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.