Roman Bread & Circuses in the Electronic Age: Part II
by: J. Rick Normand, Financial Columnist
In Part I of this treatise, we examined the path down which we have been led to the current state of the failing U.S. economy. Now, let’s take a look into the specifics and the likely players..who did it, why and how. The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out in the last year subject to a court order which was unsuccessfully fought by the government. What was revealed in the audit was startling to say the least: $16,000,000,000,000.00 (that’s trillions) had been secretly given out by the U.S. Fed to US banks and corporations and foreign banks everywhere from France to Scotland and even Belgium. That money wasn’t a stimulus for you and our economy…it was a stimulus for the 1.0%. From the period between December 2007 and June 2010 the list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit are as follows:
- Citigroup: $2.5 trillion ($2,500,000,000,000)
- Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
- Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
- Bank of America: $1.344 trillion ($1,344,000,000,000)
- Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
- Bear Sterns: $853 billion ($853,000,000,000)
- Goldman Sachs: $814 billion ($814,000,000,000)
- Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
- JP Morgan Chase: $391 billion ($391,000,000,000)
- Deutsche Bank (Germany): $354 billion ($354,000,000,000)
- UBS (Switzerland): $287 billion ($287,000,000,000)
- Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
- Lehman Brothers: $183 billion ($183,000,000,000)
- Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
- BNP Paribas (France): $175 billion ($175,000,000,000)
..and many more!
Before reading on, here are some facts that maybe you should know about the U.S. Fed:
- The Federal Reserve System is a privately owned banking cartel member, including foreign investment banks, and is NOT an agency or any part of the U.S. government
- The Federal Reserve System is a perpetual debt generating machine…it is the creator of dollars, which when issued, become a debt of the U.S. owing back to the Fed and its private beneficial domestic and foreign bank shareholders
- The Federal Reserve, in terms of dollar purchasing power, has destroyed more than 96% of the value of the U.S. Dollar since its inception in 1913
- The Federal Reserve can bail out whomever it wants with no accountability or transparency or permission from Congress
- The Federal Reserve gives financial incentives to banks NOT to lend money to the public and to small business
- The Federal Reserve creates artificial economic bubbles that are extremely damaging to our economy when they inevitably implode
Below is recited a recently found memo in the Fed’s archives that lays out one of the more onerous hidden activities of the Treasury/Fed partnership which few Congressional representatives and the media even know about, much less understand:
FYI: See the Confidential-FR-U S Foreign Exchange Operations-April 5 1961 found in the archives of the Federal Reserve Bank of St. Louis.
Simply put, this memo lays out what the Treasury and Federal Reserve needed to do in order to begin interfering/intervening in the international foreign exchange markets, but there is even more. This document plainly shows what happens when government and quasi government entities operate behind closed doors in order to pursue financial market intervention rather than a policy of free markets unfettered by U.S. government manipulative activity.
What this document is really saying is that the Fed wanted to let the Wall Street banks extend credit and make greater profits by leveraging their balance sheets with imprudent big-risk investment assets while enabling the U.S. government to maintain international confidence in the dollar by artifice thus preventing it from defaulting on its commitment to redeem dollars in gold at $35 per ounce (in 1961 and forward). There was no consideration given to benefits to the U.S. public.
But, to do this the U.S. Treasury Department (which reports to the President as part of his cabinet), working hand-in-glove with the U.S. Federal Reserve, would need some big, but hidden, cash funds to finance the plan. So, Congress created a little disclosed and unpublicized secret fund, NOT subject to its own oversight, or even known to most of its members nor the public. This fund was put in the hands of the US Treasurer, personally, who has absolute power to do what he wants with the fund at will (remember, it’s your money he/she plays with). This slush fund is known as the “Exchange Stabilization Fund,” or ESF. There are trillions of dollars in it say past whistleblowers. It was originally intended just for illicit currency exchange rate manipulation of the dollar, but, of course, eventually became a slush fund used for all sorts of illicit financial and non-financial political purposes.
It has been directly involved in virtually every major US fraud/scandal since its creation in 1934 including the likes of the Iran-Contra affair and the funding of the CIA created Mujaheddin in Afghanistan which later became al-Qaeda. Its funds are collected, distributed and managed by, and at the offices of, the private bank controlled New York Federal Reserve Branch. The ESF keeps a very low profile by using the Federal Reserve (remember, it’s not part of the U.S. government) as a front. This is, doubtless, the reason the Fed does not ever want to be audited along with the fact that it is the sole custodian of the U.S. government’s gold reserves (it’s the people’s money, if it’s still there!) which purposefully hasn’t been audited since the Eisenhower Administration.
The ESF has demanded enormous amounts of money printed from the Fed, which becomes our people’s unaudited and undisclosed debt, to prop up the US economy and the U.S. dollar’s status as world reserve currency.
Finally, in Part III, we’ll identify the nature of the U.S. government’s colossal hidden economic hoax on the American nation which has been successfully perpetrated for 41 years by applying the old tried and true technique of the Roman Caesars…namely, orchestrating “bread and circuses” [entitlement programs, welfare programs, bail-outs, the war on terrorism, endless foreign wars, Hollywood and media control by the same players, professional sports addiction, reality TV, reveal-it-all TV, etc.] to divert attention and criticism from the keno-genesis of deliberately cultivated American corruption at the highest levels of government!