Financial Rescue Nears GDP as Pledges Top $12.8 Trillion

Mark Pittman and Bob Ivry
Bloomberg
Wednesday, April 1, 2009

The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.

New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.

President Barack Obama and Treasury Secretary Timothy Geithner met with the chief executives of the nation’s 12 biggest banks on March 27 at the White House to enlist their support to thaw a 20-month freeze in bank lending.

(ARTICLE CONTINUES BELOW)

“The president and Treasury Secretary Geithner have said they will do what it takes,” Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said after the meeting. “If it is enough, that will be great. If it is not enough, they will have to do more.”

Commitments include a $500 billion line of credit to the FDIC from the government’s coffers that will enable the agency to guarantee as much as $2 trillion worth of debt for participants in the Term Asset-Backed Lending Facility and the Public-Private Investment Program. FDIC Chairman Sheila Bair warned that the insurance fund to protect customer deposits at U.S. banks could dry up because of bank failures.

Full story here.

Prison Planet.tv Members Can Watch Fall Of The Republic Right Now Online - Don't Miss Out! Get Your Subscription Today!

CANCER CONSPIRACY? Are "they" suppressing the cure? Will YOU be the next victim? Learn the Secret Truth! - READ FULL STORY

Comment Terms Of Use

12 Responses to “Financial Rescue Nears GDP as Pledges Top $12.8 Trillion”

FROT Says:
April 1st, 2009 at 9:52 am
how bout we give $42000 to every man woman and child instead of the banks! bail out the people!!!!

Forced Freedom Reply:
April 1st, 2009 at 2:28 pm
Funny, I proposed last September that every LEGAL man woman and child in America get a check for $500,000.00 at a cost of $1.7 trillion Dollars and you all thought I was nuts.

Now it seems that there are more people jumping on the bandwagon and seeing the truth behind this kind of logic…….It would actually help. Go figure!

Oshbagosh Reply:
April 1st, 2009 at 7:19 pm
1 Trillion / 300 million (Americans) = 3,300$ per person, 1.7 Trillion would be approximatly 5,000. So first off your math is redicules and wrong. Second off, from a basic economic stand point, this wouldent help, it would be devalue everyone, and hurt people who saved their whole lives while rewarding others for doing nothing. In essance this reidcules move of pumping money into americans would just devlaue everyones currency and tell everyone who has saved money that its now worthless.

Hanif Reply:
April 2nd, 2009 at 1:50 am
In Zimbawee the inflation is so high because they print more money just like what America is doing now. Result is 1 Trillion Dollar is equal to 1 Egg. So think about it.

herewegotohell Reply:
April 1st, 2009 at 2:47 pm
They wont bailout the people it’s enslave the people .. I keep warning people of hyperinflation and the idiot people seem to think differently .. new vid I made emerging and invasive technology for a new world order http://www.youtube.com/watch?v.....annel_page
Charles Says:
April 1st, 2009 at 10:34 am
How about we get all the money back from the bail out, throw the assholes out of Washington, etc… and take the US back to a Constitutional Republic, without the federal reserve.

fort1 Reply:
April 2nd, 2009 at 4:15 am
How original…. well, the money partly was moved to Europe (e.g. via AIG), partly has disappeared (common theft) so you can’t take it back.
O.k. for the rest, just a little question: how ??
Forced Freedom Says:
April 1st, 2009 at 2:23 pm
This is how truly confident the Government is that you will just continue working harder than ever for less pay to ensure the elite of the world can continue their charade and force you to pay their wages while you receive NONE!

At some point in time, you will awaken from your slumber and decide you can’t afford to buy the elite their billion dollar homes any longer while you live in a BOX!
brrrrr Says:
April 1st, 2009 at 4:25 pm
a currency backed by the “full faith and credit” of we the people….simply no longer exists. we have no faith and our credit is shot. So the currency is a farce. Send IRS a teabag at tax time.
Tom Says:
April 1st, 2009 at 8:53 pm
from http://www.john-f-kennedy.net/.....r11110.htm

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificats were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the gevernment the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.
DJ Who Says:
April 1st, 2009 at 10:16 pm
http://www.youtube.com/watch?v=9lrmTu2gXvw
Now that the smokes gone… and the air is all clear. Seems like this was predicted by the Founding Fathers and also people like President Andrew Jackson who fought and ran the foreign influences for central banking out of town. Yes we are living with the reality that our government did not follow the path laid out in the Constitution for Freedom.
Get Your Ex Back Says:
April 9th, 2009 at 3:13 am
I read your blog for a long time and must tell you that your articles are always valuable to readers.