2 trillion or 6 trillion?? [Archive]

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Amanda

29th March 2020, 11:01 AM

Okay, so I was about to watch this y/t https://www.youtube.com/watch?v=OC8g9zE-f0U&feature=youtu.be

But then I saw this comment, and got totally confused:

"A $6.2 trillion financial coup just took place"

I thought the LOOTING/ROBBERY BILL was for $2 trillion....

Then I start to watch this one w/Bro Nathanael
Wall Street Jews Do A Lockdownhttps://www.bitchute.com/video/uaOHI89FpjbL/

And right away Bro Nate says $6 trillion...

Anyone here know which it is??

BrewTech

29th March 2020, 11:46 AM

Okay, so I was about to watch this y/t https://www.youtube.com/watch?v=OC8g9zE-f0U&feature=youtu.be

But then I saw this comment, and got totally confused:

"A $6.2 trillion financial coup just took place"

I thought the LOOTING/ROBBERY BILL was for $2 trillion....

Then I start to watch this one w/Bro Nathanael
Wall Street Jews Do A Lockdown

https://www.bitchute.com/video/uaOHI89FpjbL/

And right away Bro Nate says $6 trillion...

Anyone here know which it is??

Force of habit, I'm sure.

Amanda

29th March 2020, 12:12 PM

More here:

https://nypost.com/2020/03/24/coronavirus-stimulus-package-to-exceed-6t-larry-kudlow-says/

Coronavirus stimulus package to exceed $6T, Larry Kudlow says

Amanda

29th March 2020, 04:15 PM

More info on the ROBBERY and LOOTING here:
(kind of hard to wrap your head around all of this)

US Treasury Exchange Stabilization Fund Topped Off to Fully Enable the Loot

March 29, 2020 (https://www.winterwatch.net/2020/03/) Russ Winter (https://www.winterwatch.net/author/russ-winter/) Articles by Russ Winter (https://www.winterwatch.net/category/articlesbyrusswinter/), Business (https://www.winterwatch.net/category/business/), Hidden History (https://www.winterwatch.net/category/hiddenhistory/), Winter Watch Articles (https://www.winterwatch.net/category/winterwatcharticles/) 6 (https://www.winterwatch.net/2020/03/us-treasury-exchange-stabilization-fund-replenished-to-fully-enable-the-loot/#mh-comments)
https://i0.wp.com/www.winterwatch.net/wp-content/uploads/2020/03/download-4-1.jpg?resize=259%2C194&ssl=1 The stimulus aka the hara-kiri bill had provisions for the “replenishment” of the murky secretive Treasury’s Exchange Stabilization Fund (ESF).

This is what Trumpian mucky muck Lawrence Kudlow (https://wallstreetonparade.com/the-hidden-cost-of-free-market-newsmen/) said at the press conference ….

“And finally, I want to mention the Treasury’s Exchange Stabilization Fund. That will be replenished. It’s important because that fund opens the door for Federal Reserve fire power to deal in a broad-based way through the economy for distressed industries, for small businesses, for financial turbulence. You’ve already seen the Fed take action. They intend to take more action. And in order to get this we have to replenish the Treasury’s emergency fund. It’s very, very important. Not everybody understands that. That fund, by the way, will be overseen by an oversight board and an Inspector General. It will be completely transparent. So, the total package here comes to roughly $6 trillion — $2 trillion direct assistance, roughly $4 trillion in Federal Reserve lending power.”

Constitutionally the Secretary of the Treasury can only spend money that has been appropriated by Congress. But with the consent of the President, the Secretary has substantial leeway to use the money in the Exchange Stabilization Fund (ESF) that Congress created in the Gold Reserve Act in 1934. The Act initially established the ESF as a reserve to stabilize the U.S. dollar in case of turmoil in foreign currency markets after the U.S. abandoned the gold standard.

But over time, Treasury has mostly used it lend to other economies on the brink of default—for example, to stabilize Mexican government debt in the 1994 peso crisis. As amended in the late 1970s, the Act provides (https://home.treasury.gov/policy-issues/international/exchange-stabilization-fund) that “the Secretary…with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities.”

As of the end of February 2020 (https://home.treasury.gov/system/files/206/February_FY20_Financial_Statements.pdf), the ESF claimed it held $93.7 billion in U.S. dollars, euros, Japanese yen, and Special Drawing Rights, an international reserve asset created by the IMF. There were $53.4 billion in liabilities – netting about $40 billion.

This has been increased in the hara-kiri bill by $454 billion – which once it is provided as collateral can be further leveraged in the manner Kudlow describes. With this largess the Treasury through the ESF will hyper-manipulate the economy.

Secretary of Treasury Steven Mnuchin, is an associate of vampire squid Goldman Sachs and billionaire George Soros. In 2002, Mnuchin left his 17-year post at Goldman to run a credit fund set up by Soros. In 2004, Mnuchin and two fellow echoberg former Goldman colleagues founded hedge fund Dune Capital Management LP with the financial backing from Soros.

In 2008, IndyMac Bank in Pasadena, Calif., collapsed in one of the largest bank failures in U.S. history. Mnuchin led a group of investors, including funds run by Soros and other hedge-fund and private-equity titans, who bought it (renamed One West) from the government for about $1.5 billion. Illustrating in spades how parasite guildists work, the Federal Deposit Insurance Corporation (FDIC) guaranteed to cover a portion of any future loan losses, a lucrative arrangement for Mnuchin and his partners.

Munchkin is errand boy for international bankers. His background is as a public information officer. He’s not a financial genius. Why’s he so trusted? Rothschild family member perhaps? Trusted PIO, certainly. Proving ground was Sears, and bust from last crisis. He proved he has no humanity, no empathy (robo filing foreclosures; screwing Sears employees out of pensions while college buddy looted company). Ran same method with IndyMac, renamed One West.

Nothing to see here, move along?

https://i0.wp.com/www.winterwatch.net/wp-content/uploads/2020/03/thumbnail_image-1.png?resize=557%2C350&ssl=1Sec. Treasury Mnunchin on left, Jacob Rothschild flashing Illuminism sign on right- related?
In the 2020 version of the stimulus aka hara-kiri loot, the ESF has expanded or re-opened programs to accept as collateral money market fund assets, corporate bonds and loans, municipal bonds, and asset backs securities (ABS) backed by consumer and small business loans. Initially the Treasury promised the Fed $50 billion out of the ESF to cover any losses in these new lending programs. If there are losses, the taxpayers are on the hook.
“The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury (‘the Secretary’).

“The Secretary is responsible for the formulation and implementation of U.S. international monetary and financial policy, including exchange market intervention policy. The ESF helps the Secretary to carry out these responsibilities. By law, the Secretary has considerable discretion in the use of ESF resources.

Since WWII the ESF has been a “secret weapon” for funding black ops of every sort. During the war, OSS (the precursor to the CIA) used it for covert financial operations to “keep Nazis out of Mexico and Central America.” They are able to accomplish this because the Secretary of the Treasury is under no obligation to obey the laws of the US thus the ESF has been funding black ops around the world for over 80 years.
https://i1.wp.com/www.winterwatch.net/wp-content/uploads/2020/03/Capture-22.png?resize=553%2C144&ssl=1War Behind the Iron Curtain- Peter Grose It was the ESF that was behind the Bretton Woods agreement establishing the IMF and World Bank. Under Harry Dexter White, a Treasury Dept. employee and member of the OSS Committee the ESF began using taxpayer dollars to interfere in foreign elections and later laundering money from CIA drug ops, all through the NY Fed. White also became the first president of the IMF. White was a most sketchy character as Winter Watch discussed in Harry Dexter White: An Enemy Within (https://www.winterwatch.net/2019/02/harry-dexter-white-an-enemy-within/)
In 1961 the ESF began using currency swaps to dominate foreign currency markets. They also use the Fed to control the derivatives market. It is the fonte of what’s been referred to as the Plunge Protection Team (PPT). Since the 1960’s, because of the ESF, the entire US economy has been progressively based entirely on smoke and mirrors… a gigantic ponzi scheme based on statistical propaganda.

ESF stabilizes the dollar, by forcing regime change around the world. During the 1980’s the ESF began smuggling bulk currency out of the US funding the Afghan opium trade for the CIA. Also the Columbian cocaine trade. To maximize profits they got forfeiture laws passed where the seizure of assets are funneled into the Treasury.
Read: Lame Excuses: WaPo’s Afghanistan Papers (https://www.winterwatch.net/2019/12/lame-excuses-wapos-afghanistan-papers/)
The BCCI Affair as a Template for the New Underworld Order Crime Syndicate (https://www.winterwatch.net/2020/01/the-bcci-affair-as-a-template-for-the-new-underworld-order-crime-syndicate/)
Takeaway: Under powers and new funds authorized by the Stimulus aka Hara-kiri Bill the control, activities and reach of the Treasury and ESF has been expanded into even more secretive arenas we can only imagine.
https://i1.wp.com/www.winterwatch.net/wp-content/uploads/2020/03/Zskj9C56UonWToSX8tGXNY8jeXKSedJ2aRhGRj6HDecqrf57sF td2Dm6rPxPCKhma3BoG3TXWJLFuHnNHX1rCaC2tkhP1Vce4S3T LVa6MfXLhjeq24n2.jpg?resize=487%2C350&ssl=1Source:https://steemit.com/informationwar/@richq11/america-s-darkest-secret-the-exchange-stabilization-fund

Amanda

29th March 2020, 11:52 PM

found this in the comment section of a Jeremiah Babe y/t:

Finally someone besides Greg Mannarino and a few others who are expressing outrage at the unprecedented “unlimited liquidity” fascist bailout. At a minimum every US taxpayer is paying $18K for bailouts (to rise exponentially probably), gets $1200 Trumpbux back, thus pays net $16,800. IOW the ordinary American gets screwed bigtime.

Amanda

30th March 2020, 09:42 AM

comment from nakedhedgehog at https://www.zerohedge.com/geopolitical/spains-covid-19-case-total-passes-chinas-south-korea-reports-rash-new-cases-live

Just like in 2008 they will promise programs like "Loan Modification" or debt moratoriums but just like in 2008 NO ONE WILL QUALIFY FOR THESE PROGRAMS AND THEY WILL LOSE THEIR HOMES and these assets will again be absorbed into the pockets of the hedge funds and too big to fails AT BARGAIN BASEMENT PRICES.

THIS IS A FUCKING CON AND YOU ARE THE MARKS.

keehah

30th March 2020, 10:20 AM

2 Trillion for government spending (about 5% of this directly for the citizens I've heard) and 4 Trillion for purchases of government debt and financial assets.

It took hundreds of years for the US government to reach 10 Trillion in debt by 2009. So far this year, over 7 Trillion is needed (added on the 1.3 Trillion or so 'normal deficit') and this may not even get the Federal Government through to the end of the year.

Yes it is not all 'spending'. The Fed and Treasury are seizing the means of production, even as their partners in State and Fed now prevent many of the citizens from using their means of production.

Communist coups don't come easy, or cheap.

https://twitter.com/va_shiva/status/1237036487151177728

Dr.SHIVA Ayyadurai, MIT PhD. Inventor of Email@va_shiva
As an MIT PhD in Biological Engineering who studies & does research nearly every day on the Immune System, the #coronavirus fear mongering by the Deep State will go down in history as one of the biggest fraud to manipulate economies, suppress dissent, & push MANDATED Medicine!

CNBC: 'Throw Massie out' – Trump rages on Twitter after GOP congressman hints he'll oppose coronavirus stimulus bill (https://www.cnbc.com/2020/03/27/coronavirus-stimulus-trump-fumes-after-gop-rep-hints-hell-oppose-bill.html)

"Right now, millions of essential, working-class Americans are still required to go to work during this pandemic," Massie wrote. "Is it too much to ask that the House do its job, just like the Senate did?"

But Massie's request did not garner the support of one-fifth of the members present on the House floor, which he needed in order to force the roll-call vote.
https://twitter.com/RepThomasMassie/status/1243180243696996356

$2 trillion (Congress)+$4 trillion (Fed & Treasury)
———————————
$6 trillion stimulus

$6 trillion divided by 350 million citizens = $17,000 per citizen

times a family of 4

=$68,000 per family of new national debt and dollar devaluation in this stimulus.

not a good deal

Forbes: A $10 Trillion Response To The Global Pandemic (https://www.forbes.com/sites/greatspeculations/2020/03/23/a-10-trillion-response-to-the-global-pandemic/#291a6d5d17e0)

March 24
In a webcast conducted last week by Jeffrey Gundlach, the DoubleLine Capital founder said that he predicts the U.S. deficit will grow from $1 trillion today to $3 trillion on stimulus spending, and that within the next two to three years, total national debt will top a head-spinning $30 trillion.

All of this is to say that combating COVID-19 is not going to come cheap. My guess is that once the dust settles, this global health scare may well have cost us upwards of $10 trillion, potentially making it one of the most expensive crises in human history.

jimswift

30th March 2020, 10:21 AM

I understand that within the $2trillion, $500billion is for the Fed to leverage up via all of these new acronym "vehicles". (fractional reserve counterfeiting)

Jewboo

30th March 2020, 10:27 AM

Nobody "audits" the jew FED so it could be fifty trillion for all we know.

Amanda

31st March 2020, 07:44 AM

This is what Trump and the rest of the WHORES in DC passed:

Thomas Massie@RepThomasMassie
The stimulus package that just passed is the biggest wealth transfer from common folks to the super-rich (Wall Street and bankers) in the history of mankind. Done in the name of a virus with $1200 checks as the cheese in the trap. This will be obvious in short order
https://twitter.com/RepThomasMassie/status/1244255601171054594

(https://twitter.com/RepThomasMassie/status/1244255601171054594)
(https://twitter.com/RepThomasMassie/status/1244255601171054594) https://www.zerohedge.com/political/why-washingtons-covid-19-relief-package-must-be-stopped
The Senate’s $2 Trillion Coronavirus Relief Package is not fiscal stimulus and it’s not a lifeline for the tens of millions of working people who have suddenly lost their jobs. It’s a fundamental restructuring of the US economy designed to strengthen the grip of the corrupt corporate-banking oligarchy while creating a permanent underclass that will be forced to work for slave wages. This isn’t stimulus, it’s shock therapy.

(https://twitter.com/RepThomasMassie/status/1244255601171054594)

Amanda

31st March 2020, 07:45 AM

https://www.zerohedge.com/markets/how-turn-454-billion-45-trillion-visualizing-feds-multi-trillion-dollar-helicopter-credit

Last Friday, to bipartisan cheers - and one sole, rational dissenter who was promptly silenced after asking "if $6 trillion is fine, why not $350 trillion" - Trump signed into law a $2.2 trillion corporate, hedge fund and bank bailout fiscal spending package, which quickly became the main topic of the current new cycle. What was not at all discussed, purposefully so due to the complexity of the underlying math, is that in parallel to the Treasury's 2 trillion package, the Fed received a green light to lend up to $4.5 trillion in new credit (which is where Kudlow's misconstrued "$6 trillion stimulus" comment came from).

Amanda

31st March 2020, 07:45 AM

It's Not Just Rats That Are Ravenously Hungry for your tax dollars:

'Never let a virus go unexploited-Scam Extraordinaire: The Jewish ADL Wants its $60 Billion Cut'

https://nationalvanguard.org/2020/03/virus-scam-extraordinaire-the-adl-wants-its-60-billion-cut/ The International Jew ADL is headed by Jewish boss Jonathan Greenblatt

"WHEN I think of “essential” workers in America, the smear merchants of the Jewish Anti-Defamation League of B'nai B'rith are at the bottom of the barrel. For decades, they’ve demonized racially-conscious Whites as agents of “hate” and treated our very existence as “incitements to violence.” The ADL’s manufactured outrage machine has broadened its target list to anyone remotely critical of Israel for any reason, even the mildest efforts to secure America’s borders, America First college students, innocuous hand gestures, cartoon frogs, and anyone who dares to think or write that “It’s Okay to Be White” — and has even attacked the National Alliance’s “Love Your Race” campaign as — you guessed it — “hate.” The ADL, by the way, has been funded by and linked to organized crime figures, and was founded to defend an ADL official, Jew Leo Frank, who was convicted of the sex murder of a 13-year-old White girl.

Now, in the wake of the “Chinese flu” pandemic, Jewish ADL is lining up with all the other federal bailout vultures clamoring for free money. This week, the group issued a statement calling on Congress to include “relief for charities” in any COVID-19 legislation. “In times of crisis,” ADL self-righteously urged, “nonprofits are on the front lines, ready to respond and serve communities across the nation — but funds are needed to continue doing so.” The “relief package” pushed by ADL and several hundred other groups demands $60 billion in “emergency stimulus funding to support our work… during this time of crisis and need.” (That’s sixty thousand millions of dollars, friends. Meanwhile, the National Alliance and the Cosmotheist Church have been deplatformed from e-commerce for — what is it, the fifteenth time? — and can’t even sell a couple dozen books a week.)

What a crock. The primary “front lines” ADL occupies are on the battlefields against American sovereignty, White survival, and free speech. By my count, the open borders zealots of ADL have filed 17 amicus briefs in our courts supporting obstruction of even Trump’s milquetoast immigration enforcement and national security measures. The group is particularly proud of its brief in Trump v. Hawaii, in which it “led a coalition of six Jewish organizations using our unique moral voice to passionately argue against the so-called Muslim ban, citing three historical examples when our nation later recognized that we were wrong to turn our back, including denying refuge to Jews fleeing the Nazis.” The U.S. Supreme Court upheld the travel restrictions and affirmed the broad plenary powers of the executive branch over immigration.

On top of the $60 billion the Jewish ADL wants for itself and its ideological fellow travelers (including tax-funded refugee resettlement contractors Catholic Charities, Church World Service, and Lutheran Services), the group called on House Speaker Nancy Pelosi this week to include Medicaid coverage and tax rebates for illegal immigrants in her Chinese flu rescue package. The Jewish ADL’s full-throated promotion of America’s demographic transformation through mass migration stands in stark contrast to its unapologetic defense of Israel’s restrictionist immigration policies and militarized borders.

But heaven forbid you point out the hypocrisy."

(https://nationalvanguard.org/2020/03/virus-scam-extraordinaire-the-adl-wants-its-60-billion-cut/)

Amanda

31st March 2020, 11:31 PM

Okay, so most of us who are sane understand that we have been ROBBED, right?

Here are the basics:

Trump signed into law a $2.2 trillion corporate, hedge fund and bank bailout fiscal spending package,

Coronavirus stimulus package to exceed $6T, Larry Kudlow says

So, the total package here comes to roughly $6 trillion — $2 trillion direct assistance, roughly $4 trillion in Federal Reserve lending power.”

…and a few others who are expressing outrage at the unprecedented “unlimited liquidity” fascist bailout. At a minimum every US taxpayer is paying $18K for bailouts (to rise exponentially probably), gets $1200 Trumpbux back, thus pays net $16,800. IOW the ordinary American gets screwed bigtime.

Thomas Massie@RepThomasMassie - The stimulus package that just passed is the biggest wealth transfer from common folks to the super-rich (Wall Street and bankers) in the history of mankind. Done in the name of a virus with $1200 checks as the cheese in the trap. This will be obvious in short order

The Senate’s $2 Trillion Coronavirus Relief Package is not fiscal stimulus and it’s not a lifeline for the tens of millions of working people who have suddenly lost their jobs. It’s a fundamental restructuring of the US economy designed to strengthen the grip of the corrupt corporate-banking oligarchy while creating a permanent underclass that will be forced to work for slave wages. This isn’t stimulus, it’s shock therapy.
https://www.zerohedge.com/political/why-washingtons-covid-19-relief-package-must-be-stopped

Now look at this comment from conservativetreehouse- https://theconservativetreehouse.com/2020/03/31/president-trump-proposes-2-trillion-infrastructure-investment/#more-187966 (so far 10 likes)

listingstarboard says:

Than goodness we have a POTUS that understands money–and who chose one of the best economic team ever assembled

What is wrong with these people??? Are they delusional?? Are they part of a cult??

BrewTech

1st April 2020, 08:47 AM

Okay, so most of us who are sane understand that we have been ROBBED, right?

Here are the basics:

Now look at this comment from conservativetreehouse- https://theconservativetreehouse.com/2020/03/31/president-trump-proposes-2-trillion-infrastructure-investment/#more-187966 (so far 10 likes)

What is wrong with these people??? Are they delusional?? Are they part of a cult??
Either part of a delusional cult, or just as likely, gaslighting the fuck
out of whoever reads their posts.

keehah

1st April 2020, 09:14 AM

This is a good video with some background on Thomas Massie, his monetary principles, and the current event of him attempting to get 6 trillion in new spending voted on.

Video is on this topic for the first 5 minutes and another 4 minutes from from 11 minutes to end of video.

Dow Crashes 915 Points After Largest Stimulus In History! Trust The Plan? Why Remove Thomas Massie?

https://www.youtube.com/watch?v=OC8g9zE-f0U

Amanda

1st April 2020, 12:49 PM

Either part of a delusional cult, or just as likely, gaslighting the fuck
out of whoever reads their posts.

I think it's group think over there--all a bunch of cheerleaders for anything Trump does, they have no clue that we were robbed.

And I think it's b/c they screen comments--they won't allow mine to go through, those people have no clue about the central bankers and what's coming.

BrewTech

1st April 2020, 01:44 PM

I think it's group think over there--all a bunch of cheerleaders for anything Trump does, they have no clue that we were robbed.

And I think it's b/c they screen comments--they won't allow mine to go through, those people have no clue about the central bankers and what's coming.
So, it’s a cult then.

Amanda

10th April 2020, 10:15 AM

Amanda

10th April 2020, 10:54 PM

Should We Be Bailing Out Billionaires? Mike Maloneyhttps://www.youtube.com/watch?v=OBnsPE624Ng

https://www.youtube.com/watch?v=OBnsPE624Ng

monty

11th April 2020, 09:01 AM

fwiw- Greg Mannarino has been warning of MORE LOOTING, MORE TRILLIONS OF $$$$ for wall street/banks/hedge funds....

Worth a read IMO--on the ON-GOING LOOTING OPERATION--too hard for me to bring over here, so read at link:

The Fallout and Debris from the 1st CronyVirus Tsunami and Mass Lock Down

https://www.winterwatch.net/2020/04/the-fallout-and-debris-from-the-1st-cronyvirus-tsunami-and-mass-lock-down/

Russ Winter on Twitter: https://twitter.com/New_Nationalist

The comments on Russ Winter’s site are pretty good,

https://secure.gravatar.com/avatar/fb9fa23c8f728e5ed64f8e6640fc0059?s=60&d=identicon&r=r
Ed in Salt Lake APRIL 10, 2020 AT 9:34 PM (https://www.winterwatch.net/2020/04/the-fallout-and-debris-from-the-1st-cronyvirus-tsunami-and-mass-lock-down/#comment-12221)
Watching today’s daily WH press conference clearly shows what a protean entity this phony CV crisis is! The constant allusions to studies, models, graphs, mitigations, and other propagandistic weapons shows just how ridiculous this whole ‘pandemic’ narrative is. A week ago we were on the verge of millions perishing before our eyes in what we were told could be the ‘darkest week’ in the history of humanity!

But a short paradigm shift is now upon us though the ‘strategic aims’ of 3-11 are here to stay! When the language changes, then objective changes will follow with it.

Now all of a sudden things aren’t so bad! The early models and estimates were ‘slightly off’ or the numbers of sick and dead is starting to ‘slow to a manageable rate’ where we can focus on ‘bringing our economy back.’ The tens-of-thousands of ventilators, masks, and other PPE that we needed so badly last week can now be used for storage, distributed to other states, or sold to foreign countries.

Just listening to Trump talk about how MILLIONS of more people would be dead on the streets and subways had we all not been ordered to ‘stay in place.’ Even the tense to his language has changed which is an indicator that they are going to pull us out of this ‘stage’ if you will and transition us to the next. Even on a couple of answers to reporters, Trump was talking like the ‘pandemic’ was over and that we just need to move on.

Now we will start to see the ‘cautiously optimistic’ approach as we start to ‘allow’ people to come out of their homes and businesses to re-open. The focus now will be on the vaccines and the new laws to ‘prevent this from ever happening again!’ But ‘the pandemic crisis’ just like the ‘war-on-terror’ is here to stay as the totalitarian-medical-police-state becomes even more apparent!

Amanda

17th April 2020, 01:24 PM

people are losing their jobs and small businesses are getting destroyed and....

Over 43,000 US millionaires will get ‘stimulus’ averaging $1.6 million each

https://nypost.com/2020/04/16/43k-us-millionaires-will-get-stimulus-averaging-1-6m-each/

monty

17th April 2020, 01:32 PM

Amanda

20th April 2020, 06:45 PM

Instead of Draining the Swamp, the Swamp Is Draining the U.S. Treasury via the New York Fed (https://wallstreetonparade.com/2020/04/instead-of-draining-the-swamp-the-swamp-is-draining-the-u-s-treasury-via-the-new-york-fed/)
By Pam Martens and Russ Martens: April 20, 2020 ~wallstreetonparade.com (http://wallstreetonparade.com)
The Federal Reserve’s role under the U.S. law that governs it (the Federal Reserve Act) is to function as the nation’s central bank and lender of last resort to deposit-taking commercial banks in a crisis and to set monetary policy to achieve the dual objectives of stable prices (preventing deflation as well as runaway inflation) while maximizing employment.

But since December 2007, the Federal Reserve has simply written its own playbook, independent of the law that governs it. The Fed has decided to outsource to one of its 12 regional Federal Reserve banks, the New York Fed, the role of propping up the swamp on Wall Street.

The New York Fed’s own playbook involves dangling a shiny object for mainstream media in a “look here but not there” operation. During the 2008 financial collapse on Wall Street that took down the U.S. economy in the worst crisis since the Great Depression, the shiny object was a four-letter acronym called TARP, short for Troubled Asset Relief Program.

TARP was a congressionally-approved taxpayer bailout of the Wall Street banks, including those that had brought on the crisis by turning their federally-insured banking unit into a derivatives casino. Mainstream media was all over TARP as it doled out chunks of $10 billion to $45 billion to the largest banks on Wall Street in the fall of 2008, as well as lesser amounts to smaller banks caught up in the panic.

But while the $700 billion TARP shiny object was all over the front pages of newspapers, the New York Fed, with nary a vote in Congress or even the awareness of Congress, was running a secret $29 trillion Wall Street bailout (http://www.levyinstitute.org/pubs/wp_698.pdf). The New York Fed was using its unlimited ability to create money out of thin air to ply Wall Street banks and trading houses, as well as global foreign banks and central banks, with the lion’s share of $29 trillion in revolving loans, at a fraction of the interest rate these financial firms would have been charged in the open market. Those revolving loans began secretly in December 2007 and ran through at least July 21, 2010.

So desperate was the Fed to keep that $29 trillion a secret from the American people that it battled in court for more than two years, arguing that the American people had no right to this information. It lost that battle.

This time around, the Fed and New York Fed have brazenly upped their game because they have a much bigger shiny object: a deadly pandemic that is dominating the news and effectively eliminating any network or newspaper coverage of what is happening behind the scenes at the New York Fed.

What is happening at the New York Fed is the same thing that happened during the financial crisis of 2007 to 2010. Average Americans are getting the short-end of the stick in the stimulus bill known as the CARES Act while Wall Street banks are getting astronomical sums from the New York Fed’s unlimited money spigot.

Even worse, in what is beginning to resemble a conspiracy of silence, no mainstream news outlet has reported on the more than $9 trillion (https://wallstreetonparade.com/2020/03/the-fed-has-pumped-9-trillion-into-wall-street-over-the-past-six-months-but-mnuchin-says-this-isnt-like-the-financial-crisis/) in super cheap repo loans the New York Fed has pumped into Wall Street trading houses or the fact that those loans began on September 17, 2019 – four months before the first coronavirus case was reported in the United States and at a time when President Trump was bragging on TV about the unprecedented robustness of the U.S. economy.

Equally alarming, the New York Fed refuses to provide the names of which of these trading houses has received the lion’s share of this $9 trillion in emergency funding. The majority of these trading houses are owned by publicly-traded global banks. Under the law, their shareholders are entitled to know any material fact that pertains to the financial condition of that public company. But that has not happened and the Securities and Exchange Commission, which is in charge of enforcing securities laws, has remained silent.

And this time around, Wall Street’s lackies in Congress are putting a gun to the head of the House and Senate members that are desperate to get relief to the small businesses and unemployed workers in their homes states by demanding, and getting, in exchange a new $4.54 trillion bailout for Wall Street where the taxpayer will eat $454 billion of losses. (When that $454 billion runs out, there is the clear expectation that Congress will be tapped to allocate more taxpayer money to absorb the losses.)

There is nothing in any law governing the Federal Reserve that says that if the taxpayer puts up $454 billion it is allowed to leverage that up by 10 to 1 to $4.54 trillion and use that money to buy up toxic waste from the banks and trading houses on Wall Street. The New York Fed has simply decided that this is what it needs to do to prop up Wall Street and eat their bad bets.

And almost no one in mainstream media is asking any questions about the lopsided playing field set up by the New York Fed.

For example, the largest and most serially fined and prosecuted bank in America, JPMorgan Chase, is borrowing billions from the Fed’s discount window at ¼ of one percent interest. The Fed is offering its repo loans to trading houses on Wall Street at 1/10 of one percent interest. But the loans to small businesses under the CARES Act and Small Business Administration are being made at ten times that amount of interest (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-8).

>Should a small restaurant owner be paying 10 times the amount of interest as a giant trading house on Wall Street?<

And then there is the Primary Dealer Credit Facility (PDCF) (https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317b.htm) which is, of course, being run out of the New York Fed. It is making 90-day loans to Wall Street trading houses at an interest rate of ¼ of one percent and among the collateral it is accepting for these loans, it has decided to include stocks. Yes, stocks, at a time when some stocks are losing as much as 25 percent or more in a week. (This is clearly illegal under the Federal Reserve Act which requires that the Fed make loans against “good” collateral.)

Quite a number of the trading houses to whom the New York Fed is making these loans do not have good credit ratings. But unlike the average American worker, they are able to plunk down plunging stocks and obtain a loan at ¼ of one percent interest.

The trading arm of JPMorgan Chase is one of the trading houses that is eligible to borrow at that ¼ of one percent under the PDCF using plunging stocks as collateral. Compare that to what JPMorgan Chase advised struggling Americans last week: it will no longer be making home equity loans and if you want to obtain a first mortgage from JPMorgan Chase, you will need a 20 percent down payment and a credit score of at least 700. JPMorgan Chase is a 3-count felon (https://wallstreetonparade.com/2019/06/could-jpmorgan-chase-be-hit-with-a-fourth-felony-count-for-rigging-precious-metals-markets/) borrowing at 1/4 of one percent interest.

The PDCF was the largest of the covert programs that the New York Fed ran during the last financial crisis. According to an audit (https://www.gao.gov/assets/330/321506.pdf) performed by the Government Accountability Office (GAO) in 2011, the PDCF issued 1,376 loans that cumulatively totaled $8.95 trillion. Of that amount, $5.7 trillion, or 64 percent, went to Citigroup, Morgan Stanley and Merrill Lynch according to the GAO audit.

On March 17 of this year, U.S. Treasury Secretary Steve Mnuchin described the new rollout of the PDCF as a means to “help facilitate the availability of credit to American workers and businesses.”

But the parent banks of the trading houses that are borrowing from the PDCF at ¼ of one percent interest are continuing to charge upwards of 17 percent interest on their credit cards to millions of recently laid off workers.

>Americans need to engage rapidly in these critical issues. Call your Senators and Reps in Congress and demand the separation of federally-insured, deposit-taking banks from the casinos on Wall Street and a fair shake for Main Street in these stimulus bills from Congress.<