall St boys nothing".  He's going to cut the throats of the big banks and make them bleed so that he gains control over them not by being bought off but rather by doing a solid for the public and doing it in a loud, grandstanding way.

 This is a big deal folks.  The banks will want to defend themselves.  When Tarullo turns the screws on them you can bet that the Tattle Battle is going to escalate.  Which major bank CEO do you think will end up killing himself as a result of Tarullo outing them as a conspiratorial criminal?  I have my favorites for this outcome but I will gladly take whatever they give me. 

• By the way, do you think 911 happened without the prior knowledge of it by the big banks?  Really?  Did shit go down on Al Capone's territory that he didn't know about?  Think again!

This is big big big.  It also shows that, while there is relative surface calm, a virtual shit storm is happening out of sight of the public.   This is a war between mob bosses and soon it will come spilling out into the public view.  You just can't keep this kind of bar brawl orderly and hidden.  Look for some investigative reporting to blow the roof off of this kind of thing in the not distant future.

This is what I meant by "pace of collapse is accelerating"...