A story out from Bloomberg yesterday, which you can read here, helps to shed some light on the behind the scenes theft ring, otherwise known as the Federal Reserve, and the role it played in assisting banks worldwide earn billions in profits during the recession at the expense of the U.S. taxpayer.
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.
According to this report, the Federal Reserve had committed $7.77 trillion to rescuing the financial system as of March 2009. It’s actually much, much worse. According to this GAO (Government Accountability Office) report issued in July of this year at the request of Senator Bernie Sanders of Vermont, the Federal Reserve was tapped out for $16.115 trillion by July 21, 2010. Check out Table 8 on page 131 of the report to see for yourself. Keep in mind, all of these loans were only to go to ‘healthy’ banks. Also be aware that included are Central Banks from around the globe.
So our Federal Reserve had extended credit worldwide completely exceeding our entire GDP (Gross Domestic Product), which for 2010 was estimated to be $14.66 trillion. This isn’t what you were told when TARP was passed under Bush. That’s why the banking cartel is a theft ring, with the Federal Reserve as the ringleader. You the taxpayer assume all the risk. Bankers worldwide enjoy billions upon billions of profits at your expense. You’re lied to on a continuous basis as banks advertised as healthy were way over-extended with toxic assets and required the hush money bailouts from the Fed which they then turned into billions in profit.
And the beat goes on. With the Dodd-Frank reform bill and Obama at the helm, we have seen the damage incurred under Bush magnified and expanded. Yet the vast majority of Americans will simply shrug this off. So what they’ll say, they didn’t raid any money out of my bank account. The banks didn’t collapse. Why should I care?
If the banksters making billions in profits off your back doesn’t tick you off, perhaps you should consider moral hazard, which is covered in the Bloomberg story. Maybe the trillions in derivatives exposure that Bank of America moved into its depository arm to qualify for FDIC protection will. If you’re an OWS activist, surely you are outraged at the CEO pay. Yet, you’re not protesting the Federal Reserve or the politicians that crafted the legislation that allows this legalized theft ring to plunder taxpayers wealth. Instead, you protest a $5 debit card fee.
In all of this mess, we still haven’t seen the books. Only what the Federal Reserve has spoon fed us. That’s why we need what Ron Paul has called for, a full audit of the Federal Reserve. Not just what they want us to see as if that wasn’t bad enough. The talk is that politicians may have reconsidered their TARP or Dodd-Frank votes if they had seen this new information. I’ll bet if we saw a complete full audit of the Federal Reserve, the American people may actually start to wake up to the fact that their wealth is being stolen away right under their noses.