Obama legacy: He was the best global friend and global business partner the US Federal Reserve ever had as he clown raped the US-Zero Hedge

1/20/17, "Obama’s Legacy Will Be Forever Etched in Halls of the Federal Reserve," Zero Hedge, The Real Fly

"He was the Fed's best friend ever. Could they've had a better business partner than Obama, taking the Federal budget and clown raping it with ruinous levels of spending. The Fed's mandate shifted from tinkering with rates during periods of need to blatantly controlling asset prices and the economy.

As of right now, during the final hours of Obama's presidency, the Federal Reserve has never been more powerful. It is the central bank to the world--doling out liquidity to whoever needs it--regardless of national sovereignty
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Plainly, it has become a caricature of itself, a cabal weaponized to the point of lunacy -- totally unchecked and operating in the shadows with impunity.

There are many things that will be forgotten, many mistakes that will be corrected, after Obama has gone. But this will last forever.

Obama has accumulated more debt than all of America's Presidents before him, combined."

 

chart from Zero Hedge
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Added: Between Dec. 1, 2007 and July 21, 2010, the Fed bailed out European financial institutions with $3.08 trillion in emergency loans per 2011 GAO Fed Investigation. "The audit also found that the Fed mostly outsourced its lending operations to the very financial institutions which sparked the crisis to begin with, and that they delegated contracts largely on a no-bid basis." 

7/21/2011, "Audit: Fed gave $16 trillion in emergency loans," rawstory.com, Stephen C. Webster

"The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government’s first-ever audit of the central bank. 

Last year, the gross domestic product of the entire U.S. economy was $14.5 trillion.

Of the $16.1 trillion loaned out, $3.08 trillion went to financial institutions in the U.K., Germany, Switzerland, France and Belgium, the Government Accountability Office’s (GAO)
analysis shows.

Additionally, asset swap arrangements were opened with banks in the U.K., Canada, Brazil, Japan, South Korea, Norway, Mexico, Singapore and Switzerland. Twelve of those arrangements are still ongoing, having been extended through August 2012.

Out of all borrowers, Citigroup received the most financial assistance from the Fed, at $2.5 trillion. Morgan Stanley came in second with $2.04 trillion, followed by Merill Lynch at $1.9 trillion and Bank of America at $1.3 trillion. 

The audit also found that the Fed mostly outsourced its lending operations to the very financial institutions which sparked the crisis to begin with, and that they delegated contracts largely on a no-bid basis. The GAO report recommends new policies that would eliminate such conflicts of interest, and suggests that in the future the Fed should keep better records of their emergency decision-making process. 

The Fed agreed to “strongly consider” the recommendations, but as it is not a government-run institution it cannot be forced to do so by lawmakers. The seven-member board of governors and the Fed chairman are, however, appointed by the President of the United States and confirmed by the Senate.

The audit was conducted on a one-time basis, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed last year. Fed officials had strongly discouraged lawmakers from ordering the audit, claiming it may serve to undermine confidence in the monetary system.
 
The full GAO audit results follow, below."
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GAO Fed Investigation




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