Federal Reserve Reveals $16 Trillion in Secret Bailouts

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

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

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 right), 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

 

Eurozone crisis worse Dodgy bailouts

The Eurozone Crisis Is Getting Worse. And The Dodgy Bailout Of Spanish Banks Isn’t Helping:

The Eurozone Crisis Is Getting Worse. And The Dodgy Bailout Of Spanish Banks Isn’t Helping

The Eurozone Crisis Is Getting Worse. And The Dodgy Bailout Of Spanish Banks Isn’t Helping

Mario Lopez writes from Madrid: ‘The 100 billion euro loan is a victory for the euro,’ declared Spanish Prime Minister Mariano Rajoy,  before setting off for Gdansk to cheer on the national team against Italy. The game ended in a disappointing 1 -1 draw for the European champions. They could have easily lost. Rajoy’s victory cry is in the same groove: far from being a victory it is turning into a defeat. The markets had an hour or two of euphoria until the reality check kicked in: we’ve been had people, it’s a con! Some middle class families in Madrid are going to Red Cross centres to collect food hand-outs. That is the harsh reality of Spain today. Miners continue to block motorways and every interest group hopes that by demonstrating it can reverse the cuts in government expenditure. Common sense dictates otherwise. Spain has increased its national debt by about 10 per cent by adding another 100 billion euros. The government is recapitalising second tier banks and is determined to let none fail. So the government is taking over banks which in turn own government debt. Most states are trying to put distance between themselves and the banks. They are trying to offload as much of their sovereign debt as possible. Spain is going the other way. What happens when the rescued banks find that their assets have declined due to the economic recession? Madrid will automatically suffer further losses. The banking sector in Spain is three times larger than the national economy. There is no way it can cover the losses of its banks by itself. The country has reached a point when it can no longer go to the international markets for money. However, it will need to borrow billions to service its debts over the next few years. The worst case scenario is that Spain may need up to 500 billion euros to recapitalise its banks and defer debt obligations for a few years. So the way ahead is to allow capitalism to start functioning normally. Bad banks will have to be allowed to fail and private bondholders suffer a loss. Depositors will have to be protected. Spain needs fewer but more well run banks. The big three: Santander, BBVA and La Caixa will have to help the weaker brethren. Finland is demanding Spanish collateral in exchange for contributing to the 100 billion bailout. This raises the spectre of the Finns owning valuable property in Madrid and elsewhere. One can envisage a situation in which Spain, in order to secure the money it needs, will have to mortgage the whole country to foreigners. Cyprus now needs a bailout but it is so small that this will go through on the nod. The elephant in the room is Italy. Yields on its bonds have been creeping up towards the dangerous 6.5 per cent. The nightmare scenario would be for Rome to request a bailout because it could not borrow from the markets. If Syriza wins the Greek election on Sunday it will consign the austerity pact to the dustbin. It will also demand a handout from Brussels and Berlin to stay in the euro. No wonder the eurocrats are suffering from a headache which may develop into a migraine.