Where did the money go?

**James48843** · 07-25-2009, 02:45 AM

During his questioning of Federal Reserve Chairman Ben Shalom Bernanke before the House Financial Services Committee, U.S. congressman Alan Grayson (D), representing Florida's 8th congressional district (Orlando, Ocala, Eustis), burst out laughing at Bernanke's hubris.
(21 July 2009)

Grayson's questioning focused on the Fed's handouts to FOREIGN central banks in Europe and other countries. These "Central Bank Liquidity Swaps" rose from a total of $24 billion at the end of 2007, to over $553 billion by the end of 2008.

Grayson: "So who got the money?"
Bernanke: "Financial institutions in Europe and other counries."
Grayson: "Which ones?"
Bernanke: "I don't know."
Gryson: "Half a trillion dollars and you don't know who got the money?"

It gets even better.

3:02 -
Grayson: "Well, look at the next page [in Bernanke's written report], the very next page has the U.S. dollar nominal exchange rate, which shows a 20 percent increase in the U.S. dollar nominal exchange rate at exactly the same time that you were handing out half a trillion dollars. You think that's a coincidence?"
Bernanke: "Yes."
Grayson: "hah-hah-hah-hah!"

Funny- if it wasn't so sad.

Worth watching.

**Show-me** · 07-25-2009, 04:22 AM

Great video!

**James48843** · 07-25-2009, 05:18 AM

You know what is interesting?

Bernanke says in that video that the Federal Reserve has the legal authority to make those billion dollar loans to foreign central banks, under the authority of section 14 of the Federal Reserve Act.

I just looked it up.

Section 14 allows the fed to BUY OR SELL to foreigners.

It says NOTHING about lending to them.

There appears to be NO LEGAL AUTHORITY to do what they just did.

Check that out-
http://www.federalreserve.gov/aboutthefed/section14.htm

Things that make you go Hmmmmm........

**Birchtree** · 07-25-2009, 02:37 PM

If they would just give the money to the minority, at risk population to make their mortgage payments we wouldn't be in this mess. All they have to do is increase the welfare check amount and the irresponsible pukes could stay in their Mcmansions. Then we could all assist and take up community donations to keep the cell phone bills paid and the electricity running. We could even build more parks for midnight basketball. And now we learn it was this segment of society that put BHO over the top into the white house - man we are royally screwed.

**Boghie** · 07-25-2009, 02:56 PM

Where did the money go?

I thought Bernanke gave as clear an answer to the ignorant lawyer/politician as he possibly could. The money was traded to national central banks for Euros (and the like) with interest.

Many commodities (oil, for example) are traded in dollars. Its very nice to not have to muck up basic trades with currency fluctuations. Additionally, many countries peg their money to the dollar. They use dollars as their 'gold standard'.

And, Congress has NO authority over the money supply - thank God. A chump like this D from Florida would be using his legal background to churn up even more fiat money and dumping it on the poor and disadvantaged and Hollywood and wind farms and Gay Day in San Francisco. Then he would have to design a fine sticker to apply to the greenback when it devalues even more.

By the way, I wish I had made that trade. The dollar has lost value to most currencies.

**Buster** · 07-25-2009, 08:30 PM

Originally Posted by Boghie

Where did the money go?

I thought Bernanke gave as clear an answer to the ignorant lawyer/politician as he possibly could. The money was traded to national central banks for Euros (and the like) with interest.

Many commodities (oil, for example) are traded in dollars. Its very nice to not have to muck up basic trades with currency fluctuations. Additionally, many countries peg their money to the dollar. They use dollars as their 'gold standard'.

And, Congress has NO authority over the money supply - thank God. A chump like this D from Florida would be using his legal background to churn up even more fiat money and dumping it on the poor and disadvantaged and Hollywood and wind farms and Gay Day in San Francisco. Then he would have to design a fine sticker to apply to the greenback when it devalues even more.

By the way, I wish I had made that trade. The dollar has lost value to most currencies.

DITTO!!!

**burrocrat** · 07-25-2009, 09:29 PM

Man that is some avatar Buster. Last time i got so excited over a lamp, i had to try to borrow bail money from mom, and she done passed on now 11 years, didn't work out so well.

**Buster** · 07-25-2009, 10:38 PM

Originally Posted by burrocrat

Man that is some avatar Buster. Last time i got so excited over a lamp, i had to try to borrow bail money from mom, and she done passed on now 11 years, didn't work out so well.

Yes..thanks for being open minded enough to see what is really there..pervs would take the low road and find it offensive and say they see something else..Imagine those kind managing the market..LOL...oops! just pee'd my pants laughing at them...