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OUTRAGEOUS! First Federal Reserve Audit Reveals Trillions in Secret Bailouts


Business  (tags: politics, government, economy, too big to fail, Big bAnks, secret loans, abuse, business, dishonesty, economy, government, news, politics, society, cover-up, ethics, corruption, corporate, usa )

AWAY AWHI
- 2849 days ago - ipsnews.net
The first-ever audit of the U.S. Federal Reserve has revealed 16 trillion dollars in secret bank bailouts and has raised more questions about the quasi-private agency's opaque operations.



   

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Comments

Carol H (229)
Monday August 29, 2011, 3:33 pm
noted, thank you Cal
 

Patrick Donovan (344)
Monday August 29, 2011, 4:01 pm
Any discussion of incompetence should include the authors of this article who do not understand basic economics. Ron Paul must be proud of this.
 

Mike S (86)
Monday August 29, 2011, 4:14 pm
Noted and thank you Cal.
 

William K (308)
Monday August 29, 2011, 7:16 pm
So the US owes the banks trillions of dollars...and the banks owe the Fed trillions of dollars...can't we just all cancel out the debts?

I'd like to be bailed out too. For a miniscule drop in the bucket compared to these trillions that are passing back and forth, I could be doing so much more to be stimulating the economy.
 

David Hisel (244)
Monday August 29, 2011, 10:43 pm
noted
 

Kathy Chadwell (354)
Monday August 29, 2011, 11:46 pm
I still vote they give all us peons a million each:)
Posted to myspace, FB & twitters in hopes everybody reads this
 

Robert O (12)
Tuesday August 30, 2011, 12:32 am
Did the Americanpublic, particularly the long-suffering middle class get anything? No. I would also like to be bailed out since I (and millions of others) probably contribute way more the economy than the good for nothing corporations that got bailouts.
 

Elizabeth R (10)
Tuesday August 30, 2011, 3:23 am
if they canceled out all the debt, there wouldn't be any money.
thats the point.
money isn't real, it is nothing but perpetuated debt.
my notes even say 'i promise' on them.
laughable!
 

Alice C (1797)
Tuesday August 30, 2011, 5:04 am
Welfare for the rich...again !
 

Cheree M (46)
Tuesday August 30, 2011, 7:52 am
Don't surprise me.
 

Past Member (0)
Tuesday August 30, 2011, 9:52 am
These weren't exactly bailouts. They were loans. Still, an institution that is in danger of failing should not be able to borrow a trillion dollars. If it is so large that its failure would threaten the economy, then (while this may seem crazy) it must be allowed to fail before it grows even larger while temporarily bailouts stave off collapse. Point-failure sources like that are exactly how economic collapse occurs and it is better to cut losses than to create something that can and will keep demanding more.

To quote the whitest rap-battle ever,
"Capitalism is about profit and loss.
If you bail out the losers, there's no end to the cost."
 

Tim C (2420)
Tuesday August 30, 2011, 1:13 pm
thanks
 

Nance N (0)
Tuesday August 30, 2011, 1:15 pm
Thanks for the article!
 

Jane H (139)
Tuesday August 30, 2011, 1:28 pm
noted......with alarm........I agree with Alice D.
 

Kamila A (141)
Tuesday August 30, 2011, 2:20 pm
I tried sending you a star, but I already did this week.

I don't think people realize what has been going on whatsoever with this Federal Reserve. People need to start questioning and bringing the light to shine brightly on it at this time.
 

Mary Donnelly (47)
Tuesday August 30, 2011, 3:32 pm
Thanks Cal--good post. What concerned me most is that not all that money has been repaid.

The Federal Reserve System is the result of a deal done around 1913, which has allowed that system to have both public and private components--a recipe for confusion, if not conflicts of interests. There is no doubt it is in need of reform. The problem is who is going to reform it?
 

Eternal Gardener (734)
Tuesday August 30, 2011, 5:39 pm
Well... at least it's a good thing the "unethical bastards" (around the globe) get exposed!
 

Myron S (70)
Tuesday August 30, 2011, 6:02 pm
I agree, Mary. And there also is the question of how to reform it.

Abolition, of course, isn't reform. I've yet to hear a proponent of abolishing the Fed suggest an alternative that clearly would perform better, given the economic realities to which I think Patrick Donovan is referring.
Does anyone really think that our economy would be performing better today if there had been no financial institution bailouts. If so, you may have smoked too much of some substance that Ron Paul believes should be regulated only by the states, if at all. (I agree with Paul about that substance, by the way; but not about the Fed.)

Are our economic and social justice problems caused by the Fed, or do the Fed's actions and those problems reflect the structure and the values of a plutocracy that has come to exercise disproportionate influence over all our policy making institutions? If the former, how much could merely substituting some other currency control mechanism for the Fed do to strip the plutocrats of their excessive power?

Not much, I think. I think that's why John Kenneth Galbraith, decades ago, said that the Fed was largely "irrelevant" ti our real economic problems. That's why I think focusing exclusively on the Fed is a distraction from the real issues of economic and social justice we now face, just as surely as obsessing about the debt and deficit are distractions.

That's probably enough said, but a couple other points may be worth making.

Our currency isn't "real," true; but it still is the world's number one reserve currency including by comparison to gold or any other precious metal. Money is money; it lacks intrinsic value, whether or not its backed up by an equivalent amount of gold or silver. There's nothing intrinsic about the value of gold or silver, either; and the great progressive William Jennings Bryan was not entirely wrong when he called the gold standard "a cross of gold" on which our country's well being might be crucified. It's only in barter economic systems that only real things - or services - are exchange, and barter systems have their own limitations.

Fed policy isn't monolithic. It changes over time, sometimes from hour to hour. Bernanke isn't the same as Greenspan (thank God), and Greenspan wasn't the same as Volcker. And the Fed Chairmanship isn't necessarily a dictatorship. Just today, the New York Times published a revealing article on dramatic differences within the Fed over what current policy should be. (http://www.nytimes.com/2011/08/31/business/economy/fed-considered-doing-nothing-record-shows.html.)

Reform of the Fed deserves far more serious discussion than either party has given it, and to that extent, Bernie Sanders is once again doing the country a service by focusing on neglected realities. But abolishing the Fed is not a silver bullet for fixing our economy or our government.
 

Past Member (0)
Tuesday August 30, 2011, 7:55 pm
What if it's even worse than $13 trillion? What if there are 2 sets of books?
"The Federal Reserve has neither explained how they legally justified several of the emergency loans, nor how they decided to provide assistance to certain firms but not others."
"No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fedís board of directors or be employed by the Fed," Sanders said."
It's called crony capitalism!
 

Mary Donnelly (47)
Wednesday August 31, 2011, 6:34 am
Hi Everybody--really good comments.

Money can be anything; in order to be accepted as money--a measure of value, a store of value, and a medium of exchange--it needs to have the confidence of the people who use it. If people think that shells, potatoes, beads, or anything else fulfils those criteria, they will use it.

Eternal Gardner

It might be much better if the "bastards' were not "unethical"; then when they were exposed, there might not be much wrong.

What concerns me is that the finance industry around the globe is becoming more concentrated, so now we have a few larger financiers which might well not be too big to fail, because many governments have used up most of their own credit, and might not be able to bail the financiers out again.

The USA is a wealthy nation state; it just needs to get itself re-organised to make the most of the wonderful assets it has--especially its people who could really help, if more of them had reasonable paying jobs.

This Global Financial Crisis was brought on by a build up, and a throwing away of, toxic debt--unfortuneatly there is no "away".

Currently the main global reserve currency is the US$; that's not set in stone; it hasn't always been so and it might not be so again. However the Fed's job should be amongst other things to see that the banks are capitally adequate, i.e. they have enough reserve capital to tide themselves over most ups and downs. Until and unless a reasonable capital adequacy test is formulated and enforced the Fed will probably get itself into more trouble.

Robert O

You can be fairly sure that there probably will be more debt coming to light, because most people try to sort out their messes right up to the time they go bad, in the process getting into more trouble.

Obama's recent reforms of the financial system have not gone nearly far enough; the Fed should be an independent statutory body. The last thing any country needs is for the politicians to be deciding interest rates etc., especially just before an election!
 

Douglas S (1)
Wednesday August 31, 2011, 6:50 am
Wow! Thank you for shating.
 

Past Member (0)
Wednesday August 31, 2011, 9:57 am
Noted, with my usual level of disgust! I agree with William K and Robert O, me and mine could have stimulated the economy so much better, since we would actually SPEND the funds.... jerks.....
 

Richard B (6)
Wednesday February 15, 2012, 5:18 pm
Anybody heard of the "National Popular Vote"? http://www.nationalpopularvote.com/index.php
 

Richard B (6)
Wednesday February 15, 2012, 5:24 pm
The more money in circulation,the less value it has, so, by giving so much of it away, the Federal Reserve is devaluating the American dollar. I wonder if it was purposeful or "just" a consequence?
 

Richard B (6)
Wednesday February 15, 2012, 8:07 pm
To show the power of the Federal Reserve Bank, let's go back to its predecessor, the Second bank of the U.S.. Andrew Jackson, upon discovering the true nature of the Second Bank, vowed its destruction: "You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. " Its head, Nicholas Biddle, as reprisal, used the Second Bank to create an economic depression: "Nothing but widespread suffering will produce any effect on Congress... Our only safety is in pursuing a steady course of firm
[monetary] restriction -and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-
charter of the Bank." Nicholas Biddle made good on his threat. The Bank sharply contracted the money supply by calling in old loans and refusing to
extend new ones. A financial panic ensued, followed by a deep economic depression. Predictably, Biddle blamed J ackson for
the crash, saying that it was caused by the withdrawal of federal funds from the Bank. Unfortunately, his plan worked well.
Wages and prices sagged. Unemployment soared along with business bankruptcies. The nation quickly went into an uproar.

-Sounds familiar? Looks like today, doesn't it?

Read more: http://www.care2.com/causes/are-the-big-banks-off-the-hook-for-mortgage-fraud.html#ixzz1mVxG6ObC
 

Richard B (6)
Wednesday February 15, 2012, 8:11 pm
I have long suspected that the Federal Reserve money policies were at work in these times of recession, since what we're seeing now are the effects of money scarcity and it is the duty of the Federal Reserve to control money supply. I have a link for you: http://www.nationalpopularvote.com/index.php The National Popular Vote. I have downloaded the GAO report auditing the Federal Reserve. Using the National Popular Vote to elect a truly representative president, which, by token, will elect the seven members of the Federal Reserve Board, the same Federal Reserve Board that sets monetary policies, "mere" mortals like us can finally set responsible, environmentally-friendly monetary policies in the US and around the world.
 

Richard B (6)
Wednesday February 15, 2012, 8:21 pm
Check out the movie "The Money Changers" on Youtube.
 

Richard B (6)
Wednesday February 15, 2012, 8:29 pm
I meant "The Money Masters".
 

Richard B (6)
Wednesday February 15, 2012, 8:41 pm
Alternative banks? Check out time banking: http://timebanks.org/
 

Richard B (6)
Thursday February 16, 2012, 3:20 am
I see this recession as a ploy by the Federal Reserve and its allies to keep Obama from being reelected.
 
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