First Audit of The Federal Reserve Posted

kristy Reforming Global Finance, Beyond GDP

First Audit of The Federal Reserve Posted Today

September 1, 2012

First Audit Results In The Federal Reserve’s Nearly 100 Year History Were
Posted Today, They Are Startling!

Do we now wonder why we can’t get mortgages, pay off our debts, lose our
homes, lose our jobs, get divorced, and are unable to pay child

The FED could have paid off every residential and commercial mortgage in the
entire United States with this money, and with plenty to spare.

Those who’ve lost their homes because of mortgage failures do to job loss or
increase in the balloon note, or being “underwater” due to loss of value,
should sue the FED–they are a private corporation.
Class action anyone?

First Audit Results In The Federal Reserve’s Nearly 100 Year History Were
Posted Today, They Are Startling!

September 1, 2012

Rep. Ron Paul (R-Tex.) wins (again) the most significant victory of his
congressional career. He has taken his pet issue since the 1970s-the
unwarranted power and secrecy of the Federal Reserve-from something pretty
much no one but him cared about six years ago, through a best selling book
and mass movement by 2009, the second time he’s gotten the House of
Representatives to vote to widen the government’s powers to audit the Fed’s

Huffington Post with details about the vote , and on Paul’s Democratic ally
equally upset with the Fed’s lack of transparency, Rep. Dennis Kucinich

In a rare moment of bipartisanship, the House overwhelmingly passed a bill
by Rep. Ron Paul (R-Texas) to audit the Federal Reserve.

The first ever GAO (Government Accountability Office) 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.

What was revealed in the audit was startling:

$16,000,000,000,000.00 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 (at the start of the
Obama Administration), 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’re-on-your-own individualism for everyone else.”- Bernie Sanders

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.

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)

and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):

Federal Reserve Chairman Ben S. Bernanke participated in a live webcast of a
town hall meeting with educators on Thursday, September 30, 2010 from 2:30
-3:30 p.m. EDT. During this session, Chairman Bernanke answered teachers’
questions about the Federal Reserve and the economy.