Busted: Bankers and The Global Economy

June 20, 2008

The United States on Collision Course

The U.S. Treasury Department is scared out of its wits regarding the current plight of investment banking institutions. Treasury Secretary Henry Paulson claims that the government must quickly give the Federal Reserve more power to regulate the financial system, saying this year’s financial market turmoil highlighted the need for action. Know this now: we have a red herring or two in the mix.

Paulson said the nation is facing a “trio of head winds – a housing correction, capital markets turmoil and high energy and commodity prices.” While what Paulson says is true, behind the scenes we have another story playing out. The claim that the Congress must quickly give the Fed more power smacks of panic, but not without cause on several counts.

The Treasury Department is looking another failure square in the face despite the recent bailout of Bear Stearns and the investment banking community. The “new floor” in the economy sponsored by the Federal Reserve has not worked to solve the problem. Billions in bad debt through deceptive banking CDOs and bad securities threaten the very fabric of the banking economy. The banking community is not recovering, but rather, hooked on Federal Reserve support and auctions to keep the banking economy functioning.

The Bush administration has refused to address the fiscal and national debt of the nation, spending money as if there is no end to it. The reality is the Fed creates money out of thin air that is based on not one single standard of wealth beyond confidence. The Fed and global central bankers franchised by the Swiss, Italian and Roman bankers collect their sustenance from yearly interest that never ends with a debt that can never hope to be repaid by this country for money that exists only in the minds of world economic powerhouses. That is the world that you and I live in.

Yet, behind the scenes, the nation has another factor driving the internal panic. Even though the United States remains as a powerful driving force, she is bankrupt is every sense of the word.

Let’s say that you have a banker that you have done business with for years. This banker has continually extended credit and you have continued to spend the credit. You have been bankrupt for years, but the banking loans have allowed you to avoid the crash of bankruptcy, the loss of lifestyle and the loss of the appearance of prosperity. The banker finally determines that he can no longer help you. Normally, as a person, you would be at the end of your financial road facing ruination and pain for the immediate future. In this case, you are the United States, but instead of a person, you are a government backed by the GDP of a large nation of people. In order to maintain the banking relationship and endless loans, you give up more and more control over your affairs. All the while, you sell your people and government into slavery as the central bankers siphon off larger and larger portions of your real wealth as you give up more and more power.

In the same way, United States is at a financial crossroads. The central bankers have decided that they are entitled to more power. The nation is on a precipice. The frightened politicians can’t say no. The United States has become indentured permanently to the likes of the Roman banking system, the International Society of Central Bankers. The only way out for the people is rebellion and civil war to remove the government that has sold them into slavery forever. The alternative is the development of a new government to avoid fearful anarchy. This is the plight of a once-strong America and one red herring that must be kept hidden in a dark closet full of other “dead herrings”.

Red herring in a narrative sense: “a technique used to mislead the audience.”

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1 Comment

  1. The real crash is here, Larouche is right. If you keep bailing out the bubble, the hyperinflation only gets worse.

    Comment by Howard Gibson — June 26, 2008 @ 9:24 am


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