Forget Debt Ceilings! Fed Gave Away $16 TRILLION!
The picture that’s attached to this post is Table 8 on page 133 of the Dodd-Frank audit of the Federal Reserve. (See this link: http://www.rawstory.com/rs/2011/07/21/audit-fed-gave-16-trillion-in-emergency-loans/ – it shows up as page 144 of 266 in the Scribd version at the bottom.) It shows that the Fed lent $16 TRILLION to various banks, ten of which are outside the United States. People are squabbling over a debt ceiling while the Federal Reserve lends TRILLIONS of dollars, much of it outside the country! The entire US GDP is only $14.5 TRILLION (which we all know thanks to the ridiculous squabbling over the debt ceiling, even if we didn’t before) and the Fed lent out more than that in the short space of three years.The politicians are fighting over billions here and billions there while the Fed hands out TRILLIONS like candy. People are suggesting that we tax the rich more so that the US doesn’t collapse, as if that could solve anything! (Taxing the rich would result in miniscule amounts as compared to $16 TRILLION, and those same people that would be taxed are the ones handing out all the money in the first place – after the first use it (and thereby getting the benefit of using it before its inflationary effects are felt) – they would never let those taxes happen!) The dollar’s value is plummeting, and the world is now awash with them… politicians are squabbling over billions here and billions there while the Fed has had them beat by several orders of magnitude even before this current debt ceiling became an issue. In 1961, the price of an ounce of gold was $35. Today, the price of an ounce of gold is $1613. If you divide 35 by 1613, you get .0216986, which as a percentage, is 2.2%. That means that the dollar today (as judged by the price of gold) is worth about 2.2% of what it was worth just fifty years ago, meaning that the dollar has LOST 97.8% of its value in fifty years. Think about that – for every $100 in purchasing power you had in 1961, you now have the purchasing power of about $2.20. Your $100 from 1961 couldn’t buy you a gallon of milk or a gallon of gas! That’s just today – we may not know the full effects of flooding the world economy with so many TRILLIONS of dollars for some time to come.