Senator Ron Paul has introduced the Federal Reserve Transparency Act of 2012 (HR459) to the upset of Ben Bernanke, Chairman of the Federal Reserve Bank. In August, the House of Representatives passed 327 – 98 on a vote which exceeded the necessary 2/3rd majority.
Paul, who is pushing for “transparency” in America’s relationship with the Fed, said that Americans are “sick and tired of what happened in the bailout and where the wealthy got bailed out and the poor lost their jobs and they lost their homes.”
The Audit legislation will direct the Government Accountability Office (GAO), which is an independent congressional agency, to oversee a full review of the Fed’s monetary policy while conducting an audit of them and their decisions will be turned over to the Federal Open Market Committee.
In July, the first audit of the Federal Reserve Bank of New York (FRBNY) was published by the Government Accountability Office (GAO). According to Senator Bernie Sanders: “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. This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”
During 2007 – 2010, the Federal Reserve banks provided “assistance” of more than a trillion dollars in “emergency loans” to stabilize the financial system.
A source in the Deutsche Bank explained that in 2008 our financial and monetary system completely collapsed and since that time the banking cartels have been “propping up the system” to make it appear as if everything was fine. In reality our stock market and monetary systems are fake; meaning that there is nothing holding them in place except the illusion that they have stabilized since the Stock Market Crash nearly 5 years ago.
The Deutsche Bank informant says that the cause for the bailout of the banks was a large sum of cash needed quickly to repay China who had purchased large quantities of mortgage-backed securities that went belly-up when the global scam was realized. When China realized that they had been duped into buying worthless securitized loans which would never be repaid, they demanded the actual property instead. The Chinese were prepared to send their “people” to American shores to seize property as allocated to them through the securitized loan contracts.
To stave this off, the American taxpayers were coerced by former President Bush and former US Treasury Secretary Hank Paulson. During that incident, the US Senate was told emphatically that they had to approve a $700 billion bailout or else martial law would be implemented immediately. That money was funneled through the Federal Reserve Bank and wired to China, as well as other countries that were demanding repayment for the fraudulent securitizations.
To further avert financial catastrophe, as well as more debt or property seizure threats by the Chinese, the Euro was imploded there by plunging most of the European countries into an insurmountable free-fall for which they were never intended to recover.
All the money that those banks claimed they needed to avert collapse was also sent to the Chinese to add to the trillions of dollars lost during the burst of the housing bubble on the global market.
The GAO audit states that this transfer of funds from the FRBNY to the central Bank of China was an “unusual and exigent circumstance” that warranted the “emergency authority” of the FRBNY.
Sanders points out that the FRBNY gave massive amounts of money to foreign banks and multi-national corporations. Sanders said: “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.”
Under the guise of “emergency loans” waivers of banking employees and private contractors were given kickbacks. Jamie Dimon, CEO of JPMorgan Chase & Co. and member of the board of directors of the FRBNY, was given an estimated $390 billion in “aid” from the FRBNY. In kind, JPMorgan Chase was used as a money laundering institution during the mortgage-backed securities and derivatives scandal.
Dimon was given his seat on the Fed’s board in 2007. He has enjoyed his position throughout the financial crisis that his and several other mega-banks have caused through irresponsible behavior on the global stock market.
Senator Bernie Sanders, who has been calling for a revision of the Fed, told CNN’s Wolf Blitzer, “The conflicts of interest are so apparent that they’re laughable. Here you have the Fed, which is supposed to regulate Wall Street. Then you have the CEO of the largest Wall Street company on the board which [it] is supposed to be regulating. This is the fox guarding the henhouse.”
During the “emergency loans” and special privilages given to JPMorgan Chase with the receipt of trillions of dollars at “near-zero interest rates”, Morgan Stanley was allocated a $108.4 million no-bid contract to assist in the bailout of AIG.
Now, Morgan Stanley is falling apart and is classified as insolvent as stocks become worthless on the New York Stock Exchange (NYSE). They are selling off non-core assets to “reduce European exposure” to hedge funds and failing financial corporations because of their participation in the mortgage-backed securities and derivatives debacle.
According to Rick Wiles: “I’m hearing rumors that another major financial house is going to implode. In fact, the name I’ve been given is Morgan Stanley . . . It’s going to be put on the sacrificial alter by the financial elite.”