Federal Reserve audit exposes major securities fraud and the embezzlement of $16 trillion.

An audit of the Federal Reserve has revealed that the privately owned Federal Reserve secretly doled out more than $16 trillion in zero interest loans to some of the largest financial institutions and corporations in the United States and throughout the world. The non-partisan, investigative arm of Congress also determined that the Fed acted illegally. In fact, according to the report, the Fed provided conflict of interest waivers to its employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans. The report is evidence that reveals major securities fraud in the embezzlement of $16 trillion by the Federal Reserve.

$16 trillion is 10 times more than what the U.S. Congress authorized and Bush ($700 billion) and Obama ( $787 billion) signed off on. The Federal Reserve was only authorized by Congress to use $1.487 trillion in federal tax dollars in bailouts. The Federal Reserve embezzled another $14.5 trillion.

The Congressional report determined that the Fed secretly hide most of the embezzled money into their own banks. The rest the Fed unilaterally transfered trillions of dollars to foreign banks and corporations from South Korea to Scotland. Foreign banks and corporations which the Federal Reserve bankers had a personal financial interest or stake in.

The report reveals that the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion in federal money from the Fed – conflict of interest. Moreover, JP Morgan Chase served as one of the clearing banks (money laundering banks) for the Fed’s emergency loans programs (aka – embezzlement schemes).

In another disturbing finding, the Government Accountability Office said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given federal funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it would have exposed the Fed’s conflict of interest and major securities fraud in the embezzlement of $16 trillion.

The investigation also revealed that the Fed outsourced most of its embezzling to private contractors, many of which were rewarded with extremely low-interest and then-secret loans.

The Fed outsourced virtually all of the operations of their $16 trillion embezzlement scheme to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. For their part the same firms also received trillions of dollars in Fed loans at near-zero interest rates. Morgan Stanley helped the Federal Reserve banker launder embezzled $trillions into AIG.

A more detailed Government Accountability Office investigation into corruption charges, securities fraud, embezzlement, money-laundering and conflicts of interest at the Fed is due on Oct. 18.

Did you know that the $14.5 trillion the Federal Reserve embezzled (US Congress only authorized $1.487 trillion) could pay the entire U.S. national debt – $14.346 trillion. To avert default the U.S. government need only to seize the assets of the Federal Reserve banks (the big six U.S. banks collectively hold about $9.399 trillion in assets) and get back the $trillions that the Federal Reserve illegally embezzled and money laundered to their foreign banks and corporations.

The U.S. government can recover $trillions from the Federal Reserve and their banks through asset forfeiture. Asset forfeiture is confiscation, by the State, of assets which are either (a) the alleged proceeds of crime or (b) the alleged instrumentalities of crime, and more recently, alleged terrorism. Proceeds of crime means any economic advantage derived from or obtained directly or indirectly from a criminal offense or criminal offenses. Crimes committed by the Federal Reserve banks against the United States and its people include; conflict of interest, securities fraud, embezzlement, fraud, money laundering, hoarding, profiteering, larceny, racketeering . . .

In 1982, a criminal forfeiture provision was enacted as part of the Racketeering Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961, which provided for the forfeiture of all property over which the RICO organization exercised an influence.

The Money Laundering Control Act of 1986 added new felony provisions at 18 U.S.C. § 1956 for the laundering of the proceeds of certain defined “specified unlawful activity,” as well as prohibiting structuring transactions under 31 U.S.C. § 5324 (with the intent to evade certain reporting requirements). The law also added civil and criminal forfeiture provisions at 18 U.S.C. §§ 981 and 982 for confiscating the property involved in money laundering.

According to the Legislative Guide to the United Nations Convention against Transnational Organized Crime and the Protocols Thereto, “Criminalizing the conduct from which substantial illicit profits are made does not adequately punish or deter organized criminal groups. Even if arrested and convicted, some of these offenders will be able to enjoy their illegal gains for their personal use and for maintaining the operations of their criminal enterprises. Despite some sanctions, the perception would still remain that crime pays. . . . Practical measures to keep offenders from profiting from their crimes are necessary. One of the most important ways to do this is to ensure that States have strong confiscation regimes”

Top 10 Banks in the United States Institution Headquarters Assets 1. Bank of America Corp. Charlotte, N.C. $2,340,667,014,000 2. J. P. Morgan Chase & Company New York, N.Y. 2,135,796,000,000 3. Citigroup New York, N.Y 2,002,213,000,000 4. Wells Fargo & Company San Francisco, C.A. 1,223,630,000,000 5. Goldman Sachs Group, Inc. New York, N.Y. 880,677,000,000 6. Morgan Stanley New York, N.Y. 819,719,000,000 7. Metlife, Inc. New York, N.Y. 565,566,452,000 8. Barclays Group US, Inc. Wilmington, Del. 427,837,000,000 9. Taunus Corporation New York, N.Y. 364,079,000,000 10. HSBC North America Inc. New York, N.Y 345,382,871,000 As of Mar. 31, 2010. Source: Federal Reserve System, National Information Center.

REFERENCE Behind The Real Size of Obama's Wall Street Bailout (more like $14 trillion)
Mother Jones | Dec. 21, 2009 / FR Posted January 04, 2010

A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.

The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:

Treasury Department bailout programs (controlled by then-COS Rahm Emanuel)

Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].

--SNIP--- long read

Federal Reserve bailout programs

Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.

Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.

Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.

Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.

--SNIP--- long read

“What Geithner does not want the public to understand, his “dirty little secret”, is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global “off-balance sheet” or OTC derivatives issuance.

Today, five US banks, according to data in the just-released Federal Office of Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.

The top three are, in declining order of importance: JPMorgan Chase, which holds a staggering $88 trillion in derivatives; Bank of America with $38 trillion, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs, with a mere $30 trillion in derivatives; number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain’s HSBC Bank USA, has $3.7 trillion. “

http://www.atimes.com/atimes/Global_Economy/KD03Dj02.html

These numbers are from 2009. Presently the top five US banks are on the hook for over 250 trillion in credit derivative exposure.

http://www.zerohedge.com/news/five-banks-account-96-250-trillion-outstanding-derivative-exposure-morgan-stanley-sitting-fx-de

BTW..is it any wonder they’re becoming terrified of free speech and the right to associate freely?

http://theeconomiccollapseblog.com/archives/the-federal-reserve-plans-to-identify-key-bloggers-and-monitor-billions-of-conversations-about-the-fed-on-facebook-twitter-forums-and-blogs

That's why we the people must expose the truth.. ----------------------------------------------------------- "If you...examined [The 16th Amendment] carefully, you would find that a sufficient number of states never ratified that amendment." - U.S. District Court Judge James C. Fox 2003. Defects in Ratification of the 16th Amendment If you destroy the Federal Reserves power It eliminates 90% of our debt, returns all of the federal lands to the people, wipes out all of the illegal federal laws and removes all of the statutory laws that were created due to "Colorable Money" and returns us to the common law that this country was founded on... "If you...examined [The 16th Amendment] carefully, you would find that a sufficient number of states never ratified that amendment." - U.S. District Court Judge James C. Fox 2003. What the IRS website and the Government in general refuse to recognize is that the Sixteenth Amendment to the Constitution of the United States was never ratified by a majority of the States. Only two or less States properly ratified the proposed Amendment. In February 1913 Secretary of State Knox falsely declared the 16th Amendment ratified and the government has been unlawfully demanding taxes ever since. The 16th Amendment allegedly entitled the government to collect uneven taxes. The U.S. Constitution does not preclude taxation it dictates that tax be uniform for everyone, except Indians, and apportioned equally across all the States: Article I, Section 2: "..Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons. The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct." The 16th Amendment is claimed by the federal government in the federal territory of Washington, D.C. to authorize their private collection company, the IRS, to collect "income tax". However if the 16th was not properly ratified the IRS has no legal authority to collect tax. The same applies to local County and State tax collectors who are also bound by the U.S. Constitution. After an exhaustive year long search of legislative records in 48 sovereign States conducted by Bill Benson, (Alaska & Hawaii were not admitted into the Union until after 1913). the only record of the 16th Amendment ever having been confirmed was a fraudulent proclamation made by the Secretary of State Philander Knox on February 25, 1913, wherein he simply declared it to be "in effect", but never stated that it was lawfully ratified. Bill Benson's has an excellent website, support him: The Law That Never Was Even if the 16th Amendment were properly ratified, according to Article 1, Section 9 of the Constitution, it has always been unconstitutional for the U.S. Federal Government to directly tax "We the People" in their property, wages, salaries, or earnings. U.S. Supreme Court Judges repeatedly rejected any claims that the 16th Amendment changed the constitutional limits on direct taxes: Brushaber v. Union Pacific R.R. Co., 240 U.S. 1, The Supreme Court ruled that the 16th "created no new power of taxation" and that it "did not change the constitutional limitations which forbid any direct taxation of individuals". This and other similar cases have never been overturned. An argument often made by judges attempting to ignore the fact of the failure to ratify the 16th, is that precedence under Common Law now exists because the IRS has been mugging the public for so long and this somehow legalizes the IRS and the local County Tax collector. However, the U.S. Constitution is higher law than the precedence of Common Law, which in itself represents the will of the people and not the will of the government. Article I, Section 2 of the Constitution dictates that the IRS and the local County Tax collector are collecting tax unlawfully. Bill Benson's exhaustive investigation of the history of the 16th Amendment revealed the following defects and prove the 16th horribly failed to receive the necessary three-fourths of the States approval. To have been ratified 36 of the 48 States would have had to properly ratify the 16th Amendment. Naturally for something as significant as the U.S. Constitution, ratification of an Amendment is extremely important and serious, typos, spelling and anything that is not an exact copy of the Amendment is utterly unacceptable, this is no pre-school project. Record of Failed Ratification of 16th Amendment As Recorded By Secretary Of State SEE: KEY: 01- Not ratified by state legislature, and so reported 02- Not ratified by state legislature, but reported as ratified 03- Missing or incomplete evidence of ratification, but reported as ratified 04- Failure of Governor or other official to sign, although required by State Constitution 05- Other violation of State Constitution in ratification process 06- Other procedural irregularity making ratification doubtful 07- Approval, but with change in wording, accepted as ratification of original version 08- Approval, but with change in spelling, accepted as ratification of original version 09- Approval, but with change in capitalization, accepted as ratification of original version 10- Approval, but with change in punctuation, accepted as ratification of original version State 01 02 03 04 05 06 07 08 09 10 Alabama 1 1 1 Arizona 1 1 1 1 Arkansas 1 1 1 1 1 California 1 1 1 1 1 Colorado 1 1 1 1 Connecticut 1 Delaware 1 Florida 1 Georgia 1 1 1 1 1 Idaho 1 1 1 1 1 1 Illinois 1 1 1 Indiana 1 1 1 Iowa 1 1 1 Kansas 1 1 Kentucky 1 1 1 1 1 1 1 Louisiana 1 1 1 1 Maine 1 1 Maryland 1 1 1 Massachusetts 1 1 1 1 Michigan 1 1 1 1 1 Minnesota 1 1 Mississippi 1 1 1 1 1 1 Missouri 1 1 1 1 1 Montana 1 1 1 1 Nebraska 1 1 Nevada 1 1 1 New Hampshire 1 New Jersey 1 1 1 New Mexico 1 1 New York 1 1 1 North Carolina 1 1 North Dakota 1 1 Ohio 1 1 Oklahoma 1 1 1 Oregon 1 1 Pennsylvania 1 Rhode Island 1 South Carolina 1 1 1 1 South Dakota 1 1 1 1 1 Tennessee 1 1 1 1 1 Texas 1 1 1 1 1 1 Utah 1 Vermont 1 1 1 1 1 Virginia 1 Washington 1 1 1 1 1 West Virginia 1 1 1 Wisconsin 1 1 1 Wyoming 1 1 1 1 1 1 Total 7 3 9 6 25 29 22 1 31 27 Additional 7 3 7 5 16 6 2 0 2 0 Ratification Failures Accumulated 7 10 17 22 38 44 46 46 48 48 KEY 01 02 03 04 05 06 07 08 09 10 KEY: 01- Not ratified by state legislature, and so reported 02- Not ratified by state legislature, but reported as ratified 03- Missing or incomplete evidence of ratification, but reported as ratified 04- Failure of Governor or other official to sign, although required by State Constitution 05- Other violation of State Constitution in ratification process 06- Other procedural irregularity making ratification doubtful 07- Approval, but with change in wording, accepted as ratification of original version 08- Approval, but with change in spelling, accepted as ratification of original version 09- Approval, but with change in capitalization, accepted as ratification of original version 10- Approval, but with change in punctuation, accepted as ratification of original version In the above table, the line "Additional" are the number of States for which that defect is in addition to previously indicated defects, and "Ratification Failures Accumulated" is a running total of States with defects, from Defect 01 through 10. Since 36 states were required to ratify, the failure of 13 to ratify would be fatal to the amendment, and this occurs within the first three defects, arguably the most serious. Even if we were to ignore defects of spelling, capitalization, and punctuation, we would still have only two states which successfully ratified. Note that in the above we are counting Ohio as a State, even though it was not admitted into the Union until 1953 (retroactively, which is expost facto, and unconstitutional). We are not counting the failure to designate the Income Tax Amendment as the "XVII" amendment, since there was arguably a 13th Amendment that was ratified but which is not published in official copies of the Constitution with Amendments, and the number is not necessarily part of the amendment (It wasn't part of the first 10.). The authority usually cited for the criticality of ratification without errors of spelling, capitalization, or punctuation, is from DOCUMENT NO. 97-120, of the 97TH CONGRESS, 1st Session, entitled How Our Laws Are Made, written by Edward F. Willett, Jr. Esq., Law Revision Counsel of the United States House of Representatives, in which the comparable exactitude in which bills must be concurred under federal legislative rules is detailed: . Each amendment must be inserted in precisely the proper place in the bill, with the spelling and punctuation exactly the same as it was adopted by the House. Obviously, it is extremely important that the Senate receive a copy of the bill in the precise form in which it passed the House. The preparation of such a copy is the function of the enrolling clerk. (at 34) (emphasis added) When the bill has been agreed to in identical form by both bodies - either without amendment by the Senate, or by House concurrence in the Senate amendments, or by agreement in both bodies to the conference report - a copy of the bill is enrolled for presentation to the President. The preparation of the enrolled bill is a painstaking and important task since it must reflect precisely the effect of all amendments, either by deletion, substitution, or addition, agreed to by both bodies. The enrolling clerk ... must prepare meticulously the final form of the bill, as it was agreed to by both Houses, for presentation to the President.... each (amendment) must be set out in the enrollment exactly as agreed to, and all punctuation must be in accord with the action taken. (at 45) (emphasis added) <<<<<<<<<<<<<<<<<>>>>>>>>>>>>> Read the rest of the article here: http://www.libertyforlife.com/constitution/failure_to_ratify_the_16th-details.html

Here; I fixed it for you:

16th Amendment not Ratified
In his declaration Knox claims the following States properly ratified the 16th: Alabama,Kentucky, South Carolina, Illinois, Mississippi, Oklahoma, Maryland, Georgia, Texas, Ohio, Idaho, Oregon, Washington, California, Montana, Indiana, Nevada, North Carolina, Nebraska, Kansas, Colorado, North Dakota, Michigan, Iowa, Missouri, Mane, Tennessee, Arkansas, Wisconsin, New York, South Dakota, Arizona, Minnesota, Louisiana, Delaware, and Wyoming.

Knox claimed that it appeared that New Jersey and New Mexico had approved the 16th.

NOTE Knox, claimed that he had official documents on file for all of these States, however, clearly there were no documents for Minnesota.

Again, the incorporation of the terms of the proposed amendment in the ratifying resolution seems in every case merely to have been by way or recitation.

Furthermore, under the provisions of the Constitution a legislature is not authorized to alter in any way the amendment proposed by Congress, the function of the legislature consisting merely in the right to approve or disapprove the proposed amendment.

Proof is given in a letter to Secretary of State Knox the fact that the 16th Amendment was not properly ra
fied:
P5: not-withstanding it appears that errors exist in the certified copies of Resolutions passed by the Legislatures of those States ratifying such amendment.

P5: 5. The Department has not received a copy of the Resolution passed by the State of Minnesota.

Resolution P3: It appears from this information that four states (Connecticut
Resolution P4: New Hampshire, Rhode Island, and Utah) have rejected the amendment. The remaining thirty-eight states have taken action purporting to ratify the amendment, the State of Arkansas being one of these states. Although the Governor of Arkansas has previously notified the Department that the legislature of that state had refused to ratify the amendment…
Resolution P4: In all cases in which the legislature appear to have acted favorably upon the proposed amendment, either the Governor or some other state official has transmitted to the Department a certified copy of the resolution passed by the particular legislature, except in the case of Minnesota.
Alabama: “Approved”. Doesn’t appear whether Governor signed.
Kentucky: Not signed by Governor.
Illinois: Not signed by Governor

Resolution P4/5:
Not “Adopted” only signed by Governors of:
Oklahoma, Texas, Montana, Indiana, Nebraska, Colorado, North Dakota, Iowa, New Jersey, New Mexico

Not signed by Governor:
Maryland, Georgia, Ohio, Idaho, Oregon, Washington, California, North Carolina, Missouri, Wisconsin, New York, South Dakota, Delaware

Attested by Governor:
Michigan

Governor vetoed-Governor informed Secretary of State legislature had failed to pass resolution: Arkansas

No resolution (Secretary of Governor merely says there is a resolution):
Minnesota

It will be observed from the above record that the Governor of the State of Arkansas vetoed the resolution passed by the legislature of that State.

LFL NOTE: Law must be signed into law by the Governor / President before it is law: Article I, Section 7: “Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; If he approve he shall sign it, but if not he shall return it”

Page 6: It is to be noted that the Kentucky legislature passed a resolution ratifying the proposed 16th Amendment before a copy of the resolution of Congress was transmitted to that body by the Governor and that when the Governor reserved the certified copy of the Joint Resolution of Congress from the Secretary of State and transmitted it to the legislature, the latter refused to act on it.

Errors in Resolutions of State Legislature in quoting the Proposed 16th Amendment
In the certified copies of the resolution passed by the legislature of the several state ratifying the proposed 16th amendment, it appears that only four of these resolutions (those submitted by Arizona, North Dakota, Tennessee and New Mexico) have quoted absolutely accurately and correctly the 16th amendment as proposed by Congress.

P7:
Minnesota, it is to be remembered, did not transmit to the Department a copy of the resolution passed by the legislature of that state.
The resolutions passed by twenty-two states contain errors only of capitalization or punctuation, or both, while those of eleven states contain errors in the wording.

LFL NOTE: the letter then goes attempting to justify ratification by showing errors in the 14th and 15th Amendment ratification process. Actually providing an excellent source of information invalidating the 14th Amendment.

P15: Furthermore, under the provisions of the Constitution a legislature is not authorized to alter in any way the amendment proposed by Congress,
P16: For these reasons it is believed that the Secretary of State should in the present instance include in his declaration announcing the adoption of the 16th amendment to the Constitution of the States referred to notwithstanding it appears that errors exist in certified copies of Resolutions passed by the Legislature of those States ratifying such amendment.

C-Live, Love Oppose Evil. Novus Ordo Seclorum.

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