First Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

[SPECTRE1]

Debt is a common tactic to get people to accept a lower living standard.

For example, a business can pay you 100,000 a year, with more difficult access to credit....

Or businesses can reduce your living standard to $60,000 and give you easy access to credit to give you the allusion of earning $100,000 a year. Your discretionary income is reduced significantly barely meeting payments with free trade, gutting/preventing unions, or wage suppression. The business walks away with an extra $40,000 in their pocket, plus an employee that is a slave to debt payments, needing a job. There is significant evidence that wages have stagnated and access to credit has increased to give the allusion of having greater wealth.

In effect, leveraging you with debt for the corporation/business to earn more money off of the lower salary. Corporation/business are benefiting from the easy access to debt by employees to reduce wages. However, when things go bad the government/employees are left holding the bag.

The same thing is happening to the Federal Government and many states, the rich are giving governments access to credit, to keep taxes low. Leveraging the government so the rich can pay lower taxes. The rich will turn around and give what would have been paid as taxes, as a loan to the government.

I want the $100,000, keep the f#$#$ debt.

 

[Lamarr]

Debt is a common tactic to get people to accept a lower living standard.

I don't quite follow that statement, but I will admit the Federal Reserve Note (FRN) is an instrument of debt, whereas, gold/silver represent instruments of wealth. Kinda why some advocate a "gold standard" plus, it represents sound money.

The lower standard of living occurs because newly created $$$ devalues the $$$ that is currently in circulation (a lower standard of living is the result of "printed money") The 99% just don't have access to this "cheap money" thus, we see the widening of the gap between rich & poor. Printing money wipes out the "middle class"

That's one of the issues I don't quite understand about the Occupy Wall Street movement. Wall Street is just a venue that connects buyers with sellers, period. However, it is the Federal Reserve that fuels the speculation on Wall Street with cheap money created "out of thin air". Those that have access to zero% interest rates (Goldman Sachs, JP Morgan, GE etc.) can literally buy up the world.

 

[QueEx]

Ron Paul Was Right!

"The Fed created $15 trillion in the bailout process" and $5 trillion went overseas"​

At first blush, it appears Paul understates the situation. Between December, 2007 and July, 2010, more than $16 trillion passed from the Fed to the biggest banks, both domestic banks and subsidiaries of foreign-owned institutions. Tally up the amounts that went to subsidiaries, and about $6 trillion went to banks such as Barclays and the Royal Bank of Scotland.

But <SPAN style="BACKGROUND-COLOR: #ffff00">Mark Calabria</span>, director of financial regulation studies <SPAN style="BACKGROUND-COLOR: #ffff00">at the libertarian Cato Institute</span>, says that <SPAN style="BACKGROUND-COLOR: #ffff00">doesn’t mean that much money was created or left the country</SPAN>.

<SPAN style="BACKGROUND-COLOR: #ffff00">"Paul presents half the picture," Calabria said, "And you could argue that it’s misleading." This is a case, Calabria says, where you can be factually correct and, in his words, "incoherent"</span>.

Two big missing pieces put the accuracy of Paul’s statement on very shaky ground. It’s incorrect to say the Fed created $16 trillion because that’s a running total of lending, and the running total ignores a key reality. The dollars in those loan programs went out and came back in through a revolving door. Orice Williams Brown, managing director financial markets at the GAO, gives as an example a bank borrowing $10 billion at night, repaying it the next morning and then borrowing it again in the evening. The running tally would count that as $20 billion borrowed. "But if you look at it, it’s the same $10 billion dollars," Brown said.

The GAO did figure out what the total would look like if you accounted for this churn of dollars. That’s in Table 9, which the Paul campaign did not cite. The grand total there is about $1.1 trillion which is a lot of money but much less than $15 trillion.







http://www.politifact.com/truth-o-m...d-create-15-trillion-during-bailout-and-send/

Ron Paul Was Right!, Right?

WRONG!