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There Are No Words To Describe The Following Part II


Alan Grayson questions the Inspector General of the Federal Reserve - 05/09/10


Circulate Far and Wide.

Our only hope to stop the heist will come from greater awareness.



If you're in a hurry, start watching at the 3-minute mark.  At issue is the accounting and oversight for $9 trillion in secret Fed bailouts of Wall Street banks, for which taxpayers are ultimately responsible to the tune of $32,000 for every man, woman and child in this country.  Fed audit, anyone?




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Reader Comments (677)


To the Daily Bail bloggers: I can't thank you enough for all the information you give on this topic. The fact that it is not all over the MSM is dumbfounding. I am speechless about it. I have referred many to your website and hope many more will start taking an interest in what is happening with their money. Excellent work!
May 19, 2009 at 9:16 AM | Unregistered CommenterSonic Ninja Kitty
wow. just wow. do the people who run this country even like... do "work"? that is disgusting. i remember all that hype about the money from the last federal reserve guy and not telling where it went. how can we not know that? isn't that like treason or something? SERIOUSLY! and 9 trillion in off-balance sheet transactions? we are so for something worse than the great depression with this kind of shit.
May 20, 2009 at 5:21 PM | Unregistered Commenternick
I love how it's no big deal about where billions of dollars go... but it's a huge deal if someone smokes a joint. :)
May 20, 2009 at 8:21 PM | Unregistered CommenterJonny Kaine
The Federal Reserve is awesome. They rule, basically.
May 20, 2009 at 8:30 PM | Unregistered CommenterLet Your Pirate Flag Unfurl!
The politician clearly does not understand the bureaucrat's role, nor the structure of reserve banking in the U.S.

It is not her job to know what the individual reserve banks lend, as they lend it. Is _is_ her job to manage and carry out a process of audit on that lending, once its effects have been recorded.

He's a grandstanding idiot. She's being asked questions that are nothing to do with her job.
May 20, 2009 at 8:51 PM | Unregistered Commenterfuturegasm
This so far as I'm aware is the only person currently charged with looking into the process of lending and does not have any answer other than we are conducting a high level review. The better follow up would have been to ask her when she expects to finish that review. (By the way the answer will always be next Wednesday!)
May 20, 2009 at 9:08 PM | Unregistered Commenterlonbordin
Can't hear a damn thing.
May 20, 2009 at 9:10 PM | Unregistered CommenterTB Jr
I changed the video. Am using the higher-quality youtube version. I had no trouble with the sound but some people obviously do. Hopefully the new version works much better for audio for everyone.
May 20, 2009 at 9:47 PM | Registered CommenterDailyBail
20,000 unique visitors have come to see this video today...good that it is getting exposure.

It is currently the #5 story on Reddit.

It is important that as many people as possible see the shocking lack of oversight at the Federal Reserve.
May 20, 2009 at 9:48 PM | Registered CommenterDailyBail
Futuregasm, are you a complete moron? I took this DIRECTLY from the Fed's website: "Elizabeth A. Coleman was appointed Inspector General for the Board effective May 6, 2007. In this role, Ms. Coleman leads a staff responsible for promoting economy, efficiency,and effectiveness within Board programs and operations. The Office of Inspector General (OIG) is also responsible for preventing and detecting waste, fraud, and abuse at the Board, among other duties. The OIG achieves its legislative mandate through audits, evaluations, investigations, legislative reviews, and by keeping the Chairman of the Board and Congress fully informed. "

That means she's responsible for investigating where the fuck all this off-balance (lost) money went. She is completely avoiding the question, and neglects to give a single solid piece of useful information other than saying "we are conducting an investigation." And she says this, because it is HER FUCKING JOB TO CONDUCT AN INVESTIGATION. Moron..
May 20, 2009 at 10:11 PM | Unregistered CommenterNick
Thanks for the post DB, but I am getting so sick and tired of people refusing to answer the simplest of questions when it's their job to know.

I caught a little Spitzer the other morning, according to him, Giethner said in March, "I've never been a regulator..." (we're doomed)

I'm just going to pretend that futuregasm was being sarcastic (because people that dumb can't type, right?)
May 20, 2009 at 10:17 PM | Unregistered Commentermark mchugh
well we're fucked.
May 20, 2009 at 10:36 PM | Unregistered Commenterratboy
Sorry Nick, but you're the complete moron. Futuregasm has a point, and if you knew the difference between the Board and the Fed's constituent banks you would understand it.
May 20, 2009 at 10:38 PM | Unregistered CommenterJMS
Thanks lvsm for taking the time to explain that point. I'm too lazy.
May 20, 2009 at 10:39 PM | Unregistered CommenterJMS
Change! Hope!
May 20, 2009 at 10:43 PM | Unregistered Commenterniel
Why didn't she just say, "That's not my job you idiot. Now quit your grandstanding and DO SOMETHING ABOUT THESE FUCKING BAILOUTS."

That's pretty much what I would have said anyway.
May 20, 2009 at 10:47 PM | Unregistered CommenterJames H
"Sorry Nick, but you're the complete moron. Futuregasm has a point, and if you knew the difference between the Board and the Fed's constituent banks you would understand it."

Two big problems with that...

1. She didnt refute the area of responsibility to audit the Federal Reserve, in fact, she clarified the role as applied to Federal Reserve Board of Governors - specifically mentioning direct oversight of board programs and operations, and oversight and supervision of the board over the reserve banks.

2. She did not answer who or what groups are directly responsibile for auditing these programs implemented by the Federal Reserve Banks, or why one hasnt been adequately done.

So even if a direct audit is beyond her responsiblity, ensuring that proper auditing is part of important Board programs and proceedures is definately within her role and responsiblity. Considering theres adequate reasonable doubt resulting from lack of this information, the fact that it hasnt been corrected or carried out by the Board means its an area of her concern. The separation doesnt matter for not holding that group responsible to accountability, and she isnt doing it.
May 21, 2009 at 12:02 AM | Unregistered Commentersp
Now, THAT'S whose REALLY running the country.
May 21, 2009 at 12:07 AM | Unregistered CommenterHymen Rothstein
It seems that hiding behind the letter of the law - in terms of who is responsible for inflating the money supply and who is responsible for auditing the inflation of the money supply - is irrelevant when the idea that the money being supplied has value i being questioned by the world governments and the best hint that we have from the issuer of this currency is that it probably have to be merged with other currencies to main it value means only one thing to me. The only real money are hard assets so try not to get too attached to your Federal Reserve Notes :-)
May 21, 2009 at 12:10 AM | Unregistered CommenterYourJoking
Bush caused this. Where were the questions then? You're all racists.
May 21, 2009 at 1:34 AM | Unregistered CommenterJohn Demo
And THIS my friends is why I will never give up my Swedish Citizenship even when I become a U.S. Citizen in 2 years. Jeezus Christ on a pogo stick! What are the people running this country doing?
May 21, 2009 at 1:35 AM | Unregistered CommenterDaniel Larsson
That politician is an idiot. Wasting everyone's time. He should definitely be fired.
May 21, 2009 at 2:04 AM | Unregistered CommenterDieLaughing
So confused........I don't know what to think! lol..I'll just live my life I guess...like I have been.
May 21, 2009 at 2:15 AM | Unregistered CommenterDaniel
no. no. just say 'no'. the answer you are looking for is 'no, we haven't actually done anything, nor are we keeping track of any of it. were just kicking back until total economic collapse, then we can live off our secret stashes of stolen Nazi gold'
May 21, 2009 at 2:16 AM | Unregistered CommenterKayin
This is called a crime. Burglars with no direction. Burglars with no virtue. Burglars with no allegiance. Frankly my dear, this country needs a new class of citizens.
May 21, 2009 at 2:24 AM | Unregistered CommenterCollective Constable
May 21, 2009 at 5:09 AM | Unregistered CommenterProvenzano
To Collective Constable:
The country doesn't need a new class of citizens; the country needs a massive influx of common fucking sense* drilled directly into every man woman and child.

*'Common fucking sense' is, in fact, a much stronger (i.e. more firmly rooted in reality and logic) version of the typical 'common sense' that no one has anyway so this footnote, which is in the entirely wrong place, and its intended basis of comparison is completely moot.

There is so much job specialization now that no one in any given massive bureaucracy has any idea who's looking at what let alone who happens to be dropping some kids off at the pool while an investigative hearing is going on. That is especially evident here. No one understands WHY anyone does a particular thing in any organization any longer (my own corporation included) because everyone and their mother has had their eyeballs gouged out by the idiot-producing corporate machine. The next time someone tip-toes around a word like 'investigation' because of its negative connotations I think I might just activate a few latent genes so I can telekenetically bitch-slap them from 1000 miles away. This kind of corporate weenie speak only breeds disinformation and eventually nets a complete lack of understanding of a given situation. Disinformation and lack of information are only guaranteed processes used in the modern corporate (and government) machine, and it was initially to try to keep employees happy by not showing any uncertainty. Now all the grown-up idiots that can't see beyond the bottom line are running companies while half of them probably don't even understand what their company does to make money in the first place, let alone why that bottom line might not match what their general ledger says. Ignorance is bliss!

Now, no one wants to know why they do anything because it just makes their lives slightly more complicated. God/Satan/Bhudda/Shiva/SpaghettiMonster forbid someone actually stands up, looks over their 4-foot-tall cubicle wall and attempts to understand just what the ultimate goal is of the cacophony around them because it might just empower them to take some goddamn responsibility. People accept their blinders, go on about their immediate business at hand, throw on their ipod headphones and shut out everything surrounding them. After a long-enough period of time, the brain stops asking 'why' entirely and we end up in the exact position we're in now. A herd of cubicle sheep in a boat large enough that would make Noah turn to atheism, floating down shit creek with 300 hundred million paddles, but no one wants to take the responsibility to actually USE one because they just might steer the wrong way and then they'll be blamed and then no one will like them and then they'll be all alone or in jail and they'll have rotten tomatoes thrown at them and OH MY GOD WE'RE ALL GONNA DIE BECAUSE I CAN'T TAKE THE RESPONSIBILITY OF USING ONE FUCKING PADDLE OUT OF THREE HUNDRED MILLION OF THEM BECAUSE I'M TOO SCARED TO TRY BECAUSE I MAY GET A SPLINTER!!!!!!'

Now because no one can accept any responsibility for themselves or anyone else, people assume someone else will be responsible for them. In comes the loving, caring government to fill that gaping parental void! So we end up with one stinking mass of sweet, special, unique refugee-grade* citizens with an extreme case of entitlement, the patience of a critical-mass chain reaction and maybe enough collective sense to tie a shoe. Oh and the one or two people that were just intelligent enough to take advantage of the idiots who subsequently ran off to a tropical beach to sip mai thais while counting their billions.

*I apologize for insulting refugees all over the world who would jump at the chance for a good day's work for reasonable pay by comparing them to a group of people that have a less-than-zero work ethic and still expect (and sadly get) everything handed to them anyway.

One part lack of understanding plus one part lack of testicular fortitude plus one part apathy plus 290 million parts of Stupid = The United States of America circa 2009. Solve for WHY.
May 21, 2009 at 10:29 AM | Unregistered CommenterRojo
This didn't start in the Bush Era. This started in the Clinton Administration with the Community Reinvestment Act law he signed in 1999, which created the sub-prime loans. Financial institutions were give government quotas to loan the money to the low-income citizens. If they didn't meet the quotas, then the faced possible government sanctions from the Dept. of Justice aka Janet Reno.

As for Coleman, she couldn't explain anything. Even if the senator was wrong, she should have been able to explain the extent of off-balance sheet transactions. She didn't know enough to even counter his questions.
May 21, 2009 at 10:39 AM | Unregistered CommenterRob
Did the "Clinton Era" ever end? We've got Hillary at State, R. Emmanuel and Larry "Glass-Steagall" Summers in the WH, Robert Rubin (aka Tim Geithner's boss) at Treasury... I'm sure I'm forgetting somebody.

For that matter, when did the "Bush Era" actually end? We've got Gates at Defense (sic), Neel "The Executioner" Kashkari just put the finishing touches on Paulson's bailout plan, Bernanke is still at the Fed (Why, O Lord, why?)...

When it comes to screwing the taxpayer and giving us the bill for the banksters' screw-ups, I'm just not seeing much "change."

Question is, What the hell are we going to do about it? I mean, why are we handing out bailouts to these suckers -- we need to start prosecuting some people and take back our money.
May 21, 2009 at 11:07 AM | Unregistered CommenterJames H
You better go back to CARTER with that community reinvestment act...That was just a continuation of the Carter Legacy...Thanks P-NUT PUTZ.....
May 21, 2009 at 1:05 PM | Unregistered CommenterAin't Bullshittin'
IS that inspector general really that DUMB> Talk about COVER HER ASS> I don't give a direct answer. WHY< Because I don't know what I'm doing>
May 26, 2009 at 1:12 PM | Unregistered Commenterbonzi
I feel like puking, thi is so upsetting.
May 26, 2009 at 5:01 PM | Unregistered CommenterGary
Thank you for this clip. Here is something you can do about it....

Write your congressman asking him/her to support Congressman Ron Paul's bill HR-1207 "Federal Reserve Transparency Act" (currently 179 co-sponsors). America needs the Federal Reserve to be held accountable to the people!

May 29, 2009 at 1:26 PM | Unregistered CommenterWestcoaster
YouTube Clip of Lawmaker, Fed Official Draws 166,000

May 29, 2009 at 1:36 PM | Registered CommenterDailyBail
How stupid can people be? There is no oversight for the Fed as they are a private bank owned and run by elitist foreigners for their own benefit.

May 29, 2009 at 9:26 PM | Unregistered CommenterNH
WoWwwwww Now we know what happens to all those people that NO one would hire. They either get elected or appointed to run our country...Right into the Craper...
May 30, 2009 at 9:42 PM | Unregistered CommenterJon E
Why am I not surprised at all.
May 31, 2009 at 11:25 AM | Unregistered CommenterSoCal
She's a ping pong head. Absolutely clueless and paid pretty damn well to be that way. Sad thing is that she knows we are powerless to touch her.....Legislation must be passed to bring this massive fraud to light.... H.R. 1207 has been introduced by Ron Paul to allow an audit of the privately owned for profit Federal Reserve and it's managers. Trust me when I say that every trick in the book will be used to block this bill from becoming law because should it pass it would spell the end of this corrupt entity as well as criminal prosecution of many....H.R. 1207 must be passed to rid America of this Fraud.
May 31, 2009 at 11:38 AM | Unregistered Commenter2togo
at being over $57 trillion in debt and if what Thomas D. Schauf wrote back in 1992 is true...."The U.S. Government can buy back the FED at any time for $450 million (per Congressional record). The U.S. Treasury could then collect all the profit on our money instead of the 300 original shareholders of the FED. The $4 trillion of U.S. debt could be exchanged dollar for dollar with U.S. non- interest bearing currency when the debt becomes due. There would be no inflation because there would be no additional currency in circulation. Personal income tax could be cut if we bought back the FED and therefore, the economy would expand. According to the Constitution, Congress is to control the creation of money, keeping the amount of inflation or deflation in check. If Congress isn't doing their job, they should be voted out of office."
Dang! the government is over $11 trillion in debt now...tats $7 trillion dollars of MORE DEBT in only 7 years..is ther anyone in Congress tat has ba!!s? tis crap of spend...spend...spend has to stop.
Jun 1, 2009 at 8:12 PM | Unregistered Commentermadmilker
Update June 1: More than 22,000 MORE of you have now seen this clip from links emailed by readers to their friends. Please keep it up and MAKE SURE TO SEND A LINK TO YOUR CONGRESSMAN AND SENATORS. Their email addresses can be found here.


Or just go to http://senate.gov and http://house.gov
Jun 2, 2009 at 3:09 AM | Registered CommenterDailyBail

I agree with you completely. Take a look at what we have written about the debt and deficit so far.


and this one as well:

Jun 2, 2009 at 3:11 AM | Registered CommenterDailyBail
Please let me have Elizabeth Coleman's job! I am 78 years old, but I am positive that I could make a much better presentation
to congress.
Jun 2, 2009 at 12:26 PM | Unregistered CommenterWilliam I. Dorman
Kennedy signed an executive order in 63-64 to do away with the Fed entirely, all we need is a leader with some sack to enforce that order.
Jun 2, 2009 at 1:51 PM | Unregistered Commenterqc103
we the people have waited too long to do anything. The govt has too much power and can protect such blithering non-careing idiots as her. Our representatives are too scared shitless to buck the higher up machine in DC....so live with it. They all need voted out and new put in. Then every 4 years vote those out....including the muslim president we have...and if anyone thinks he isn't a muslim, will you be in for a surprise. Why did the first lady go home after France and the muslim president go to the muslim countries by himself????? Do as I do....research the government and the muslims, and be prepared for a shock. the bailout money won't stop anytime soon. What is going to happen when China refuses to buy our debts??? DEPRESSION TIME people...I am 71 and I have seen too much in my life here in the USA and other foreign countries. I will admit one thing...I really am "one scared puppy" when it comes to seeing what the piece of crap president we have is doing to our country. When he is done, we will no longer be the m ost powerful number 1 country. If people can't see that, something is wrong.. Good day to all and get your money out of the bank fast.
Jun 2, 2009 at 3:25 PM | Unregistered CommenterE. Holder
Why are we paying this woman a salary? She knows nothing about the job which appears she has responsibility.

My experience in one brief semester in U of Md. convinced me that hundreds of thousands of Federal Employees are not doing their job.

The disturbing part is what happened after these revelations?
Jun 2, 2009 at 4:18 PM | Unregistered CommenterLt. Col. Jerry K. Payne USAF Ret.
After Bear Stearns, the FED opened a $75 to $200 bil. Line of Credit for District 1 PD’s. (Unregulated New York Private Banks). ( See Fed Reserve Press Releases)
Did the NY Banks use FED funds for secret Oil speculation and drive Oil to $150?
Comptroller of the Currency- Off-Shore Banking & Fraud div. opened investigation 9-08.
Oil prices plummeted.
Were TARP 1 funds secretly used to pay Margin Short Calls for unregulated NY Banks?
Did the FED bankroll, and Treasury Bail-out the Oil speculation scam?
The NY Bankers made the Money. The Taxpayers paid?
Jun 3, 2009 at 1:29 PM | Unregistered CommenterBill Price
E.Holder: You're obviously an elderly racist. The President is American and was born in Hawaii. Look up his history. His mother only went to Kenya where his dad was from once. Just because he's half black doesn't mean he's muslim. I'm so sick and embarassed by ignorant people like yourself. You speak of fear of the great depression and then tell advise everyone to remove their funds from the bank. Are you that blind and ignorant as an aged man? That's what CAUSES economic collapse. All the idiots that freak out and take out thei investments from the stock market and bank. Look at the trend of the stock market. It consistently rises and falls at a progressive incline. What is needed is everyone to not panic and do stupid things.
Jun 3, 2009 at 1:56 PM | Unregistered Commenterdisgusted
I reread this Blog and must elaborate.
After the FED opened the LOC to the Dist. 1 PD’s, I contacted:
Federal Reserve,
Senate Banking Committee
House Financial Services
The President
U.S. Office of Special Counsel
Office of Inspector General. Federal Reserve System
NY Times
Comptroller of the Currency
,,,,,Asking, Who was regulating the NY Private Banks? And,
Were they using the FED funds for Oil Speculation?
No one knew. ( Some said they would check, and let me know. No Response.)
In summer of ‘08 an official with the Inspector General of the FED said,
They didn’t know who regulated the PD’s, and
They were still trying to figure out what the FED did with Bear Stearns.
After several exchanges, the OCC said they opened an Off - Shore Fraud Investigation.
( I don't know, but I hope that was productive. )
It’s really discouraging that some comments on this blog indicate that some folks Don’t seem to care about regulation on use of FED Funds , or if anyone knows where the money went.
Or , Maybe, they are part of the Wall Street gang that doesn't want anyone to know what they did,,,, or are doing.
Jun 3, 2009 at 2:23 PM | Unregistered CommenterBill Price
The USA is ruled by a bunch of dumasses and their supporters. This misuse will never end,only progressing into oblivion. Just hope our next generation of crooks can afford a belt to hold up their bagass pants
Jun 3, 2009 at 7:27 PM | Unregistered CommenterNORTON

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