Adonis Diaries

How the FED became a global central bank?

Posted on: December 17, 2010

In 2008 and 2009, the FEd played the role of world central bank and lent to foreign multinationals and financial institutions. 

First, the US central bank encouraged the speculative financial funds and institutions to buying credit card debts, student financial aids, and car credit debts by extending up to 95% of the necessary funds at very low-interest rates of between 1 to 2%.  This mechanism was very profitable to speculative funds since they generated up to 50% profit.  Two-third of the $71 billion in Treasury Bills loans have been reimbursed in this short lapse of time.  Questions: “Who paid up for these profits? Are credit card high interest rates still applicable?  With whose money?”

Second, the independent Senator of Vermont, Bernie Sanders, wrote the amendment to the Dodd-Frank law, which forced the US central bank to disclose all the financial short-term loans extended to foreign banks in Treasury Bills.  A tentative account revealed that the Swiss bank UBS received 37 billion in October 2008, the British Barclay was infused with 10 billion (Barclay had purchased many branches of the failed Lehman Brothers), the Belgium Dexia 23 billion, the German Commerzbank 13 billion, the French BNP Paribas, Societe generale, and Natixis many billions.

In addition to banks, the FED lent to multinational manufacturers such as Toyota, General Electric, Caterpillar, Harley-Davidson, Verizon, and even McDonald:  It appears that all these companies have their own financial speculative institutions.

So far, 21,000 transactions covering 3,300 billion have been revealed:  The in-depth accounting is resuming its job.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

adonis49

adonis49

adonis49

December 2010
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  

Blog Stats

  • 1,416,603 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.adonisbouh@gmail.com

Join 768 other followers

%d bloggers like this: