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Why Won't the Federal Reserve Say Who They Gave $2 Trillion To?

Posted by Ian Welsh, Firedoglake at 5:06 AM on November 11, 2008.


The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans.
bernanke.thumbnail
What is this man hiding?

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Apparently Bernanke, that wonderful bipartisan soul who is so competent and wonderful that everyone in the village thinks Obama should leave him in charge is refusing to identify who got almost 2 trillion dollars of Fed cash. Bloomberg News is suing to find out. Personally I really, really, really want to know. What exactly is Bernanke hiding? Who got the money he doesn't want us to know got the money?

This is money that was loaned in exchange for "collateral", by which we mean "trash no one else but the Fed would buy for anything but cents on the dollar." Barney Frank, embarrassing himself yet again, claims the Fed should keep its clap shut because if people know how bad it is, well, there might be a run. I think Barney's missing the point, as long as people don't know how bad it is, they won't trust anyone who might be borrowing large amounts of money from the Fed with crap collateral, because they don't know how bad it is and they suspect it's really really really bad. As in 10 cents on the dollar bad.

More to the point, that 2 trillion is taxpayer money, and taxpayers have a right to know what sweetheart deals Bernanke's been giving out, and who's been getting what. This whole "this information is too scary for citizens to know" schtick is so Bush regime. I thought we were moving into a new era of openness? Perhaps Barney should get with the program?

As for Bernanke, this is yet another reason why Bernanke, a central banker so incompetent he lost complete control of LIBOR, his most basic job, should lose his position. Sure, his mandate runs for another year, but if Obama asks him to step down, I can't imagine he wouldn't. The idea that a central bank that has screwed up as badly as the Fed has under both Greenspan and Bernanke is so much better off independent than with the public having some control is ridiculous and fundamentally anti-democratic. Central bank independence has just led to a huge financial bubble and economic collapse, while Bernanke and Greenspan both acted as if they were virtual dictators.

Bernanke needs to go, and either before or after he goes, the Fed needs to come clean about who it has given 2 trillion in loans to, and what the collateral is.


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Berneke and Paulson Areested for Embezzlement
Posted by: Purple Girl on Nov 11, 2008 5:24 AM   
Current rating: 5    [1 = poor; 5 = excellent]
If a CFO slipped some money out of the Corp Coffers..they'd be facing Charges.
Besides BOTH KNEW the economy was going to tank, and Did Nothing to Stop it.
That 2 1/2 page Ransom not Paulson had tucked away in his desk for 6 MONTHS should be evidence enough these two not only saw it coming, but intentionally did nothing to Stop it- Foresight and MALICE!
How many people have these Two devastated, now homeless, no job, indebt up to their necks. How many Counts of '1st Degree' Embezzlement is required before it is considered a High Crime against the State?
I don't want to see either of these two in the next admin...I want to see them behind bars for LIFE or their Feet dangling from the 'Yardarm'

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in broad daylight...
Posted by: semiconscious on Nov 11, 2008 5:38 AM   
Current rating: 5    [1 = poor; 5 = excellent]
what if your federal reserve gave away $2 trillion dollars, & refused to say where it went, & no one cared? - because, other than the bloomberg article, i'm finding nothing, anywhere, about this 'mother of all lootings'...

amazing...

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It's not the just the chairman, it's the bank itself
Posted by: ArthurTHimmelman on Nov 11, 2008 5:39 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Progressives must engage in a serious examination of the role of the Federal Reserve Bank in our economy and share share our findings in as many public and political forums as possible. One good source for such an examination is Ellen Hodgson Brown's Web of Debt which can be ordered at www.webofdebt.com.

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Spread the Power
Posted by: Direct Democracy on Nov 11, 2008 6:12 AM   
Current rating: 5    [1 = poor; 5 = excellent]
FREE AMERICA

REVOLUTIONARY (DIRECT) DEMOCRACY

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» RE: Spread the Power Posted by: EncinoM
didn't a couple of trillion go missing on 9/10...
Posted by: clvngodess on Nov 11, 2008 6:59 AM   
Current rating: 5    [1 = poor; 5 = excellent]
... right before the towers came crashing down? And no one found that money either?

Correct me if I'm wrong. But it is something I recall...

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inside job
Posted by: hurricane hugo on Nov 11, 2008 7:04 AM   
Current rating: 5    [1 = poor; 5 = excellent]
.

#@!

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Why can't Americans understand?
Posted by: ilsewdm on Nov 11, 2008 7:29 AM   
Current rating: 4    [1 = poor; 5 = excellent]
The Federal Reserve is NEITHER FEDERAL NOR A RESERVE. It's an independent entity that lends us (the government) the currency. They decided to take over banks (enriching themselves) by using money (which they print whenever necessary), but which WE HAVE TO REPAY, if the banks don't. It's an efficient way to take all the money we make and return it to those at the top, who ARE THE OWNERS OF OUR MONEY. As long as we allow our government to turn the power to make and distribute our money to a PRIVATE ENTITY, we will get into situations such as the current depression, which serves the super rich and keeps us in our "rightful place" -- SLAVES TO MONEY. Nice! Ignorance might be bliss, but it is also the downfall of America. At a minimum, watch "The Money Makers" and educate yourselves a little, so you can understand why the Federal Reserve does not have to tell us anything.

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Ranger1
Posted by: ranger1 on Nov 11, 2008 8:06 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The Corporatists in league with the
Bankers are stealing our inheritance, our rights and killing any movement toward social democracy and sustainability.
Revoke Corporate Personhood and allow only "natural" persons to have "rights".

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Hoodwinked
Posted by: maglindracia on Nov 11, 2008 8:26 AM   
Current rating: 5    [1 = poor; 5 = excellent]
...by government mandate. the Federal Reserve was supposed to be independent to keep it honest. Anyone else choking on the bitter tears?

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Federal Reserve is kept secret because what they are doing is wrong
Posted by: Pop on Nov 11, 2008 8:52 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Lets keep fooling ourselves and trust our government. Do we really think the people of the US are any more valuable to the regime than the people slaughtered in the Middle East?
How much do we know of the secret meetings concerning the One World Order. Only the greedy elite and their politicians we elect to office are invited to attend, while they are all sworn to secracy. The vast amount of government secrets are to keep the people in ignorance of criminal intent. The "People" never benifit from their governments secrets that are shared only with those that will make gains in power and wealth. The government holds information from us only because if they did release it they would be forced from office by the People they pretend to serve.

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THEY GAVE IT TO THEIR FRIENDS
Posted by: mindtrvlr on Nov 11, 2008 9:34 AM   
Current rating: 5    [1 = poor; 5 = excellent]
AND TO LOBBYIST, WHO THEN PAID THEM BACK IN THE SHADOWS OF OUR CORUPT GOVERNMENT. DUH.

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Just Ask The Boys At The Top
Posted by: QQOblivion on Nov 11, 2008 10:05 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Whereabouts of the multi-trillion?

A bank account or two in Paraguay?...

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This with the article sent to Congress
Posted by: hwmcadoo on Nov 11, 2008 10:16 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I sent this article to my Congressional representatives.

"I'm beginning to think we no longer live in a democracy: a government of the people, by the people and for the people. Democracy only works with an educated populace. Dictatorships work in the fashion described below. It's about time Congress stands for us, the citizens, the voters, the people!

The Constitution is not , "just a god damned piece of paper", as attributed to our President Bush, who, like Congress took an oath to uphold the Constitution.

I'm doing my duty, and the only thing I can do, by writing to my readers and to my Congress to share my disgust about the grand theft that is being perpetuated on the American people by the wealthy and powerful while the sleeping guard (CONGRESS) is oblivious, lazy or complicit in the felony.

It is way past time for Congress to take these problems seriously."

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Take a closer look at JP Morgan
Posted by: ReallyBearish on Nov 11, 2008 10:49 AM   
Current rating: 5    [1 = poor; 5 = excellent]
They've been "managing" prices through the futures market, keeping a cap on oil, gold, metals, etc. They've also been making a fortune doing it with the help of the Fed.

Problem? Mr. Market ultimately wins, even after JP Morgan destroys the alternative energy market, mining, etc. Prices shoot back up in a hyperinflationary spiral. They get rich and the public goes to the poor house. They also get to buy off the politicians so that there's nobody left to support the public. Do we all become serfs to JP Morgan?

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No more Federal Reserve Bank
Posted by: willymack on Nov 11, 2008 12:07 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Put a government (citizens) owned bank in its place with accessability to all and loan interest rates of abour 1%, or thereabouts, just enough to cover building maintainence and employee pay. No profit motive at all. The former employees can get into the unemployment line with everybody else.

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Follow the money!
Posted by: Cybershaman on Nov 11, 2008 12:44 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Oops! End run!
Maybe we needed to put an explosive dye pack in that bailout package.
I'm getting tired of watching even my most paranoid fantasies eclipsed by this treasonous cabal. They MUST be brought to justice or no justice will ever be possible again.

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No One should pay a dime of tax until these bastards come clean
Posted by: common intelligence on Nov 11, 2008 5:06 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Noone should feel scared or guilty or feel obliged to pay any tax when it's value is nill.

Any tax money a person pays is nothing more than an intimidation tactic. Because the "money" we are being asked to give does nothing.
Not good or bad. It does nothing.

Why should anyone in thier right mind take all that they give their lifes time and sweat earning and thorow it right out the window?

This isn't a tax revolt this is just plin common sense. I mean why would you work all week cash your check and just put the cash right down a meaningless drain.

Come on folks wake up. Game over!

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2 trillion?
Posted by: bwo on Nov 12, 2008 7:13 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
i thought it was for an already outrageous 700 billion- how did it get to 2 trillion??

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URGENT -- THE CRIME IS COMING UNRAVELLED
Posted by: GrannyBgood on Nov 12, 2008 7:28 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Here's an excerpt on this from Mike Ruppert's blogspot, From the Wilderness:

The following story is monumental and the days between now and January 20th are going to be non-stop action and, most likely, very bad news. The Treasury is refusing to disclose which institutions are getting taxpayer bailout money. Bloomberg has filed suit to find out. That speaks volumes for Bloomberg. Hank Paulson has completely violated his testimony before Congress when he sought approval of the package. Under oath he begged for the same transparency he himself is now refusing to provide. But bear in mind that most of the Treasury money that is being dispersed is NOT part of the congressional bailout package. There's more than two trillion in Treasury money forked over and the congressional bailout was only $750 billion. This has nothing to do with protecting asset prices or the industry. It has to do with obstructing justice and concealing evidence. If the mainstream media try to brush this over they will lose all credibility with Joe the Plumber and Joe Sixpack. The public will grasp this in a heartbeat. This is a crime being committed in broad daylight, in the middle of Main Street, in perfect weather.

http://www.bloomberg.com/apps/news?pid=
20601087&sid=aatlky_cH.tY&refer=worldwide

Now take it one step further and go back to FTW's last economic alert; the one I wrote and published 11 days before our computers were smashed in 2006. In our last-ever alert, I screamed that the collapse was planned, inevitable and imminent because President Bush had just authorized the SEC to exempt certain financial institutions from full and transparent reporting on grounds of national security. Huh?! -- I screamed that the bank vaults had just been opened and the green light given to pump, loot, and pump some more -- based on falsified earnings reports and asset descriptions -- then dump it out and shut the U.S. down, leaving us all broke. Paulson, of course, won't disclose what "assets" were purchased in any bailouts because then it would be discoverable that there are many more paper mortgages than there are actual properties. I would bet just about everything I have that the list of companies exempted from filing complete reports will match --almost perfectly -- the list of firms that are receiving Treasury bailout funds -- our money. The only thing standing between Bush/Cheney and the pokey is their own national-security classification power. That's it. Well there's real good case law about classifying to conceal crimes and the Bloomberg case is a sure-fire winner in the Supreme Court. Not only is the Constitution clear, any other ruling might well start an uprising. Bush/Cheney know this, so their plan -- however far it goes -- must be completed before this case could get to the Supremes.

Here again, is the link to FTW's June 2006 Economic Alert:
http://www.fromthewilderness.com/free/
ww3/061406_abyss_awaits.shtml.

(Continued, next post)

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If you can't do the time.......
Posted by: gathaiga on Nov 12, 2008 7:32 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Hopefully Obama can rectify this situation and also have the Justice Department pursue appropriate legal recourse against all individuals in the Federal Reserve as well as the recipients of bail out funds.

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Terri
Posted by: TERRIROBSON on Nov 12, 2008 12:29 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
One look at all the participants in the large and various NorthAmerican Security & Prosperity Partnership committees will without a doubt prove that this was/is a manipulated crash, this to advance the aleady farcinorous and avaritic business sector total control by only a few.

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ATH
Posted by: ATH on Nov 13, 2008 3:50 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
"Sure, his mandate runs for another year, but if Obama asks him to step down, I can't imagine he wouldn't"
This is a very naive statement. The federal Reserve is a private central bank, set up with its member banks in the form of a cartel and run like the private, for profit corporation it is. Since its inception in 1913,
the FED has devalued American currency--the dollar--by 96%. That's why a candy bar that used to cost a nickel now costs about a dollar.
The price of the candy bar hasn't gone up, the purchasing power of the dollar is only 4 cents compared to what it was before the FED came on the scene.
The FED works solely for the profit of its secretive shareholders; it is not even audited by the government. They have a monopoly, originally given to Congress, to create our money, and they do create it--right out of thin air. It's a fiat, or un-backed currency.
Fiat currencies only work when they are tightly controlled...The government is a partner with the FED, so in a way it's a hybrid organization, but strickly speaking it's a private corporation.
It causes the bombs and busts, the ups and downs ofthe economy, which they have convinced people is part of a natural "business cycle."
This is, of course, complete rubbish. The FED causes periods of prosperity and periods of
recession, by deliberately manipulating the money supply, of which they are in complete control.
First, they expand the money supply, by lowering interest rates and making loans readily available...Then, when they figure the time is right, they will then contract the money supply. They will raise interest rates and make credit impossible to get...Then, they have their agents go buy up everyone's homes' businesses, and stocks, for pennies on the dollar.
How does the money they print attain any value? It steals it from the rest of the money
in circulation. Only the very first person to receive new money from the FED gets its full purchasing power. As it enters circulation, it
sucks its purchasing power from the money already available, and, because the more there is of something the less it's worth, the over-all purchasing power of our money drops. In turn, things seem to cost more. This is inflation, and it's really a hidden tax, that, together with all our other taxes, continues to lower our standards of living and make us work like slaves just to keep up.
"Bankers own the earth. Take it away from them, but leave them the power to create money and credit, and with the fick of a pen they will create enough money to buy it back again.
However, take away their power to issue credit and create money, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in.
But, if you wish to remain the slaves of bankers, and pay the cost of your own slavery,
then let them continue to create money."
-Sir Josiah Stamp, Former Director of The
Bank of England.
We must regain the power to issue our own currency, debt and interest free, for the sole
pupose of facilitating trade. We must prohibit
fractional reserve banking, and slowly phase out the Federal Reserve. F.R.Banking is the practice where banks are allowed to loan out 10
times more money than what they actually have in reserves. They print up this extra money, loan it out and charge interest, always increasing their profits, at the expense of our government, country, and its people, who
were being ensnared intoa system where all the money is based on debt.
One of the older FED Chairman's admitted that "if all debts were paid, the entire money supply would be extinguished-not a single penny
in circulation.
Going back to a "gold standard" is not the answer, either. They control all the gold.

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ATH
Posted by: ATH on Nov 13, 2008 6:14 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Our Founding Fathers knew very well about the dangers of having a nation's money supply
controlled by a private bank!

"If the American people ever allow private banks to control the issue of their currency,
[the banks will], first by inflation, then by deflation, the banks and the corporations which
will grow up around them, will deprive the people of all property, util their children one day wake up homeless on the shores of the
Continent their forefathers conquered."
--President Thomas Jefferson

Homeless. Kind of rings a bell for me.

"Give me control of a nation's money supply, and I care not who makes its laws!"
--Mayer Rothschild, Private Banker

Ben Franklin argued that it was the effect of the central bank in Britain, the Bank of England (whih was, of course, privately owned)that was the true cause of the Revolutionary War. The practices of the private central bank, just as they've done in America, drove the debt of England very, very high. Parliament thus decided to increase taxes on the American colonies, and only accept payment in gold, which was in very short supply in the colonies. This is from the
autobiography of Ben Franklin:
"The colonies would have gladly borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonies to get power to issue their own money permananetly out of the hands of George III and the international bankers was the PRIME reason for The Revolutionary War."
--Benjamin Franklin, from his Autobiography

"It is well enough that people of this nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning" ---Henry Ford

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Answer To the Query In the Title
Posted by: hadashito on Nov 13, 2008 12:53 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Beacause the Grand PooBah Dickey Cheney hasn't yet quite made up his mind which finance corporation, energy, or oil crony gets the next batch of taxpayer bucks. Bernie is awaiting his directive from the emperor.

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Contact Your Elected Officials
Posted by: diamondj on Nov 14, 2008 7:33 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Our Do Nothing politicians will not persue this misuse of taxpayer dollars unless we all apply demand it. Take the time and send off a letter or email to your elected officials strongly urging them track down that money.

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