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Sen. Bernie Sanders (I-Vt.) today questioned why the Federal Reserve provided more than $26 billion in credit to an Arab intermediary for the Central Bank of Libya.
“It is incomprehensible to me that while creditworthy small businesses in Vermont and throughout the country could not receive affordable loans, the Federal Reserve was providing tens of billions of dollars in credit to a bank that is substantially owned by the Central Bank of Libya,” Sanders said.
In a letter to Federal Reserve Chairman Ben Bernanke and others, Sanders asked why the central bank made at least 46 emergency, low-interest loans to the Arab Banking Corp., in which the Central Bank of Libya owns a 59 percent stake.
This, of course, is an addition to previously secret Federal Reserve bailouts of various multi-billion dollar corporations like McDonald’s and Verizon, along with two European megabanks. The Federal Reserve is clearly a shady organization. It exists in a shadowy realm on the periphery of government and business, and it is unclear what exactly its roles are, and with whom its allegiances lie. Most Americans know little about the organization; views range from one of complete indifference to detailed conspiracy theories involving the influential Rothschilds and the mysterious Bilderberg Group.
Why is there so much secrecy surrounding the Federal Reserve? Why does the public know so little about it, and why does the media do such a poor job covering it? The Federal Reserve is generally presented as being an entity of the government – its name certainly applies as much. In reality, the Federal Reserve is a private organization, comprised of shadowy alliances between the country’s – and now, undoubtedly, the world’s – largest banks. Apart from its symbolic figurehead, the United States government – and therefore, the American people – have absolutely no say in its operations. So why exactly does the Federal Reserve exist? What purpose is it intended to serve?
The very history of the Federal Reserve is contentious. It was created by a last second piece of legislation that passed mere days before Christmas, when most elected officials had returned home for the holidays. The legislation created the Federal Reserve out of nothing, and granted it the sole right to print money for the United States. Prior to this, the U.S. government printed its own money, but with the creation of the Federal Reserve, that privilege had been passed into private hands. Bankers had tried for generations to obtain this coveted right, but they were not successful until this financial coup of 1913.
The ramifications of this are more extensive and drastic than most people imagine. Perhaps the most dangerous consequence was the notion that our currency was now irrevocably bogged with debt. The Federal Reserve created our money out of nothing, but then “lent” this money to the U.S. government at interest. It is not hard to realize that, under such circumstances, it would be impossible for the U.S. to ever climb its way out from this debt. In short, the Federal Reserve guaranteed that we were eternally indebted to them, thus guaranteeing indefinite and unprecedented profits.
Sen. Bernie Sanders is one of only a few elected officials in history to have the courage to openly question the actions of the Federal Reserve, and as a result of his heroic actions, troubling revelations are coming to the public eye. But Sanders hasn’t yet gone far enough, as these realizations only scratch the surface of just how far-reaching the actions of the Federal Reserve, and how contrary they are to the interests of ordinary Americans.
Why was the Federal Reserve providing money to the Central Bank of Libya (which was then loaned back to the U.S. Treasury through the purchase of U.S. bonds)? Is it a coincidence that we are now involved in military operations there? The fact that we even have to ask such a question is evidence enough that we know far too little about this organization that holds such sway over the U.S. – and, indeed, world – economy, and it is imperative that we start learning.