The Federal Reserve is persisting in its conquest of bailing out Europe as it has given $237 billion to foreign banks in the past month. The data can be found in weekly Federal Reserve reports. It was first reported by ZeroHedge and later several other news outlets, including the Wall Street Journal (using information compiled by Stone & McCarthy Research Associates).
A chart from the online financial publication showed that the cash increase in the week that ended Jan. 30 was $65 billion for foreign banks, $30.2 billion for large domestic financial institutions and $5 billion for small domestic banks. For the course of four weeks, the increase in cash jumped $237 billion for foreign banks, but it declined by $17.8 billion for large domestic banks and $19 billion for small domestic banks.
Since 2008, when quantitative easing was first introduced by Fed Chairman Ben Bernanke, all the cash created by QE has gone straight to foreign banks. Meanwhile, the numbers have continued to increase with QE2 and QE3.
The initial purpose of the Fed was to decrease the unemployment rate in the United States, increase the inflation rate and to grow the economy. However, with this data, it suggests that the only beneficiaries to these policies are foreign institutions.
Last week, it was also reported that foreign central banks’ overall holdings of U.S. marketable securities at the Fed rose $42.43 billion and now stands at $3.3 trillion. Foreign central banks, which are mostly Asian, own more than one quarter of marketable securities.
Foreign banks’ holdings of securities issued or guaranteed by the largest mortgage financing agencies in the U.S., such as Fannie Mae and Freddie Mac, increased $384 million. It now totals $306 billion. Overseas central banks’ holdings of Treasury debt jumped $42 billion for a total of $2.95 trillion.
China and Japan are the largest foreign holders of Treasuries.
It was discovered during a partial audit by the Government Accountability Office (GAO) that the Fed bailed out both domestic and foreign banks with more than $16 trillion throughout the height of the 2008 economic collapse. The full list can be found here.
This latest news comes as it was recently confirmed in a news release that longtime Oklahoma Republican Senator Orrin Hatch has agreed to cosponsor legislation by Kentucky Republican Senator Rand Paul to audit the Federal Reserve System (The Federal Reserve Transparency Act).
The legislation would guarantee the GAO to fully audit the Federal Reserve and remove restrictions in place and permit Congressional oversight in relation to the Fed’s credit facilities, securities purchases and quantitative easing activities.
“Over the last several years, the Fed has continued to grow with virtual unchecked authority, no oversight, and an unlimited checkbook,” Hatch said. “Congress came close last year to making the Fed accountable to taxpayers, and hopefully this year we can shine some light onto the Fed’s activities and give taxpayers the information they deserve from our country’s central bank.”
Although Senate Majority leader Harry Reid called for an audit of the Fed throughout his career, he has suddenly changed his mind and refused to bring the bill to the Senate floor.
“Harry Reid was the single reason Audit the Fed was not brought to the floor of the Senate in 2012,” said Campaign for Liberty President John Tate in a statement. “Harry Reid knows full well that Audit the Fed- which he previously claimed to be a strong supporter of- would pass both the House and the Senate if he allowed a vote. It seems the Senate Majority Leader doesn’t want the American people to know what he, President Obama, and the Federal Reserve have been doing to our money and our economy.”
Last year, Texas Republican Congressman Ron Paul, who has crusaded against the Fed his entire career, generated overwhelming bipartisan support for his bill to audit the Fed, which passed 327-98, even though the House Democratic leadership opposed the bill by saying the central bank’s decisions would become more political.
This content has been created by Economic Collapse News and is available without charge to any eligible news publisher that can supply a large audience. For licensing opportunities of our original content, please contact sgo@economiccollapsenews.com.
Of course the Fed is bailing out Euro banks with our money – it’s a private bank corp run by some of the worlds biggest bank owners, and they are covering their exposed asses in Europe with our dollars. What do you expect to happen when you hand the national Treasury to a bunch of bankers?