More details on the $16 trillion backdoor bank bailout

Today I received a mass emailing from Alan Grayson. I had previously heard about this backdoor bailout by reviewing an article by Bernie Sanders and see here. Nonetheless, I hadn't before seen the details of massive loans made by the Fed to banks and non-banks. These numbers are mind-boggling. Click on Grayson’s link to the Federal Reserve report (below) with the outrageously sterilized title: “FEDERAL RESERVE SYSTEM: Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance.” Then follow his road map in order to see the problems with your own eyes. I've printed Grayson's entire mass mailing below. Consider that the Fed created $16 TRILLION and distributed much of it to foreign banks. This amount is 20 times bigger than the publicly disclosed TARP, yet the American People were never given a chance to know about this or have their representatives vote on it. The banks tried to keep this backdoor bailout secret, but it took Senator Bernie Sanders of Vermont, neither Democrat nor a Republican (he is a democratic socialist), to raise hell in order to force the Federal Reserve to account for this backdoor bailout. And back then, it was believed that this backdoor bailout was "only" $2.2 trillion. One more thing: The total annual tax receipts of the United States are “only” $2 trillion. But, of course, based on the news media, you would think that the most important things going on concern Michael Jackson’s doctor and Herman Cain’s sex life. -- Dear Erich, I think it’s fair to say that Congressman Ron Paul and I are the parents of the GAO’s audit of the Federal Reserve. And I say that knowing full well that Dr. Paul has somewhat complicated views regarding gay marriage. Anyway, one of our love children is a massive 251-page GAO report technocratically entitled “Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance.” It is almost as weighty as that 13-lb. baby born in Germany last week, named Jihad. It also is the first independent audit of the Federal Reserve in the Fed’s 99-year history. Feel free to take a look at it yourself, it’s right here. It documents Wall Street bailouts by the Fed that dwarf the $700 billion TARP, and everything else you’ve heard about. I wouldn’t want anyone to think that I’m dramatizing or amplifying what this GAO report says, so I’m just going to list some of my favorite parts, by page number. Page 131 – The total lending for the Fed’s “broad-based emergency programs” was $16,115,000,000,000. That’s right, more than $16 trillion. The four largest recipients, Citigroup, Morgan Stanley, Merrill Lynch and Bank of America, received more than a trillion dollars each. The 5th largest recipient was Barclays PLC. The 8th was the Royal Bank of Scotland Group, PLC. The 9th was Deutsche Bank AG. The 10th was UBS AG. These four institutions each got between a quarter of a trillion and a trillion dollars. None of them is an American bank. Pages 133 & 137 – Some of these “broad-based emergency program” loans were long-term, and some were short-term. But the “term-adjusted borrowing” was equivalent to a total of $1,139,000,000,000 more than one year. That’s more than $1 trillion out the door. Lending for these programs in fact peaked at more than $1 trillion. [More . . . .]

Continue ReadingMore details on the $16 trillion backdoor bank bailout

What the Wall Street Occupation is about.

The Wall Street Occupation is several weeks old and building up steam.   The overall meaning seems to be a frustration with the direction in which America has been moving, but the occupation has cross-cut the American political spectrum.   Many Democrats, but also some Republicans have spoken out in support of the occupations, but the occupation is still somewhat serving as a real life Rorschach.  Naomi Klein recently visited the occupation and offered her interpretation of the situation:

If there is one thing I know, it is that the 1 percent loves a crisis. When people are panicked and desperate and no one seems to know what to do, that is the ideal time to push through their wish list of pro-corporate policies: privatizing education and social security, slashing public services, getting rid of the last constraints on corporate power. Amidst the economic crisis, this is happening the world over. And there is only one thing that can block this tactic, and fortunately, it’s a very big thing: the 99 percent. And that 99 percent is taking to the streets from Madison to Madrid to say “No. We will not pay for your crisis.”

.  .  .

[Deregulation] was damaging to labor standards. It was damaging to environmental standards. Corporations were becoming more powerful than governments and that was damaging to our democracies. But to be honest with you, while the good times rolled, taking on an economic system based on greed was a tough sell, at least in rich countries.

Ten years later, it seems as if there aren’t any more rich countries. Just a whole lot of rich people. People who got rich looting the public wealth and exhausting natural resources around the world. The point is, today everyone can see that the system is deeply unjust and careening out of control. Unfettered greed has trashed the global economy. And it is trashing the natural world as well. We are overfishing our oceans, polluting our water with fracking and deepwater drilling, turning to the dirtiest forms of energy on the planet, like the Alberta tar sands. And the atmosphere cannot absorb the amount of carbon we are putting into it, creating dangerous warming. The new normal is serial disasters: economic and ecological.

These are the facts on the ground. They are so blatant, so obvious, that it is a lot easier to connect with the public than it was in 1999, and to build the movement quickly.

Alan Grayson has also offered an analysis: And here's where lots of leaders from disparate backgrounds (Dennis Kucinich, Ralph Nader, Ron Paul) are now seeing eye to eye:

Continue ReadingWhat the Wall Street Occupation is about.

The war is making us poor Act

I'm delighted to share the letter that Representative Alan Grayson just sent to me. The basic idea is that the obsession of U.S. politicians to fight needless wars is making us poor as a nation (in addition to the immorality of what we are doing in Iraq and Afghanistan). After reviewing the letter, I went to Grayson's website dedicated to cutting the military budget, I became about the 11,000th person to sign his petition, and I'm reprinting Grayson's letter (below). Finally, we see someone who can speak about the military budget with some sanity. I agree with Alan Grayson that we need to stop our absolutely senseless "wars" and, instead, use our money here at home to stabilize our country's noticeable downward economic and social slide. Before you read Grayson's letter, please review (and choke on) two posts about the U.S. military budget numbers here and here.

Dear Erich,

Next week, there is going to be a "debate" in Congress on yet another war funding bill. The bill is supposed to pass without debate, so no one will notice.

What George Orwell wrote about in "1984" has come true. What Eisenhower warned us about concerning the "military-industrial complex" has come true. War is a permanent feature of our societal landscape, so much so that no one notices it anymore.

But we're going to change this. Today, we're introducing a bill called 'The War Is Making You Poor Act'. The purpose of this bill is to connect the dots, and to show people in a real and concrete way the cost of these endless wars. We're working to get co-sponsors in Congress, but, we need citizen co-sponsors as well. Become a citizen cosponsor today at TheWarIsMakingYouPoor.com. Act Now.

Next year's budget allocates $159,000,000,000 to perpetuate the occupations of Afghanistan and Iraq. That's enough money to eliminate federal income taxes for the first $35,000 of every American's income. Beyond that, leaves over $15 billion to cut the deficit.

And that's what this bill does. It eliminates separate funding for the occupation of Iraq and Afghanistan, and eliminates federal income taxes for everyone's first $35,000 of income ($70,000 for couples). Plus it pays down the national debt. Does that sound good to you? Then please sign our petition in support of this bill, and help us build a movement to end our permanent state of war.

The costs of the war have been rendered invisible. There's no draft. Instead, we take the most vulnerable elements of our population, and give them a choice between unemployment and missile fodder. Government deficits conceal the need to pay in cash for the war.

We put the cost of both guns and butter on our Chinese credit card. In fact, we don't even put these wars on budget; they are still passed using 'emergency supplemental'. A nine-year 'emergency'.

Let's show Congress the cost of these wars is too much for us. Tell Congress that you like 'The War Is Making You Poor Act'. No, tell Congress you love it. All we are saying is "give peace a chance." We will end these wars.

Together.

Courage,

Alan Grayson

Continue ReadingThe war is making us poor Act

Medicare for anyone who wants it

Representative Alan Grayson is pushing hard for Medicare for anyone who wants to buy into the program. It's a four page bill. It's understandable. The framework is already set up for implementing it. It is cost-effective. Grayson sent me this mass-distributed email for further explanation.

Dear Erich,

72 hours. 66 cosponsors in the House. 21,254 citizen cosponsors at WeWantMedicare.com.

The Public Option Act. It's simple. It's popular. 82% of Scott Brown voters favor it. It lets anyone buy into Medicare at cost. You want it, you pay for it, and you're in.

You know and I know that it's a winner.

Private insurers make money denying us the care we need, when we need it most. Medicare doesn't. So we want Medicare. And we want it now.

Ask your Member of Congress to stand up for us. Call your member of Congress now, and ask him or her to cosponsor HR 4789, the Public Option Act.

Call the switchboard: (202) 224-3121

After you call, please let me know how it went. I need to know if your Representative is with us or against us. Tell me how it goes.

This is the week to act. We are likely to vote on a healthcare bill without a public option. We should get a vote on the Public Option Act as well. The four-page bill opens Medicare to all. It's that simple.

Call your member of Congress now, and ask if he or she has the guts to stand up for you.

Call the switchboard: (202) 224-3121

Courage,

Alan

Why do we need the public option program Grayson suggests? Because we currently and needlessly have a for-profit health insurance industry that provides the insureds no benefit for a big chunk of the premiums they pay. Grayson recently explained at Huffpo:

Health insurance companies charge as much money as possible, and they provide as little care as possible. The difference is called profit. You can't blame them for it; that's what a corporation does. Birds got to fly, fish got to swim, health insurers got to rip you off. And if you get really expensive, they've got to pull the plug on you. So for those of us who would like to stay alive, we need a public option. In many areas of the country, one or two insurers have over 80% of the market. They can charge anything they want. And when you get sick, they can flip the bird at you. So we need a public option.

Continue ReadingMedicare for anyone who wants it