Federal Reserve Cannot Account for $9 Trillion
By David Theroux on Jun 3, 2009 in Bailouts, Budget and Tax Policy, Economics, Federal Reserve, Money and Banking, The State, Video, inflation
Momentum is building with 179 co-sponsors for Congressman Ron Paul’s bill in the U.S. House of Representatives to audit the Federal Reserve System (Federal Reserve Transparency Act of 2009) not just because of the growing unrest over the Fed’s gigantic and reckless expansion of trillions of dollars in credit during the past eight months but because of the increasing awareness that the Fed itself is unable to account for where this money has gone. According to a report from Bloomberg News on February 9th:
The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.
The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged up to $5.7 trillion more. . . .
Only the stimulus bill to be approved this week, the $700 billion Troubled Asset Relief Program passed four months ago and $168 billion in tax cuts and rebates enacted in 2008 have been voted on by lawmakers. The remaining $8 trillion is in lending programs and guarantees, almost all under the Fed and FDIC. Recipients’ names have not been disclosed. . . .
Bloomberg requested details of Fed lending under the Freedom of Information Act and filed a federal lawsuit against the central bank Nov. 7 seeking to force disclosure of borrower banks and their collateral.
At a hearing in early May, Federal Reserve Inspector General Elizabeth Coleman was asked by Congressman Alan Grayson (D-FL) to account for the $9 trillion in off-balance sheet transactions ($30,000 for each man, woman and child in the U.S.) plus a $1 trillion expansion of the Fed’s balance sheet since last September. Her answer is that no one at the Fed knows or is keeping track of where the money has gone.
For books on the need to end the Federal Reserve’s monopoly over money and banking in the U.S., please see the following:
Money and the Nation State: The Financial Revolution, Government and the World Monetary System, edited by Kevin Dowd and Richard H. Timberlake, Jr.
Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity, by Robert Higgs
All of our families in the United States, including grandparents, parents, children, and grandchildren will suffer and lose our country’s place in history as the greatest world power. The reason is not using the IRS or other independent audit unit to track the $600 billion under President Bush and $787 billion under President Obama. The Chinese own $1 trillion in Treasury debt. Look at history: wars are always with us. Yet, our nation is losing power in the world position, from Rome to England to Russia to China (not counting nuclear power), Iran, Palestine, and especially North Korea. Either we will win so that our children and grandchildren will live in a free country or will we all lose with a socialist loss of the middle class: Marxist government control of all wealth and Wall Street, 70% government ownership of General Motors, AIG, Fannie Mae, Freddy Mac and billions of foreign dollars investing in United States businesses. The citizens will only win without Obama and his socialist economy, trillions in debt. Think long and hard on this matter. We have spent too, too much American blood to protect America to let the American flag be taken down by the Senate, House and lifetime positions on the Supreme Court, looking for a diversified cultural balancing act. I as an American citizen believe we owe it to our country to expect more from Obama, the Senate, the House and the Supreme Court to keep our country free without trillions in debt and no accountability. Act now as citizens of the greatest country on Earth or watch the lowering of our flag and loss of our freedom and all rights guaranteed in the Constitution and Bill of Rights. I personally demand my rights. As the great state of New Hampshire states, “Live free our die.” My friends and fellow citizens, “Is there not a cause to hold and believe in?” Now is the time to stand up and act and be heard! Give thanks!
James Cronin | Jun 3, 2009 | Reply
Empty room—I guess no one cares where 9 trillion went. And the gov’t is still trying to inflate a third, and catastrophic bubble—which when it comes will make people wish it was only as bad as the Great Depression. Manuf. jobs all gone, “free trade” laws prevent their return, blah blah—we are now a banana republic. Hide your (devalued) cash, and stock up on peanut butter before the food riots (PB can last 5+ years if unopened). Peace.
baltic resident | Jun 3, 2009 | Reply
Trying to inform the mind-numbed Americans of today is like trying to teach calculus to a group of mannequins. Not to worry, the implosion will be as swift as it is staggering. Plan ahead.
baltic resident | Jun 3, 2009 | Reply
If one believes the Keynesians, including the Nobel Prize-winning Professor Krugman, it doesn’t matter where the money goes, only that it’s spent. And since the American people are beginning to get scared about being destitute and are doing the only sensible thing in living within their means, it’s the obligation of our government and the banking elite to do the spending for us. What’s $9 trillion among friends?
Other than killing people in large numbers, spending other people’s money is probably the only thing the government does well.
I’m with Baltic Resident. Get ready for some very rough times ahead.
Steve Hogan | Jun 3, 2009 | Reply
So what’s to be done about a government that’s run amok?
smchris | Jun 5, 2009 | Reply
I just read this article and immediately sent an email to Glenn Beck (which I doubt he’ll have time to read). We must get somebody like Glenn to jump on this and stay on it (like he’s doing with ACORN). If the people see and hear about this often enough, then many who are not even aware will start to complain to the politicians. But it needs to start with awareness and constant repetition.
Somehow, Mr. Theroux needs to get on Fox News with this story!
This has gone beyond wasteful spending. This is throwing money to the wind and hoping it blows in the right direction. I see many Wall Street bankers retiring with big chunks of this money (with lots of donations to the Washington politicians). My representative is a Democrat ex-banker, and he’s keeping awfully quiet about all this waste. He should be raising Hell every night, but he just toes the party line and, no matter what happens,he still gets re-elected.
The people need to be reminded regularly that Washington has long ago stopped serving the people. Come next election we need to throw them all out! Professional politicians are not professional about anything. We need a regular house cleaning, and the states need to recapture their sovereignty. It’s been too easy to take money from Uncle Sam for local projects that aren’t really justified, but now that over half the states’ operating capital comes from Washington, we have become serfs to the royalty in Washington. Disgusting!
George | Jun 9, 2009 | Reply
“What’s to be done about a government that’s run amok?”
Constitutional convention, I say. Failing that, bloodless revolution.
Rama Sobhani | Jun 9, 2009 | Reply
No, not a Constitutional Convention—they’ll just remove any and all limits the Constitution has placed upon government (even though it doesn’t obey them anyway).
What you want is a Continental Convention in order to figure out a way to deal with a runaway unlimited government who refuses to obey its limited powers and jurisdictions, as granted to it by We the People through the Constitution.
… and in the planning is a 2009 Continental Convention—check out GiveMeLiberty.org to find out more.
BTW, We the People do have the right to withhold all monies due to government until it redresses our grievances.
in liberty,
bbc
bernard b. carman | Jun 9, 2009 | Reply
“Sheep will be shaved, or slaughtered, either way…”—Paul House.
History, true history, shows us that our ridiculous little government is not really in charge of our country.
“Give me control of a nation’s money and I care not who makes her laws.”—Mayer Amschel Rothschild
Two presidents have attempted to rid us of the Federal Reserve Bank, which is actually a consortium of banks, Lincoln and Kennedy. You know what happened.
The Fed is the “one” actually in control of our nation, and is so deeply rooted that removal would likely result in life-threatening hemorrhage. What to do, what to do.
The alarm clock is sounding, how long will we sleep through its incessant wail?
YFUATIW | Jun 11, 2009 | Reply
When a government gains absolute power to do as they wish and no longer listens to it’s people, then it’s already too late. If you keep on electing the same old hacks who have gotten us in this place to begin with, then shame on us. I often wonder why nobody said “boo” to Barney Franks and his cohorts who said Freddie didn’t need any regulation and when all the stuff hit the fan, they were silent. The very people who elected this socialist group will be the ones hardest hit when it all collapses.
Tom Everson | Jun 11, 2009 | Reply
YFUATIW: There was no Federal Reserve during Lincoln’s time, but Lincoln was not anti-central bank. Far from it. He was a big supporter of the big bank-big government axis, and his legacy is still with us today.
Anthony Gregory | Jun 11, 2009 | Reply
Careful about suggesting a Con-Con. Those can be dangerous and run away from its original intentions very quickly.
I think what needs to continue is the grassroots upheaval of all senators and congressman who do not obey the Constitution. Once we have more reps in place who abide by the law we can further reform/mend the bad practices in D.C.
Just be careful about having a Con-Con. In this day and age I would fear the powerful would come in control of the Con-Con and take it over to the ruin of our nation.
heavystarch | Jun 11, 2009 | Reply
The people of Georgia are taking a stand but we need millions of others. We thank the people of New Hampshire and across this great country who are joining together to make sure our Freedom and the Constitution of this country is not laid to rest.
Tim | Jun 12, 2009 | Reply
In response to the gradual exposure of the Federal Reserve, it should be quite apparent at this point in time that this pseudo government entity has taken over the blood bank that keeps America alive.
If Congress or the President won’t do anything about this problem then it’s up to the states and the people to bring back responsible honest government to our country, but at a great price and sacrifice that would potentially make the Iranian protests seem like a tea party.
Unfortunately there is no other solution on the board yet for the people to address and remedy this egregious problem. When you see the total abolition of the 2nd Amendment take place then that is the very moment when the Fed takeover has been finalized and the people are at their mercy, but don’t expect any form of mercy from them.
It’s very sad that the few Americans who are aware of the darkening clouds ahead have to live everyday with this knowledge in mind and continue to lead a so-called normal life. Please keep up the valiant good work and be just as relentless and committed as our enemy.
Respectfully,
Veritas Jim
jim haynes | Jun 21, 2009 | Reply
Accountability is the name of the game, and it is our money. Lock them all up and throw away the key, with them all on diminished rations in a brig with the devil for a warden. Give no quarter!
Herb De Groft | Jul 7, 2009 | Reply