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    • Week-end Wrap – Political Economy – July 3, 2022
      Week-end Wrap – Political Economy – July 3, 2022 by Tony Wikrent   Strategic Political Economy “America Is Sliding Into the Long Pandemic Defeat” Ed Yong [The Atlantic, via Naked Capitalism Water Cooler 6-28-2022] “In 2018, while reporting on pandemic preparedness in the Democratic Republic of Congo, I heard many people joking about the fictional 15th articl […]
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The 16 Trillion dollar Con

…. Or “16 Trillion for Bankers and Sacrifice for us” …. It hardly seems fair.

From Bernie Sanders today comes this heart-stopping news:

Veil of secrecy lifted at the Fed

More than two years ago, I asked Ben Bernanke, the chairman of the Federal Reserve, a few simple questions that I thought the American people had a right to know: Who did the Fed bail out? How much did they receive? What were the terms of this assistance?

Incredibly, the chairman of the Fed refused to answer these fundamental questions about how trillions of taxpayer dollars were being put at risk.

Thanks to an amendment that I included in the Wall Street Reform and Consumer Protection Act to audit and investigate the Fed, the American people are finally getting answers to these questions.

A few days ago, the nonpartisan Government Accountability Office completed the first independent investigation into the emergency actions taken by the Federal Reserve. As a result of this investigation, we now know that the Federal Reserve provided a jaw-dropping $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the world.

Among the investigation’s key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland. In my view, no agency of the United States government should be allowed to bail out a foreign bank or corporation without the direct approval of Congress and the president.

The GAO also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict-of-interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.

For example, the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed’s emergency lending programs.

Let me repeat:

we now know that the Federal Reserve provided a jaw-dropping $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the world.

Where the heck does the Federal Reserve GET this kind of money?  And why can’t they give it to prop up Social Security and Medicare?