FEd Reserve "secret" Bail outs =trillions

[revelarts]

Another reason I don't think the D&R budget fight is serious at all.




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.
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.

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..

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

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/G...-Investigation
Source: http://www.gao.gov/products/GAO-11-696
FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf
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

http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144




(http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144)

[revelarts]

Does anyone see here that there's a hidden budget? A secret budget not working in the public interest but in the interest of the big banks, corporations and Gov't cronies?

[Dilloduck]

It's like the elephant in the room. We are being played for fools and living in a little fantasy land. No one wants to admit to how powerless we are.

[fj1200]

Another reason I don't think the D&R budget fight is serious at all.


$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.

That's not accurate.


Several of the programs saw greater use by large global institutions that were significant participants in the funding markets targeted by the Federal Reserve Board. Tables 8 and 9 rank the largest borrowing institutions according to aggregate borrowing (irrespective of differences in term to maturity) and total borrowing after adjusting for differences in loan terms.

[revelarts]

FJ your missing a secret 16 trillion dollar point,
but I'm not sure that your quote says that. My accounting-ese isn't that good. but I don't see that saying that anything has been repaid one way or another.

[fj1200]

FJ your missing a secret 16 trillion dollar point,
but I'm not sure that your quote says that. My accounting-ese isn't that good. but I don't see that saying that anything has been repaid one way or another.

There is no 16 trillion dollar point because that is what the Fed does, it lends for liquidity purposes as the lender of last resort. My pull from the audit references total borrowing, admittedly probably not the best but I didn't find a better one in my search, not what may be outstanding at any point in time. If Citigroup had borrowed 100 billion 25 different times that would be completely different than 2.5TT still outstanding. I'll take another look but I don't plan on taking the word of unelected.org with their obvious bias against all things Fed. Not even Bernie made the claim, that I saw at least, that Citi has a 2.5TT Fed loan on their balance sheet.

My opinion of the whole mess is that the banks were not to blame directly but rather caught up in a mix of Fed inflation, which is what you should be up in arms about, and a poor decision to institute mark-to-market which was a slow two-year death for the markets. I think the Fed's response to the 2008 meltdown was mostly correct, stabilize and inject liquidity when the S' is hitting the fan.

From what I can tell, total Citigroup liabilities are less than 2TT dollars and the Fed's balance sheet is only in the 2+TT dollar range so I'm not sure where that money would have gone if it hasn't been repaid yet.

[Dilloduck]

The Fed doesn't have anything to lend.
Oh wait----they just said I could have 4 quadrillion credits---nm.

[fj1200]

^Not quite sure how the Fed works are ya?

[Dilloduck]

The Fed doesn't work except for those that own it.

[revelarts]

^Not quite sure how the Fed works are ya?
Please tell us where the FED gets it money FJ.

[fj1200]

Please tell us where the FED gets it money FJ.

Do you want the technical answer?


The Federal Reserve, like all central banks, has several tools at its disposal to pump more money into the banking system (or drain it out), which helps to grease the economy and the financial markets — or slow them down.

Contrary to popular notion, printing physical reserve notes (currency) isn’t the most important mechanism. (Thanks, anyway, to those readers who kindly remind us that the Fed's secret manipulation of illegitimate, 'fiat' currency is root cause of the world's economic and financial ills.) Most of the ‘money’ that flows through the global financial markets is actually electronic data moving from one account to another.
...
One of the broadest tools the Fed can apply to the supply of money in the system is raising or lowering the amount of reserves that banks are required to hold in their accounts.
...
That’s where the other two main weapons in the Fed’s arsenal come in: 1. raising or lowering short-term interest rates and, 2. what are called “open market” transactions.
...
More at:
http://www.msnbc.msn.com/id/20218020/ns/business-answer_desk/t/how-does-fed-inject-money-system/
(http://www.msnbc.msn.com/id/20218020/ns/business-answer_desk/t/how-does-fed-inject-money-system/)
Or would you rather I just say, "out of thin air"?

[revelarts]

Do you want the technical answer? More at: http://www.msnbc.msn.com/id/20218020/ns/business-answer_desk/t/how-does-fed-inject-money-system/ (http://www.msnbc.msn.com/id/20218020/ns/business-answer_desk/t/how-does-fed-inject-money-system/) Or would you rather I just say, "out of thin air"? I think you just did. I'm not sure what "Most of the ‘money’ that flows through the global financial markets is actually electronic data moving from one account to another." if not making up from thin air. the FED makes up the digits ( billion trillion ) and electronically sends that to the Citibank, Sterns, BAO, the U.S. Treasury etc etc and says you've got more money. and you owe it back to us. if your the U.S. gov't you owe it with interest toot sweet baby. If your to big to fail bank, a crony bank, well ZEROOO Interest fer u, fergetaboutit. how much ya need eh? shure shure. I know you think they are doing it for the worlds good and if they weren't there we'd all die or close. but what do you think about ron pals idea of a the U.S. Gov't Stopping payment on the interst on the Fed reserves national debt for 2-3 years. to get a break to balance the rest of the budget without raising the debt ceiling.

[fj1200]

but what do you think about ron pals idea of a the U.S. Gov't Stopping payment on the interst on the Fed reserves national debt for 2-3 years.

Pointless idea. Do you expect to fund their expenses out of the general fund then? Besides they generally pay a dividend back to Treasury annually(?).