The Beginning Of The End
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Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail Out European Commercial Banks Once Again

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to.  Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress.  Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit.  Does that sound preposterous?  Well, such an organization actually exists.  It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe.  The Congress cannot overrule this decision.  Neither can Barack Obama.  Because it has so much power, many refer to the Federal Reserve as "the fourth branch of government", but unlike the other three branches of government, there are basically no significant "checks and balances" on the Federal Reserve.  If you don't like the fact that the Federal Reserve is racing in to help big foreign banks survive the European debt crisis that is just too bad.  The Federal Reserve pretty much gets to do whatever it wants to do, and the folks over at the Fed simply do not care whether you like that or not.

So what in the world just happened today?  The following is how an article on CNBC explained it....

Just ahead of the Wall Street open Thursday, the European Central Bank, along with the U.S. Federal Reserve, Bank of England, Bank of Japan and Swiss National Bank announced they would offer three-month dollar loans to Europe's commercial banks, easing dollar funding constraints.

It must be nice to do whatever you want without having to get the approval of anyone else.

What do you think Barack Obama would give for such power right about now?

The Federal Reserve and other major central banks around the world decided that lending big European banks gigantic piles of dollars would be a good idea, so they are just doing it.

No debate, no votes and no democracy - they just tell us how things are going to be and that is that.

It is a bit ironic that all of this happened on the third anniversary of the collapse of Lehman Brothers.  It is almost as if the central bankers of the world are trying to send some sort of a message.

So how much money is going to be loaned out?

Well, according to an article in The Daily Mail, big European banks are going to be able to borrow an "unlimited" amount of money....

The deal announced yesterday means banks will be able to borrow ‘any amount’ of money in three separate auctions in October, November and December. Banks will have to put up collateral, or security, to tap the emergency funds.

Wow - I wish someone would offer to lend me an "unlimited" amount of money.

But of course this really is not going to solve anything in the long run.  You can't solve a raging debt problem with more debt.

Yes, it will help the big European banks with their short-term liquidity problems, but it will do nothing to fix the long-term structural problems that are tearing Europe to pieces.

Win Thin, a senior currency strategist at Brown Brothers Harriman, said essentially the same thing to CNBC today....

"They're taking care of the symptoms, but the underlying illness is still out there. On the margin, it's positive. Until Greece defaults and we clear this whole thing up, they're still treading water"

So, no, the financial problems of Europe have not been solved.

Just think of this latest move as a temporary band-aid.

So why get upset about it?

Well, what all of this shows is just how arrogant the Federal Reserve is.

The Federal Reserve gets to throw around trillions of dollars without any accountability to the American people.

As I have written about previously, the Federal Reserve made $16.1 trillion in secret loans to their friends during the last financial crisis.

This was revealed in a GAO report, and members of Congress such as Ron Paul and Bernie Sanders tried to get people to pay attention to this.  The following is a statement about this report that was taken from the official website of Senator 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"

So how much of that money went overseas?  Well, it turns out that approximately $3.08 trillion of that money was loaned to big banks and major financial institutions in Europe and Asia.

Barack Obama can't lend trillions of dollars to foreign banks.

So why does the Federal Reserve get to do it?

Sadly, most Americans know very little about the Federal Reserve.  In the United States today, most Americans graduate from high school without ever learning much of anything about the Fed.

But if you really want to understand what is going on with our economy, it is absolutely critical that you understand the Federal Reserve.

The following are some more reasons why you should be upset about what the Federal Reserve has been doing....

*The Federal Reserve is a perpetual debt machine.  Today, the U.S. national debt is 4700 times larger than it was when the Federal Reserve was created back in 1913.

*The Federal Reserve has recently been actually paying banks not to make loans.  Right now banks can park money at the Federal Reserve and make risk-free income without having to make loans to the American people.

*Current Federal Reserve Chairman Ben Bernanke has a track record of failure that is legendary, and yet George W. Bush and Barack Obama both backed him 100%.

*The Federal Reserve system is designed to create inflation.  The truth is that the United States has only had a persistent, ongoing problem with inflation since the Federal Reserve was created back in 1913.

*Since 2008, what the Federal Reserve has been doing to our money supply has been absolutely insane.  Eventually this is going to have very serious consequences for us.

*The U.S. government has handed over the task of "centrally planning" our economy to the Federal Reserve.  The Fed decides what the target rate of inflation should be, what the target rate of unemployment should be, what interest rates are going to be and what the size of the money supply is going to be.  This is quite similar to the "central planning" that goes on in communist nations, but very few people in our government seem upset by this.

*The Federal Reserve picks "winners" and "losers" in the financial system.  For example, when the last financial crisis hit, the Fed bent over backwards to help out the big Wall Street banks, but hordes of small banks were left out in the cold.

*As mentioned above, the Federal Reserve has become way, way too powerful.  The Fed is able to do a lot of things that the three branches of government are simply not able to do.  Fortunately, there are a few of our leaders that are alarmed by this.  For example, Ron Paul once told MSNBC that he believes that the Federal Reserve is now more powerful than Congress.....

"The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress."

As long as we continue to use a debt-based currency that is controlled by a privately-owned central bank, we are going to continue to have permanent inflation and government debt that expands at an exponential pace.

The "central planning" done by the Federal Reserve has created bubble after bubble after bubble.  Our dollars is on the verge of dying and our financial system is about to collapse.

The Federal Reserve system simply does not work.

Hopefully we can start sending more politicians to Washington D.C. that will be willing to stand up to the Federal Reserve.

But for now, the Federal Reserve is going to keep running around doing whatever it wants to do whether we like it or not.

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  • mondobeyondo

    American banks are using money that American citizens contributed and saved, to bail out banks in EUROPE?!?

    Well, that’s just un-American!

    Let’s see if France will come to our rescue. Yeah, they’re kind of somewhat nice people, for the most part. They sent us the Statue of Liberty back in 1889, they’ve given us croissants, baguettes, Bordeaux wine… hot French babes… but now we REALLY need their help!

    Could Paribas or some other bank loan us a few hundred billion francs, oops, euros? Just enough to get our govermnent through to say, mid-2012. That’s all we’re asking.

    Uncle Sam says “Merci beaucoup”. L’escargot, cest tres bien aussi.

  • Canis

    http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/04/20/notes042011.DTL

    Huh. Funny, isn’t it? Stay on this earth, please. Nobody wants you in the afterlife.

  • Mark

    I believe if they want to pay that, they are stupid. The Federal Reserve Employees should be thrown in Jail Along with who told them to do that Obama. Treason is all Im going to say. With as corrupt as this REGIME (DICTATOR) is. Remember the church he went to in Chicago for 20 years. Well it’s not a church, it sounds like Hell itself. And since 2007 or so its of coarse been in the news for its radicalism and against America. We do not need this illegial alien in office who only thinks of himself. He does not know what is best for America. Hee spend America to it’s death of America. Vote him out of office or Arrest him andis CZAS for TREASONIST ACTS DAILY> WAKE UP AMERICA, or there will be nothing left. We have Communist in the Capital Liberr and Democrraas alike they need to be thrown in Prison for TREASON!!!!!!!!!!!!Same as everyone in the Federal Reserve they are just a big bank with now rules or laws. I suggest everyone write or email aletterr asking them to print money to paaour bills for the next 14 months. See what happens…..

  • Patrick Sullivan

    If labor fills the purse, then why does labor not control the purse?

    Is that a fair question?

  • Jerome

    The USA owes Europe Trillions of USD, especially to the UK & Germany.

  • Lennie Pike

    HeyNowHereNow,

    Good answer, good answer. I’m gonna be keeping my eye on you.

  • Stanislav Mishin

    Sorry, but you are very wrong on this. The Fed uses its money and so do you and every American. The US dollar died in 1913, you now use Federal Reserve Notes that you still silly call US dollars.

    Americans haven’t owned their own money in a long time and only hold debt notes that they must repay with a percentage to the Fed.

  • EndTheFed

    See “The Secret of Oz” on YouTube.

  • Mad Max

    The don’t have mucn choice or he global ponzi scheme would collapse. We have choice. But don’t wait for bailout because it’s not coming.

    “WAKE UP PEOPLE!” We don’t have time for this!
    Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

    First it will cheer you up, then it will make you angry.

    FIGHT THE CAUSE – NOT THE SYMPTOM

    • AnnInFL

      When you take that Paul Krugman quote off your website, I might be able to take you seriously.

  • the Beast

    Refer to conspiracy theorists, they said that the Illuminati order is going to bring chaos to the world in order to bring a “New World Order” and bring Global Domination into their hands. Maybe this is the chaos they mentioned.
    The manner of the falling of the world’s economy as a system seemed deeply orchestrated, as if these banksters actually did what they did purposefully for this chaos to take place. Unless of course, they are 100% stupid. Both explanations seem to be right. But regardless we must not let them have their way, a mean of resistance must be made.

  • http://silverdollarcoinvalue.com Silver Dollar Coin Value

    The only President with the guts to stand up to the central bank was Andrew Jackson. He survived an assassination attempt as well. 2 other presidents who did, or were, going to print money authorized by Congress, did not survive assassination attempts (Lincoln/Kennedy).

  • tony N

    “Obama Goes All Out For Dirty Banker Deal” that gives shocking details into how Americas elite classes, aided as always by their propaganda media, are preparing, once again, to steal from these people trillions of dollars; and as we can, in part, read: http://www.rollingstone.com/politics/blogs/taibblog/obama-goes-all-out-for-dirty-banker-deal-20110824 , Obama is going to give these a holes all this cash so then he can use them as a Class warfare ploy to try and win political favor and these elites go to the Whitehouse and plan these things , its all a shame they think most people are stupid !!!!!
    Obama’s ‘Jobs Bill’ Makes ACORN Eligible for $15 Billion in Taxpayer Money
    http://www.canadafreepress.com/index.php/article/40406

    have you seen this ? …. The Agenda- Grinding America Down

    http://www.youtube.com/watch?v=xQf_QfitmKE

    Watch the first 6 minutes of this Video , the gal talks about the Plan of Agenda 21 to LOWER USA Living Standards ,

    Agenda 21 for lower living standards

    http://www.youtube.com/watch?feature=player_embedded&v=GEzbQotyu9k

    http://www.postsustainabilityinstitute.org/

    http://www.conservative/un-agenda-21-abolish-private-property/

    We the People need to Know what associations does any of the Presidential Candidates have with Un Agenda 21 and ICLEI ??? http://www.gctparty.com/video.html , http://shiftinthewind.com/
    The Liberals and RINOS think they are doing Gods work ? http://biggovernment.com/lrlee/2011/08/14/agenda-21-obama-administration-racing-towards-rio-20/ I think we the people deserve to know which Presidential Candidates have supported UN Agenda 21 Policy in the Past that is designed to Take down the US Free Market system don’t you ???

  • tony N

    Obama’s ‘Buffett Tax’ instead of true private sector supply-side economic growth , it takes care of payments to Buffet that the investments in to big to fail Banks and Government Securities Warren owns and is due Interest payments on from both entities that will be the beneficiaries of this Tax On the rich , plus it keeps the environmentalists happy and willing to vote for Obama because of the NO Growth economic policies , CZAR Holdren and his band of Merry Earth first Humanity second cheerleaders advocate like this http://www.cnsnews.com/news/article/75388 . What do you think ?

  • joeyche21

    Government is only thinking of
    what will get them more money
    and get them re elected.

    • http://globaleconomicwarning.blogspot.com ecamins

      Government is only thinking of
      what will get them more money
      and get them re elected.

      They no longer care about the
      people they represent.

      Times are going to continue to
      get harder and harder.

      What to do about this?

      I am so glad I learned the
      answer in a web site I
      found put together by a
      millionaire.

      How to Profit like the Ultra-Rich in Times of Economic Chaos
      *** globaleconomicwarning.blogspot.com ***

      I know this video can help you also.

  • Toomanyfakeconservatives

    Neither a borrower nor a lender be.

  • AnnInFL

    This is why we need to elect Ron Paul.

    He has been fighting to uphold the Constitution and restore sound money for decades. People are finally waking up.

    Ron Paul 2012

  • Hosanna

    I love this website. No other site has so many intelligent, informed people commenting on the excellent articles. Well done!

    • Michael

      I agree – the commenters that post on this site are of a very high quality.

      I am very thankful for that.

      Michael

  • Lennie Pike

    Sometimes I’m a nitpicker – and sometimes I make a lot work for other nitpickers. I gave Mondobeyondo a hard time for him claiming that the word Mondo meant “world” in Portuguese when it is actually Mundo – Of course he did not want to hear that. His name is his business and not mine.

    ECB: I could be incorrect about this also but am only trying to help because it will come up a lot for you – and this is not meant for posting as a comment unless you want it to be.

    I believe the word “commenter” does not exist and the word “commentator” is the correct word to call the people posting comments to your site.

    People are so used to hearing the Talking Heads that read the news t.v. referred to as commentators that they think (me also until recently) the word commentator only pertains to them, but it’s definition is: one who gives a commentary or one who makes a comment.

    • Michael

      Lennie:

      Well, if the word “commenter” is not correct, I think that it should be. :) I think I am going to start using it and perhaps I will start a trend.

      Michael

  • Gil

    We have to simplify America! Simple as that. Throughout the years many special interest groups, politicians, unions, morons, lobbyists, lawyers, ceo’s, and religious organizations have tweaked the system with ill intent. They altered the intent for which this country was created so that it would work for their selfish purpose. Watching this country right now is like watching a television with a terrible reception that delivers only a large amount of tiny squares to the screen. None of the squares make any sense, there is too much unwanted interference, too many dark spaces, very few bright spaces, all are out of order, the screen reception is unrecognizable. We Americans who care must get off the couch and fix the problem instead of just sitting there complaining. The internet is a great place for this to happen. Any person that has knowledge of an organization’s system should decipher it and separate the good from the bad, point out its waste, corruption, illegal operations, unsafe-unfair practices, and hidden ill agendas as well as their good points although these are quickly pointed out by the organizations. History has proven that organizations will not under any circumstances go transparent with what the general public and their employees should be aware of. We have learned that the government will only tell us what we want to hear which is far from what the truth is. We know that lobbyists are relentless at corruption and persuasion, even though politicians are generally not that hard to persuade. We further know that some organizations have gone through extreme measures to cover up for some of their member crimes and only admitted to the act when it was too obvious and too open to deny. Yet whistle blowers are treated with ridicule, harassment, rejection and even incarceration. We should welcome whistle blowers and other Americans who resist blind submission. It is clearly obvious that the only system transparency we are going to get is that which we force the system to render to us. Transparency is our right, but it is a right that we have to force, maintain and support because no one else will do it for us.

  • Lennie Pike

    Michael,

    Good answer.

  • Jack Speewak

    If the Fed can print unlimited amounts of money and loan it to whomever they want as stated in this article. Then my question is: why haven’t they provided the dollars for paying off all the US underwater mortgages and related CDS, swap-like debts, and mortgage related problem debts ? This is at the root of the financial problem of course. If we agree with the authors premise that they can, then one can only assume they don’t want to fix the financial crisis. It appears that crisis is Fed’s agenda.

  • Dave Wilber

    THE FED DID NOT LIE! They said their sytem “works (us) only with credit.” They cannot get money from us and have no use for money when all of us will risk our lives for credit. They testified in court Missouri vs Amos Bruce that they cannot receive money. I
    was at that trial and I have their statement that they work us “only with credit.” There will be absolutely no progress in gaining our freedom until enough learn that IRS collects no money and government spends nothing!

    • JB

      Dave, would you mind explaining in more depth what you mean here? I am just now educating myself on these issues (so am not at all well-versed on them) and am curious about your side of the argument. Please expand?

  • James

    Whatever is going to happen there will be hell to pay from the banksters that control this already. They have been at this for longer then 1913 and know just what to do to get that hell to come don on the pates of every person on the face of the earth, except for themselves. Remember, they have already built underground bunkers for themselves and their little inbreds. Since there is nothing that can be done about it because those getting into public office will submit by threats, then get ready for that WWIII. If those in the Fed want us to go through hell, them make sure they go along with us.

  • BRH

    Think about it. The Fed is a bank. Look at how much debt they hold. this debt is like too many credit cards that are maxed out. With the growing debt there is a point in time when we will not be able to even pay the interest on the bonds and other debt that they hold. If we default on the debt that they hold they will do what banks do . THEY WILL FORECLOSE THIS DEBT FOR NON-PAYMENT. They could own most of the USA and everything in it and sell it to the NEW WORLD GOVERNMENT.

  • http://simplicityinthegospel.com Andre Delage

    The Federal Reserve Is NOT Using Your Money To Bail Out European Commercial Banks Once Again..it is printing money…..the world is doing commerce with imaginative money…monopoly money….What’s in your wallet?

  • Angel

    So there is nothing American people can do?

    Is America already in the hands of a few people?

  • MerlinV12

    This was what Obama meant by “spread the wealth around” ?

    • eddy smith

      Are you so daft that to believe Obama started the fed reserve and the lack of accountability held by govt spending? Might as well hand the Congressional House your paycheck , they need it for their next auto raise or insider trading deal.

  • ICU

    The only money that the FED prints is the bills require by and for commerce. The FED creates credit which then they use. BTW the reason that the FED is supporting the European banks is because we have to. It is like your house is connected to your house and you see your neighbor’s house on fire. Even if you do not like and/or agree your neighbor you would help him/her to put the fire down. If not the next fire is your own. The financial markets are interconnected, just like all of the oceans….

  • Jaime Saldarriaga

    This sounds to me like the Federal Reserve Chairman would be the most powerful man in economic decision making process in the world, given the strong global economic interrelationship among different countries. Wouldn’t it?

  • http://www.maxkeiser.com Al Kyder

    “The way to understand all of this is to realize that it’s part of a broader syndrome,
    in which wealthy Americans who benefit hugely from a system rigged in their favor
    react with hysteria to anyone who points out just how rigged the system is.”

    Panic of the Plutocrats
    http://www.nytimes.com/2011/10/10/opinion/panic-of-the-plutocrats.html?_r=4&smid=tw-NytimesKrugman&seid=auto

    Organizer Labels Own Poll Irrelevant After Ron Paul Wins
    (Results only count if establishment Republican is victorious)

    by Paul Joseph Watson
    http://www.infowars.com/organizer-labels-own-poll-irrelevant-after-ron-paul-wins/

  • NomNomNom

    How can you talk about the Federal Reserve and omit that it, like the IMF and World Bank, is answerable to the Bank of International Settlements?
    http://www.bibliotecapleyades.net/sociopolitica/sociopol_globalbanking04.htm
    http://www.publiccentralbank.com/

  • John Marshman

    Why does the USA always blame Europe for its greedy mismanagement of the enconmy? Europe is a easy “Scapegoat” for the American Government to “Brain Wash” its Nation with a FEAR of a Communist takeover to keep themselves from truthful accounatability. The gap between Rich and Poor is growing faster than at any previous time and the middle class is strinking! The big blow up must come soon but the Rich will not be affected – only the middle class. The Poor will always stay poor in a totally laissez-faire system! Get balanced with a sensible mix of social justice. The laissez-faire system is not ‘self correcting’ without the law of the jungle where the survival of the fittest prosper over the weaker animals.

  • http://IndictNow.us James Hansen

    Also review these 3 videos (14 min. each) then contact your congressmen!!!

  • eddy smith

    The US govt needs a full audit. any frivolous spending or unaccountable spending should be cut from their budget. I am sure since the DOD has not been able to account for a trillion per year for the last 10-20 years that this would totally reverse the national debt within no more than 5 years.

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