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

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 131of 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.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144

View the 266-page GAO audit of the Federal Reserve (July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

QUOTE:

"The interesting part of this paper to me is in pg4. If I read that correctly at the bottom - $1.25TRILLION was handed out for 'toxic' mortgage backed securities of which $909 Billion was never repayed.

The big story is there. The banks have taken (for pretty much every single mortgage taken out since around 2004) your mortgage back to the Federal Government and said, "This is bad we approved anyone and everyone without checking - cover me with the amount of the loan" - which Uncle Sam handed over.

Meanwhile - the banks are still demanding payment for your mortgage, which was paid off through the Federal Government. They are collecting double on the original amount. Through one channel via the taxpayer, and the other through the mortgage holder. This is a massive unreported fraud." http://livinglies.wordpress.com/

Away from the stifling media crush, staid Ben Bernanke is dashing Reverse Robin Hood, lackey pawn of the Neofeudalist Financial Lords who shamelessly steals from the poor to give to the parasitic super-rich.

Amidst electioneering chatter about a “reverse Robin Hood” who steals from the poor to give to the rich, it’s important to identify the real Reverse Robin Hood: Ben Bernanke and his Merry Band of Thieves, a.k.a. the Federal Reserve. It’s especially appropriate to reveal Ben as the real Reverse Robin Hood today, as the Chairman is as omnipresent in the media as Big Brother due to the Cargo-Cult confab in Jackson Hole, Wyoming.

Please answer the following questions before launching a rousing defense of the All-Powerful Fed and its chairman:

1. What is the nominal yield on your savings account, thanks to the Fed’s zero-interest rate policy (ZIRP)? (Answer: 0.25%)

2. What is the inflation-adjusted yield on your savings account? (Answer: – 2.25%)

3. What is the rate of interest the Fed charges banks for “free money”? (Answer: 0%)

4. What is the average interest rate for bank-issued credit cards? (Answer: 14.52%)

5. What is the interest rate for student loans? (Answer: 6.8%, and 7.9% or 8.5% for PLUS loans)

6. Does the Fed pay interest on the funds banks have borrowed from the Fed for 0% and then deposited with the Fed? (Answer: yes)

7. Exactly how has the average American worker benefited from the Fed’s policies? (Answer: interest on credit cards has declined from 19.9% to 14.52%, if the worker has outstanding credit, which few of the bottom 90% do.) Theoretically, workers could re-finance their homes at lower interest rates, but the vast majority are either underwater or no longer qualify. Ben and the Merry Thieves love pulling Catch 22.

8. How has the average parasitic Neofeudalist Financial Lord benefited from the Fed’s “rob the poor to give to the rich” policies? (Answer: Handsomely. The top 1%’s income and net worth has soared as Ben and his Merry Band of Thieves have stripmined interest income from the poor and pension funds and diverted it to the rich.)

9. Have the Fed’s Reverse Robin Hood policies narrowed income disparity in the U.S.? (Answer: no–income disparity has widened further as a result of Fed goosing of risk assets.)

10. How many of the nation’s 14.5 million unemployed have gotten jobs as a result of Fed policies who would not have gotten a job if the Fed had been abolished in 2009? (Answer: unknown, but the best guess is 17, including Bennie the part-time janitor, with a statistical error of + or – 17.)

11. How does Ben the Reverse Robin Hood justify his thievery? (Answer: he doesn’t. Officially sanctioned propaganda casts him in the role of selfless do-gooder, protecting saintly Neofeudalist Financial Lords from restless debt-serfs.)

Listen up, debt-serfs, you have it good here on the manor estate. You get three squares of greasy fast-food or heavily processed faux-food a day, and if Reverse Robin Hood and his Merry Band of Thieves is ripping you off it’s for a good reason: the predatory Neofeudalist Financial Lords need the money more than you do, as they have a lot of political bribes to pay: it’s an election year, and the bribes are getting increasingly costly. Poor things, we’re sure you understand. Now go back to work or watching entertainment (or “news,” heh) and leave the Lords alone.

However this increases the danger of the Fed getting “caught behind the curve” in their objectives as:

• Small business indicators (the backbone of the U.S. economy) are deteriorating again (Bad sign for employment)
  Overall employment is not following a traditional recovery path and we are seeing
  Poor household survey
  Continued dropping participation rate
  Flattening out for initial claims
  3 consecutive monthly rises in the underemployment rate
  A housing market recovery that still dramatically lags other recoveries at this point in the cycle is keeping the consumer (70% of the economy) suppressed
  Consumer confidence appears to be rolling over again. Historically this has had negative leading indications for the Equity markets in the months following.
  Consumer credit is starting to soften again
  Core inflation indicators (their mandate) are softening
  Food and energy rising on supply concerns are creating a negative “fiscal drag” feedback loop
  US yields starting to rise as people now start to believe that we will not get a move from the Fed in the near term adding a potential monetary drag to the “fiscal drag” (Double whammy as we get de facto fiscal and monetary tightening)
  A Middle East “tinderbox” that is very susceptible to a food price shock and a likely cause of an Oil price shock (as we saw in 1973-1974 and again in 1978-1979)
  ISM back below 50 again where Fed “normally” eases
  Negative short-term yields in core Europe and elevated peripheral yields still in place suggesting that strains are still just below the surface. Despite this the ECB made no accommodative moves at the last meeting but just “kicked the can” again. More Eurozone stresses are therefore likely “around the corner.” In addition the weaker EUR will exacerbate the Food and Energy price rises in Europe.
  Slowing China economic data and rising food inflation is a bad mix.
  A Presidential election that has now become a clearly defined “policy battle” with one side of the fence clearly not supportive of the present Fed approach if elected therefore becomes one of the only catalysts for an early move but would likely be perceived as way too political.