Posted on 09/03/2012 6:14:52 AM PDT by opentalk
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.
...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,....
the first act of the Marxists, who were surreptitiously infiltrated into key positions in our government in 1933, was to depreciate the dollar and deny to the American people the right of redemption because these conspirators had learned from Karl Marx that the surest way to overturn the social order was to debauch the currency. John T. Wood, “ American Mercury “
and the devastating presidency of Woodrow Wilson still wrecking havoc.....( The Federal Reserve Act 1913 ).
Your right, sorry this was from 2011...seemed to receive little coverage
That is not how the dollar swap arrangement works. From the report:
"Concurrent with the announcement of TAF, the FOMC announced the establishment of dollar swap arrangements with two foreign central banksto address similar disruptions in dollar funding markets abroad. In a typical swap line transaction, FRBNY exchanged dollars for the foreign central bank’s currency at the prevailing exchange rate, and the foreign central bank agreed to buy back its currency (to “unwind” the exchange) at this same exchange rate at an agreed upon future date (for a more detailed explanation, see app. IX).
The market for interbank funding in U.S. dollars is global, and many foreign banks hold U.S.-dollar-denominated assets and fund these assets by borrowing in U.S. dollars. In contrast to U.S. commercial banks, foreign banks did not hold significant U.S.-dollar deposits, and as a result, dollar funding disruptions were particularly acute for many foreign banks during the recent crisis. In December 2007, the European Central Bank and Swiss National Bank requested dollar swap arrangements with the Federal Reserve System to increase their ability to provide U.S. dollar loans to banks in their jurisdictions.
Federal Reserve Board staff memoranda recommending that the FOMC approve these swap arrangements noted that continuing tension in dollar funding markets abroad could further exacerbatetensions in U.S. funding markets.
On December 6, 2007, the FOMC approved requests from the European Central Bank and Swiss National Bank and authorized FRBNY to establish temporary swap lines under section 14 of the Federal Reserve Act. During 2008, the FOMC approved temporary swap lines with 12 other foreign central banks.
FRBNY’s swap lines with the 14 central banks closed on February 1, 2010. In May 2010, to address the re-emergence of strains in dollar funding markets, FRBNY reopened swap lines with the Bank of Canada,the Bank of England, the European Central Bank, the Bank of Japan, andthe Swiss National Bank through January 2011. On December 21, 2010,the FOMC announced an extension of these lines through August 1,2011. On June 29, 2011, the Federal Reserve Board announced an extension of these swap lines through August 1, 2012.
Why has this been hidden from us for over a year??? Why have Rush, Hannity, Levin, et al not brought this up and made an issue out of it???
Correction =You’re
Here is the GAO link. You can download the entire report from here.
Including our King Bozo Oleomargerine.
Makes one wonder what the Occupy Wall Street movement was really all about and who financed it.
wow I wonder if this has anything to do with the fact that the federal reserve 100 year charter is about to expire...
What are they going to replace it with??
An institutionalized, generational debt [indistinguishable from slavery] like that? Wars have been fought for less, and [IMO] it seems like justification for one now.
There was a bible-verse that was really striking that I read a while ago, about parents stealing from children and how it was really wrong. Not to mention that America hasn't been about selling one's descendants into slavery (America was always individualistic, until very recently).
They sold our souls to the company store.
The [somewhat cynical] question that comes to my mind:
“How many of our fellow men would condemn someone who fought for the lives and freedom of his children by killing those who would “
I wonder how much of this is being used to keep a bid under Treasuries? It would seem to explain some of the supply/demand issues with Treasury prices.
“The report was issued in July 2011. It is not new.”
So, I guess it’s okay then.
Really gotta wonder what happens when the master decides to downsize his slave crew.
Aye; that won’t be pretty.
Old news isn't startling unless it is new news to you, I guess. I wonder why Sanders just posted it today--the day before the Dem convention?
These are overnight loans from the feds, so let's say citibank borrows 10 billion one night, pay it back the next morning, then borrow it again the next day, this goes on for 2 business weeks. How much was actually lent? This site is claiming the loan was $100 billion when really it was just $10 billion at risk to the government.
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