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Cardinale writes: "The audit was ordered as an amendment by (Sen. Bernie) Sanders as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act - a major banking overhaul passed by President Barack Obama and the US Congress in 2010."

American International Group's (AIG) offices on Wall Street, New York City, 03/02/09. (photo: Mario Tama/Getty Images)
American International Group's (AIG) offices on Wall Street, New York City, 03/02/09. (photo: Mario Tama/Getty Images)



First Federal Reserve Audit Reveals Trillions in Secret Bailouts

By Matthew Cardinale, Inter Press Service

29 August 11

 

he first-ever audit of the US Federal Reserve has revealed 16 trillion dollars in secret bank bailouts and has raised more questions about the quasi-private agency's opaque operations.

"This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else," US Senator Bernie Sanders, an Independent from Vermont, said in a statement.

The majority of loans were issues by the Federal Reserve Bank of New York (FRBNY).

"From late 2007 through mid-2010, Reserve Banks provided more than a trillion dollars ... in emergency loans to the financial sector to address strains in credit markets and to avert failures of individual institutions believed to be a threat to the stability of the financial system," the audit report states.

"The scale and nature of this assistance amounted to an unprecedented expansion of the Federal Reserve System's traditional role as lender-of-last-resort to depository institutions," according to the report.

The report notes that all the short-term, emergency loans were repaid, or are expected to be repaid.

The emergency loans included eight broad-based programmes, and also provided assistance for certain individual financial institutions. The Fed provided loans to JP Morgan Chase bank to acquire Bear Stearns, a failed investment firm; provided loans to keep American International Group (AIG), a multinational insurance corporation, afloat; extended lending commitments to Bank of America and Citigroup; and purchased risky mortgage-backed securities to get them off private banks' books.

Overall, the greatest borrowing was done by a small number of institutions. Over the three years, Citigroup borrowed a total of 2.5 trillion dollars, Morgan Stanley borrowed two trillion; Merrill Lynch, which was acquired by Bank of America, borrowed 1.9 trillion; and Bank of America borrowed 1.3 trillion.

Banks based in counties other than the US also received money from the Fed, including Barclays of the United Kingdom, the Royal Bank of Scotland Group (UK), Deutsche Bank (Germany), UBS (Switzerland), Credit Suisse Group (Switzerland), Bank of Scotland (UK), BNP Paribas (France), Dexia (Belgium), Dresdner Bank (Germany), and Societe General (France).

"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 wrote.

In recent days, Bloomberg News obtained 29,346 pages of documentation from the Federal Reserve about some of these secret loans, after months of fighting in court for access to the records under the Freedom of Information Act.

Some of the financial institutions secretly receiving loans were meanwhile claiming in their public reports to have ample cash reserves, Bloomberg noted.

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.

"The main problem is the lack of Congressional oversight, and the way the Fed seemed to pick winners who would be protected at any cost," Randall Wray, professor of economics at University of Missouri-Kansas City, told IPS.

"If such lending is not illegal, it should be. Our nation really did go through a liquidity crisis - a run on the short-term liabilities of financial institutions. There is only one way to stop a run: lend reserves without limit to all qualifying institutions. The Fed bumbled around before it finally sort of did that," Wray said.

"But then it turned to phase two, which was to try to resolve problems of insolvency by increasing Uncle Sam's stake in the banksters' fiasco. That never should have been done. You close down fraudsters, period. The Fed and FDIC (Federal Deposit Insurance Commission) should have gone into the biggest banks immediately, replaced all top management, and should have started to resolve them," Wray said.

Renewed questions about the Federal Reserve have inspired some young activists to organise grassroots protests across the US.

"Since its creation by the US Government in 1913, the Federal Reserve has created so much new money out of thin air that it has destroyed 95 percent of the dollar's value," Joseph Brown, a college student and one of the organisers of a recent protest of the Federal Reserve Bank of Atlanta, said.

"This hidden inflation tax benefits Wall Street and the government, but hurts the poor and those living on fixed incomes, such as senior citizens, the most," Brown said.

The US Government Accountability Office (GAO) audit itself was the result of at least two years of grassroots lobbying. IPS reported in June 2009 a wide bi-partisan coalition of members of Congress had co-sponsored legislation to audit the Federal Reserve.

The audit was ordered as an amendment by Sanders as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act - a major banking overhaul passed by President Barack Obama and the US Congress in 2010.

"I think this (the first ever GAO audit) was a good start to uncovering what the Fed did so that we can begin to determine whether similar actions should ever be permitted again," Wray wrote, adding, "my preliminary answer is a resounding no."

The GAO also found existing Federal Reserve policies do not prevent significant conflicts of interest. For example, "the FRBNY's existing restrictions on its employees' financial interests did not specifically prohibit investments in certain non-bank institutions that received emergency assistance," the report stated.

The GAO report noted on Sep. 19, 2008, William Dudley, who is now the President of the FRBNY, was granted a waiver to let him keep investments in AIG and General Electric, while at the same time the Federal Reserve granted bailout funds to the same two companies.

"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," Sanders said.

The GAO is currently working on a more detailed report regarding Federal Reserve conflicts of interest, which is due on Oct. 18, 2011.

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+10 # Sandy Tracy 2011-08-29 16:35
I wonder if the Fed was still using AutoAudit software?
 
 
+37 # NanFan 2011-08-30 03:11
What a scam! I suggest that anyone who hasn't seen it yet go to www.zeitgeistmovie.com and watch Part III of the 2007 version titled "Zeitgeist: The Movie." This has been out there, known, and feared, for a long time, but NOW, from this investigation, we know the tremendous extent to which they went to bring down the masses in America.

To bail out OTHER countries when the US people are worrying about where their next jobs are coming from is unconscionable. And for us, as citizens, to allow this crude and rude and purely evil form of economics to continue is akin to condoning a private (no "quasi" about it!!) company to COUNTERFEIT!

This is actually no surprise to me, in terms of the fact THAT they "did it," but the EXTENT to which they did it is astounding: secret AND $16 trillion!!

This is corruption at its worse. Protests should begin in the streets, on the blogs, and in the media immediately.

This is as big as it gets, folks. And it's bringing us down faster by the day as more and more get revealed.

Worse part: Congress and most likely, the president, knew...

Beware of the politician calling Social Security "a Ponzi scheme." This politician is in the middle of THE REAL Ponzi scheme: Fed Reserve. He's deflecting and he thinks we're stupid...

N.
 
 
+18 # edwina seidel 2011-08-30 08:58
so what's wrong with an honest brave and strong man for president? First we elect an actor (who starts the whole miserably outrageous trickle down theory which benefits only the very rich, then after a few years of sanity and budget balancing, we elect the village idiot run by Stealth President Cheney, and finally we elect somebody with intelligence, perception, a vocabulary and to all intents and purposes no cojones.
Why dont we draft Bernie Sanders fo 3012?
 
 
+10 # noitall 2011-08-30 12:19
I'd be for that. Bernie Sanders for sure has the cojones to do the job (and probably get himself killed as a reward) even if he's still kicking in "3012". Ironic that Nader 'gives up trying' and in a year that he would probably get enough support to pull it off. On one hand we have one of the GOP evil-crazies on the other hand the mole that 'bama turned out to be, (beware of articulate promisers, apparently) unable to stand on a principal (or a good idea). So the solution in our system is as usual, vote for the least of two evils. It has finally got to the point where you can't tell which is 'least' evil. Family man Obama has killed more babies than the bush. One says he's least of the evils but he acts worse. This is enough to blow the minds of these football fan American voters. "Hey! he's running for the wrong goalpost again! Guess we better keep him in the game though, he's a good runner." AND he makes us look like we're not a bunch of racist fools.
 
 
+48 # marthature 2011-08-29 16:47
Dude, where's my bailout? Who do you have to be to get a drink or a bailout around here?
 
 
+4 # CommonSense 2011-08-29 22:30
>> Who do you have to be to get a drink or a bailout around here?
 
 
+16 # mabyeNotSoCommon 2011-08-29 22:45
Quoting marthature:
Dude, where's my bailout? Who do you have to be to get a drink or a bailout around here?


“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.”
- Rothschild Brothers of London writing to their associates in New York, June 25, 1863.

"The System", fully in place over Europe from the 1st half of the 19th century (Adam Smith & Napolean having done their work), is bascially RENT-A-CURRENCY - supposedly "sovereign" governments paying usurers to issue and manage their own currency (in the government's own name). Sounds ridiculous?
Well, it is. But many true phenomenons are:
"What is banking?... The most dangerous as it is the most ridiculous form of universal tyranny the World was ever called upon to destroy."
- Frederick Soddy, Nobel Laurate, 1933
 
 
+7 # redjelly39 2011-08-31 00:51
"Give me control of a nation's money and I care not who makes the laws." Mayer Amschel Rothschild/Banker

Thomas Jefferson has this to say about the central bank. A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army... We must not let our rulers load us with perpetual debt.

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." Woodrow Wilson
 
 
0 # grandmagraffius 2011-08-30 14:21
Quoting marthature:
Dude, where's my bailout? Who do you have to be to get a drink or a bailout around here?

Had to love it!
 
 
+78 # fredboy 2011-08-29 16:48
Is the word "trillion' correct in identifying individual institution loans. Trillion? If so, this is the biggest welfare game in human history. It also implies that major banks are not designed to operate without sustained federal bailout focus. Amazing.
 
 
+13 # maybeNotsoCommon 2011-08-29 23:14
In between our invectives at all things conservative, we "progressives", "populists", "reformers" or whatever we want to call ourselves might wish to acknowledge that at least SOME "conservative" minded folk saw through the Great (Bankster) Scam that is now unravelling before our very eyes... many decades ago, when the trick was still young in the first half of the 20th century.

'They' identified the European bankster system as bad, and the American Constitutional system as good- not because their ancestors were slaveowners or petite bourgois who resented 'damn Yankee' federal steamroller... but becuase 'they' could see through the pseudo-democrat ic beast for what it was- just another in a long line of (mostly usurious) scams.
This current one is coming unglued now. All usury and all Ponzi schemes eventually do.... That is unless we are to turn into a two-tiered society of those who have connections to the Banksters (pseudo-politic al class) and those (neo-proletaria t or right-less serfs) who do not.

I believe that we can, should, and will do much better. But 'the opponent' is still managing to get most of our noodles tied up in (cognitive dissonance) knots- which is pretty much the way its been through all recorded history, BTW :-)
 
 
+12 # NanFan 2011-08-30 03:45
Quoting fredboy:
Is the word "trillion' correct in identifying individual institution loans. Trillion? If so, this is the biggest welfare game in human history. It also implies that major banks are not designed to operate without sustained federal bailout focus. Amazing.


Even though we put our money in them, trust them, and they USE our money and refuse to loan us any based on some phony-baloney credit worthiness system -- another bogus private system to keep the middle class and the really poor, POOR!

N.
 
 
+112 # davidhp 2011-08-29 16:50
Trillons for the banks, nothing for those who have lost their houses due to corporate banks refusing to re negotiate mortgages. Keep the rich from failing but screw the working class. Nationalize these leeches.
 
 
+29 # hugito 2011-08-29 17:32
They socialized banking sector has bldgs; the cities have homeless who need a marble floor for the night - capiche?
 
 
+21 # fernly2 2011-08-29 18:27
Get rid of the Fed. Pass HR 1489. Give us productive jobs with NAWAPA.
 
 
+7 # BillStill 2011-08-30 00:13
'Nationalize the monetary system, not the banks'
- Prof. Irving Fisher, 1936
 
 
+54 # DaveM 2011-08-29 17:18
Yet another reminder that the United States government does not circulate out money (as mandated by Constitutional decree), but rather a private entity which operates without supervision or accountability. If one considers the period 2007-2010 just as an example, it becomes obvious that "the Fed" does its own thing regardless of who is in power and regardless of the will of the American people.
 
 
+47 # Sally Blakemore 2011-08-29 17:23
When Obama ran on transparency and we all agreed, the first secret deal he made with the Pharmaceutical companies was to lock out the public option. This man is slicker than we think and bought to the spinal cord. He has duped us so many times and his eloquent speeches seduce us to forget his real actions like starting 3 new wars while taking the Nobel Peace Prize. He along with Bush, Cheney, Rumsfeld, Rice, Rove, Powell, Gonzales, Pearle should be tried for war crimes and crimes against humanity. There is not a two party system anymore, and Diebold voting machines have not been corrected since Daddy Bush. Get them all out of DC now.
 
 
+27 # mothra 2011-08-29 18:56
Aye! And neither has ES&S or Sequoia or central tabulation, modem security or procedures with auditable paper trail been solved. Effectively, there is no verifiable "vote" without those.
 
 
0 # mistymi 2011-09-06 06:33
This is NOT about Obama, but so many racists attempt to turn every article into an excuse to blast him, it IS making us look like a bunch of racists.
Get over it! He is black and he is president AND he is NO WORSE than what we have had in the past.
 
 
+52 # wwway 2011-08-29 17:25
God love Bernie Sanders. I wish the guy could live forever and have the energy and knowledge and committment to American values that he does. You know that Republicans have fought Dodd/Frank tooth and nail so I'm surprised this provision of it made it this far.
We had another baking crisis at the beginning of the last century bought about by the arrogance and wishful thinking of 4 bankers and a gold standard that could no longer meet the every growing ever changing needs of financial construction.
 
 
+60 # DLT888 2011-08-29 17:27
Makes me bang my head against the wall hearing stupid Repukicans demonize the word "Socialism" when they have no problem with it when it comes to themselves and these d*mn criminal bail-outs also known as corporate WELFARE. Few words describe them more accurately than the word HYPOCRITE.
 
 
+23 # TrueAmericanPatriot 2011-08-29 19:33
Quoting DLT888:
Makes me bang my head against the wall hearing stupid Repukicans demonize the word "Socialism" when they have no problem with it when it comes to themselves and these d*mn criminal bail-outs also known as corporate WELFARE. Few words describe them more accurately than the word HYPOCRITE.

With the repugs and blue-dog dems, "socialism" is a GOOD THING when THEY ARE the SOLE BENEFACTORS.
 
 
+25 # Peter Vokos 2011-08-29 17:43
The first question that comes to mind,does the Fed have the autonomy to make these loans. If they do then the biggest transgression is not making their actions public. No transparency.
 
 
0 # mistymi 2011-09-06 06:35
I suppose they have the authority. They are a PRIVATE corporation that we pay for.
 
 
+13 # USA2012??? 2011-08-29 17:45
Clearly we have crooks operating against the good will and general citizenry of the United States. If Perry, Palin, Bachmann, and anyone else wants to rein in the Federal Government's business practices start where it's needed most; WALL STREET YOU BUNCH DOUBLE TALKING FOOLS!
 
 
+20 # tedrey 2011-08-29 17:47
The report, with unintentional but deadly accuracy, states that the money was used "to avert failures of individual institutions believed to be a threat to the stability of the financial system."

Read that twice. They sure are!
 
 
+45 # ataraxia 2011-08-29 18:22
"The Federal Reserve", "The Federal Reserve of New York" - these are artificial entities that exist as a piece of paper (or data) in a file. As a file, they do nothing, fully incapable of any act - only the people empowered to act as these entities are able to do anything. I am always amazed that people discuss these entities as if they are real and almost never speak the names of the people that hide their actions behind the artificial front. I would like to know the names of the people that made these loans to European banks and decided on the 'winners and losers' of the great economic disaster created by out-of-control financial institutions and completely co-opted, co-conspirator regulators.
 
 
+5 # soularddave 2011-08-29 21:38
Quoting ataraxia:
and decided on the 'winners and losers'


Ah, yes. The infamous "death Panel".
 
 
+5 # banichi 2011-08-30 13:33
ataraxia, you hit a crucial point:

"I would like to know the names of the people that made these loans to European banks and decided on the 'winners and losers' of the great economic disaster created by out-of-control financial institutions and completely co-opted, co-conspirator regulators."

Yes, I would like to know too - but the very wall of obscurity that has been used to befuddle us and prevent the assignment of responsibility to those who signed off on the decisions, will be anonymous and unreachable, that wall will be used to prevent any identification until many other holes get punched in it. But it is not really hard to tell some of them; Timothy Geithner for one, since he was head of the New York Fed when the secret loans started pouring out through that institution. Bernanke, of course. They are the front men.
 
 
+29 # Thalia S 2011-08-29 18:28
"The report notes that all the short-term, emergency loans were repaid, or are expected to be repaid." If this is true, why can't the money be used now to stimulate the economy - infrastructure projects, homeowners bailout, SBA loans? Maybe we could finally create some jobs instead of just paying the mortgage on some insurance company executives gazzilenth vacation home.
 
 
+57 # angelfish 2011-08-29 18:32
Bernie Sanders should be declared a National Treasure and made the head of the Watch-Dog agency set up by Elizabeth warren! Americans NEED Senators who will FIGHT for Americans, NOT just the Rich! God Bless you, Bernie! You are America's Hero!
 
 
+12 # seeuingoa 2011-08-30 02:07
Bernie Sanders and Elizabeth Warren.

Someone, somewhere, somehow.

Please get these two wonderful human beings together running as independent.

Thousands of people will follow them
and after 17th September Wall Street, and
6th October Freedom Plaza, it will be
millions and millions.
 
 
+43 # billy bob 2011-08-29 18:41
Imagine what just a few trillion of those dollars could have done if it was given to people who actually needed it.
 
 
+34 # RSNRaven 2011-08-29 18:45
Sanders errs in assuming the so-called "Fed" is an agency of the government. It is, in fact, a collection of private corporate banks who've maintained the illusion of participation with and subservience to the Nation. There are no rules by which this criminal organism operates except that of enrichment of itself and it's corporate beneficiaries.
 
 
+8 # Martintfre 2011-08-30 02:11
The Fed is a child of CONgress - it would take an act of congress to end it or to audit it.

Both are Suggestions Ron Paul has been pushing for decades.
 
 
+30 # JanisL 2011-08-29 18:49
Goes to reveal that socialism, that profound EVIL, is fine and dandy if it's for BILLIONAIRES! Damnable hypocrites--sto p this exclusive club IN SECRET for the rich banksters!!
 
 
+14 # John Hoaglund 2011-08-29 18:53
This will charge up Ron Paul's campaign, maybe even to the point where he takes the Republican nomination.

Having read Griffin's "Creature from Jekyll Isand", it wouldn't be a bad thing to eliminate the banking cartel (i.e. Fed) EXCEPT for the fact that what the government gets out its marriage to the banking cartel is the ability to borrow (spend beyond its means, i.e. its tax-based budget), even if (or especially because) that money is created out of thin air. If we truly want a country that limits its spending to a balanced budget, we will have to allow major increases in taxes. Otherwise Grover Norquist will achieve his goal of drowning the government in the bathtub. And for the Republicans/Lib ertarians among us who wouldn't care, except for defense, this would include major cuts to the military.
That's the problem you (militarists) inherit when you sit on 2/3 of the discretionary budget. Current Pentagon cuts are already creating major layoffs from the defense contractors here (LA region), adding to California's existing economic / budget woes.
 
 
0 # truthbug 2011-08-30 08:01
[quote name="John Hoaglund"] EXCEPT for the fact that what the government gets out its marriage to the banking cartel is the ability to borrow (spend beyond its means, i.e. its tax-based budget), even if (or especially because) that money is created out of thin air.

John, you make some very good points. Are you suggesting that, without the Fed, there can be no other mechanism by which the government could print money out of thin air? I think not, though I'm not an expert.
 
 
+1 # John Hoaglund 2011-08-30 11:07
Quote:
Are you suggesting that, without the Fed, there can be no other mechanism by which the government could print money out of thin air? I think not, though I'm not an expert.
I'm certainly not an expert either. I suppose we could just create the money and stick it in the US Treasury instead of the Fed, but the effect would be the same: a currency declared by fiat to be worth what the government decides that day by dumping its arbitrary amount into the system, with corresponding inflation that, as duly noted in other comments, is a tax on the poor. The other problem is that the banks wouldn't have much money to lend, even though they currently only have to keep ~10% of their deposits (including government "fed" deposits) in "reserve."

It's a crazy system, but my whole point in commenting is to ask, "How do you dismantle it without it exploding in your face?" You need to somehow replace government revenues [taxes/spending in balance?] and get those revenues into the capitalist system [where do you put the money you spent for an F35 so that Lockheed can borrow it to build it?
A national bank? ]
 
 
+3 # John Hoaglund 2011-08-30 15:38
An aside, apparently Kennedy wanted to do just that, replace the Fed with the US Treasury. Since 1913, our bank notes have been "Federal Reserve Notes" except some United States Notes in 1963. A friend of mine collects coins / notes and has one of the rare 1963 US Treasury notes. Kennedy was trying to end the Federal Reserve, and my friend is convinced it was why Kennedy was assassinated (Federal Reserve conspiracy theories are rather abundant, but the veracity of the existence of the notes is discussed here: http://www.john-f-kennedy.net/thefederalreserve.htm ).
 
 
+17 # reiverpacific 2011-08-29 19:26
Please note that many of these (especially) overseas banks sponsor and lend their names to PGA and European Tour golf tournaments and other big events. I'm from Scotland and love golf by the way -but not in this corporate context where they slap themselves on their heavily-blazere d backs about what they give to charity! -Yet can't loan to the riff-raff nor forgive, in these times when it is becoming more and more common, the bad credit which they helped to make fact for many of us, especially in small business, not to mention their backing of the three national credit-rating agencies which are privately-owned , just as corrupt, error-ridden, incompetent, uncaring and beholden to their masters in banking.
And they love "Finance and overdraft" charges.
Is anybody else becoming weary and leaden-footed at both hearing about, and trying to deal with, this bail-out fact of our current political and economic lives, and the seeming futility of what to do about it. I can't even imagine a Billion, never mind a Trillion; it becomes meaningless.
I'm gettin' too old for this shit and would like to see a gleam of hope in this great morass of greed, cronyism, bought-and-paid for government at all levels, jingoism, militarism, mean-spiritedne ss and false Messiahs but for the life of me, I can't.
 
 
+11 # TrueAmericanPatriot 2011-08-29 19:30
Corporate Welfare has been a LEECH to our economy for DECADES. It did not take a Fed Audit to uncover that. The other problem is our "no limit" line of credit given to the military for the last 30 plus years. And these LYING DOGS have the NERVE to blame the middle and working class people's so-called "selfishness" for this nation's financial ruin? The term, "OTHER PEOPLE'S MONEY," is a coined phrase that's most popular and used mostly by CORPORATE WELFARE RECIPIENTS!!! The funneling of funds by the Federal Reserve comes as NO SURPRISE to me.
 
 
+23 # Bob-Investigates 2011-08-29 19:32
BOTTOM LINE: Rich get ever richer, Poor get ever more poor AND the Middle-class is going into the dumper! WAKE UP! Start boycotting Chase and B of A. Start boycotting BP and Wal-Mart---VOTE WITH YOUR MONEY! Imagine if EVERYONE stopped going to Wal-Mart for a month! Imagine if everyone stopped buying anything BP! Europeans boycott and have national strikes. The U.S. Middle-class had better wake up, wise-up FAST AND ORGANIZE or it will be BYE BYE Middle-class and Hello 1900.
 
 
+6 # maybeNotsoCommon 2011-08-29 23:30
...and when we organize, we should have more than slogans, but also some right and innovative (if not to say Revolutionary) answers.

Thinking men (not just propagandists) have been examining this issue [the problem with Banksters running the show] for a long time- prob. most notably in the 1930s, when the symptoms were eerily similar to today's. Yale University's 'Post-Keynesian ' Prof. Irving Fisher perhaps sumized the problems of Banksters best in 1936: 'Nationalize the monetary system; not the banks'.

A country/governm ent not in charge of its own currency is neither 'sovereign' nor 'democratic' in any pure or meaningful definition of those words.
 
 
-2 # NanFan 2011-08-30 03:48
Quoting maybeNotsoCommon:
...and when we organize, we should have more than slogans, but also some right and innovative (if not to say Revolutionary) answers.

Thinking men (not just propagandists) have been examining this issue [the problem with Banksters running the show] for a long time- prob. most notably in the 1930s, when the symptoms were eerily similar to today's. Yale University's 'Post-Keynesian' Prof. Irving Fisher perhaps sumized the problems of Banksters best in 1936: 'Nationalize the monetary system; not the banks'.

A country/government not in charge of its own currency is neither 'sovereign' nor 'democratic' in any pure or meaningful definition of those words.


www.zeitgeistmovie.com - Part III of the 2007 Zeigeist: The Movie.

Watch it! Prepare by becoming aware.

N.
 
 
+1 # raggs 2011-09-03 00:35
very true. unfortunately it's also true that it's all about getting the numbers. no mass movement such as this will get aired by the MSM and western govts are busy trying to find ways to restrict it happening through social networks too.
 
 
0 # mistymi 2011-09-06 06:46
I am in total agreement here!
 
 
+20 # amye 2011-08-29 19:55
Great! We apparently continue to have plenty of money for the banks, but nothing for our economy, jobs, or the poor, sick and elderly! What a wonderful country we live in!
 
 
0 # Larry H 2011-08-30 16:04
I suggest the problem is not the lack of banks lending readily available money from the banking system, but rather the lack of clear purpose for the use of those funds so that they can be paid back without loss to bank's shareholders while maintaining required reserves. In addition, the laws controlling business are not helping: Take the import tax on steel produced in another country coming into the USA. The import duty tax on this increases cost roughly 45% but that same steel can be imported into another country, have an altering of its appearance/func tionality by foreign labor then imported into the USA void of this tax. That little tax burden is costing the US many, many jobs. We must cmpete globally.... Could over control of business be the problem?
 
 
+22 # wordweaver pj 2011-08-29 20:22
BERNIE SANDERS FOR PRESIDENT!!!! SOMEONE WE ALL HUMAN (rather than corporate) CITIZENS CAN GET BEHIND! With 85% of the populace disapproving of Congress and the Prez these days, who needs an official third party? VOTE FOR BERNIE, THE HUMAN CITIZENS' FRIEND!!!! :)
 
 
+1 # CommonSense 2011-08-29 22:20
He deserves it, unlike the posers and prima donas- but does Sanders have the energy?
 
 
+3 # conniejo 2011-08-30 08:24
In the Wisconsin recall elections, the Republicans ran "fake Democrats" to force a primary election. So, even though Bernie Sanders is an independent, we could run a write-in campaign during the primaries with Bernie Sanders and Elizabeth Warren as the Democratic ticket challenging Obama. I urge everyone who is fed up with politicians (the vast majority of them) who vote with corporate interests rather than the interests of 70% of the people in this country to write in Bernie Sanders and Elizabeth Warren in the next primary election rather than voting for Obama. Write-in votes are not wasted during a primary, given that Obama is the presumptive nominee, and if he gets the nomination, we'll have to hold our noses and vote for him over the likes of Rick Perry or Michelle Bachman, because they would be even worse. But if we can defeat Obama in the primary, we will have real populist candidates to challenge the ruling corporatocracy.
 
 
+3 # chick 2011-08-29 21:13
First of all I just learned there are 12 banks in all called the Federal Reserve. and then you have 12 Presidents in each one.

the one in New York, Will Dudly (not sure of spelling of his last name) was a former VP for Morgan Stanly and director of Goldman Sachs.

the ne in Philadelphia Charles Plossser served as consultant to Chase bank and one other.

Atlanta President Dennis Lockhart, was on the board for Citifbank, oil companies and other corporations.

the other nine where pretty clean.
But why so many Presidents. they could have one and the other banks Directors or vice pres.
 
 
+9 # Hot Doggie 2011-08-29 21:15
This is what happens when the gov't doesn't reign in the corporations, especially the banks. The banks have had the power to destroy any country who deals with them. And those countries who don't deal with the banks, like Lybia, are destroyed by the countries who do deal eith the banks. What kind of freedom is that? The banks are ruling America. America is not free. America is conquered. America is not independent. When are we going to kick the banks out? Iceland should be our model country. Why are we at war with other countries when we should be at odds and against the banks? The banks are provoking unrest. They are the oppressors.
 
 
+10 # Metcalf 2011-08-29 21:19
Remember the old anti-trust term "interlocking directorate," which was when two companies had too many board members in common? What we have here is an interlocking directorate of mammoth portions. We have a limited group of the obscenely rich who control the major financial institutions AS WELL AS the governmental apparatus that is supposed to oversee those institutions. From time to time they rotate the positions among themselves but the money and the control always stays within the directorate. It won't get better until this system is broken up.
 
 
+7 # angelfish 2011-08-29 23:00
If the FED had given EVERY American Tax Payer $500.000.00 (to be paid back at the same kind of interest they gave the Banks) people would have paid down/off mortgages, paid down/off credit card debt, bought cars and other needful items for their households, not to mention food, clothing etc. The economy would be BOOMING and the Banks, Sleaze-Bags that they are, wouldn't have had to get all that "under the table" money from the FED. Money, I might add, that they REFUSE to lend to people unless they can charge USURIOUS rates and negate any good it might do! It would have cost the Fed less than throwing it at the Banks and our Economy would be up and running again. I wonder why they DON'T want Economic Recovery???
 
 
+4 # DUKETYPE 2011-08-29 23:49
Citizens Bank (the “citizens” of Tsarist Russia, no doubt) regularly rips off their customers to the tune of millions of dollars in overdraft fees, along with any other fees they can think up to squeeze out of us, yet they took billions in undisclosed bailout money. Why was it undisclosed? Who was watching the Fed while all this was going on? Citizens’ parent bank, the Royal Bank of Scotland, took trillions from the UK—the largest bank bailout in the world!

If Obama can’t—or won’t—stop the banks and Wall Street from stealing what little money any of us have left, we should elect Bernie Sanders in 2012.

On whose side does Obama stand? To whom does he owe his allegiance: to us or to the fugging bankers and goddam Wall Street?
 
 
+2 # Martintfre 2011-08-30 02:00
END THE FED!

Paper money always returns to its intrinsic value... nothing.
Voltaire

The FED is anti capitalism - bail outs do not exist in capitalism, larry the liquidator does.

The FED is communism, 5th plank from communist manifesto to be precise.

Inflation is a tax that hurts the poor and helps those who get the free money first.
 
 
-2 # Martintfre 2011-08-30 02:07
If the FED gave me a trillion dollar loan - and I welched on the deal - what would be their loss?..

wait for it ..
wait ..


Nothing. Their loss would be nothing.

You never mind the extra inflation because I will live like a king!

I am going to create the Tom Bank - I start it out by writing a trillion dollar check to my self (tom dollars) deposit and now I am fully (fooly) funded.
Any one want a loan? ... Oh when you pay back I only accept gold or silver at 100 tom dollars per oz of silver or 1000 tom dollars per oz of gold.
 
 
+1 # hkatzman 2011-08-30 02:10
"2.5 trillion dollars, .. two trillion; .. 1.9 trillion; .. 1.3 trillion.."

Where did all this money come from? In an age of austerity? Schools? healthcare? That we can't afford.

"and purchased risky mortgage-backed securities to get them off private banks' books."

What a deal! Nationalize the debt, privatize the assets.

This was supposed to stabilize the financial system. I suppose from the bank's perspective this was successful. But are the rest of us also not part of the economy? And with all the foreclosures, I don't suppose that our economy is stabilized.
 
 
0 # mistymi 2011-09-06 06:56
[quote name="hkatzman" ]"Where did all this money come from? In an age of austerity? Schools? healthcare? That we can't afford.

"and purchased risky mortgage-backed securities to get them off private banks' books."

What a deal! Nationalize the debt, privatize the assets.

That is what happened. We the people are screwed! We have huge liability and no assets. I need a way out of this crap.
 
 
0 # Charlie Peters 2011-08-30 02:11
Audit the fed, support HR 459 Paul
 
 
0 # Tee 2011-08-30 04:49
The feds print worthless currency to enrich the already super rich, resultihg in the government getting in debt, then the rich who have most of the don't want to pay any taxes, to top it off the middle class and poor are expected to pay the taxes and take the majority of spending cuts.

This scenario works very well because the rich have bought off our politicians who pass law shielding the rich from any kind of accountability.
 
 
+3 # Hot Doggie 2011-08-30 07:05
Just remember, Ron Paul took a position against banks early on. Paul wanted to audit the banks long before any other candidate got on the band wagon when it became politically fashionable. Ron Paul is the one who genuinely wants to clean up the banksing system.

We can help by taking action to re-establish the Glass-Stegal (sp?) Act. This would put the burden of paying for the dirivatives on the backs of the banks only and not on we the people. Then let's get rid of naked short selling. These would be good for openers.
 
 
+2 # drush 2011-08-30 07:55
It is difficult to come to terms with the magnitude of this revelation. This is greater than the GDP of the entire country.
It is like giving every man woman and child in the US (including non citizens ) about $45,000 or every house hold about $180,000,000. We of course don't see any of this money. But what was it used for. It is so much that the few that "handled" it could have skimmed off billions for themselves and then paid it bock with the fees etc paid by us at banks paying the difference.
We need to find out what the cash was used for. No matter it was supposedly paid back.
We need to start making sense of our times.
This is it for US.
 
 
+5 # Alicia Price 2011-08-30 08:16
Since when is the Federal Reserve an "agency of the Federal Government"? It's always been a private bank with strong European connections.
 
 
+2 # Dan Koon 2011-08-30 11:59
The Fed's charter is up for renewal in 2013. If it is not renewed by Congress, the Federal Reserve will cease to exist. Spread the word and save the world.
 
 
+3 # boudreaux 2011-08-30 12:58
Looks to me like they could have balanced the budget with all of the money it has loaned out to other corperations and banks. They don't have a shred of deceny in them to use us like we are pawns...I feel like screaming at the top of my lungs, why are we having to go thru all the shit that we go thru with the government wanting to take so much away from us when this kind of shit goes on like having breakfast everyday....The re is no accountability anywhere in Washington, no one give a shit about us, it's all about helping the filthy rich get richer and screw the poor person trying to scrape by......I'm so sick of all of them in Washington....A ll of them, no one party...all of them.
 
 
+1 # Marvin H. Gladstone 2011-08-30 13:41
"Oh, the banks are made of marble,
with a guard at every door;
and their vaults are stuffed with silver,
that the people struggled for!"

(Depression-era fok song)
 
 
+3 # Sewall-Mueller 2011-08-30 16:25
Politics is ruining my good nature. I could stop reading all the horrible things that are happening but I like to know what's going on. I'm angry because powerlessness is my dilemma. I'm 77 yrs old and have NEVER seen such corruption, in- fighting, name calling etc, in Congress.
 
 
-1 # karin b. 2011-08-30 17:17
What the american people all need to do now is every person from every state go to the white house and demand that these idiot blood sucking republicans and big companies,wall street, and all the rest of the rich assholes to step down. can you imagine over a million people in the washington DC area,and block every road in and out,they are now calling obama a lame duck president,he dont even have the BALLS TO FIGHT FOR HIS PEOPLE!,THE AMERICAN PEOPLE i know you wont print this,you wont have the balls either. AND I AM AN AMERICAN WHO VOTED FOR THIS PRESIDENT,I thought we really had a good one this time,but sadley i was mistaken by the looks of it,have you forgotten obama slavery went out along time ago or did it???????
 
 
+1 # Hot Doggie 2011-08-30 21:54
Again, for openers.....

Pass the Glass-Steagal Act.
Pass the no naked short selling.

The people have to do this because the politicians won't. Use the Initiative Process (petition).
 
 
+1 # redjelly39 2011-08-31 00:52
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." Woodrow Wilson

Thomas Jefferson has this to say about the central bank. A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army... We must not let our rulers load us with perpetual debt.

"Give me control of a nation's money and I care not who makes the laws." Mayer Amschel Rothschild/Bank er
 
 
0 # Charles3000 2011-08-31 05:15
The Fed is close to 100 years old, the nominal lifetime of a USA monetary system. It is time to change it. The excuse for printing money and giving it to banks was established when the Fed was created by Congress. The then new Fed took all the gold banks owned and stored it, printing notes against that gold. But gold backing has ended. It is time for the government to give the gold back to the banks and start a new monetary system where the government issues all new money into the economic system, not just 8% as they currently do with privately owned, for profit corporations (banks) issuing 92 %. The government should print money and spend it or lend it at interest, not give it away to banks. Banks should be allowed to operate with what ever fractional reserve they wish and fail when they experience a run and the Government should provide safe banking for all citizens. We would have zero national debt then. The last time the US Central bank was closed by the government in the 1830s the debt went to zero. It can be done again.
 
 
+1 # dkonstruction 2011-08-31 12:52
the other outrage to understand in all of this is that alot of these virtually 0% interest loans to the banks was then used by them to buy US debt i.e., Treasuries which means that alot of the "bailout" monies were a "gift" to the banks who in turn used this gift to "invest" in US debt and make even more money off of the US taxpayer that ultimately foots the bill. There is a growing movement to create truly publicly owned financial institutions (7 or 8 states if i'm remembering correctly) are in some state of considering legislation to create public state banks along the lines of the state bank of North Dakota (which because it has it's own state bank can borrow from itself and completely avoid having to go to the bond markets and wall street invstement banks). While it ain't the whole revolution, creating truly public financial institutions would in many ways be a game changer (of course we know that "publicly" owned still means the state and so this would not be the end of the game but only the beginning of the next quarter and we will then still have to battle over how these public funds should be invested but i still think this would be a huge step forward.
 
 
0 # peluche 2011-09-02 06:55
This gooes to show that the motto of the banks and the priveledged is and always has been: All for one(self) and (n)one for all(others)!!! When will they ever learn, probably when they end up out on the street like the rest of us, but I'm not going to hold my breath.
 
 
+1 # rsb1 2011-09-03 06:01
There is nothing "Federal" about the federal Reserve Bank. It is a PRIVATE institution. It's main interest is to make profits for it's shareholders - most of whom are foreign. Maybe the question that should be asked is: "How much of the trillions 'sent out' went to associated central banks and/or institutions with similarities of ownership ?". The Federal Reserve Bank is the 'crown jewel' of the Central Banking "EMPIRE" and it's ability to print and distribute unlimited amounts of global reserve currency without oversight, is a 'Banker's Dream' - do you think they'll ever have a cash-flow problem ? NOT !! The American people via their 'representative government' (whose allegiance has been 'purchased' by the owners of the Federal Reserve Bank or their 'minions') have allowed this to happen - YOU HAVE BEEN 'POLITICALLY CORRECTED' DOWN THE DRAIN. The time to take 'corrective action' is NOW.
 

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