The Federal Reserve has expanded its balance sheet by over $1 trillion since last year. In the video I’ve posted below, the inspector general of the Federal Reserve testifies that she hasn’t yet looked into who actually got this money. Unbelievable.

Invest 5 minutes to watch this video – you won’t believe this is actually happening. Listen to her answer when the congressman asks about what she’s done to investigate the reported $9 trillion in off balance sheet transactions at the Federal Reserve. And, then listen to her answer when the congressman asks who’s keeping track of the losses that the Federal Reserve is incurring on its portfolio. The inspector general’s answer? No one that she knows of. Don’t take my word for it, watch it yourself.

Now, President Obama wants to give the Federal Reserve even greater authority. Within the next week, Obama is expected to outline his proposal for overhauling US financial rules. It is expected he’ll propose more regulation with more oversight responsibility for the Federal Reserve (Bloomberg Jun 12, 2009). Watch that video again. How do you feel now?

God help us…