Federal Reserve's Secret Taxpayer-Funded $12 Trillion Bailout of Global Banks

The Federal Reserve System (FDS) was conceived in secrecy in 1910 on Jekyll Island, New York, then created in 1913 via the Federal Reserve Act. It is a strange public-private bastard-hybrid of privately-owned banks that act as America’s central bank with limited government supervision. As America’s central bank, the FDS supervises and regulates the banking system, manages the country’s money supply through monetary policy, maintains the stability of the financial system, and attempts to prevent and contain banking panics.
The importance of the Federal Reserve and its public-private nature have provoked many a conspiracy theory, which is not helped by its Inspector General Elizabeth Coleman’s admission in May 2009, that the FDS could not account for $9 TRILLION in “off-balance sheet transactions,” whatever that means.
Coleman’s admission provoked outrage among the American people, who demanded Congress to audit the Federal Reserve. The Fed, in turn, resisted every effort. Its chairman, Ben Bernanke, at one time even used fear tactics, darkly warning that an audit by the General Accounting Office “would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”
Now comes even more disturbing revelations.
A limited one-time peak into the Federal Reserve revealed a secret taxpayer-funded bailout of FOREIGN banks in the amount of a mind-boggling $12.3 TRILLION — and Congress wasn’t even informed, not to speak of being consulted.
Like you, I still have a measure of trust in the basic goodness of my fellow human beings and in government, but the stark horrible reality of the Federal Reserve and the corrupt banking system is now too insistent to be ignored. I saw news of this some days ago but was too depressed by it to post. Below are excerpts from the most recent account, David DeGraw’s “The Wall Street Pentagon Papers.”
New World Disorder, anyone?
God help us….
H/t Joseph, MayTina, & FS.
~Eowyn

The Wall Street Pentagon Papers: Biggest Scam In World History Exposed: Are The Federal Reserve’s Crimes Too Big To Comprehend?
By David DeGraw The Public Record Dec 10, 2010
What if the greatest scam ever perpetrated was blatantly exposed, and the US media didn’t cover it? Does that mean the scam could keep going? That’s what we are about to find out…from the one-time peek we got into the inner-workings of the Federal Reserve. This is the Wall Street equivalent of the Pentagon Papers.
I’ve written many reports detailing the crimes of Wall Street during this crisis. The level of fraud, from top to bottom, has been staggering…. Just when I thought the banksters couldn’t possibly shock me anymore… they did.
We were finally granted the honor and privilege of finding out the specifics, a limited one-time Federal Reserve view, of a secret taxpayer funded “backdoor bailout” by a small group of unelected bankers. This data release reveals “emergency lending programs” that doled out $12.3 TRILLION in taxpayer money – $3.3 trillion in liquidity, $9 trillion in “other financial arrangements”… and Congress didn’t know any of the details….
Yes. The Founding Fathers are rolling over in their graves…. The Federal Reserve was secretly throwing around our money in unprecedented fashion, and it wasn’t just to the usual suspects like Goldman Sachs, JP Morgan, Citigroup, Bank of America, etc.; it was to the entire Global Banking Cartel. To central banks throughout the world: Australia, Denmark, Japan, Mexico, Norway, South Korea, Sweden, Switzerland, England… To the Fed’s foreign primary dealers like Credit Suisse (Switzerland), Deutsche Bank (Germany), Royal Bank of Scotland (U.K.), Barclays (U.K.), BNP Paribas (France)… All their Ponzi players were “gifted.” All the Racketeer Influenced and Corrupt Organizations got their cut.
…If you still had any question as to whether or not the United States is now the world’s preeminent banana republic, the final verdict was just delivered and the decision was unanimous. The ayes have it.
Any fairytale notions that we are living in a nation built on the rule of law and of the global economy being based on free market principles has now been exposed as just that, a fairytale. This moment is equivalent to everyone in Vatican City being told, by the Pope, that God is dead.
I’ve been arguing for years that the market is rigged and that the major Wall Street firms are elaborate Ponzi schemes, as have many other people who built their beliefs on rational thought, reasoned logic and evidence. We already came to this conclusion by doing the research and connecting the dots. But now, even our strongest skeptics and the most ardent Wall Street supporters have it all laid out in front of them, on FEDERAL RESERVE SPREADSHEETS.
Even the Financial Times, which named Lloyd Blankfein its 2009 person of the year, reacted by reporting this: “The initial reactions were shock at the breadth of lending, particularly to foreign firms. But the details paint a bleaker and even more disturbing picture.”
Yes, the emperor doesn’t have any clothes. God is, indeed, dead. But, for the moment at least, the illusion continues to hold power. How is this possible?
To start with, as always, the US television “news” media (propaganda) networks just glossed over the whole thing – nothing to see here, just move along, back after a message from our sponsors… Other than that obvious reason, I’ve come to the realization that the Federal Reserve’s crimes are so big, so huge in scale, it is very hard for people to even wrap their head around it and comprehend what has happened here.
Think about it. In just this one peek we got at its operations, we learned that the Fed doled out $12.3 trillion in near-zero interest loans, without Congressional input.
The audacity and absurdity of it all is mind boggling…
Based on many conversations I’ve had with people, it seems that the average person doesn’t comprehend how much a trillion dollars is, let alone 12.3 trillion. You might as well just say 12.3 gazillion, because people don’t grasp a number that large, nor do they understand what would be possible if that money was used in other ways.
Can you imagine what we could do to restructure society with $12.3 trillion? Think about that…
People also can’t grasp the colossal crime committed because they keep hearing the word “loans.” People think of the loans they get. You borrow money, you pay it back with interest, no big deal.
That’s not what happened here. The Fed doled out $12.3 trillion in near-zero interest loans, using the American people as collateral, demanding nothing in return, other than a bunch of toxic assets in some cases. They only gave this money to a select group of insiders, at a time when very few had any money because all these same insiders and speculators crashed the system.
Do you get that? The very people most responsible for crashing the system, were then rewarded with trillions of our dollars. This gave that select group of insiders unlimited power to seize control of assets and have unprecedented leverage over almost everything within their economies – crony capitalism on steroids.
This was a hostile world takeover orchestrated through economic attacks by a very small group of unelected global bankers. They paralyzed the system, then were given the power to recreate it according to their own desires. No free market, no democracy of any kind. All done in secrecy. In the process, they gave themselves all-time record-breaking bonuses and impoverished tens of millions of people – they have put into motion a system that will inevitably collapse again and utterly destroy the very existence of what is left of an economic middle class. That is not hyperbole. That is what happened.
We are talking about trillions of dollars secretly pumped into global banks, handpicked by a small select group of bankers themselves. All for the benefit of those bankers, and at the expense of everyone else. People can’t even comprehend what that means and the severe consequences that it entails, which we have only just begun to experience…. No matter which way you look at it, we are all in serious trouble!
If you are an elected official…and you believe in the oath you took upon taking office, you must immediately demand a full audit of the Federal Reserve and have Ben Bernanke and the entire Federal Reserve Board detained. If you are not going to do that, you deserve to have the words “Irrelevant Puppet” tattooed across your forehead….
Here’s a roundup of reports on this BernankeLeaks:
Senator Bernie Sanders (I-Vermont)…was the senator who [sic] Bernanke blew off when he was asked for information on this heist during a congressional hearing. Sanders fought to get the amendment written into the financial “reform” bill that gave us this one-time peek into the Fed’s secret operations…. In an article entitled, “A Real Jaw-Dropper at the Federal Reserve,” Senator Sanders reveals some of the details:

At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later… we have begun to lift the veil of secrecy at the Fed…
After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America….
We have learned that the $700 billion Wall Street bailout… turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country.…
Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations including two European megabanks — Deutsche Bank and Credit Suisse — which were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities….
Has the Federal Reserve of the United States become the central bank of the world?… [read Global Banking Cartel]
…What we are seeing is the incredible power of a small number of people who have incredible conflicts of interest getting incredible help from the taxpayers of this country while ignoring the needs of the people. [read more]

In an article entitled, “The Fed Lied About Wall Street,” Zach Carter sums it up this way:

The Federal Reserve audit is full of frightening revelations about U.S. economic policy and those who implement it… major bank executives who had run their companies into the ground were allowed to keep their jobs, and shareholders who had placed bad bets on their firms were allowed to collect government largesse, as bloated bonuses began paying out soon after.
But the banks themselves still faced a capital shortage, and were only kept above those critical capital thresholds because federal regulators were willing to look the other way, letting banks account for obvious losses as if they were profitable assets.
So based on the Fed audit data, it’s hard to conclude that Fed Chairman Ben Bernanke was telling the truth when he told Congress on March 3, 2009, that there were no zombie banks in the United States. “I don’t think that any major U.S. bank is currently a zombie institution,” Bernanke said. As Bernanke spoke those words banks had been pledging junk bonds as collateral under Fed facilities for several months…
This is the heart of today’s foreclosure fraud crisis. Banks are foreclosing on untold numbers of families who have never missed a payment, because rushing to foreclosure generates lucrative fees for the banks, whatever the costs to families and investors…. Not only are zombie banks failing to support the economy, they are actively sabotaging it with fraud in order to make up for their capital shortages. Meanwhile, regulators are aggressively looking the other way.” [read more]

Even the Financial Times is jumping ship:

Sunlight Shows Cracks in Fed’s Rescue Story
It took two years, a hard-fought lawsuit, and an act of Congress, but finally… the Federal Reserve disclosed the details of its financial crisis lending programs. The initial reactions were shock at the breadth of lending, particularly to foreign firms. But the details paint a bleaker, earlier, and even more disturbing picture…. An even more troubling conclusion from the data is that…it is now apparent that the Fed took on far more risk, on less favorable terms, than most people have realized. [read more]

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Edward G. Griffin wrote a book on the founding of the Federal Reserve System, The Creature From Jekyll Island, that is now the definitive work on the Fed. 
Here’s a video of Griffin talking about the Beast:

~Eowyn

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0 responses to “Federal Reserve's Secret Taxpayer-Funded $12 Trillion Bailout of Global Banks

  1. OMG–enough said!

     
  2. End the Fed. It’s as simple as that. Mind you, there will be almighty Hell raised about it by the satanists who run it, but they have no real substance save what credence we give them. All BS and no cattle!
    If you really want to know what it’s all about, read the 2nd edition of Stephen Zarlenga’s magnum opus, The Lost Science of Money, a best Christmas gift to yourself or anyone you care about.

     
  3. As I read this I couldn’t help but remember the $80 billion dollar cache that was confiscated on the Italian border in June or July of 09. Suitcases of US bonds and stocks and cash which they reported as counterfeit were I am sure all legit. At the time bloggers suppossed that the Italian government could get a payment for the Fiat acquisition. It was all quickly hidden and the media never reported it though surely any “robbery” would have received more publicity. At the time Mr. Geitner, Korea and Japan were all meeting for a financial summit. It was too much of a coincidence for me.
    My husband and I are retired and own our home. We both receive small pensions and social security. We will never be rich but we are comfortable. As the value of the dollar fluctuates and as the value of our stock portfolio declines and with the threat of adjustments to pensions and social security it does make me think about our financial security twenty years from now. In many ways I wish the government to return to a gold standard and yet that is also market flexible. I guess the only thing we can hope for is that small solvent banks and large corporate ones realign their audit sheets so that they are truly reflective of assests and not based on falsehoods. Is honesty too much to ask for now?

     
  4. I agree Joseph.

     
  5. Alright, I won’t get into conspiracy theories here but we were warned about the fed long ago by past presidents. We are being warned now by Ron Paul, watch what he has to say on youtube. Why the Gov’t depends on a private business for it’s money is beyond me. If a gov’t can’t control its own currency, rates etc… then how autonomous are they? Every dollar printed by the fed is LOANED to the US gov’t with interest. Basically every dollar put into circulation costs 1.10 to the gov’t. This is a corrupt system run by a few under the guise of the fed. You’ve all heard this…The fed is as federal as federal express. A private company run the same way all private companies are run….for profit…..at our expense.

     
  6. And in “Quantitative Easing Explained”… (again)

     
  7. We cannot return to the gold standard as this too has been exploited beyond reason. There is more gold sold to people on paper than there is gold in the ground. sorta like the derivatives market, look at who owned and profited from that scam. The derivatives sunk us, and wall street and the bankers are still playing that game. It will get worse, I guarantee it. On another note. Canadian and US dollars are at par. Stephen Harper (canadian PM) has negotiated a secret security deal for a north american perimeter. He will not answer questions about it in parliament, nor mention what this perimeter means. I guess the mexico fence didn’t work out as planned. All this to say, the north american union and AMERO are coming soon. The canucks will have no part of this big brother security american style, next election is coming soon.

     
  8. you may enjoy my poetry on current events

     
    • So your high lordship says we plebians “may” enjoy your poetry? LOL
      And you, uninvited and pretentious person, “may” get out of my blog.

       
  9. http://www.bloomberg.com/apps/news?pid=2…
    Dec. 12 (Bloomberg) — The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.
    Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression.
    The Fed responded Dec. 8, saying it’s allowed to withhold internal memos as well as information about trade secrets and commercial information. The institution confirmed that a records search found 231 pages of documents pertaining to some of the requests.
    “If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know,” said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.

     
  10. Reblogged this on kommonsentsjane and commented:
    Reblogged on kommonsentsjane.
    More bad news. When will it stop.

     

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