The Federal Reserve has been a clandestine organization since its inception. It is not really part of the federal government; it is merely a subcontractor for monetary policy. The Fed is basically a cartel of both U.S. and European banks. It has pulled the levers in the economy from behind a curtain of secrecy since 1913 and has always enjoyed a certain degree of respect and admiration. All that changed when the economy melted down in 2008. The respect and admiration of the Federal Reserve is being shredded right along with its veil of secrecy.
The Fed allowed everyone to think the cost of controlling the 2008 financial crash was just a measly $3.3 trillion. This giant lie was exposed after Senator Bernie Sanders of Vermont put a provision in last year’s financial reform bill that forced the Fed to come clean on $9 trillion in additional emergency loans and bailout money. The Fed funneled cash to foreign banks and companies right along with American banks and companies. It basically rewarded reckless and illegal behavior of greedy Wall Street bankers that caused the mess we are in now.
Nothing is fixed and nothing has really changed. The economy is still a wreck, and the Fed still wants its secrets. CNBC reported last week that the Fed refuses to tell how much cash it sent to Iraq just after the invasion because it came from the “oil for food” program.
The Fed claims it has to obey “rules.” The report said, “The Fed’s lack of disclosure is making it difficult for the inspector general to follow the paper trail of billions of dollars that went missing in the chaotic rush to finance the Iraq occupation, and to determine how much of that money was stolen.” (Click here for the CNBC story.)
Taxpayers would be on the hook for the missing cash that the Defense Department says is $6.6 billion. This could represent the largest theft in history. The Fed didn’t obey any “rules” when it hid $9 trillion in bailout money. Doesn’t the Fed work for the U.S.? Apparently not.