FRAUD: Has The Fed Become The Next AIG?

The fraud of selling default insurance on your own debt

The Federal Reserve’s latest fraud scheme: betting against the U.S Treasury to drive yields down.

The fraud of selling default insurance on your own debt


Via The Daily Bail:

Video – Fed is selling put options on Treasuries to drive down yields

Video was made by Eric deCarbonnel, great grandson of Frank Vanderlip, one of the original founders of the Federal Reserve back in 1913.

Links to material covered in video:

Search results for “sell put options on longer-term Treasury securities” (New York Fed’ s website)

FOMC Transcripts and other historical materials
FOMC: Transcripts and Other Historical Materials, 2003
Transcript (826 KB PDF)  (FOMC Meeting on June 24-25, 2003)
Presentation materials (8.97 MB PDF) (material covered during meeting)

Ultimate Savings Account (Citibank website)

Citibank’s “Sweet Deal” From Government (CBS News, November 24, 2008)

Credit Default Swaps: The Next Crisis? (Time, March 17, 2008)

Bond insurance (Wikipedia, the free encyclopedia)

Google results for “demand guarantee”

Credit Enhancement (Panasia website)

Lenders mortgage insurance (Wikipedia, the free encyclopedia)

Eight Ways To Bet Against Ben Bernanke (Forbes, November 1 2010)

Google results for portfolio insurance “put options’

Inexpensive Protection Against Rising Rates (Advisor Perspectives, June 22, 2010)

Daily Treasury Yield Curve Rates (US Department of the Treasury’ s website)

Time To Leave Bonds (Advisor One, December 28, 2010)

Nassim Taleb Shorting Treasuries (Fund Manager News, February 7, 2011)

Google Archive News results for ceiling Treasury yields -”debt ceiling”

Bernanke Caps Treasury Yields to Cut Borrowing Rates (Bloomberg, March 19, 2009)

About the Fed > What We Do  (New York Fed’ s website)

Commodity Regulators Ok Sales Of Futures Options (Anchorage Daily News, September 25, 1982)

Categories: ECONOMY

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