Fed Hides Destination Of $2 Trillion In Bailout Money

Fails to comply with congressional demands for transparency, underscoring age-old problem of top down socialism and letting the fox guard the henhouse

Paul Joseph Watson
Prison Planet.com
Tuesday, November 11, 2008

The Federal Reserve is facing a lawsuit after it failed to comply with congressional demands for transparency and disclose the destination of at least $2 trillion dollars in bailout funds, underscoring once again the failure of top down socialism and the folly of trusting the foxes to guard the henhouse.

“The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral,” reports Bloomberg.

“Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.”

Bloomberg has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a separate lawsuit in an effort to find out where the money has gone.

President elect Barack Obama, who in a September 22 campaign speech promised to “Make our government open and transparent so that anyone can ensure that our business is the people’s business,” refused to comment on the story when contacted by Bloomberg, which is no surprise considering the fact that the man who guaranteed “change” has indicated he will not only follow the Bush administration policy of a socialized financial system, but radically expand it.

The Fed’s secrecy on the issue of where the bailout money is going underscores the age-old problem with top down socialism as a tool of re-shaping the economic landscape. The promise to fairly re-distribute the wealth, with full accountability, to achieve a solution that will ultimately benefit everyone, is trumped by the cold reality of the fact that corrupt elites, once the taxpayers have been suckered into believing the lie, merely hoard all the money for themselves and don’t redistribute it to anyone apart from their own inner circle of cronies.

Indeed, the banks have admitted that they are hoarding cash and will keep on doing so while bigwigs reward themselves with fat bonuses as the real economy sinks deeper into the toilet.

But what else could we have expected upon hearing that ex-Goldman Sachs executive Neel Kashkari was appointed by Paulson to dole out the ill-gotten gains of the bailout to the rest of the corporate crooks?

Kashkari: A man you can trust.

If you let the fox guard the henhouse then he’s going to eat the chickens.

In this case, the Fed and the gaggle of bastard banker children sucking on its teat, gobbled up $5 trillion plus in taxpayers’ money and then figuratively stuck the middle finger up when questions were asked about where that money was going.

Meanwhile, the bailout has had no effect whatsoever, increasing the severity of the financial downturn and allowing the same elite to exploit the crisis as a pretext for centralizing control of the world economic system and creating a new world order and a single global currency.

Research related articles:

  1. Inhofe: “No Way Of Knowing” Where Bailout Money Has Gone
  2. Where Did the Fed’s Bailout Money Really Go? Chart Shows Illegal Money Trail
  3. How’s that $8 trillion bailout going?
  4. Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion
  5. Cost Of Bailout Hits $8.5 Trillion
  6. Kashkari Accused Of Bailout “Bait and Switch” During Angry Hearing
  7. Naomi Klein: Bailout is ‘multi-trillion-dollar crime scene’
  8. Total Bailout Cost Heads Towards $5 TRILLION
  9. New Bailout May Top $1.5 Trillion
  10. Where’d the bailout money go? Shhhh, it’s a secret
  11. A Trillion Dollar Bait and Switch: The Bailout and the Smell Test
  12. Fox Guarding The Henhouse: Ex-Goldman Sachs Exec To Oversee Bailout