Why Is the Fed Bailing Out the World … On Our Dime?

Federal Reserve

Fed Pours Huge Sums Into Foreign Bank Coffers

by WashingtonsBlog

We noted even before the TARP bailout law was signed into law that bailout moneys could flow to foreign banks.

We were right. A large percentage of the bailouts went to foreign banks (and see this). And so did a huge portion of the money from quantitative easing. More here and here.

Ron Paul noted in 2011 that essentially 100% of New York Federal Reserve Bank loans went to foreign banks.

A former high-level Federal Reserve official said that the Fed is secretly bailing out Europe.

The Fed has bailed out Gaddafi’s Libyan bank, the Arab Banking Corporation of Bahrain, and the banks of Bavaria, Korea and Mexico … but has shafted normal Americans.

The Financial Times reported in February:

Foreign banks also have a striking amount of cash at the Fed, potentially aggravating the Fed’s PR problem. Analysts at Stone & McCarthy noted recently that there had been a steep increase in foreign banks placing reserves at the Fed and suggested that “US banks may have distaste for the opportunistic arbitrage”, between lower market rates and the interest on reserves, whereas overseas institutions “might not feel encumbered in the same fashion”.

Canada’s TD Bank, Germany’s Deutsche Bank and Switzerland’s UBS each have more than $12bn at the Fed.

Yesterday, Zero Hedge provided an update to this story.  ZH reports that the Fed’s quantitative easing program has injected huge sums into foreign banks:

The latest H.8 report demonstrates, as of the most recently weekly data, the Fed’s policies have led to foreign banks operating in the US holding an all time high amount of reserves, surpassing $1 trillion for the first time, or $1,033 billion to be precise.

This means that, as we expected several months ago, the only recipient of ongoing Fed money printing are not US banks, but foreign banks operating in the US. For those confused about the big picture, here is a chart showing the breakdown of cash held by big and small US banks as well as foreign banks, superimposed to total reserves created by the Fed since the start of the Great Financial Crisis. The correlation is 100%.

And just to prove that ALL the unsterilized cash from both QE2 and QEternity has essentially gone to support offshore banks, here is the conclusive chart showing the change in Fed reserves and cash held by foreign banks:

Finally, tying it all together, here is chart showing cash at US banks vs cash at foreign banks operating in the US. At $1.03 trillion in foreign cash, the Fed’s policies have once again led to more cash being held by foreign banks than all cash held by domestic banks.

We are confident that we speak for all when we say: “Thank you Ben – insolvent foreign banks appreciate your ongoing QE2 and QEternity-funded generosity

In a separate report, ZH notes that Bank of Korea Governor Kim Choong-soo said:

World may face rate risk if U.S. exits from QE

Too bad that quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors. And by causing food and gas prices skyrocket, it takes a bigger bite out of the little guy’s paycheck, and thus makes the poor even poorer.

And it’s a shame that a study of 124 banking crises by the International Monetary Fund foundthat bailing out banks which are only pretending to be solvent  – like most of the big banksharms the economy.

And what a farce that:

The bailout money is just going to line the pockets of the wealthy, instead of helping to stabilize the economy or even the companies receiving the bailouts:

  • A lot of the bailout money is going to the failing companies’ shareholders
  • Indeed, a leading progressive economist says that the true purpose of the bank rescue plans is “a massive redistribution of wealth to the bank shareholders and their top executives”
  • The Treasury Department encouraged banks to use the bailout money to buy their competitors, and pushed through an amendment to the tax laws which rewards mergers in the banking industry (this has caused a lot of companies to bite off more than they can chew, destabilizing the acquiring companies)

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4closureFraud.org

Comments
4 Responses to “Why Is the Fed Bailing Out the World … On Our Dime?”
  1. Mary says:

    I think all americans even the ones not in foreclosure or having problems making their mortgage payments should get together and march in front of the White House and start fucking pegging almost everybody in Congress/Sentators/legislators/ and definitely fucking O’Bama off by having millions of us and they’d have no way to defeat us and that we all become the “We The People” and take all their money away from them and see how it feels not to have money to pay for their mortgages and daily living expenses!

    You people have still not contacted me to getting a minimum of 5 million people there in D.C. We have to finally do something about this!!! The marches at certain places throughout the past few years JUST HAVE NOT DONE WHAT WE HAVE WANTED ALL THIS TIME AND I AM TELLING YOU IF WE ALL MARCH, MINIMUM OF 5 MILLION + THEIR ASSES WOULD BE OURS!!!!!

    SO ONCE AGAIN, here is my email address: va1coco@hughes.net

    I WILL BE THERE WITH YOU BUT I CAN’T DO THIS ALONE AS IT WOULD GET ME NOWHERE AND PROBABLY GET ME KILLED SINCE I’D LOVE TO KILL ALMOST EVERY SINGLE ONE OF THESE BASTARD POLITICIANS, EXCEPT FOR THE FEMALES, BUT THAT WON’T DO ANY GOOD EITHER, EXCEPT GET ME KILLED.

    WE THE PEOPLE NEED TO START TAKING OUR GOVERNMENT OVER!! WHO THE FUCK IS WITH ME. DOESN’T ANYBODY CARE ENOUGH TO PASS THESE MESSAGES TO FRIENDS, CO-WORKERS, FAMILY MEMBERS, ACQUAINTENCES , SMALL BUSINESSES. I DON’T KNOW HOW TO GET THINGS OUT TO PEOPLE. I’M A LITTLE COMPUTER ILLITERATE AS I ONLY — USE IT FOR WHAT I NEED IT FOR AND DON’T KNOW HOW THINGS SENT UP ON FACEBOOK, TWITTER, YOUTUBE, ETC

    WE NEED SOMEBODY THAT HAS INS & OUTS WITH NEWSPAPERS & NEWS MEDIA TOO AS IF THEY KNEW THAT THERE WOULD BE A MIN. OF 5 MILLION+ PEOPLE SHOWING UP IN D.C. YOU CAN COUNT ON THE FACT THAT THEY WOULD COVER THIS STORY UNLIKE WHAT THEY DO RIGHT NOW WHICH IS NOTHING.

    SO AGAIN: va1coco@hughes.net and if we all start talking and getting something really going, then we can talk by phone.

  2. Ed says:

    I hate the Blinking Red Ad (‘you are the 100,000th …) and wish you would remove it.

    • Just hit refresh and it will go away. I do not pick the ads that are served.

      • Fury says:

        glad to know that you aren’t accepting ads for Russian brides.

        so i take it that many of the ads are random?

        a friend of mine who has a website told me that he can’t control the ads that
        show up in rotation. i assume the same is tru for you.

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