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U.S. Taxpayers Risk $9.7 Trillion on Bailouts as Senate Votes
Mark Pittman and Bob Ivry
Bloomberg
Monday, Feb 9, 2009
The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.
The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged to provide up to $5.7 trillion more if needed. The total already tapped has decreased about 1 percent since November, mostly because foreign central banks are using fewer dollars in currency-exchange agreements called swaps. The Senate is to vote early this week on a stimulus package totaling at least $780 billion that President Barack Obama says is needed to avert a deeper recession. That measure would need to be reconciled with an $819 billion plan the House approved last month.
Only the stimulus package to be approved this week, the $700 billion Troubled Asset Relief Program passed four months ago and $168 billion in tax cuts and rebates approved in 2008 have been voted on by lawmakers. The remaining $8 trillion in commitments are lending programs and guarantees, almost all under the authority of the Fed and the FDIC. The recipients’ names have not been disclosed.
(ARTICLE CONTINUES BELOW)
“We’ve seen money go out the back door of this government unlike any time in the history of our country,” Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. “Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?”
Financial Rescue
The pledges, amounting to almost two-thirds of the value of everything produced in the U.S. last year, are intended to rescue the financial system after the credit markets seized up about 18 months ago. The promises are composed of about $1 trillion in stimulus packages, around $3 trillion in lending and spending and $5.7 trillion in agreements to provide aid.
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February 9th, 2009 at 11:54 am
All right I hold my hand up, they sent me the $9.7 trillion.
I have got a problem though they sent me it in $1 bills and I cant get in my f---ing house.
The Fed and the FDIC, told me not to tell anybody about the money, they said they would soon be sending everyone else a cheque for the same amount, and they wanted it to be a suprise.
Christ, I better quickly book a holiday, before my $9 trillion wont buy s---.
Joking apart, what a shower of s--- these people are, still no-one has been shown to be responsible and punished for this disgracefull state of affairs.
Its one rule for us, and another for them, what a suprise.
February 9th, 2009 at 12:02 pm
They would have been better off paying off every mortgage in America who owns a house under $750,000 in value. Then people would have been able to start spending their money again.
February 9th, 2009 at 12:34 pm
This is neither a “stimulus” nor a “bailout.”
It is banker-engineered RIPOFF.
It’s a criminal consolidation of wealth and power into the hands of the very corporate parasites who CAUSED this crisis in the first place.
The only way to solve this problem is to eliminate its root causes.
How do we do that?
Read the following and find out:
http://propagandamatrix.com/fo.....pic=1012.0
February 9th, 2009 at 12:38 pm
The government could easily just issue every homeowner a 1% APR on ONE of their homes (obviously if you have more than one home, you are in no need of a bailout). Homes over $500,000 could be discarded if it would help achieve this goal.
If your mortgage has a 6.75% APR. Reducing it to a 1% APR would slash your monthly mortgage payments by over 50%!!! So if your mortgage is $1,400 per month…it now would be less than $700 per month plus your normal escrow payment. mortgagecalculator.org
In this situation 100% of all money is paid back + interest to cover the cost of running the program. Taxpayers don’t have to foot a huge bill and everyone has extra disposable income to buy things EVERY MONTH….not just at tax time. Win Win Situation.
bob Reply:
February 9th, 2009 at 5:11 pm
add that with reducing payroll tax and u gots a winner
February 9th, 2009 at 3:04 pm
John B.
That would be about the coolest thing our Government has ever done!
It’s too bad they don’t know how cold it is outside, or how hard that concrete really is. They will, and soon. I swear it!
February 9th, 2009 at 3:54 pm
Looks like we’re being sold up the river again. The American taxpayers that is. History is quickly repeating itself. I’ve got a better plan that would stimulate the U.S. economy. That’s if improving and stimulating the economy was/is really the goal of the traitors, thieves and liars in the world. I don’t expect this plan to be followed of course. Here’s my plan: It would only cost $80,000,000,000 for starters. Give $1,000,000,000 to each man, woman, boy, girl the world over. That money could be used to pay off consumer debts and mortgages, start “profitable and useful business”, buy food, clothing, cars and household appliances, buy homes, coops or townhouses and pay for other goods and services. I believe that a minimum of 1 billion dollars in the hands of every needy American would do more to improve economic conditions (worldwide) than most of the stimulus bill appropriations considerations I’ve seen thus far. Sadly the U.S. Senate’s stimulus bill version appears to be more costly than the previous U.S. House version. I’m sure something will be worked out in congress that will be detrimental to the American taxpayer and the country. I intend on enjoying my blessings today while I still have them.
Even after giving eighty billion dollars to the citizens of the world out of the “so-called” U.S. stimulus package. There would still be a surplus of over $9.6 trillion left over. A portion of those funds could be used for infrastructure or other “real emergency needs.” I seriously doubt the U.S. or any other world government has $9.6 to flush down the drain. Maybe the ultimate plan is to have us all work for the government without having any income of our own anymore. That would be the perfect excuse to inject us all with a computer microchip. I’ll tell you tyrants in advance. Some of us will die or starve to death before we allow you to exercise that much control over our lives. I have no intention of living in a man-made created, hell on earth where my thoughts, motor functions, breathing, heart rate, emotions, etc. are controlled by a biochip that is linked to a computer database! The chip will contain all of your personal identifiable information such as DNA, financial and medical information. More than likely it will contain a tracking device that will reveal your whereabouts 24/7. It may even contain audio/video technology that monitors and/or records everything you hear and see. What I’ve just said may sound crazy to some. But most of what’s happening now was predicted by Alex Jones and others dozens of years ago. The plan is to place us all in a predicament where we cannot buy or sell without the mark of the beast. The implanted computer chip will be the mark of the beast. You won’t be told that but that’s what it is. You are doomed if you take it. (See Revelation 13:16, 17, 14:9, 11, 16:1-2). Terrorism, crime, identity theft prevention, patriotism and national security will be some of the excuses used to persuade you to have this intrusion injected into your bodies. It may be voluntary at first. It will eventually will become mandatory for everyone. The usual “media whores”, false and apostate religious leaders and celebrities will be promoting this technology. I don’t know about you. But I don’t want my mind and body to be controlled by a computer chip that’s hooked up to a database. I stand with Patrick Henry. Give me liberty or give me death.
February 9th, 2009 at 5:06 pm
” it would only cost $80,000,000,000 for starters. Give $1,000,000,000 to each man, woman, boy, girl the world over. ”
does not compute
February 9th, 2009 at 5:26 pm
That’s enough money to pay off every mortgage in the country hahaha help the banks and hell with you and you don’t get mad you sheep will take anything. your marching to the slaughter house you see the sheep in front of you getting killed yet you still head to the killing stalls OMG Stay asleep enjoy the matrix till its your turn to die!!
February 10th, 2009 at 3:01 am
The Federal Reserve is so important to the welfare of every American man, woman and child that Thomas Jefferson predicted that the people of America would become destitute if it were ever handed over to private bankers.
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Jefferson’s dire warnings were ignored: the running of the Federal Reserve was handed over to private bankers in 1913, and these same private banks have turned the American economy into a giant debt creating machine on which they earn interest.
And Jefferson’s prediction has come true. Millions of Americans today are waking up homeless in cars, streets and tent cities on the continent their fathers conquered. Millions more people are set to lose their homes in an economic crisis that has been artificially engineered by the banks precisely in order to sieze homes and assets.
This economic crisis, though, could also cost Americans their liberties because the apparatus of martial law is already in place to deal with the “unrest” that will result from the impoverishment on this scale of the people of America by the banking elite.
US troops serving in Iraq and Afghanistan might soon be come home to find themselves living on the streets or in FEMA camps in a country run by the UN under martial law and using the Amero currency.
The mechanisms of debt creation and foreclosure that allow private banks — thanks to their control of the Federal Reserve — to suck up every asset in America and gobble up the entire economy are never explained in the mainstream media owned by those same banking interests.
No one explains just how private bankers have constructed an efficient machine to move the wealth from every corner of America into their hands – and why the foundation stone of this efficent vaccum cleaner that is capable of sucking out every scrap of wealth from America is the Federal Reserve.
“Give me control over a nations currency, and I care not who
makes its laws,” said Mayer Amschal Rothschild.
The Federal Reserve is the ulimate source of all the money that private banks create out of thin air – and then lend to others but this time charging real interests and secured against real assets such as houses, gold.
By first lending money – so creating inflation and a credit bubble –and then seizing assets when people can no longer pay the interest by creating a deflation, a depression and joblessness – the banks can gobble up bit by bit every asset in the country as one bankruptcy is filed after the other.
The same banks are set to push the dollar currency over the cliff by creating hyperinflation through excessive national debt in the ultimate act of foreclosure on a nation’s wealth– leaving hundreds of millions of Americans destitute.
The banks can create money out of think air because the fractional reserve banking system currently in place requires banks to have only a fraction of the amount of the money that they lend in their reserve. For example, banks might need only 5 dollars backed up by real assets,for example, property and gold, for every 100 dollars they lend out The 95 dollars of that loan is created out of thin air. It is electronic money. Yet the banks charge interest on all 100 dollars!
Supposing a bank loans a couple 200,000 dollars at 5 per cent interest to buy a house worth 300,000 dollars in a case where the couple put down 100,000 dollars from their own savings.
In this case, the actual cash or liquid assets the bank needs in reserve on its balance sheet is only 10,000 dollars. The rest — 190,000 dollars — is thin air, electronic digit money the bank creates.
The couple, however, has to repay 10,000 real dollars (ie backed up by real assets, goods and services) every year if they have a mortgage rate pegged at 5 per cent.
Supposing a couple pays their mortgage for three years, then the bank earns 30,000 dollars. But iif one or both lose their job in a sharp economic downturn, they are unable to keep up payments, so allowing the bank to take possession of the house worth 300,000 dollars through the mechanism of bankruptcy and foreclosure.
That means, for an initial reserve of only 10,000 dollars on their balance sheets, the bank has earned 30,000 dollars in interest and also obtained an asset worth 300,000 dollars, making 330,000 dollars in 3 years.
It’s even better for the banks than that.
Each time, someone deposits money at the bank, that deposit adds to the reserves on the bank’s balance sheet and can be leveraged to make loans that earn the bank yet more interest.
So if the couple, deposit their 200,000 dollar loan, this deposit counts as a new reserve and the bank can make correspondingly more loans!
Banks can therefore issue almost infinite loans always charging interest. As long as the banks can bankrupt the economy from time to tome, forcing defaults, they can then gobble up bit by bit the entire economy, including farms, companies, and leaving Americans homeless and jobless.
Behind this money-making scheme for the private banks stands the private Federal Reserve and behind that stands the ultimate guarantor: the US government and the US taxpayer.
Thanks to the guarantee created by the pool of goods and services produced by the America people, Federal Reserve can create unlimited amounts of electronic dollars, which it then gives to private banks, who then make interest bearing loans.
The banks want to see the government implement economic policies that massively increase household and national debt so they can earn interest and then seize assets, including companies and farms.
Obama’s current Treasury Secretary Timothy Geithner has worked for private New York Fed and acts for the bank’s interest as have the Treasury Secretaries before him. Most of Obama’s economic team are connected with banks such as JP Morgan, Goldman Sachs. Economic Secretary Larry Summers is a former commentator for the Rothschild-controlled “Financial Times”. Interestingly, this newspaper hardly ever even mentions the name Rothschild, and presents the current economic crisis as the breakdown caused by the unfortunate interaction of impersonal forces.
The US economy run by bankers has promoted an economy that benefits bankers by favouring the creation of debt. The US economy is now based on consumption financed by debt and not an economy that favours investment in production, in a manufacturing or agricultural base.
A solid manufacturing and agricultural base, good labour protection and high interest paid for savings as well as a well regulated financial market allowed Americans to build up their private wealth in the era before the Federal Reserve was privatised. Because Americans had more private wealth, they did not need to take out as many loans from banks, reducing their profits.
In the first Great Depression, Americans who lost their homes owned 90 per cent of them – and yet the banks still managed to find a way to forecloss….
That means, an average American working man in 1929 –remember the wife usually stayed at home at that time with the kids – was still earned enough dollars with enough of a purchasing power to save up and buy 90 per cent of a house outright.
In the meantime, the value of salaries and of dollars has been eroded by inflation to the point today where a couple with two college degrees working full time struggle to save up enough to make a downpayment for a house.
Free trade, outsourcing, deregulation of the labour market have led to a sharp drop in American’s wealth. Nowadays Americans haave to take out loans to pay for houses, education and their cars to get them to work because they have so little real money.
The banks first encouraged people into the debt trap and make it easy for them to take out loans by creating a credit bubble under Fed Chief Alan Greenspan.
Now, the same banks have created a period of deflation after engineering a “financial crash” making it hard for people to repay those loans, and so allowing banks to seize their homes, companies and farms.
Americans were encouraged to take out relatively huge mortagages to pay for houses in an housing market where prices for houses and also for rental accomodation were artificially inflated by the cheap money pumped into the system under the Fed Chief Alan Greenspan.
These subprime mortgagess were packaged as tripple A assets by the allegedly independent credit rating agencies such as Standard and Poor through a “glitch” in their computer system.
The banks “bought” huge quanties of these subprime mortgages as packages and held them as part of their liquid reserve, so allowing them to make more loans….
They also used these loans to artificially trigger the “credit crunch” and force the economy into depression.
Then the friends of the banks at the Securities and Exchange Commission changed the so-called “fair value accounting rules” in 2008, triggering the bank’s “credit” crisis. This change required banks to “mark-to-market” their assets, particularly the subprime mortgage backed securities, making the banks close to bankruptcy but only on paper!
Paul Craig Roberts, Assistant Secretary of the Treasury during President Reagan’s first term, said that the subprime crisis could be ended by just reversing the “mar-to-market” rule!
This is something newspapers like the Rothschild controlled Financial Times rarely mention. Instead, report after report is filled with doom-laden news. The banks agents in the stock markets sell off shares massively, triggering a stampede. Those same banks are buying up the shares cheap using the same technique that Rothchild used in the battle of Waterloo.
At the same time, the banks demand “bailout” money to “recapitalise” and bolster their balance sheets so they can “lend” again.
Under the threat of martial law,Congress and Senate passed the “bailout” bill handing ver 700 billion dollars of tax payers money to the banks. The banks showed just how much they needed that money to recapitalise by spending billions on bonuses, on jet and on parties.
The banks have still not started lending to customers and houses are still being foreclosed, so the banks are not only getting money from the bailout, they are also seizing assets.
The true cost of the bailout is much higher than the 700 billion dollars. The American tax payers will have to pay interest on the 700 billion dollars because the government has had to borrow from the same banks to pay for the bailout!
Banks earn most money when they push the US government into debt. The best way of creating national debt is by starting wars. The longer these wars go on without any victory in sight, the more money they cost the government, the higher the national debt and the more the banks earn in interest. As long as the war in Afghanistan and Iraq drags on, the US must finance it – and through debts, now mounting into trillions.
Hyperinflation when the interest on the debts can no longer be paid except by printing more money is the ultimate act of foreclosure on a nation’s assets by bankrupting everyone who uses dollars.
In addition, the economic benefits of the war in Iraq and Afghanistan, such as control of the oil of Iraq and the drugs in Afghanistan, go to private banks and their associated companies and offshore centers – not to the American people.
Obama’s current stimulus package will push America further into debt and ruin. The package has little or no investment in production or labour protection laws that will allow Americans to produce and save and so reduce their debts.
Instead, there are tax cuts that are set to benefit the same banks and credit card companies. This tax cut might make sense if there was a parallel effort to control the cost of borrowing by compellig the credit cards to reduce their charges or banks to pass on the tax cuts to their customers. In such a case, the tax cuts might reach Americans and be used on spending on American goods (what few are left of them given the lack of a manufacturing base).
But no such measure to control the cost of borrowing is being introduced. People are finding their tax cuts are being seized directly by the banks and credit cards the moment they come into their accounts and used pay off their interest, running at 30 per cent on credit cards.
No measure is introduced to force the Federal Reserve to reduce its crushing long-term interest rates of just over 5 per cent.
The Republicans, the party that allowed the US to go into an unsustainable burden of debt through profligate war spending and for America’s manufacturing base to be decimated by outsourcing, want a stimulus bill made up only of tax cuts, so adding to the debt of the Americans. But the Democrats are not much better. They want money to go to fund the programmes of localties and states, creating only minor and short living relief.
Neither the Republicans nor the Democrats are proposing a stimulus that will invest in production and in saving, that is, in rebuilding America’s wealth.
The government’s and American householder’s budget will recover only if the economy recovers. The economy will only recover if there is investment in a production and manufacturing base producing real goods and real jobs that allow Americans to save.
The stimulus bill gives a loan of 15,000 dollar to people wanting to buy a house, so encouraging yet more borrowing, but the same stimulus bill does nothing to stop foreclosures set to affect millions more!
If John F Kennedy had succeeded in taking the Federal Reserve back out of the hands of the private bankers like the Rothschilds, America would probably now be a wealthy nation with a sound manufacturing base and a flourishing system of trade.
He failed and now America is facing total econmic ruin because it is debt creation machine run by banks, for banks, and .
Unless the issuing power of the US currency is taken back from the banks and restored to the people, to whom it properly belongs, as Jefferson said, America faces a future of FEMA camps, war, the Amero and UN occupation.
What can be done now?
- Support Ron Paul’s bill to nationalise the Fed.
- Re-register as an Independent Voter
- States and individuals should refuse to pay taxes to the federal government which is being run by banks for the banks and which is openly robbing US taxpayers through the bailout.
The American Revolution of 1773 began when the settlers refused to pay the punitive taxes imposed on it by the British Empire.
The second American Revolution has to begin today by Americans refusing to pay the punitive taxes imposed on them by the British Empire’s Washington trading arm.
America is run in the interests of the bankers of the City of London through their control of the Federal Reserve and the US government.
Ambrosius said that those who charge interest on loans fight a war with an “invisible sword.”
The bankers of London have put the invisible sword at the throat of America and are now moving in for the kill.
Now or never, is the time to make war on America’s real enemy crushing it by debt by nationalising the Fed and reforming the banking system.
Lord Acton also said, “The issue which has swept down the centuries, and must be fought sooner or later, is the people versus the banks.”
February 10th, 2009 at 6:15 am
The true cost of the bailout is much higher than the 700 billion dollars. The American tax payers will have to pay interest on the 700 billion dollars because the government has had to borrow from the same banks to pay for the bailout!
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
I am not understanding this at all… the banks are bankrupt (meaning they have no money) yet the government is ‘borrowing’ money from the banks to give back to the banks so they can earn interest on the money they don’t have so they can loan it to us so we can pay back with interest. Somehow this looks like a vicious circle jerk and the banks are laffing at us swallowing all of this crap.
February 10th, 2009 at 7:43 am
Contact your Congressmen and let them know you want to:
Get rid of the Federal Reserve Bank!!!
Rescind NAFTA!!!
Get out of the WTO!!!
If you really want change you need to ask for it!!!!!!!!!!!!!!!