Why is the Fed Bailing Out Qadhafi?

This article i came across brought some very good questions to mind, and knowing the community here i felt that i would see if anyone could shed more light on this subject.

So, to start we all know that there is some goings on in Libya at the moment.
At somepoint during this whole event we know that Colonel Qadhafi and his family have been subject to some sanctions, imposed by several global entities ie; U.K. U.S. E.U ect...

you can see a summary of those sanctions HERE and just as important you can view the executive order, put in place by Obama HERE

In both of these sources you can find information on what exactly those sanctions are and see that they mostly include financial sanctions to the qadaffi family and other Libyan National interests.

Focusing specifically on the Executuve order enacted by Obama on February 25th you can see the specific people and entities which these sanctions are applied to.

SECTION 1 ...
(a) the persons listed in the Annex to this order; and
(b) any person determined by the Secretary of the Treasury, in consultation
with the Secretary of State:
(i) to be a senior official of the Government of Libya;
(ii) to be a child of Colonel Muammar Qadhafi;...
SECTION 2...
All property and interests in property that are in the United States,
that hereafter come within the United States, or that are or hereafter come
within the possession or control of any United States person, including any overseas branch, of the Government of Libya, its agencies, instrumentalities,
and controlled entities, and the Central Bank of Libya, are blocked
and may not be transferred, paid, exported, withdrawn, or otherwise dealt
in.

Notice i highlighted where it states the Central Bank of Libya
This is where i gets interesting, because in this article i read it says

just a week or so after Obama’s executive order, the U.S. Treasury Department quietly issued an order exempting this and other Libyan-owned banks to continue operating without sanction.

and gives us a link to the order mentioned
Recent OFAC Actions
Where you can clearly see that some of the insitutions mentions in the executive order are given a sort of reprieve.

General License No. 1A authorizes all transactions involving banks that are owned or controlled by the Government of Libya and organized under the laws of a country other than Libya, provided the transactions do not otherwise involve the Government of Libya or any person whose property and interests in property are blocked.

But a quick search for information on these banks seems to show that this "General License" aids the very individuals targeted by the executive order and other sactions that were mentioned. By reading the below link on the central bank of libya it is easy to come to the same conclusion that the writer of this article has (and myself), that indeed Qadhafi and party are the beneficiaries of this act.
Central Bank of Libya

And that is only what i gathered from the first two paragraphs of said article.
Why is the FED bailing out Qaddafi?

As you can see there is more to this story than just Qadhafi, as the author relates to his readers how he came across this information

I came across the curious case of the Arab Banking Corporation, better known as ABC, while researching a story about the results of the audit of the Federal Reserve. That story, which will be coming out in Rolling Stone in two weeks, will examine in detail some of the many lunacies uncovered by Senate investigators amid the recently-released list of bailout and emergency aid recipients – a list that includes many extremely shocking names, from foreign industrial competitors to hedge funds in tax-haven nations to various Wall Street figures of note (and some of their relatives).

It Goes on to tell us how this audit of the federal reserve had been established, what it expected as a result and some of its findings

it found, among other things, some $26 billion in extremely cheap loans (as low as one quarter of one percent!) extended to this ABC bank over a period of years, beginning in December of 2007 and continuing through as recently as February of 2010.

Right then it made me seriously think about this...

We all have pretty good idea that the "real" money in the U.S. federal reserve comes on the backs of the American people, so my first question being the obvious why turned into WTF!
basically my interpretation of this was that WE the American people we funding Qadhafi, this cant be right....
then as i kept reading the Author posed a few good questions as well.

Why,... would the Federal Reserve be giving Muammar Qaddafi $26 billion in near-zero interest loans? Exactly how does that address America’s financial problems?
What bailout plan could that possibly be part of?

Is it possible that this was TPTB somehow funding this war that they knew was coming? or at the very least an attempt to fund the rebels or "persuade" to rebel at all?
Or is it something as simple as a transfer of funds between bank branches (which is actually just as concerning) and would imply Qadhafi as being a member (perhaps now former member) of the "elites"

Not sure on any of this but i guess more light will be shed on this subject in the next few weeks when the information of the reserve audit is put into perspective.
Thank you for reading

according to Gaddafi the u.s. did instigate the rebellion. he told his troops that civilians were given strong hallucinogenic drugs by the u.s. now that can just be a lie to make his soldiers not feel bad while killing hundreds of innocent people or it can be true :/

reply to post by thegasface


yeah i heard about that. Kinda seems like he was grasping at straws thought, maybe it did happen i dont cant say for sure it didnt. Maybe he just couldnt come out and say the US is paying my people to rebel...
Just conjecture there though i cant really say thats what was happening either.
It just seems...out of place, with the documents from the Bush admin. saying how they wanted to war with Libya to the FED feeding them money for the past years...
maybe they were trying to destabilize the Libyan economy so that the people would rise up like they did....
Still seems kind of odd with all the money that Qadhafi had, why would their banks have the need to take loans from the US federal reserve?

Just thought i would add some additional info on the "Wests" history with Libya from an article i just read this morning

Gadhafi's daughter sends defiant message

The Libyan leader has a long and troubled history with the West. In the 1980s, he was seen as sponsor of militant groups, and Libya's secret service was held responsible for the April 5, 1986 bombing of a Berlin disco that killed two U.S. servicemen. Ten days later, U.S. warplanes struck targets in Benghazi and Tripoli, including Gadhafi's Bab Aziziyah compound. Dozens were killed in the strikes.