Was the US the sole recipient of bailout money?

Ben Bernanke’s testimony to Congress continued, including a heated exchange between Bernanke and Rep. Ron Paul (R - TX), part of which was an allegation that the Fed was lending to Greece to ease the turmoil there. Decide for yourself whether Greece should be allowed to borrow money from the Federal Reserve.

Bernanke flatly denied Mr. Paul’s allegation, labeling them “bizarre.”

Is it truly that bizarre?

Is the Federal Reserve going to perform a Greece bailout? Has that been done for other countries in the past? Greece is still a question mark, irrespective of Bernanke’s testimony. The writing could already be on the wall.

Written in “Texas Straight Talk”

In a recent weekly column at House.gov, Ron Paul wrote about the unveiling financial crisis in Greece. The government is defaulting on their public debt, as their treasury cupboards are nearly bare. The debt level, claims Paul, is “about 120 percent of their gross domestic product,” so the public sector soaks up “what amounts to 40 percent of GDP.” This has European investors running scared, needless to say. The European Central Bank seems suspiciously calm.

Why would that be? Outsiders aren’t sure. Is it possible that the Federal Reserve is going to perform a Greece bailout? We don’t know, says Paul, partly because the Federal Reserve’s distribution of bailout dollars hasn’t been as transparent as promised, but also because if they were aiding a foreign central bank, by law they don’t have to disclose that fact and it is exempt from audit. Considering Greece isn’t the only European nation in dire straits, many with some tie to Goldman Sachs, one wonders if they will also be deemed “too big to fail” by the U.S. banking cartel. And who will be on the hook if such is the case? It would be American taxpayers, at a time when the real unemployment rate is still staggeringly high.

Fiat currency and garish disregard for caution in its use

Our government buys into the idea of fiat currency. They create money for whatever purpose they see fit - a check that no one has the actual capital to cash.The US Government and the Federal Reserve seem content to keep the status quo, with no concern to the burden it puts on future generations. Ron Paul has upheld that the people deserve to know if they are “going to be left holding the bag” by the Federal Reserve spending money they don’t really have!

For your consideration

  1. Federal Reserve money supported Saddam Hussein and the Iraq military
  2. Federal Reserve money was involved in Watergate
  3. Here’s the Senate Watergate Report for more on Watergate.

Confidence not inspired by Bernanke testimony

This is exactly why Ron Paul would like laws to be changed so that we can audit the Federal Reserve. Fast cash from our pockets to other nations cannot continue when our nation bears this burden of its own. We need to know what’s happening. That’s the kind of transparency American taxpayers deserve.