The Federal Reserve Made $16 Trillion In Secret Loans To Their Bankster Friends By www.infowars.com | September 30,
2011
A one-time limited GAO audit of the Federal Reserve that
was mandated by the Dodd-Frank Wall Street Reform and Consumer
Protection Act has uncovered some eye-popping corruption
at the Fed and the mainstream media is barely even covering
it. It turns out that the Federal Reserve made $16.1 trillion
in secret loans to their bankster friends during the financial
crisis. You can read a copy of the GAO investigation for
yourself right here. These loans only went to the “too
big to fail” banks and to foreign financial institutions.
Not a penny of these loans went to small banks or to ordinary
Americans. Not only did the banksters get trillions in nearly
interest-free loans, but the Fed actually paid them over
600 million dollars to help run the emergency lending program.
The GAO investigation revealed some absolutely stunning
conflicts of interest, and yet the mainstream media does
not even seem interested. Solid evidence of the looting
of America has been put right in front of us, and yet hardly
anyone wants to talk about it.
Many Americans have a hard time grasping just how large
16.1 trillion dollars is. It is an amount of money that
is almost inconceivable. It is more than the GDP of the
United States for an entire year. It is more than the U.S.
government has spent over the last four years combined.
The Federal Reserve was just creating gigantic piles of
cash out of thin air and throwing them around with wild
abandon.
One of the only members of Congress that has wanted to
talk about the GAO audit has been U.S. Senator Bernie Sanders.
The following is a statement about this audit that was taken
from his official website….
“As a result of this audit, we now
know that the Federal Reserve provided more than $16 trillion
in total financial assistance to some of the largest financial
institutions and corporations in the United States and
throughout the world”
So precisely who got this money?
Well, a recent article on Raw Story named some of the big
Wall Street banks that got some of this money….
Out of all borrowers, Citigroup received
the most financial assistance from the Fed, at $2.5 trillion.
Morgan Stanley came in second with $2.04 trillion, followed
by Merill Lynch at $1.9 trillion and Bank of America at
$1.3 trillion.
But it just wasn’t U.S. banksters
that were showered with nearly interest-free loans. It turns
out that approximately $3.08 trillion went to foreign financial
institutions all over Europe and Asia.
So who in the world gave the Federal Reserve permission
to bail out financial institutions all over the world?
Nobody did.
But under our current system the Federal Reserve doesn’t
have to get permission. They literally get to do whatever
they want.
On his website, Senator Sanders expressed his outrage over
these foreign loans….
“No agency of the United States government
should be allowed to bailout a foreign bank or corporation
without the direct approval of Congress and the president”
So should we expect Congress to approve
legislation that would reduce the power of the Fed?
Of course not.
We all know that is not going to happen.
The Federal Reserve is run like a dictatorship. They get
to do what they want and nobody can stop them.
Not only did the Fed dish out over $16 trillion in secret
loans to their friends, but they also paid their bankster
friends over 600 million dollars to help them do it.
According to the GAO, the Federal Reserve paid $659.4 million
to the very financial institutions which caused the financial
crisis to help the Fed manage all of these emergency loans.
Can anyone say “conflict of interest”?
Not only were the banksters raking in trillions in secret
loans, they were also paid to help run the lending process.
Wow.
So why isn’t the mainstream media talking about this?
That is a very good question.
But wait, there is more.
It turns out that many Fed officials had very large investments
in the financial institutions that were receiving these
secret loans.
So what was done about all of the conflict of interest
issues that arose?
According to Senator Sanders, “the Fed provided conflict
of interest waivers to employees and private contractors
so they could keep investments in the same financial institutions
and corporations that were given emergency loans.”
Oh, everyone was given waivers.
Apparently corruption is okay if we just get everyone to
sign a bunch of forms.
The following is one example of a conflict of interest
that occurred during this lending program that Senator Sanders
noted on his website….
For example, 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 financial assistance from the Fed. Moreover, JP Morgan
Chase served as one of the clearing banks for the Fed’s
emergency lending programs.
This is a classic case of the foxes watching
the hen house.
It was the banksters that caused the financial crisis.
They were the only ones that the Federal Reserve helped.
In fact, the Federal Reserve ended up having the banksters
basically run the entire emergency lending program as Senator
Sanders noted on his site….
The Fed outsourced virtually all of the operations
of their emergency lending programs to private contractors
like JP Morgan Chase, Morgan Stanley, and Wells Fargo.
The same firms also received trillions of dollars in Fed
loans at near-zero interest rates.
If you were not outraged by that, then
you need to read it again.
What the banksters have been getting away with is absolutely
mind blowing.
So will changes be made to make sure that something like
this never happens again in the future?
Well, the GAO has recommended that significant changes
should be made.
But as mentioned above, the only one that gets to tell
the Federal Reserve what to do is the Federal Reserve.
According to the Washington Post, the Federal Reserve is
promising to “strongly consider” the recommendations
of the GAO….
The Fed’s general counsel, Scott Alvarez,
said in a letter responding to the GAO’s audit that
officials will “strongly consider” the recommendations.
Most Americans do not realize that the
Federal Reserve is not actually part of the federal government.
It is a privately-owned central bank that is not accountable
to anyone.
But most Americans still believe that the Fed is a government
agency.
The truth is that the Federal Reserve is about as “federal”
as Federal Express is.
In another article about the Federal Reserve, I noted that
the Federal Reserve has even admitted that it is not an
agency of the federal government in court….
In defending itself against a Bloomberg request
for information under the Freedom of Information Act,
the Federal Reserve objected by declaring that it was
“not an agency” of the U.S. government and
therefore it was not subject to the Freedom of Information
Act.
Basically, an unaccountable private monopoly
creates our money, sets our interest rates, regulates our
banking system and makes secret loans to whoever they want.
The Federal Reserve has more power over our economy than
any other institution and nobody can overrule any decisions
that they make.
Does that sound very “American” to you?
Since the Federal Reserve was created in 1913, it has been
systematically destroying the wealth of America through
constant and never ending inflation.
The U.S. dollar loses more value every single year.
According to the U.S. Bureau of Labor Statistics, what
you could buy for $1.00 in 1965 will cost you $7.17 today.
Sadly, the devaluation of our money is actually accelerating.
That is one reason why we are seeing precious metals soar
right now.
Not only that, but the Federal Reserve was also designed
to be a perpetual government debt creation machine.
Do you know how money is created in this country?
Normally, more money is only created when more debt is
created.
What this sets up is a never end spiral where the amount
of money and the amount of debt are continually increasing.
Most Americans believe that we could solve the government
debt problem if we could just control spending.
But that is not the case.
The Federal Reserve system was designed to get the U.S.
government into constantly increasing amounts of debt and
this is exactly what has happened….
The U.S. government will never fix the national debt problem
as long as it participates in the Federal Reserve system.
Founding fathers such as Thomas Jefferson tried to warn
us about the danger of central banking.
Jefferson strongly believed that when the federal government
borrows money in one generation that must be paid back by
future generations it is equivalent to theft….
And I sincerely believe, with you, that banking establishments
are more dangerous than standing armies; and that the
principle of spending money to be paid by posterity, under
the name of funding, is but swindling futurity on a large
scale.
Not only that, Thomas Jefferson actually said that if he
could add just one more amendment to the U.S. Constitution
it would be a complete ban on all government debt….
I wish it were possible to obtain a single
amendment to our Constitution. I would be willing to depend
on that alone for the reduction of the administration of
our government to the genuine principles of its Constitution;
I mean an additional article, taking from the federal government
the power of borrowing.
Of course we did not listen to Thomas Jefferson,
did we?
Now we have gotten ourselves into one fine mess.
If the federal government shut down the Federal Reserve
system, started issuing debt-free money and established
a new system based on sound financial principles we might
have a chance of turning this thing around.
But if we continue on the path that we are currently on,
we are going to experience a financial disaster of unprecedented
magnitude. We have piled up the biggest mountain of debt
in the history of the world, and a day of reckoning is approaching.
Our founding fathers tried to warn us about this, but we
thought that we were so much smarter than them.
Now we get to suffer the consequences of our foolishness.
