By Gary P Jackson
When I first learned of this, late Thursday, I was so angered I couldn’t even put it into words. Even now I’m really doing all I can to measure and moderate my tone. One thing about it, now we know why so many were adamantly opposed to auditing the Fed!
U.S. Senator Bernie Sanders [Socialist-VT] reports the first ever top-to-bottom audit of The Fed shows $16 TRILLION in secret “emergency” loans to American and foreign banks and other businesses. All sympathetic to the democrat party.
Last year, the gross domestic product of the entire U.S. economy was only $14.5 trillion!
These secret loans started during President George W Bush’s last year in office, December 2007, but it was all orchestrated by the Fed. In fact, many of the people who work for the Fed also have ties to the banks and corporations who got this money. Still, this doesn’t excuse the democrat controlled Congress, or the Bush administration.
Here’s what Senator Sanders posted on his website:
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “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,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”
Among the investigation’s key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. “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,” Sanders said.
The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, 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.
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.
In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.
To Sanders, the conclusion is simple. “No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed’s board of directors or be employed by the Fed,” he said.
The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
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. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.
A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. “The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street.”
To read the GAO report, click here.
This is simply incredible. It’s crony capitalism at it’s worst, and the numbers are so large they are almost incomprehensible. We’re talking about more money than our yearly GDP, trillions more. It’s frightening enough to know our debt is equal to 100% of our GDP, and totally unsustainable, this puts us in a whole other world.
What’s more incredible is there have been numerous reports of bailout money going to foreign banks, a separate situation, and yet, Congress has done nothing.
Astute readers have heard of the Cloward-Piven Strategy. It was developed by a couple of radical, socialist Columbia University professors, Richard Andrew Cloward and Frances Fox Piven. both Cloward and Piven have been big players in the democrat party for decades, and have even been photographed at the White House with President Bill Clinton at official ceremonies.
Cloward-Piven is a strategy to overwhelm the system with debt, demand, and confusion, in order to cause the collapse the entire system of capitalism, and bring about a Marxist state. This is why you see the democrats wanting to add MORE debt, and spend MORE money, at a time we are beyond broke. It’s a deliberate, calculated strategy to destroy America as we know it, and bring about a command-and-control form of government …. Not that we aren’t almost there now!
In September of 2008 James Simpson wrote an great article: Barack Obama and the Strategy of Manufactured Crisis for the American Thinker. Simpson laid out the strategy Obama would use, as well as giving readers a nice history lesson of Cloward-Piven and the art of “manufactured crisis.” It’s a must read if you want to understand where we are at right now, and what is actually going on.
It’s a damned shame our “betters” in the GOP didn’t take time to learn about all of this BEFORE Obama was elected. Had the feckless Republican establishment learned what many of us already knew about Obama, maybe we wouldn’t be in this mess!
Besides the banks, you’ll notice General Electric is involved in all of this. GE’s CEO Jeffery Immelt is attached to Barack Obama at the hip. GE has received all sorts of special treatment, because Immelt has supported Obama so strongly, and is even on many regime advisory committees. He even turned the TV networks the company owns, most notably NBC and MSNBC, into propaganda channels for Obama and the DNC.
It’s crony capitalism. It reminds me of how socialist and communist states operate. The fat cats, as long as they support the regime, are allowed to not only make money, but actually raid the public coffers.
While these $16 TRILLION in secret loans are so over the top it’s almost hard top comprehend, they are no different to the Obama regime’s handouts to the labor unions, and other special interests who have the regime’s back. History tells us that it’s a good bet most of these loans will never be repaid.
It’s quite telling that at a time Obama is threatening to stop sending seniors and the disabled the monthly checks they have EARNED, as well as gutting the military, [while we are in three wars and terrorism is high] that he has plenty of party favors for his buddies.
The Fed is a bad situation all unto itself. That said, there is congressional oversight of the agency. That the agency has been allowed to run wild, while Congress did nothing, is criminal. Every single member of Congress charged with overseeing the agency must be fired. They also must be investigated. We should be filling our prisons with the corrupt bastards who allowed all of this to happen.
It’s quite obvious the Obama regime has purposely enriched it’s friends through all of this corruption.
We’ve never put a United States President in prison. Obama wants to be “historic” I say we need to make a little history. Obama, Fed chair Ben Bernanke, and an entire cast of characters have created a situation that will most certainly cause the Republic to collapse, if something radical isn’t done.
If the United States collapses, the entire world will collapse. Liberty and Freedom will be things we’ll read about in books. [if books aren’t outlawed] We’ll all be living in a very dark time.
I have no faith in Congress. Even though Senator Sanders has exposed this massive corruption, you can bet this will be swept under the rug.
We, the people, must rise up and DEMAND satisfaction.
We must DEMAND that any member of Congress charged with keeping an eye on the Fed resign immediately, pending criminal investigation.
We must DEMAND Ben Bernanke resign immediately, pending criminal investigation.
We must DEMAND members of the Fed involved in this scheme resign immediately, pending criminal investigation.
We must DEMAND any bank officer, corporation management, absolutely anyone involved with any company that received these secret loans, and was involved in the process, should be investigated for criminal activity.
We must DEMAND the resignation of Barack Obama, and anyone else connected to this in his regime, pending criminal investigation.
We also MUST DEMAND a our next elected President have a record of successfully going after corruption, even in her own party. [I just happen to have someone in mind]
Never in the history of our nation has corruption been so rampant in government. We need a top to bottom overhaul. We MUST cut spending and get government out of our lives so we can grow jobs and create opportunities.
The only way we’ll even come close to surviving as a nation is to make the U.S. the most business friendly place on earth.
It’s going to take something radical. It’s going to take our government going back to First Principles, back to the Constitutional Republic our founders created. It’s going to take the federal government realizing what they can and cannot, and should not, interfere with. They need to realize most things, constitutionally, are left to the states to sort out and control.
We need new leadership. We need people who understand reality. We need people who understand they work for us, the people. That WE are their employers, their bosses.
We need people who are mindful of how hard it is to earn a living, and how precious those tax dollars that flow into D.C. are. We need people who will treat those dollars with respect, and spend them wisely.
We also need to send a message to the corrupt bastards in Washington now, by sending the guilty to prison [and throwing away the key] and the inept packing!
With all of the insanity we are seeing from Washington, we can no longer sit by and tolerate it. We must take action and we must be successful. The very existence of our Republic depends on us all standing up and being heard.