Fed Audit = $ 16 T In Bailouts / 0 % Loans

[2ADMNLOVER]

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


Wow , waddya say to something like that ?

Nope , Americans don't need any of that money so we'll just give/ loan it to European countries instead at 0 % interest .

Why wouldn't the guberment tell any of us (you , me ,tax payers , us) that we're lending the EU this money ?

Lame stream carrying this story or have I managed to miss it ?

 

[Lex Concord]

It went largely unnoticed, barring a few blog posts and threads on here, back in July 2011 when it first came out.

http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

 

[lucky4034]

scary

 

[Denny347]

Sadly, both parties are guilty. I don't see either party actually doing something about it.

 

[phylodog]

So if I understand how the FedRes works, we (the taxpayers) are paying interest on this money that the FedRes created out of thin air then loaned to other countries at 0% interest? If this is the case then we are paying interest on other countries debts and they are included in our "debt" to the FedRes.

 

[ATOMonkey]

So if I understand how the FedRes works, we (the taxpayers) are paying interest on this money that the FedRes created out of thin air then loaned to other countries at 0% interest? If this is the case then we are paying interest on other countries debts and they are included in our "debt" to the FedRes.

We only pay interest on the money that the US government creates, through the sale of securities (usually back to the Fed Res), such as bonds, T-bills, etc.

The Fed Res can "print," loan, whatever, as much currency as they like through bank reserves, or fractional lending.

We pay "interest" through inflation even on 0% fractional lending.

As far as that goes, all banks "print" money through fractional lending, and even companies, like a car dealership with its own credit arm, are essentially creating currency.

 

[phylodog]

I thought the US Gov't asked to borrow money from the FedRes when more currency was needed. The FedRes would then print it out of thin air and "loan" it to the Gov't and begin charging interest. Perhaps my understanding is incorrect.

 

[IndyDave1776]

I thought the US Gov't asked to borrow money from the FedRes when more currency was needed. The FedRes would then print it out of thin air and "loan" it to the Gov't and begin charging interest. Perhaps my understanding is incorrect.

I would not think you are mistaken. The problem is that these people operate under a shroud of secrecy that is nearly impenetrable.

EDIT: I should have continued to point out that in your profession you deal with criminals regularly and most do not limit themselves to one specific method of one specific crime. Likewise crooked bankers certainly have more than one trick up their sleeves.

 

[Archaic_Entity]

We only pay interest on the money that the US government creates, through the sale of securities (usually back to the Fed Res), such as bonds, T-bills, etc.

The Fed Res can "print," loan, whatever, as much currency as they like through bank reserves, or fractional lending.

We pay "interest" through inflation even on 0% fractional lending.

As far as that goes, all banks "print" money through fractional lending, and even companies, like a car dealership with its own credit arm, are essentially creating currency.

To expound on this a bit more, fractional lending pretty much works like this:

When you put money into an account at the bank, they hold it. But they only have to use a certain, guaranteed percentage at the bank, sat 10%. So... when you put $1000 into a bank, they must have at least $100 of it ready for your immediate disposal (although this is rarely an issue, unless in the case of a bank run). The other 90% they can lend out and use as they please. So... they loan out $900 to one person, who promptly puts it into their account. So they have to hold at least $90 for that person to use at any time.

Effectively, they've just created an additional $900 from thin air.

And that's how we get screwed.

 

[ATOMonkey]

I thought the US Gov't asked to borrow money from the FedRes when more currency was needed. The FedRes would then print it out of thin air and "loan" it to the Gov't and begin charging interest. Perhaps my understanding is incorrect.

Before the Federal Reserve, that's how we made more currency, by selling bonds.

The Treasury, can sell bonds to anyone to generate revenue (currency) to cover shortfalls in the budget.

If they sell to the Federal Reserve, that is called debt monitization, because we basically sold our debt to a bank that we control and guarantee.

The Federal Reserve, can act like any other bank by creating their own credit, and lend fractionally, or create bank reserve notes. They can charge zero interest against on these debts if they like. Why is another matter. Typically its because they're lining their own pockets, but that's another story. The short of it, is that the Federal Reserve owns soverign debt from other countries. So, if they want their assets to look better, they'll float a zero percent loan to the country that owes them money.

The trick is that they typically lend against assets, like US bonds, T-bills, and other securities.

Now, the Fed doesn't have to do that. Since they have authority to create currency, they don't need assets in order to make loans.

Which is one of the things this audit is all about.

Not like it makes much of a difference in the long run. What are we going to do, just disappear trillions of dollars? That's going to **** off a lot of people.

To compound the problem, other countries will create their currency through fractional debt, based on US or Federal Reserve debt.

For instance. Greece might create money against the US currency that they own, at a fractional rate. So, if they own a $10 US bond, they might issue $100 of Greek money against that bond, or Reserve Note.

And then the greek banks will lend fractionally agianst the Greek currency they have in their accounts.

And so on and so forth into oblivion.

 

[ATOMonkey]

Our currency has worth, based on our ability to service our debt. As long as we keep making payment on our bonds, our currency will still have value.

The trouble is that our bond payments are going to eclipse our defense spending next year.

If rates go up to only 5% (5x - 10x the current rate), bond payments will double our entire US budget. That would screw us, because we'd be unable to service that debt and we would begin to default on payments and the value of our money would go down the pooper.

 

[rambone]

This really should be getting more discussion time.

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)



Federal Reserve Audit Bill Overwhelmingly Passes The House

GAO Fed Investigation

 

[rambone]

 

[phylodog]

This really should be getting more discussion time.

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)



Federal Reserve Audit Bill Overwhelmingly Passes The House

GAO Fed Investigation

What do those numbers represent? Bailout money? Money those banks were allowed to create out of thin air?

 

[rambone]

What do those numbers represent? Bailout money? Money those banks were allowed to create out of thin air?

I believe they are bailouts created by the Fed out of thin air.

The list comes from page 131 of the GAO Audit.

 

[IndyDave1776]

What do those numbers represent? Bailout money? Money those banks were allowed to create out of thin air?

You are leading right into the opacity problem. In an ostensibly free society, we are host to a banking system whose opacity is unsurpassed by any in the world with the possible exception of that of the Vatican.

 

[phylodog]

I believe they are bailouts created by the Fed out of thin air.

The list comes from page 131 of the GAO Audit.

Unbelievable. All of that money given to big business from Dec 1, 2007 to July 21, 2010. I'm so confused. I thought Democrats were the friend of the little guy and Republicans were the one's being ruled by corporations. Did G.W.B. hand out all that money in the last few minutes of his term or have I been misled to believe that the Dem's aren't in bed with corporate America?

 

[John Galt]

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.” Henry Ford, founder of the Ford Motor Company.

Famous Quotations on Banking

People in cages outside the Wall Street banks would go a long way towards ending the plunder ...

 

[rambone]

Unbelievable. All of that money given to big business from Dec 1, 2007 to July 21, 2010. I'm so confused. I thought Democrats were the friend of the little guy and Republicans were the one's being ruled by corporations. Did G.W.B. hand out all that money in the last few minutes of his term or have I been misled to believe that the Dem's aren't in bed with corporate America?

I certainly believe that both parties are in bed with them.

 

[phylodog]

I certainly believe that both parties are in bed with them.

These numbers would more than confirm that belief.