Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

[Phallacy]

http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillion-in-secret-bailouts

The first ever GAO(Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the left), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning:  http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

What was revealed in the audit was startling: $16,000,000,000,000.00 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’re-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 supercorporations 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 will eventually plunder the world economy.

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)
 and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: http://www.gao.gov/products/GAO-11-696
 FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf
 Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

Well, I'm speechless, but not the least bit surprised. To put it shortly, the US national debt is about 14 trillion USD (as of this article), yet from the months of December 2007 to June 2010, the US government readily and secretly handed out a total of 16 trillion dollars to big banks and corporations around the world. A zero-interest "loan" which was never paid off and probably never will be.

Goddamn it so much. The rich get richer and the poor get poorer. Politicians and corporate fat cats are the most inhuman creatures on God's green Earth. That's how shit like this happen. This is the true face of evil. The US government and the corporate fat cats. The most powerful syndicate in the world. Not even the lowest pedophiles and serial killers can come anywhere close to matching that kind of sheer evil.

And there's not a goddamned thing we can do about it. We have allowed these monsters to grow too strong. The monsters will die... when we all die.

[bodie]

Governments should act responsibly.  They expect us to.

However,  they swindle, lie, cheat, steal and do things they
shouldn't.  They do it everywhere,  it is a global sickness.

They are the original gangsters

[Frolic_Fun]

Solution: kill all humans to end the things you dislike so much.

[bodie]

Yes but make them dig their own graves first

[midlifeaspie]

I doubt anyone can hide 16 trillion dollars.  This story sounds dubious.

[skyblue1]

The fed owes no explanation to anyone.  So they think anyway. They are like the Army Corps of Engineers, responsible to no one.

Just another example of the american taxpayer getting screwed.

I was wondering why my ass has been hurting.

Thanks for the link.

[The_Chosen_One]

So they were borrowing money from other countries, and then giving money to bail out other countries as well? And more than their GDP? My god, that is so fucked.

Maybe the new reserve anthem should be 'here we go 'round the mulberry bush'.

[Osensitive1]

I doubt anyone can hide 16 trillion dollars.  This story sounds dubious.

It was over the course of three years. The first link in the quote is the senator's site who created the amendment to conduct the audit. That page has a couple of interesting examples of Fed board members involved in decision making to bail out corporations which they hold stock.

Didn't know the federal reserve could give money to foreign corporations and banks without government approval. Thanks for the article, Duke.

["couldbecousin"]

 I will be happy to overlook this fiscal irresponsibility in exchange for my very own bailout. 

[ProfessorFarnsworth]

I doubt anyone can hide 16 trillion dollars.  This story sounds dubious.

You'd be surprised how easy it is to cover up things if done right. A little bit here and there over a long period of time involving people and locations hard to connect to each other and gather information on by FOIAs or public record. It would take mountains of paperwork from various sources to sift through to discover something, and most people don't have that level of tenacity, interest or clearance to do so. It probably becomes so much of a clusterfuck, not even the president knows the true extent of it, which is beneficial for plausible deniabilty.

Also, this would explain why the economy hasn't collapsed into a second global depression yet. I've always suspected something is artificially inflating this sinking raft.

[Osensitive1]

It's not really a cover up.

[midlifeaspie]

If this was true the Democratic party would have been using it against the Republican party in the 2008 election, and the Republican party would certainly be using it against Obama in this election.

[Osensitive1]

It's possible they might. There's only one board member whose term is previous to 2008, so the others were appointed by Obama.

[skyblue1]

The fed is responsible to anyone.

It is the reason why their chairman could sit before  a house commitee and tell them it was none of their business when asked questions about why the fed did the things they did.

It is in their charter that they can operate this way. By the way, a charter that must be approved by congress in oreder for them to stay in exiestence.

Has been this way since around 1908.

One of the few good ideas pushed by Ron Paul is to do away with the fed.

[Dexter Morgan]

I doubt anyone can hide 16 trillion dollars.  This story sounds dubious.

Don't ruin the conspiracy for them!