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Partial Fed Audit reveals $16 Trillion in Secret Bailouts

Discussion in 'BBS Hangout: Debate & Discussion' started by Realjad, Nov 14, 2011.

  1. Realjad

    Realjad Member

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    Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts
    unelected.org
    http://www.silverbearcafe.com/private/10.11/gaoaudit.html
    FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf

    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, 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.

    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
     
  2. ToyCen428

    ToyCen428 Member

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    <iframe width="420" height="315" src="http://www.youtube.com/embed/J6_1Pw1xm9U" frameborder="0" allowfullscreen></iframe>
     
  3. Dairy Ashford

    Dairy Ashford Member

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    The Federal Reserve loans money to banks.
     
  4. Major

    Major Member

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    Ugh. We've been through this multiple times already. And no, the Fed did not loan out $16 trillion. This is exactly what happens when people who have an agenda but who don't understand finance look at a Fed audit that is above their heads (not you, but the blog you posted).

    This same blog, by the way, promotes 9/11 conspiracy theories and other similar nonsense.
     
  5. dharocks

    dharocks Member

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  6. Major

    Major Member

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    From Page 130 of the GAO audit, right before the table:


    Table 8 aggregates total dollar transaction amounts by adding the total dollar amount of all loans but does not adjust these amounts to reflect differences across programs in the term over which loans were outstanding. For example, an overnight PDCF loan of $10 billion that was renewed daily at the same level for 30 business days would result in an aggregate amount borrowed of $300 billion although the institution, in effect, borrowed only $10 billion over 30 days.


    Of the $2.5 trillion figure listed for Citigroup, over $2 trillion of that is PDCF overnight loans. For Morgan Stanley, over $1.9 trillion of the $2 trillion listed is PDCF loans. And on and on. Think about what it means for the numbers in said table. And think about why someone would mislead people to believe the number is bigger than the reality and what their agenda might be.
     
  7. FV Santiago

    FV Santiago Member

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    The point is this: The Federal Reserve controls the money supply and therefore controls the economic health of the country. In these last three years, the Fed has provided the most aggressive pro-growth policy actions in their history, yet Obama's over-regulation, division of Congress and the nation, and pro-union/pro-tax/pro-high cost energy policies have caused a period of economic stagnation. It takes a special effort to not have economic success in this easy money environment. The American public is far too ignorant to understand this economics lesson, instead simply looking at who is in office and how the economy is trending at that point in time. Voters (especially Obama voters) are very stupid when it comes to the economy.

    Of course the irony of it all is that Tim Geithner's NY Fed allowed Lehman to go broke, which then caused the market's collapse in Fall 08 and paved the way for the election of our nation's weakest president ever.
     
    1 person likes this.
  8. Major

    Major Member

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    Who's point? That certainly has nothing to do with anything in this thread, which is about a terrible interpretation of a Fed audit. It states nothing related to how the Fed's actions have or haven't impacted the economy.

    Yeah, it's not like there's an ongoing worldwide financial collapse going on or anything like that. But carry on your merry way of nonsensical and inaccurate talking points.

    Oh the irony.
     
  9. SamFisher

    SamFisher Member

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    What if I were to tell you that 1) there is documented empirical evidence that shows you're wrong, and 2) because of 1, you are an ignoramus maximus....would this sequence of events blow your mind?
     
  10. Classic

    Classic Member

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    Seems in line with some of the resentment found in OWS protestor's signs that have been shown in media reports
     
  11. Buck Turgidson

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