Congressman Grayson: Fed Secretly “Stuffed” $500 Billion into “Foreign Private Pockets” and Gave $230 Billion to Citi “As a Secret Bailout”

Congressman Alan Grayson gave an interview to Wall Street Cheat Sheet’s Damien Hoffman, which includes the following bombshells:

H.R. 1207 is one of the simplest bills imaginable. Unlike the healthcare bill which is over 1000 pages, H.R. 1207 is a page and a half. The bill lists the existing exclusion of the Federal Reserve from oversight by the Government Accountability Office (GAO) and allows the GAO — an independent body — to audit the Federal Reserve Bank.

The Federal Reserve Bank has not had an independent audit since it was created almost 100 years ago, and it needs an audit. Many times we have exposed gross acts of irresponsibility on the part of the Federal Reserve. So, we need to dig in and get details.

Just a few weeks ago, while Chairman Bernanke was testifying to Congress, we examined the Fed balance sheet and P&L statement only to find what looked like the Fed handing over half a trillion dollars to foreigners. This was very surprising! When I asked Chairman Bernanke if this was true, he said, “Yes.” When I asked him who got the money, he said, “Fourteen foreign Central Banks.” And when I asked to who did they give the money, he said, “I don’t know.” “I don’t know” is not good enough when you’re talking about $500 billion. That’s $1700 for every man, woman, and child in this country…

They are performing a truly remarkable, surreptitious transfer of wealth from public to private hands. They are taking their ability to print money and shore up failed banks. They are simply stuffing money into the pockets of private interests.

In the case of the half a trillion dollars, they stuffed the money into foreign private pockets. In the case of another $230 billion, it has been tracked as a secret bailout to Citicorp in the US. The fact is the Federal Reserve continuously puts all of us on the hook for decisions they make to play favorites with private interests to the tune of trillions of dollars…

The Federal Reserve’s own website has some incredibly interesting information about the general state of the US economy and the distribution of wealth in our country. I was recently reading our national wealth capped out at $62 trillion two-years ago has crashed to $50 trillion since. Those are Federal Reserve statistics on their website.


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  • http://Anonymousnoreply@blogger.com Anonymous

    Grayson is a moron. Dollars are fungible. The Fed did not "give" the money to foreign private hands. It was what Bernanke said, we lent the money to foreign central Banks. This is not very different than what occurred during the Panic of 1908 with regards to Gold.

  • http://SomeGuynoreply@blogger.com Some Guy

    Thanks for dropping by to share your views with us, Mr. Bernanke. Here's hoping you'll prove to be the last chairman of the most recent unconstitutional central bank to plague our republic.

  • http://Anonymousnoreply@blogger.com Anonymous

    "This is not very different than what occurred during the Panic of 1908 with regards to Gold."Huh?The anonymous apologist doth clearly utter a financial -non sequitur-. It is a blatant and intentional distortion of what has transpired.Let's start over, Mr. Anonymous.Just where the hell does Mr. Bernanke get off giving a half trillion dollars to anyone under any circumstances?Is that somewhere in the Constitution, or is it in the Old Testament, or what?There are plenty of Americans who foresaw and came into this crisis 100% in cash, and didn't own a single derivative contract, stock, or any other exotic financial device, -and who- by Mr. Bernanke's scurrilous actions have been deprived of the real purchasing power of their hard-and-honestly-earned wealth.I see people arguing these Wall Street con artists are due their 100 million dollar pay day (paid for -out of public money) because they have a contract.-But what about those of us who have had the purchasing power of our wealth utterly trampled upon by Bernanke, Paulson, Geithner and Bair (with the phoney-baloney excuse THEY WERE saving the economy)?What an utter crock of shit you came here to pour all over this board, anonymous.People here aren't as stupid as you think.What has happened is disgusting. And it's not over yet, and everyone knows it.

  • http://BeTrueSeekTruthnoreply@blogger.com BeTrueSeekTruth

    Anonymous is a spineless liar. The 1908 gold panic was engineered to make way for the private central bank known as the FED. The banker bailout bill contians provisions that bestow dictatorial powers on the treasury secretary and the FED. The fact that you're being exposed should frighten you sir, since we live in a universe based on equilibrium. The scales are shifting against you.

  • http://Anonymousnoreply@blogger.com Anonymous

    Grayson is trying to mislead us, or is just being sensationalist. When the fed lends to another central bank, it is not its job to track where the money goes from there – just determine whether it can get the money back. Lending to other central banks is an important part of international crisis management. Whether we want the US government to do that is a different matter.

  • http://Mr.Starknoreply@blogger.com Mr. Stark

    My hat is off to you Sir, well spoken… Mr. Anonymous is a moron.

  • http://www.blogger.com/profile/10597750919779140564 The Idiot

    When you get down to it, what the Federal reserve is doing is nothing less than a deliberate modification of the wealth, from our pocket, to theirs and their friends. It's no different from any other corporation sensing the end of its existence, and transferring assets out prior to declaring bankruptcy.The proponents of the 'nothing to hide' policy are foolish, however, in the case of an incorporation created by congress (without examining the constitutional limitations on nondelegation) congress should have the ultimate power of audit, given that the incorporation is wielding the power granted to congress.The fact that the Fed is essentially saying 'pay no attention to that man behind the curtain' seems to indicate the man behind the curtain is engaged in substantial sleight of hand, similar to their bonds purchases out of the Cayman Islands by one of their own subsidiaries. It's effectively giving yourself a loan at interest, and given the financial nature of partial reserve loans, it creates far more money than just the original loan.It's the ultimate pyramid scheme. But what do I know? I'm just an idiot.

  • http://Anonymousnoreply@blogger.com Anonymous

    Some of you are indeed missing the picture. The total given to foreigners exceeds 1.2 trillion, Saudi alone got over 500 billion.In the case of Saudi, it was done to ensure that they continued to sell oil in dollars. In effect Saudi pumped their oil from the ground, traded us with green pieces of paper, which they invested in vehicles that lost or evaporated the green paper. Bottom line is oil for free… they werent gonna play anymore.They put a stop to it, forced us to make them whole, or else.Same with several other foreign banks, Make them whole, or they default their debts to us and others. The whole show runs on contract, once the contracts start defaulting like dominoes its game over for everyone..China is just now playing this same game. I hear on good authority its 4 trillion. Or else they default. In effect they make products, trade them for green paper, invest the green paper in vehicles that make the green paper disappear, so they give us the products for nothing in return, and they are unwilling to play this game anymore..This bailout money wasnt loaned, bonded, or distributed in any traditional sense. It was printed, given as restitution to avoid collapse of everything. It will eventually result in hyperinflation as these same foreign entities will, and are, in the process of divesting themselves from the dollars to attain something of actual wealth, and that was the point, to square things up enough to continue the game.. Be clear on this. Yeah, if you know how money works its counterintuitive. But the money was handed out as restitution, pure fiat, while it still had value. It was restitution, and kept the system from collapse, for a while..Pure unbacked printing..

  • http://Anonymousnoreply@blogger.com Anonymous

    Americans have never been so close to ending this travesty of justice. Call Congress and the Senate. If you were moved enough to post a comment on this issue, Please take the time to call your Congressmen, and Senators to put yourself on record in favor of Auditing the Federal Reserve.

  • http://Anonymousnoreply@blogger.com Anonymous

    The American people are in no way near ending this, and all for the most part more ignorant and uncaring than they have ever been. Beyond impotent.The plan will proceed as it was originally planned, and will soon end near schedule with the American government being handed over either defacto or officialy to the Federal Reserve under emergency conditions resulting in dictatorial powers. At this point the Federal Reserve will be in the drivers seat..A few small steps later thru the Bank of International Settlements and the coup is complete, the entire planets monetary system will be in private hands.At that point things problems long ignored will be forcefully dealt with, two prime ones being impoverished overpopulation and an arrogant country that consumes 40% of the worlds resources via force against some 96% of the worlds population being permanently nuetered.You cant stop it, you will even deny the truth of what I have taken the time to tell you.Put yourself on whatever records you want, as it will make it easier to identify and deal with you. Its already in motion, it cant be stopped now. Its a done deal, waiting for the inevitable erosion into correct timing thru emergency.Soon control of all money will be in a few private hands. It will be harsh for the majority of what passes as humanity, but its the only way to ensure the continuity of the species.Deal with it…

  • http://Anonymousnoreply@blogger.com Anonymous

    Question: To Annoying Anonymous When does fiat money have value? Since 1913 the federal reserve heist act against the republic of america (not ratified by the states) drove the paper money (aka: dollar) down to 4 cents, turning it into a debt note. Read the paper note, it is backed by nothing. Just as a reminder for you: the fed. Res. is a private bank, being foreign bankers: this is not part of the United States.

  • http://Anonymousnoreply@blogger.com Anonymous

    Fiat money of course has no intrinsic value, it, being a paper product covered with Illuminist symbols literally does grow on trees.What I was alluding to is in the normal state of affairs money is in effect borrowed into existence, and when the loan is paid ceases to exist. In the case of the majority of the bailout money this principle is not in existence. This is pure fiat, printed, distributed, with no destruction as it wasnt distributed as a loan or bond. It will never cease to exist, which increases the supply of money, which is a inflationary principle.Does this clear things up??Fiat currency only has value as you, the end user, believes that it does. This illusion isnt illusion as long as you can exchange it for things of actual value, but that is gonna change, in a drastic fashion, and quite soon.Of course the Fed is a private entity. The next play will not only allow a small group to control the finances of the United States but control the finances of the entire globe.This is the goal, and of course it wont be long til a small group has defacto control of the entire world.You can yell, scream, protest, cast aspersions, yet the bottom line is a new power structure firmly taking the reins and taking care of humanities most pressing problems.As I alluded to earlier, it wont be pleasant for most, as they will cease to exist. But humanity may have a future once the burden of overconsumption by the masses is addressed.I believe that any intelligent human should be able to see this coming, its not like its not obvious, and take steps to prepare, rather than writing stern notes to the witless facilitators of the project. Dont you understand who already owns them and what becomes of them if they bite the hands that feed them??Its all about who controls the issue of the currency, and the power that ensues.

  • http://Morpheusnoreply@blogger.com Morpheus

    Jeez Ben. At least show up as your true self. Hiding behind the name "Anonymous" is kinda chickenshit.

  • http://Anonymousnoreply@blogger.com Anonymous

    The fed gave $500Billion to foreign banks.Watch the wording.Not loaned.When asked who got it the question was WHICH foreign central banks. Bernake answered he did not know.So half a trillion dollars is given to foreign central banks and the head of the fed does not know who got it?.This is not the first time this thievery has occured.

  • http://www.google.com David

    Intersting commentary. What about the theory that the FED paid off "bribed" the foreign central banks – to buy their cooperation. The foreign central banks were screaming about the fraud Wall Street, the rating agencies and the US Gov (SEC) and Fed had perpetrated. After the payoff, everybody is back on the team.The Fed covered their losses (at our expense). I still don't see why we can't force this loss back onto the financial system once the mess is cleaned up. If it were me, I'd nationalize the banks. Sell off the bad assets (protecting only depositors). Force the losses back on those who perpetrated the fraud (in this country). Seize their personal assets under RICO, claw back all their compensation. Sending people to jail will not reform Wall Street. Take their money and put them where they'd intend to put us. The gutter. Then this won't happen again in this generation.

  • http://GOLDBUGnoreply@blogger.com GOLDBUG

    What happen to the other $14trillion they gave the fat cats? $500 bil is chump change. That does not go into some balck hole. There are trillionaires out there playing musical chairs. Last one standing HOLDS ALL THE GOLD you loose annonymous. If you think they will be confiscating it think again. Oh and those loans. Give me a break. No country every paid there debt off . NEVER!!!!!!!!!

  • http://Tomnoreply@blogger.com Tom

    We must demand as ancestors of the founding fathers by a show of unity in DC that Congress charge the individuals in charge of this ponzi scheme with treasonaous crimes against America, notably Geithner (ex Goldman Sachs man), Paulson (ex Goldman Sachs CEO), Robert Rubin (ex Treasury Secretary and one of Obama's leading financial advisors and an ex-Goldman co chair who was responsible for twisting arms in DC to repeal the depression era Glass-Steagall Act that regulated banks and investment houses so they would not run rough shod. Rubin also as Treasury Sec bailed out Goldmans failed rescue attempt of the Mexican Peso and got his old firm $4 bil in bailout funds when he was the co chair. I am sure he benefitted from that. The list of Goldman cronies goes on and on. Goldman controls the WHouse and Obama. We need to go after the bankers and those who were in the banking industry and now in the administration and indict them all for fraud. Call your Congresmman and demand they folow their pledge to uphold the Constitution against all enemies foreign and domestic.

  • http://www.4thepeople.us Jeff ray

    If you want to take care of the situation yourself, form a citizen grand jury, and have them all indicted for RICO charges. The case is there. Don't waste a dime calling the ones who created the mess, in the hopes that they will help you! It is simple form a citizen grand jury and have the charges pressed. If Holder won't do it, indict him too. He took an Oath to uphold the law! Read USC 18, paragraphs 241,242,and many many more! Read the whole thing!Any questions? If you want to find out how to set up a grand jury, it is on line. I can't seem to find any one with enough guts to help me get it done! Now that is pathetic, cry all you want, or do something abou it!

  • http://www.blogger.com/profile/12335702549067569712 Charles

    Let's be honest. Grayson is always overloading his mouth with his ass. Look at the smug look he always has. Do people not see that he is a legend in his own mind. The people in his district should be real proud of this guy. A real big jokester. Big funny man. Hey Grayson, now I know why tigers eat their young. Call us when your shuttle lands Grayson. If you are a man, I'll use that term loosely with you. Great blog.

  • http://Anonymousnoreply@blogger.com Anonymous

    The US has wasted this crisis. They should have printed the money to completely pay off all foriegn debt. With the money multiplier at below one and $15 trillion of reduced American wealth, there would have been no inflation as a result.

 

 

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