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,....
OK, that accounts for $20 million of the $16 trillion. Did 799,999 more optometrists open offices or where did the rest of the money go?
Actually 20 Billion. They had Citibank on there for $2.5 Trillion in loans. They probably have an average of $10 billion a day for 250 days. There were other big banks that had similar large numbers. No bank has any where near the numbers in that report.
USAA is underwritten/financed by the Bank of China. Maybe that is the reason;)
I hadn’t heard that. Can you substantiate that claim? Do you have a reference, for example?
I see no one countered your specificity, kabar.
So the question is [I guess], how much loan money was defaulted? And I’m asking around: does the Fed get freshly printed currency? Or is it involved in quantitative easing?
Part of kabar’s post 24:
“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).”
There were no losses by the Fed given the swap arrangements. They just hold the foreign currency and can exchange it back at the fixed rate it provided the dollars.
“No bank has any where near the numbers in that report.”
I read that in an earlier thread. I do notice that critics of the 16 trillion threads tend to offer more specifics, not that I understand them.
That’s the problem. People who understand the Fed have a lexicon beyond tpyical comprehension, although typical people are that much more suspicious.
OK, thank you for your quick response! Right, so there could be devaluation, but nothing like Weimar Republic deval [I hope]. Is this a kind of ‘lifeline’ contingency to replace a degraded currency with US dollars?
No devaluation in terms of currency rate changes. That rate is fixed at the same rate as the date of the transaction. Eventually, the borrowing country will buy back its own currency using dollars. Much of it has already been purchased back by the borrowing countries.
“... rate is fixed ...”
Paid back with the same US dollars you mean? We swap one million [for example] for thirty million wooden nickels. And they take back thirty million wooden nickles for one million US dollars? So they have the option to default during a complete currency meltdown and cut some kind of other deal then, such as replacing their worthless currency with Greenbacks and absorbing enough US dollars that we don’t suffer from inflation. Is that about how it works?
[Creepy having this gang of crooks in charge right now. The opportunities for chicanery ...]
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