$16,000 Billion!

http://sanders.senate.gov/newsroom/news/?id=9E2A4EA8-6E73-4BE2-A753-62060DCBB3C3

To all; a report out of Bernie Sanders office (Senator, Vermont) came out Friday which I missed until the end of the day. An audit of the Fed which of all things was mandated by Dodd-Frank legislation turned up over $16 Trillion of secret loans to some of "the largest institutions in the U.S. and throughout the world". Well, well, well, now we know don't we! $16 Trillion! This amount is larger than the entire GDP of the U.S. in one year, it is larger than all the debt accumulated in more than 200 years ...and just exactly where did this money come from? Uh, it did not show up on the Fed's already bloated balance sheet that has been the topic of conversation as of late. Do I even need to ask where it came from? $16 Trillion!

And to think the U.S. taxpayers were all in an uproar and so pissed off in late 2008 when Hank Paulson told us he needed the PALTRY sum of $700 Billion with no strings attached so he could "save us". Can you imagine the PANIC if people knew that $16 Trillion was just conjured up out of thin air and passed out all over the planet? After the shock that this number brought me I started thinking to myself that if it took THIS MUCH money to save the system, how close were we really to a complete implosion? I'll tell you, this number really put the whole thing in perspective for me, $16 Trillion, 16,000,000,000,000, or $16,000 BILLION. Sixteen Thousand Billion Dollars! I mean this is a number that some 5 year old kid would make up when they mean a "really really lot"!

Let's think this through, where did the money come from? Does The Fed have a little piggybank sitting in their back office where they have an extra $16,000 Billion laying around? Where did it go? Who benefited? How much was stolen and "graffed" away? Did The Fed get paid back everything it was owed? And then to put this in perspective, Citigroup needed over $2 Trillion to survive? Merrill Lynch needed $1.9 Trillion and they didn't survive? What the hell is this? And we were told that the crappy little sum of $700 Billion is what saved the entire system? As usual, I'm sorry but have to call BULLSHIT again at the top of my lungs!

Do you realize what this means folks? Yep, WE (the entire planet) ARE SCREWED! Do you want to know what the scariest part (at least to me anyway) is? We are screwed AT LEAST 10 to 20 times worse than I thought we were and as you know I thought we were "pretty much screwed" before this latest revelation! Now, let me pose another little question for you to ponder. If The Fed can secretly create $16,000 Billion out of thin air, how much exactly is that crisp new $100 bill worth that you have in your pocket? Or better yet, what is the true purchasing power of that Jumbo CD you have sitting in the bank that has given you so much comfort? Or scariest of all, how much is your entire life savings worth if you have been a "good little financial citizen" and saved the fruits from your life's labor in Wall St. and Washington's paper? So at a moments notice The Fed can "spawn" $16 Trillion, why don't they just "spawn" another $14 Trillion and GIVE it to the Treasury to pay off the debt? Or even $100 Trillion to fund all the "unfunded liabilities"!

Wait, I have an even better idea! Why not kust print up a THOUSAND TRILLION DOLLARS (a really big number even for a five year old to invent!) to settle and satisfy all the derivatives outstanding? In case you were wondering $1,000 Trillion equals $1 Quadrillion. While they are at it they could throw in a few "spare" Trillion Dollars so everyone could pay off their cars, mortgages and credit cards and we could all be debt free! How cool would this be? We could all start over with no debt and keep the "things" we already have! Folks, I'm not sure but I may have really stumbled on to something here. If The Fed can do all of these wonderful things (which they have already shown us they can) they can surely just send checks out each month and none of us anywhere on the planet will ever have to work again! WOW, I wish I could have afforded tuition at Princeton because it's a shame I didn't figure this out earlier, better late than never as the old saying goes.

Seriously, and just how long do you think it will be until people figure out that the whole system from top to bottom is a complete scam based on fake and fraudulent paper monies? Maybe I am giving John Q. Public too much credit here, I have long wondered what it would take to wake him up and have been amazed for several years now that it has taken as long as it did. I don't know how long it will take but the common man will eventually get around to understanding that if The Fed can create $16,000 Billion out of thin air without one ounce (pun intended) of sweat, they are making FAKE MONEY! The common man will come to understand that ounces of Gold and Silver ARE real money and will stampede into them unlike anything ever seen on this planet!

I do have another couple of questions. If it took more than $20 Trillion to "fix" the markets (notice I didn't say "economy") then how much will it take next time? And if the cat is out of the bag on this $16,000 Billion, "next" time won't Wall St. be jumping up and down screaming for even more? Where does it end? How much IS "enough"? Logically, if The Fed can "fix" ANY financial problem by just conjuring up more money, then does "risk" even exist? Theoretically if what Washington and Wall St. were correct in what they want you to believe then there can be no such thing as risk but we know that there is. The "risk" is in the currency itself and this is what the audit has now exposed to anyone and everyone to see. The concept that "if it cost's nothing to produce then it is worth NOTHING" is now staring everyone in the face. It is staring at those who have saved in this medium of "nothings" like a spotlight!

I know this is getting long so let me finish. We all wanted an audit of The Fed and would also like an audit of Ft. Knox, I wonder though whether or not "we can handle the truth"? What is in store for The United States is unfathomable if it turns out that Ft. Knox is empty or if the Gold is otherwise "encumbered". If we have the Gold then it's price can be marked up to a very and "unthinkably" high level to "reliquify" the banking system and make good on debts. If we do not have the Gold then we are truly broke and will not be able to import anything at all. We will be forced to live on goods produced within our borders at a time when all manufacturing has already been shipped overseas. We will be flat broke with no means of production. In this case, a 25-35% decrease in our standard of living will feel like "heaven on Earth" because the combination of no means to produce and no currency to purchase with will cause a drop of more than 50% in our standard of living. NOT a good combination and one that will take decades to repair! Regards, Bill H.