Sunday, November 29, 2020

75% of the $454 Billion CARES Act Money Never Went to the Fed; It Was Invested by a Mnuchin Slush Fund Called the ESF

Ed.'s note: Since the US military has taken control over all of America's economy, it is likely a lot of this money is being siphoned off by the Pentagon for various programs the public isn't privy to as evidenced by two Washington Post articles linked at the end of this Wall Street on Parade article. 
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Source: Wall Street on Parade

By Pam Martens and Russ Martens: November 27, 2020 ~

U.S. Treasury Secretary Steve Mnuchin

The CARES Act was signed into law on March 27. Congress earmarked $454 billion of that stimulus money to be distributed by the Treasury to the Federal Reserve to be used for emergency lending programs to save businesses and jobs during the pandemic and keep credit flowing to the U.S. economy. The catch was that the Treasury Secretary, Steve Mnuchin, would have to give his approval for each of the programs.

Since June, Wall Street On Parade has been reporting that $340 billion of the $454 billion that Mnuchin was instructed to turn over to the Fed was unaccounted for. We noted that 98,000 businesses had permanently closed in the U.S. while this money, intended for economic relief, went missing. 

On November 19, Mnuchin publicly issued a letter to Fed Chair Jerome Powell, making it sound like most of the CARES Act money has been sitting idle at the Fed and Mnuchin was demanding it back to put to better use.

Adding to our conviction that Mnuchin was intentionally misleading the public, Bloomberg News published an article on Tuesday about the funds that Mnuchin planned to claw back from the Fed. The Bloomberg article carried this sentence: "The money in question includes $429 billion that Mnuchin is clawing back from the Fed — which backed some of the central bank's emergency lending facilities…" 

But for months now, the Federal Reserve's weekly financial statements known as the H.4.1 have indicated that all the Fed received from Treasury for its emergency lending facilities was $114 billion, leaving $340 billion unaccounted for.

Wall Street On Parade has repeatedly asked the press office of the U.S. Treasury to explain this discrepancy. It has refused to answer our inquiries. We have repeatedly asked the Fed’s press office to explain this discrepancy and it has directed us to its official financial statements which show it has received just $114 billion from the Treasury for its emergency lending programs.

This morning, we located the missing funds on our own with no help from the Treasury's press office that is paid by American taxpayers to keep the public informed. Tens of billions of dollars of CARES Act money has been put to very strange use by Mnuchin in a slush fund called the Exchange Stabilization Fund (ESF) which states that it gives the U.S. Treasury Secretary "considerable discretion in the use of ESF resources."

We located the financial statements for the Exchange Stabilization Fund and they confirmed that all the Treasury has given the Fed for its emergency lending facilities was the same $114 billion that the Fed has been reporting on its financial statements. 

Please go to Wall Street on Parade to read the entire article.
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