To read the GAO report, click here.
l went to the Senator’s web site, I looked at the GAO report, and to the Standupamericaus web site as well. All three seem to have accurate information and it should make every American call their elected representative and have them hold the Fed accountable for this horrible situation.
November 2, 2011
$16 TRILLION – Fed Bails Out The World, 0% Interest and NO PAYBACK!
November 2, 2011
Editor’s Note – The fact that the Federal Reserve is neither “Federal” nor a “Reserve,” and also not part of the official Federal Government is now clear to most of the world, and certainly to the concerned citizenry of the USA, finally. What is not known, but bandied about on the internet for quite some time is: “Where did the money go?”
What seemed like an absolutely outrageous sum, one that even the most ardent conspiracy theorist would be hard pressed to swallow, now appears to be vetted thoroughly, especially since it appears on Senator Bernie Sanders’ web site, as posted below. Remember, Sanders is an avowed Socialist! The thought now must occur to the concerned, not just SUA, and as we all should be, is the reason that the Congress is not dealing with this question.
Beyond what is printed/posted by Sanders, look below at what the GAO report means. The next question, one we have repeatedly posted, is a true understanding of what these numbers mean, and why these astronomical sums are not part of our daily media feed and ‘well of the House’ discussion.
The Fed Audit
From the Sanders web site:
What a billion in $100 bills looks like.
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”
Among the investigation’s key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. “No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president,” Sanders said.
The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.
For example, the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed’s emergency lending programs.
In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.
To Sanders, the conclusion is simple. “No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed’s board of directors or be employed by the Fed,” he said.
What a trillion in $100 bills looks like. (Notice the same scale man lower left)
The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.
A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. “The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street.”
To read the GAO report, click here.
What was revealed in the audit was startling:
$16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland . From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs. To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.
The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.
“This is a clear case of socialism for the rich and rugged, you-are-on-your-own individualism for everyone else.” Bernie Sanders(I-VT)
When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self-identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.
Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super corporations like Halloween candy.
If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses can be. Regardless of whether this money is fiat money (money printed with nothing of value to back it), if it is a currency forced on society and the world, which it is the acts of the Federal Reserve are, in essence, the transfer of greater wealth to the rich insider banks and corporations, while the rest of the world grows poorer, and as the value of this funny money grows less and less in purchasing power. These insider banks, etc., then, exchange this funny money for gold and silver, the real wealth of the world, which, then, reinflates the world with more and more devaluing federal reserve notes. This, then, creates hyper-inflation, increasing the cost of all resources and commodities, while gold and silver climb to never-seen-before levels of value.
This is how the Federal Reserve insiders steal the wealth of the world and why the rich get richer while the poor get poorer. It’s the world’s largest Ponzi scheme! The Federal Reserve is nothing but a front for a small group of families who run a white collar criminal Ponzi scheme.
The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows:
· Citigroup: $2.5 trillion($2,500,000,000,000)
· Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
· Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
· Bank of America : $1.344 trillion ($1,344,000,000,000)
· Barclays PLC ( United Kingdom ): $868 billion* ($868,000,000,000)
· Bear Sterns: $853 billion ($853,000,000,000)
· Goldman Sachs: $814 billion ($814,000,000,000)
· Royal Bank of Scotland ( UK ): $541 billion ($541,000,000,000)
· JP Morgan Chase: $391 billion ($391,000,000,000)
· Deutsche Bank ( Germany ): $354 billion ($354,000,000,000)
· UBS ( Switzerland ): $287 billion ($287,000,000,000)
· Credit Suisse ( Switzerland ): $262 billion ($262,000,000,000)
· Lehman Brothers: $183 billion ($183,000,000,000)
· Bank of Scotland ( United Kingdom ): $181 billion ($181,000,000,000)
· BNP Paribas (France): $175 billion ($175,000,000,000)