|Fed Chairman Ben S. Bernanke|
I think this may be a first for me. I would like us to be thankful to the Dodd-Franks Banking bill passed this last summer over ‘Pub protests. Let me amend that, I’m thankful for one provision of that bill inserted by Sen. Bernard Sanders, I-Vt.—the one that requires the Fed to document who borrowed or received money from our Federal Reserve Bank by, “…. forcing the Fed to reveal how U.S. capitalist booty saved the Europeans’ booties.“ I doubt there is anything else in that bill that was worth the time spent writing them.
Yesterday was the day for the first report due from the Fed. Unbeknowst to just about everyone, the Fed bailed out foreign banks and loaded money to the EU in the amount of $3 TRILLION DOLLARS! Yes, that’s right a Trillion dollars times three!!! Worse, not a single dollar had Congressional approval. The Fed is a NGO, a Non-Governmental Organization, and does not answer to Congress nor to the American people. They answer to a couple of democrat controlled congressional committees who could not care less what the Fed did as long as the dems benefited.
The Investors Business Daily posted this editorial today on their website.
America Bails Out A Thankless WorldGlobal Economy: So America has once again saved the rest of the civilized world — this time financially. But don’t expect to hear many thank-yous from the recipients of trillions in secret Federal Reserve cash.Socialist politicians in Europe — plus a few nonsocialist ones — were quick two years ago to demand the end of global capitalism as the financial crisis swept across the world. But our own socialist, Sen. Bernard Sanders, I-Vt., inserted a provision into this year’s financial regulatory law forcing the Fed to reveal how U.S. capitalist booty saved the Europeans’ booties.Turns out the Fed had over a dozen emergency programs operating beginning in 2007-08, one of them lending close to $9 trillion to Merrill Lynch, Morgan Stanley and other troubled institutions, often at the comical interest rate of 1%.Foreign banks got much of the Fed’s emergency credit. They included Britain’s Barclays — which on a single day in September 2008 apparently received nearly $48 billion.Others whose palms were greased include the Landesbanken and Deutsche Bank of Germany, UBS of Switzerland, BNP Paribas of France and Dexia of Belgium, not to mention the South Korean government-owned Korean Development Bank.Even a banking institution in the tiny, oil-rich Mideast island country of Bahrain, ruled by the Sunni royal family of the House of Khalifa, got wired funds — and King Hamad ibn Isa Al Khalifa wasn’t even having trouble paying his mortgage.U.S. subsidiaries of banks based in East Asia, Canada and Europe were also aided. And the Bank of Scotland, Britain’s RBS, France’s Societe Generale and Germany’s Dresdner Bank were all top beneficiaries of the Fed’s Term Auction Facility (TAF) program.
These actions by the Fed aren’t criminal. Perhaps they should be—committing 20% of the 2010 US Gross Domestic Product to bailing out countries, who frankly detest and hate us.
No, it’s not criminal…but perhaps it should be. With democrat control of the congressional oversight committees, we can’t even depend on congress to rein in the excesses of the Fed.
Perhaps we need to place limits—limits on the amount the Fed can load foreign banks, foreign countries without explicit congressional approval. The US is THE major contributor to the World Bank and the IMF. The Fed requires, not just need, oversight by the citizen who create that National Product.
Under democrat control we haven’t gotten it. I’m not sure who will be the new House Fed Oversight Chairman. Whomever that is, he must get the Fed under control.
Oh, by the way, the unemployment numbers for November are out. It up .2% to 9.8% unemployment. That number does not include those who’ve exhausted unemployment benefits. Those numbers just reflect those who are still drawing unemployment checks.