Busted: Bankers and The Global Economy

June 14, 2009

Recovery: New Technology and Financial Literacy With a Glimmer of Hope

There are signs that the rapid decline in economic activity of the past few quarters is slowing. Per the observation by the Federal Reserve, stabilization or improvement will begin from very low levels compared with those the levels of previous recoveries. This recovery is likely to be painfully slow and “the economy unusually vulnerable to new shocks. The news remains bad in two areas of direct importance to American families: Unemployment continues to rise and housing prices continue to decline.”

“Government-provided liquidity and guarantees remain as necessary supports in many areas. Because the collapse of these same markets set off the present crisis and the serious recession that has followed, the case for far-reaching reform appears a strong one.”

The Federal Reserve admits the fact that banks are highly leveraged, presumably due to the fractional reserve backlash in this crisis and compounded by creative banking instruments that have brought the system to its’ knees. Many bankers have been highly creative in protecting themselves from public or government scrutiny on an ongoing basis.

The Fed readily admits:

“that a malfunction in the financial industry can immediately and profoundly harm the entire economy…As we have seen to our dismay in the last year, even where such support is forthcoming, the resulting damage inflicted on the real economy by the financial sector can still be extensive, and the potential costs to taxpayers can still be high.”

financial literacyFor some time, the Federal Reserve has heralded the idea of financial literacy as if it were some ‘new technology’. Now the Fed has realized its’ own training regarding the need for a new financial literacy. The Fed now admits “that systemic risk was very much built into our financial system,” spotlighting the too-big-to-fail phenomenon as one of the most problematic systemic risks in the financial system.

Many members of the Fed now admit that we much apply ‘new technology’ to financial literacy and systemic risk in an effort to overcome the greed syndrome that has wracked U.S. and global banking for the last several decades. The problem remains that central bankers, like the Federal Reserve, are now in charge of implementing policy that can pad and perpetuate their own bottom line and purpose for existence since all central bankers are, in reality, a closed brotherhood or society devoted to their own corporate and global power in the financial system as they tap profits from their own system to benefit the global system and the shareholders of the global corporate central banking system. ~ E. Manning

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