From today's Hat Trick Letter:
A new amendment to the Dodd-Frank Bill (aka FinReg Bill) forced the first audit ever by the GAO (Government Accountability Office). The added clause with teeth was due to work by Ron Paul, Alan Grayson, Jim DeMint, and Bernie Sanders. USFed Chairman Ben Bernanke, Alan Greenspan, and numerous high ranking bankers vehemently opposed the audit. The culpable always object to sunlight. They distorted to the extreme both the financial market effect and the disruption to the power structure. The results of the first audit of the US Federal Reserve was completed in its 100 year history. The financial press did not cover the story. The results were posted on Senator Sander's webpage. [see next post] The audit was startling. Zeros deserve to be shown. The central bank doled out $16,000,000,000,000 in secret loans to US banks, US corporations, and foreign banks.
The recipients span the globe from France to Scotland, even Japan. Between December 2007 and June 2010, the USFed conducted hidden bailouts of many of the world's largest banks, corporations, and governments through their central banks. Officially, the center of the Western financial crime syndicate, the US Federal Reserve, refers to these secret bailouts as a comprehensive loan program. Quite the generosity though, since none of the money has been returned, all loaned out at 0% interest. The largesse to the elite and central bank stewards of the monetary system went without notification to the USCongress, while American public has been struggling to find jobs and keep their homes.
One must put the amount in perspective. The size of the USEconomy (its GDP) is $14.12 trillion. The entire national debt of the USGovt is $14.5 trillion. The annual budget actively debated in Congress is $3.5 trillion. There was no debate over $16 trillion in doled out loans to the elitist system titans and henchmen. The $800 billion TARP Fund as the visible portion to cover executive bonuses and preferred stock for the deeply damaged Wall Street banks. Regard this fund as a total distraction for the big pie, the $16 trillion. Be aware that at the time of the comprehensive loan program, the commodity and equity markets were being actively slammed. Hence, the beneficiaries to the gigantic loans were in a position to do some serious bargain shopping, if not carpetbagging. Details of the charitable elite benevolence will come out. But Citigroup received $2.5 trillion, Morgan Stanley received $2.04 trillion, and Goldman Sachs received $814 billion. The also-rans were Royal Bank of Scotland and Deutsche Bank, which together walked off with $1 trillion. My theory is simple. These big banks needed huge sums of money for two purposes, to cover their vast derivative losses from the September 2008 collapse, and to invest in the next chapter when assets were intentionally crushed in price. The harsh spotlight is on the USFed and other major banks. They continue the grip of power and holding court before the subservient press. See the Silver Bear Cafe article (http://www.silverbearcafe.com/private/10.11/gaoaudit.html).
Really, what is the problem? Maybe the bankers really needed the money. Without generous executive compensation, they cannot attract the best talent. Without ample liquidity, the system's credit apparatus cannot function from seizure. Without coverage of derivative losses, the financial nuclear option would be triggered. Without a grand fix, our system of life and standard of living would deteriorate badly. Yada yada yada. Amazing that so many people believed the nonsense as rationale.
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