Is this a threat or an admission? (Fed Reserve Gen Counsel Scott Alvarez)

Fed Alvarez says audits could lead to higher rates

http://www.bloomberg.com/apps/news?pid=20601087&sid=adDANopNzewM

No kidding!

What remains to be seen is whether Mr. Alvarez is admitting to unorthodox shenanigans that, if uncovered, would immediately dent the trust that should be implicit in the fiduciary duty of the Fed hence sending interest rates through the roof or whether he is threatening to take down the economy if the Fed’s immunity should be breached and their criminal behavior exposed thus sending interest rates through the roof.

As a practical example of what this is all about, check out Karl Denningers’s latest regarding Fannie Mae:

http://market-ticker.org/archives/1468-Post-HR1207-Hearing-Out-The-Fed!.html

For my part, I can’t say. What I do know is that the Fed has already blackmailed Congress at least once under Paulson when he threatened martial law if the rescue package wasn’t approved and if the Fed weren’t given power to act as they saw fit with it.

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