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Thread: The first ever GAO audit of the Federal Reserve

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    The first ever GAO audit of the Federal Reserve

    The first ever GAO 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. Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. 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.

    [url]http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3[/url]

    What was revealed in the audit was startling:

    $16,000,000,000,000.00 (TRILLION) 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-are-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 super corporations 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 can be stopped with five dollars worth of bullets. Regardless of whether this money is fiat money (money printed with nothing of value to back it), if it is a currency forced on society and the world, with enforcement by the Fed, IRS, the U.S. military, et al, – which it is– the acts of the Federal Reserve are, in essence, the transfer of greater wealth to the rich insider banks and corporations, while the rest of the world grows poorer, and as the value of this funny money grows less and less in purchasing power. These insider banks, etc., then, exchange this funny money for gold and silver, the real wealth of the world, which, then, reinflates the world with more and more devaluing federal reserve notes. This, then, creates hyper-inflation, increasing the cost of all resources and commodities, while gold and silver climb to never-seen-before levels of value.

    This is how the Federal Reserve insiders steal the wealth of the world and why the rich get richer while the poor get poorer. It's the world's largest Ponzi scheme! The Federal Reserve is nothing but a front for a small group of families who run a very large and successful white collar criminal Ponzi scheme. This criminal institution should be seized by the U.S. Treasury department and all assets frozen, and returned to the coffers of the U.S. Treasury in order to settle the U.S. debt and help begin to balance the U.S. deficit. All banks (listed below) should be forced to return the money received by the Federal Reserve. All families in ownership of the Fed and their agents should be located, caught, tried and jailed for grand larceny and treason against the people of the U.S.A. All government agents who protect and help facilitate this criminal organization should be fired from the positions and similarly tried and jailed for grand larceny and treason. Meanwhile, Congress should return our country to its original monetary system and, again, do its duty to regulate the coining of the currency of America as per the U.S. Constitution.

    The list of institutions that received the most money from the Federal Reserve can be found on page 131 of 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)

  2. #2
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    I guess Rick Perry saw this before he made his comments :rolleyes:

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    did the GAO audit say what would have happened if all those companies went belly up at the same time?

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    [QUOTE=bitonti;4115176]did the GAO audit say what would have happened if all those companies went belly up at the same time?[/QUOTE]

    You're a walking facepalm these days...

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    I see this was added over a month ago. Why is it not getting more play in the press, or am I asleep on this issue?

    The whole concept of this lending seems incredibly myopic and naive.

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    [QUOTE=Jetworks;4115199]I see this was added over a month ago. Why is it not getting more play in the [B][SIZE="5"]press[/SIZE][/B], or am I [B][SIZE="5"]asleep[/SIZE][/B] on this issue?

    The whole concept of this lending seems incredibly myopic and naive.[/QUOTE]

    The answer is in your question. The media doesn't cover stuff like this....they think it's over the heads of the American people. You know, numbers and such...

    :rolleyes:

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    [QUOTE=jetstream23;4115230]The answer is in your question. The media doesn't cover stuff like this....they think it's over the heads of the American people. You know, numbers and such...

    :rolleyes:[/QUOTE]

    Annnnnd...

    because it doesn't fit into America's current, vitriol driven, left vs. right politics. It's an issue, as stated in the article, that unites both sides.

    [QUOTE]This is how the Federal Reserve insiders steal the wealth of the world and why the rich get richer while the poor get poorer. It's the world's largest Ponzi scheme! The Federal Reserve is nothing but a front for a small group of families who run a very large and successful white collar criminal Ponzi scheme. [/QUOTE]

    This is an issue that would drive American millionaires and welfare recipients to BOTH grab torches and pitchforks and demand a row of heads atop pikes.

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    [QUOTE=PlumberKhan;4115248]

    This is an issue that would drive American millionaires and welfare recipients to BOTH grab torches and pitchforks and demand a row of heads atop pikes.[/QUOTE]

    Ummm... So let's do that...

  9. #9
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    As Bernie Sanders knows the Federal Reserve acted on the power it got from Congress and the President through legal legislation. Bernie should also know that members of Congress are not subject to insider infomation like the rest of us. It might be a reason so many leave Congress much richer than when they came in. Conflict of interest is all over our legislative system.

    The Federal reserve acted on the law that allows them to lend money to “any individual, partnership or corporation” in “unusual and exigent circumstances” when the borrower “is unable to secure adequate credit accommodations from other banking institutions.”

    We were in an economic melt down the Fed acted under the law. We can debate it and change the law but nobody in Government should act shocked after the fact.

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    People go belly up all the time. Banks who don't follow the rules same rule applies. It just gives them the go ahead with same old policies.

  11. #11
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    [QUOTE=MnJetFan;4115996]People go belly up all the time. Banks who don't follow the rules same rule applies. It just gives them the go ahead with same old policies.[/QUOTE]

    Same with government but they run HUGE deficits and "keep the doors open".

  12. #12
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    [QUOTE=bitonti;4115176]did the GAO audit say what would have happened if all those companies went belly up at the same time?[/QUOTE]

    Many companies would have gone under, and those who invested (you know, wall street fat cat stock owners) would have lost money. It's stocks, they carry risk.

    Other companies, who were responsible investors, would have done well, and made money, as would their clients.

    The businesses that went under would be replaced by other competitors. The jobs lost would be filled by other companies to fill capacity and fill the gaps left by the fallen companies.

    And at the end of the day, both wall streeters and investors whould have a renewed sense of the risk involved in investing.

    A company going out of business is not a bad thing in a Capitalist-based economy. Corporate Communism at Taxpayer expense is worse.

  13. #13
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    [QUOTE=Warfish;4116200]

    A company going out of business is not a bad thing in a Capitalist-based economy. Corporate Communism at Taxpayer expense is worse.[/QUOTE]

    it's one thing for a company to go out of business, it's another for every bulge bracket bank, GM, GE etc. to fail at once. The fed prevented a global depression.

    People don't want to believe that, but everything we've seen and heard about the events of late 2008, it could have been much much worse.

    and let me also +1 Winstonbiggs comment, everything the Fed did was covered by law. In a meltdown, all bets are off.

    Keep in mind these were Republican appointees, under a Republican President, they wouldn't have made these interventions if it wasn't their only choice.

    GOP usually hates this type of Keynesian interference but if the alternatives are a short recession/mild long recovery or a massive collapse/decade of depression, we all want the former, trust me. Or don't trust me, it's still true.

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