US Federal Reserve Insider Confessional: I'm sorry, America…QE Enriched Wall Street

Mr. Andrew Huszar formerly an insider or manager of Federal Reserve's $1.25 trillion agency mortgage-backed security purchase program writes a confessional at the Wall Street Journal

Here is the opening: (bold mine)

I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

The kernel: (bold mine)

And the impact? Even by the Fed's sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn't really working. 

Unless you're Wall Street. Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009. The biggest ones have only become more of a cartel: 0.2% of them now control more than 70% of the U.S. bank assets. 

As for the rest of America, good luck. Because QE was relentlessly pumping money into the financial markets during the past five years, it killed the urgency for Washington to confront a real crisis: that of a structurally unsound U.S. economy. Yes, those financial markets have rallied spectacularly, breathing much-needed life back into 401(k)s, but for how long? Experts like Larry Fink at the BlackRock investment firm are suggesting that conditions are again "bubble-like." Meanwhile, the country remains overly dependent on Wall Street to drive economic growth.

Read the rest here

The FED's QE has undermined not just the average Americans, but by blowing asset bubbles everywhere, the average citizens of the world.

Julian Assange on Bradley Manning’s Court Martial Verdict; Obama’s Promise to Protect Whistleblower Disappears

The statement of Wikileaks founder Julian Assange on Bradley Manning’s conviction. 

From Wikileaks.org:

Today Bradley Manning, a whistleblower, was convicted by a military court at Fort Meade of 19 offences for supplying the press with information, including five counts of ’espionage’. He now faces a maximum sentence of 136 years.

The ’aiding the enemy’ charge has fallen away. It was only included, it seems, to make calling journalism ’espionage’ seem reasonable. It is not.

Bradley Manning’s alleged disclosures have exposed war crimes, sparked revolutions, and induced democratic reform. He is the quintessential whistleblower.

This is the first ever espionage conviction against a whistleblower. It is a dangerous precedent and an example of national security extremism. It is a short sighted judgment that can not be tolerated and must be reversed. It can never be that conveying true information to the public is ’espionage’.

President Obama has initiated more espionage proceedings against whistleblowers and publishers than all previous presidents combined.

In 2008 presidential candidate Barack Obama ran on a platform that praised whistleblowing as an act of courage and patriotism. That platform has been comprehensively betrayed. His campaign document described whistleblowers as watchdogs when government abuses its authority. It was removed from the internet last week.

Throughout the proceedings there has been a conspicuous absence: the absence of any victim. The prosecution did not present evidence that - or even claim that - a single person came to harm as a result of Bradley Manning’s disclosures. The government never claimed Mr. Manning was working for a foreign power.

The only ’victim’ was the US government’s wounded pride, but the abuse of this fine young man was never the way to restore it. Rather, the abuse of Bradley Manning has left the world with a sense of disgust at how low the Obama administration has fallen. It is not a sign of strength, but of weakness.

The judge has allowed the prosecution to substantially alter the charges after both the defense and the prosecution had rested their cases, permitted the prosecution 141 witnesses and extensive secret testimony. The government kept Bradley Manning in a cage, stripped him naked and isolated him in order to crack him, an act formally condemned by the United Nations Special Rapporteur for torture. This was never a fair trial.

The Obama administration has been chipping away democratic freedoms in the United States. With today’s verdict, Obama has hacked off much more. The administration is intent on deterring and silencing whistleblowers, intent on weakening freedom of the press.

The US first amendment states that "Congress shall make no law... abridging the freedom of speech, or of the press". What part of ’no’ does Barack Obama fail to comprehend?

Oh by the way, US President Obama once promised to “protect whistleblowers” in one of his serial policy promises during the post 2008 elections

Unfortunately such provision, previously published at the the Change.gov website, “which was set up by the Obama transition team after the election in 2008 has suddenly been scrubbed of all of its original content” according to the techdirt.com. (hat tip Gary North)

When promises will not be fulfilled, just erase the records and hope that the public's truncated memory will lead to its oblivion.