Tuesday, February 7, 2012 Text Size • Home • Sitemap • Start Here ...

But, as difficult as it was to lift the veil of secrecy at the Fed, it will be even harder to reform the
Fed so that it serves the needs of all Americans, and not just Wall Street. But, that is exactly what
we have to do.
MAINSTREAM MEDIA ATTEMPTS TO LIE ABOUT THE REAL SIZE OF THE BAILOUTS
So far, we’ve seen that the Federal Reserve secretly created 26 trillion dollars, without US government
approval. This adds up to nearly a quarter million dollars per household in America.
This money was then handed out to financial institutions like Goldman Sachs, Citigroup, Bank of
America, JP Morgan Chase, Morgan Stanley, the Royal Bank of Scotland and Deutsche Bank.
While I was conducting this investigation in mid-December, it felt very surreal to see mainstream
media journalists say the entire bailout added up to nothing more than 1.2 trillion dollars. Then they
tried to say "this is what a central bank is supposed to do."
http://www.huffingtonpost.com/2011/12/23/federal-reserve-emergency-loans_n_1168341.html
Add up the emergency loans the Federal Reserve distributed to banks between 2007 and 2009 --
when the American economy lurched closer to collapse than anyone had previously thought
possible -- and it's an impressive picture.
On Friday, Bloomberg News made available the fullest version yet of its data on Fed emergency
lending, a subject the news organization has written about numerous times in the past year. The
Bloomberg release includes records of about 50,000 transactions the Fed made through seven
different financial mechanisms.
At their peak, these seven programs represented $1.2 trillion in loans to banks and financial
institutions -- the high-water mark of a massive, systemic bailout whose details the country's
central banking authority has not always seemed eager to divulge….
Even as critics have accused the Fed of being less than forthcoming, few people claim that the
central bank did the wrong thing by stepping in to backstop a financial system that seemed to
be on the verge of imploding.
"In the middle of the financial crisis, this is what you need. This is what a central bank is
supposed to do," said James Wilcox, a professor at the Haas School of Business at the
University of California, Berkeley.
Wilcox compared the financial crisis to a forest fire -- except, he said, "forest fires are more
predictable in the path they're going to take."
The Huffington Post featured the genuine figures earlier, as we just saw -- which made this all the
stranger.
The utterly fake figures of 1.2 trillion and 7.7 trillion were both refuted on December 13th, 2011 by
economist L. Randall Wray, who said the actual number is a full-on 29 Trillion dollars.