Editorials & Other Articles

leveymg

(36,418 posts)

31. $16T is equal to the GNP of the US. Nobody who understands this thinks the Fed handed a lump sum

Sun Mar 11, 2012, 04:19 PM

Mar 2012

loan that large. But, cumulative flow of funds - paid out in many smaller tranches over a couple years, an exchange of "good money for bad", literally - does impact the systemic risk of the banking system, quite dramatically. It shows up long-term as increased costs for imported commodities, relative currency devaluation, reduced consumer lending, higher risk premiums, etc. - the costs are cumulative, just as was the payout of the QE2 bailouts and incentives to global institutions to remain in US markets.

Some of that $16T was normal Fed operations, but QE2 was essentially a bribe to prevent flight of capital abroad.

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Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts [View all] NYC_SKP Mar 2012 OP

Bankrolling our own demise ,Thanks Shrub. orpupilofnature57 Mar 2012 #1

Now I understand why we are fighting over there...it's for for petroleum HereSince1628 Mar 2012 #2

DUzy. Scuba Mar 2012 #25

Mass embezzlement ArcticFox Mar 2012 #3

Ask Shrub ,Kitten eater ,and Kkkarl orpupilofnature57 Mar 2012 #4

One murder a villain, millions a hero. Numbers sanctify, my good fellow.--M. Verdoux valerief Mar 2012 #30

Gadzooks! that's almost exactly the size of the US national debt. 99th_Monkey Mar 2012 #5

Wow. NYC_SKP Mar 2012 #6

And then if the Pentagon could find their missing 2.3 Trillion$, we'd have a surplus. ~nt 99th_Monkey Mar 2012 #10

Let me see, per capita that works out to.... raging_moderate Mar 2012 #21

I may be wrong... Pilotguy Mar 2012 #7

It's in the report, right at the start muriel_volestrangler Mar 2012 #18

No problem - half of this can be recouped by simply defaulting on Uncle Sam's debt to Samantha Mar 2012 #8

This stuff makes my head hurt, but... cheapdate Mar 2012 #9

It wouldn't work at all n2doc Mar 2012 #11

Exactly. A guaranteed clusterf&%$. cheapdate Mar 2012 #12

Boner can go jump out a window the way Bush's enemies used to... saras Mar 2012 #32

If any of the Federal Reserve's loans go bad, the US Treasury is on the hook.. girl gone mad Mar 2012 #15

Good catch. dixiegrrrrl Mar 2012 #17

"An accounting methodology change" cheapdate Mar 2012 #22

Occupy the World--May Day 2012 solarman350 Mar 2012 #13

That's only $50,000 for every man, woman and child in America. Festivito Mar 2012 #14

That is an intelectually dishonest and misleading article Taitertots Mar 2012 #16

How dishonest or misleading? What's the normal flow of Fed Funds to Primary Dealers? leveymg Mar 2012 #19

It is dishonest because the total given is the sum of multiple consecutive overnight loans Taitertots Mar 2012 #20

Crickets.... Lucky Luciano Mar 2012 #24

$16T is equal to the GNP of the US. Nobody who understands this thinks the Fed handed a lump sum leveymg Mar 2012 #31

Then don't use the $16T figure. Lucky Luciano Mar 2012 #33

The $16T figure is a useful figure to show the extent of federal injection of liquidity to banks '08 leveymg Mar 2012 #36

I don't wholly disagree with you that the middle Lucky Luciano Mar 2012 #37

It doesn't take an act of Congress to redirect Fed liquidity measures from global banks to leveymg Mar 2012 #40

It might also add that all the sums were paid back bhikkhu Mar 2012 #35

Wouldn't that cover our "deficit" with a few tril left over? joanbarnes Mar 2012 #23

Not sure, from some of the replies maybe not all 16T are outstanding loans. NYC_SKP Mar 2012 #26

This is all to prop up $1 QUADRILLION in VAPOR derivatives. (yes quadrillion) grahamhgreen Mar 2012 #27

It is more like $700T last I checked....but Lucky Luciano Mar 2012 #28

Can we eliminate the derivatives market? NYC_SKP Mar 2012 #29

Do you have a variable annuity? Lucky Luciano Mar 2012 #34

Not sure, I have a matching donation by one employer to a AIG account, and STRS retirement. NYC_SKP Mar 2012 #38

Socialism? Someone really needs to look up the definition of socialism... Fearless Mar 2012 #39