Saunders' statement explains nicely the reason we need to be deadly afraid of the Federal Reserves power. They print the money, They control the money, they control who gets the money and they don't answer to anyone. As the report shows, there is almost nothing to prevent the Fed, if it wanted, from giving Libya's Qaddafi an interest free billion dollar loan at no interest, even thought we are at war with him. They operate in total secrecy, and without any restrictions..
When the Fed was first chartered they were supposed to regulate the money supply in order protect the nations banking system, regulate unemployment, and control inflation.... over the years they've done great things for the banking industry at the expense of the other two, The dollar is now worth about 1/20 of it's value when the Fed was first chartered, that's how they controlled inflation...They've also failed miserably with unemployment..
As a side note, Obama's Treasury Secretary ran the NY Federal Reserve during part of the period covered by the audit..
Here is Bernie Saunders' Statement... I high lighted a few things..
July 21, 2011No wonder JP Morgan Chase, Morgan Stanley, Wells Fargo and Obama's friends at General Electric recovered so quickly.. the they getting .
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."
Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "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 said.
The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.
For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.
To Sanders, the conclusion is simple. "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," he said.
The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.
A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."
To read the GAO report, click here.
To put the entire thing into perspective, I addition to the bailouts knew about the banks were give the equivalent of the value of they entire United States Domestic Gross Product for one year. The Federal Reserve secretly gave the banks MORE than enough to COMPLETELY PAY OFF THE NATIONAL DEBT. It's enough to give every man, woman and child in the country $50,000.00 in freshly created money. They gave it to the Banks, big overseas companies, and other governments almost interest free.
Paulson, Bernanke and the current Treasury Secretary Tim Geithner all played a role..in the biggest scam in history..
Now that you have some background... take a look at Ron Paul's thought process as explained accurately by and without any of the negative spin or hostility you'd expect (and normally get) from a far left publication.. like the The New Republic
Representative Ron Paul has hit upon a remarkably creative way to deal with the impasse over the debt ceiling: have the Federal Reserve Board destroy the $1.6 trillion in government bonds it now holds. While at first blush this idea may seem crazy, on more careful thought it is actually a very reasonable way to deal with the crisis. Furthermore, it provides a way to have lasting savings to the budget.
The basic story is that the Fed has bought roughly $1.6 trillion in government bonds through its various quantitative easing programs over the last two and a half years. This money is part of the $14.3 trillion debt that is subject to the debt ceiling. However, the Fed is an agency of the government. Its assets are in fact assets of the government. Each year, the Fed refunds the interest earned on its assets in excess of the money needed to cover its operating expenses. Last year the Fed refunded almost $80 billion to the Treasury. In this sense, the bonds held by the Fed are literally money that the government owes to itself.Unlike the debt held by Social Security, the debt held by the Fed is not tied to any specific obligations. The bonds held by the Fed are assets of the Fed. It has no obligations that it must use these assets to meet. There is no one who loses their retirement income if the Fed doesn’t have its bonds. In fact, there is no direct loss of income to anyone associated with the Fed’s destruction of its bonds. This means that if Congress told the Fed to burn the bonds, it would in effect just be destroying a liability that the government had to itself, but it would still reduce the debt subject to the debt ceiling by $1.6 trillion.
Read the Rest (It's worth it) Click Here
There you have it.. A socialist who like his predecessors Woodrow Wilson, FDR, Johnson and Jimmy Carter you'd expect to be supportive of the Federal Reserve pissed off about it. and The New Republic supporting a proposal by a Conservative Libertarian and TEA Party favorite.
Now, how do we get the Jackasses in DC to stop floating around aimlessly and and listen??