Alan Grayson on the audit revealing trillions in bank bailouts by the Federal Reserve - Countdown

[cal04]

Run time: 07:29 https://www.youtube.com/watch?v=NI-b0UFhKEc   Posted on YouTube: November 29, 2011 By YouTube Member: MiniRtist Views on YouTube: 240   Posted on DU: November 29, 2011 By DU Member: cal04 Views on DU: 6237

 
Former U.S. Rep. Alan Grayson (D-FL) tells Keith how an audit of the Federal Reserve shows that the agency “play Russian roulette” with the U.S. dollar over the course of more than $26 trillion worth of bank bailouts.


http://current.com/shows/countdown/videos/alan-grayson-on-the-audit-revealing-trillions-in-bank-bailouts-by-the-federal-reserve

[chervilant]

1. Actually,

The obscenely wealthy corporate megalomaniacs are scurrying around like cockroaches in the dawning light because their wealth is an illusion. Their hedonism has resulted in the massive Black Hole that the brave and erudite Brooksley Born called the Dark Market. With a current notional value of $680 TRILLION, the 'worth' of these worthless financial instruments exceeds the combined GNPs of EVERY NATION ON THIS PLANET by a factor of ten.

The entire system IS broken, and the banks ARE parasites.

Time for change. I am ever more hopeful, now that #Occupy is spreading across the globe.

[Kaleko]

5. Yes. Naked Emperors running around squealing for another huge bailout

in Europe, frantically trying to save a financial system that has already collapsed in 2008.

Communal living and cooperative stakeholder capitalism as modeled in miniature form by #Occupy will take the place of the top-down control structure that is no longer viable now.

I'm hopeful and terrified at the same time.

[chervilant]

12. Wow.

I can identify with that sentiment: "I'm hopeful and terrified at the same time."

Also, we are facing the absolute necessity of creating a new economic paradigm, even if we have to drag the hedonists (kicking and screaming?) into that bright future.

I fully anticipate that the next two decades will be incredibly difficult, but also incredibly exciting.

[midnight]

2. K&R

[JJW]

3. Well that sure ends any pretense of there being a free market

Free market capitalism is for dummies.

[defendandprotect]

4. Fed gave them $$ at 0% ...they turned around and bought Treasury notes at 3.5% + 4% interest

[BadGimp]

6. not sure that's correct on the #s

at that time the Treasury was selling notes that effectively paid no interest - that's my recollection

..but on a bigger point, the $$$ in the Federal Reserve is not money that the US or the US People own. Am I correct on this? My understanding it that that money is from the richest motherfuckers in the world, who pool their cash in the Fed and it acts like a bank to the banks. The Fed is charged with Chartering banks in the US and hence controls the loan rates to banks, since they have the cash.



The US does not have a few trillion laying around. We are spending more than we bring in each period and have been borrowing to make up the difference which is what the Deficit is. Which is why the total US Debt has more than doubled since Bush the Junior took over.

what am I missing??

[freedom fighter jh]

8. As I understand it, that money belongs to no one, but the Fed gets to use it.

The Fed has the power to create money. They do this in lending it out. In other words, to make a loan to the bank, the Fed writes a check (or more likely types something into a computer) saying the bank gets $x, and that's enough to magic $x into existence. Not all money is created this way. Some is created the old-fashioned way, by the U.S. government.

There are limits on how much money the Fed can create this way. I don't know what they are, but I believe they are based on the amount of "real" money (money created by the U.S. gov't?) the bank has. I suspect those limits have been greatly loosened in recent years.

I am not making this up. For more info, google "fractional reserve banking."

[defendandprotect]

15. Grayson's comments are on video -- think it was the Ed Schultz show yesterday?

[bossy22]

23. you're close

the fed has an unlimited power to create money. If it wanted to it could create 100 Trillion in less than a second. Physical currency is created by the treasury department, bought by the federal reserve at cost value (i believe 6 cents a bill) and the currency is distributed (take a dollar bill out of your pocket and look at what its technical name is, "federal reserve note". Now, the key here is the difference between money and currency- the two are not one in the same. Currency is physical money- coins, dollar bills. Money on the other hand encompasses not only currency, but all the "electronic money"- which is all the little numbers on banks balance sheets that represent "cash". So even though the treasury department mints currency- it does not "create" money- it has no control over the money supply. Though the U.S. Treasury can circulate bills on its own but they are technically no more than a paper version of a credit card- meaning that a treasury bill which isnt a fed reserve note is not actual money and is essentially an IOU of the treasury dept. Many times in the 20th century when this was done the bills were treated as money since it was backed by the full faith and credit of the united states.

Now there is another way money is created- bank money. Essentially in fractional reserve banking, the banks have the power to create money through the money multiplier. It is a very confusing concept which is hard to explain- though wikipedia has a great article on it.

I hope this helps a bit

[defendandprotect]

14. That's according to Sen. Bernie Sanders --- Treasury notes paying 3.5% and 4% -- !!

Meanwhile, NONE of these decisions should be being made by a private bank --

these are decisions which should be made by our elected officials -- i.e., Congress.



However, re your claim --

And who would the Treasury be "selling" notes that paid no interest to which would be

competing with notes that did pay interest? Makes little sense.


TAXPAYERS bailed out banks and big business -- not the wealthy.

[Dont call me Shirley]

18. The banks and big businesses ARE the wealthy!

[defendandprotect]

24. This is money which should been being lent out to public -- small business, etal -- !!

Money was frozen -- doing a lot more harm to economy.

[bhikkhu]

21. From 2008 - "Treasury Notes Pay 0% Interest For the First Time"

http://www.usatoday.com/money/perfi/bonds/2008-12-09-treasury-bills-zero-interest_N.htm

...so its possible, though in the article it gives a variety of rates for a variety of types of notes.

On the other hand, if you simply hear that treasury bonds were purchased in late 2008 and wonder what interest rate those may have been paying, you could look up a graph such as this one:



- and say that probably the ballpark was 3-4%.

Of course, I really don't know. I have heard elsewhere that the government loaned banks money at less than market rates, and that we could have charged more and made more money on the interest. That's been one of the main gripes about the bailout. The difference between the interest earned and the interest that might have been earned is supposed to be about $13 billion - not small change, but still not much considering the total sums involved.

[defendandprotect]

25. Again, info from Sen. Bernie Sanders ... they bought Treasury notes paying 3.5%/4% interest -- !!

And you can probably find Sanders saying that in a YouTube video or somewhere on

the internet --

Sanders is one of our major truth tellers -- usually a good part of what we know

is coming from him!

And, again -- this is money which was kept from the public -- not being lent out and

not aiding the economy.

[defendandprotect]

16. Keep in mind, PEOPLE create an economy - not banks -- banks need us, we don't need them....

Banks and financial institutions are there to manipulate the economy --

and profit from it -- that's all!

[SemperEadem]

7. but on a completely unrelated tangent

I'm loving that van Dyke he's growing...

[civilisation]

9. Money is Debt!

See; http://www.moneyasdebt.net/

[fasttense]

10. The Fed is corrupted just like the rest of the US government.

The RepubliCONS didn't shrink government down to the size where they could drown it in a bathtub. They grew government into a monster and keep it in the septic system along with all the other sh*t.

[MrMickeysMom]

11. Waiting for today's follow up with the Hedge Funders...

I'm sure this is building beyond "belief"...

The whole thing is unraveling and everything that has been said here is NOT :tinfoilhat:

folks...

[tomtharp]

13. the banking dynasty

Was started during the Napoleonic wars when the Rothschilds bought England through a bluff. They were unable to take over the US during the revolution and civil war. Andrew Jackson was shot at twice for opposing the 2nd and 3rd US central banks. I've read that every president to oppose banking has been shot at; jackson, lincoln, kennedy, and reagan- check. The bankers funded the bull moose party to split votes from Taft that Their man Wilson would win and pass the fed reserve act. Bankers were selecting our presidents 100 years ago. The current estimated wealth of the Rothschild family is 200-300 Trillion dollars !! The Rothschilds funded cecil rhodes who founded Rhodesia, DeBiers diamonds, and the Rhodes scholarship (Clinton=Rhodes Scholar) Rhodes also founded the Council on Foreign Relations whose current members include Cheney and Clinton, and previously Carter, Reagan, Bush, Greenspan, Bernanke etc etc. I think CFR choses who we get to vote for.
The federal reseerve is not federal and has no reserves, it makes money out of thin air. The fed is owned by the Rothschild banks of london and their subsidiaries and family, i.e. Lazard of Paris, Kuhn & Loeb, Brown & Shipley, Lehman Bros etc. Despite 7 years of prep school taking US and Euro history 2-3 times each, reading The Creature from Jeckyl Island by G Edward Griffin completely changed my view of history; highly recommended if you want to read 600 pages of history. It reads like a whodunnit.
Why did we enter WWI, to bail out England and get our loans back, why did viet nam last so long - the banks were making a killing off it. The great depression may have had an engineered currency crunch so that NY/euro banks could buy out the central and western US banks who were becoming strong competitors. Banks double their profit during war, or triple it loaning to both sides. War is the best way for banks to raise profits. If you don't like war, pay off your mortgage (death grip - latin) burn your visa card and join a credit union Occupy Earth!
Recently, a blogger claims the fed is selling puts on T bills to drive down yields? http://www.youtube.com/watch?v=ZnZnkaq8Nf8&feature=player_embedded#!
Alan Grayson is a hero, love the clip of him grilling bernake before congress.

[Festivito]

17. Well said! Thank you. /nt

[Festivito]

19. 26T$ is only about $100,000 per American -- what's that! ... SHEESH!

Mom, Dad and three kids are struggling with a $100,000 or $200,000 mortgage and these goons added a million dollar loan to the rest borrowed.

Nightmare material.

[Huey P. Long]

20. kr

[K8-EEE]

22. Hey is KO growing a beard?

I like his Current look!

:loveya: :loveya: :loveya:

[freshwest]

26. K N R