Fed Audit's Initial Report Reveals Over $16 Trillion in Secret Loans

[DamianTV]

http://politics.slashdot.org/story/...tial-Report-Reveals-Trillions-in-Secret-Loans

"The first top-to-bottom audit of the Federal Reserve (pdf) 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."

Does this suprise anyone?

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Edit:

Gonna need some help from our better Economics Guys in the Forums for Slashdot Comments, apparently their people dont get what happens when you create money out of nothing and fund both sides of Wars. They dont think that loaning money to the Enemy is a War Crime.

 

[Napoleon's Shadow]

I'm so happy this was actually posted on SlashDot, a non-tech site.

 

[Zippyjuan]

Consider how the total loan values are calculated. The loans were overnight meaning one day- but could be renewed. If a bank borrowed $1 million but kept it for 30 days, that is counted not as a single $1 million loan but as 30 separate ones or $30 million being borrowed- even though they really only had $1 million- highly inflating the totals.

 

[specsaregood]

Consider how the total loan values are calculated. The loans were overnight meaning one day- but could be renewed. If a bank borrowed $1 million but kept it for 30 days, that is counted not as a single $1 million loan but as 30 separate ones or $30 million being borrowed- even though they really only had $1 million- highly inflating the totals.

Fair enough, but according to my calcuations, 16trillion = 16million x $1million dollar overnight loans.
Thats a lot of escarole.

 

[swissaustrian]

The media widely ignores the audit - surprise, surprise...

 

[Apicit]

Hmm.. oh wow, look at that... "And more than a few insiders were granted “waivers” to hold investments in companies that were being rescued by the Fed."
http://www.thenewamerican.com/econo...lions-for-foreign-banks-conflicts-of-interest

Who would have guessed that?

 

[Zippyjuan]

Fair enough, but according to my calcuations, 16trillion = 16million x $1million dollar overnight loans.
Thats a lot of escarole.

I don't know the length of the average loan, but if that was more than 16 days that would put the actual loans at less than one trillion- which, granted, is still a lot of money.

 

[DamianTV]

Does anyone think that loaning money to another country that the US is not on the best of terms with (pretty much everyone) is a War Crime?

 

[CUnknown]

Does anyone think that loaning money to another country that the US is not on the best of terms with (pretty much everyone) is a War Crime?

It might count as treason, if we were officially at war with a country being loaned money. Of course, we're not officially at war with anyone, so ...

 

[DamianTV]

Not at war with anyone, excluding six or seven countries...

 

[Carson]

I sort of see it like this.

And then I look at this.

And I realize that every time they spend what we don't have and counterfeit the money supply the value of the dollar drops. When they double it the value drops by fifty percent.

That 16 trillion isn't even on the chart yet.

 

[DamianTV]

Takes at least 6 months for it to catch up. By then, theyve already bought their yachts and made their money. And it isnt at least double, it is far more than that.

Think of the way the banking system works on a 10-1 Fractional Reserve Ratio. They create 1 Trillion Dollars out of nothing and give it to the banks to lend. The Super Dollar, as mentioned in the First Image. 9 Trillion in loans is created from the 1 Trillion originally generated. That 9 Trillion in Deposits says those banks can lend another 81 Trillion, which is far more than the total GDP in an entire year (I believe that is around 35 Trillion for the US, per year, I think, correct me if I am wrong). Once the 81 Trillion is spent in loans, it is deposited at Banks again, which is considered an asset that the Banks can loan against again. 81 Trillion quickly becomes 729 Trillion. At that point Hyper Inflation has taken hold and the economy has collapsed, due to Hyper Inflation.

We are in a world of shit, created out of nothing, and will soon return to nothing, where the value of the Fiat Dollar reflects what it really is, worthless.