Update: Fed Up USA: Angry Taxpayers Protest in Washington D.C. July 31st

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LauraB

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About 50 people from across the country participated in a protest of Federal Reserve and government fiscal policies today outside the Cannon Building (Office Building for the House of Representatives) in Washington D.C. between 8 a.m. and 11 a.m.

Protestors, who came from many states including Florida, Texas, Arizona, and Maryland, lined the street along Independence Ave holding signs with slogans such as: “THE PROFITS ARE PRIVATE, WHY ARE THE LOSSES GOING PUBLIC”; “BANKS: TAKE YOUR LOSSES, NOT MY TAXES”; “WALL STREET MADE THEIR OWN BETS; WALL STREET CAN PAY THEIR OWN DEBTS “; “SOCIALISM FOR WALL STREET & CAPITALISM FOR MAIN STREET?”; and “THE FED HAS INFLATION UNDER CONTROL (EXCLUDING LITTLE THINGS LIKE FOOD & ENERGY). One sign showed a U.S. dollar followed by the phrase “THE U.S. PESO. COMPLIMENTS OF BEN BERNANKE.”

Additionally, the protestors had a toilet on hand in order to help the Federal Reserve collect collateral from the banks. As explained in their press release: “The Federal Reserve’s acceptance of illiquid mortgages, car loans, boat loans, student loans, credit card receivables and foreign debt as collateral is unprecedented, even during the Great Depression. The Fed has already accepted so much questionable debt as collateral that it only ha[d] $25 billion of treasury bills left to exchange, representing 3% of its balance sheet at the time it bailed out BSC creditors. Karl Denninger, founder of the Market Ticker Blog (market-ticker.denninger.net), explained the problem, “The Fed is in no position to orchestrate another bailout of a financial institution without calling into question the credit rating of the United States, the dollar’s status as reserve currency and the viability of the US bond market. But the Fed will do just that unless taxpayers demand that they stop. That is the reason it is so important to protest.”

“Meanwhile,” added Stephanie Jasky, a member of Fed Up USA, “the Fed policy re-liquefies banks to continue to lend to speculators without fear of risk as the Fed, in essence, has their back. That excess liquidity has found a profitable home in commodities, perpetuating the risky behavior that caused the problem in the first place. Furthermore, our elected officials appear to be encouraging fraud and financial irresponsibility by allowing banks to hide their bad assets. Instead, we are here to demand from congress and the senate that the speculators accept the consequences of their risky bets, not the taxpayers.”

Protestors also handed out flyers and DVDs to passers by to inform them that the Federal Reserve has devalued our dollars, resulting in higher prices in commodities such as food and gas, and that the housing bailout just passed by Congress and signed by President Bush could likely end up costing taxpayers between $2 trillion and $5 trillion.

Some of the protestors continued their demonstration at 1 p.m. outside the building where Treasury Secretary Henry Paulson spoke on the economy. The protest was held by Fed Up USA, a group of Americans from across the country who met on an internet forum. The group also protested the bailout of Bear Stearns in NYC in April. For more information, you can visit their website at FedUpUSA.org.

Here are some pictures of this morning’s event: