An end to “banking as we know it” is fine with us. The “banking” in today’s Western economies is simply a monopoly-distribution point for the dissemination of fiat currency. Central banks have got to distribute money through banks because the alternative – simply distributing it to people – would reveal the scam for what it is. By filtering the money-printed-from-nothing through banks, the process retains a mysterious quality. It is also rendered more complex, which is necessary when one is promoting a Ponzi scheme. Finally, bank distribution allows for a debt add-on that further controls the process. The situation is incredibly destructive, ruinous and benefits, essentially, on a very people who are the most direct beneficiaries of central bank funding stream.
– The Daily Bell, Staff Report
The Giant Cover Up
Much has been written about QE2, too much really. However, today I want to take a step back and look at it from another angle. QE2, or the latest round of Federal Reserve quantitative easing is in all reality just a move of extreme desperation by what Max Keiser appropriately calls “financial terrorists” to cover up the recent coup d’etat of what was left of America’s wealth by special interests across the spectrum from politicians themselves, the military industrial complex and crucially the big Wall Street firms that gamble with taxpayers money all the while calling themselves banks. At the center of the theft is and continues to be the Federal Reserve. Using the financial collapse of 2008 as a smoke screen, the totally bankrupt large Wall Street firms using their puppet ex Goldman Sachs CEO and then Treasury Secretary Hank Paulson sufficiently scared our politicians to give them unlimited sums of money, suspend accounting for their bad assets and then go right back to gambling again and paying huge bonuses all the while never accounting for their assets at market value. The hope from the perspective of the Federal Reserve has been that by pumping virtually unlimited amounts of newly printed money into the banking system (which is what quantitative easing is) they could create another fake Keynesian economic boom that would get people back to work and back to sleep again. Housing prices would start rising again and none would be the wiser until the system collapsed again a few years later (which it would be guaranteed to do) but then it would be much too late to stop it.
Fortunately for all of us, this is not the way things turned out. Do you recall that as soon as the financial crisis happened there was this desperate attempt to “sell” the event as a failure of the free market? This of course would have suited the interests of the elite perfectly as it would permit them to further consolidate power in the hands of very few. Once wealth is established it can then be protected by a government that writes rules and regulations to benefit those elite and prevent opportunities for all others. This is the easiest way to preserve wealth since you don’t have to compete with new geniuses that are born every day all over the world. If all these traders and analysts at the big banks are so skilled then why are they so afraid of a level playing field with which to compete with hedge funds, mutual funds and just plain ordinary Americans? It’s pathetic the way they hide under the government blanket. Nevertheless, thanks to the internet and the study and hard work of many people that have explained how economics really works, the collective consciousness was able to see through this scam and never bought the “sell.” It has taken time, but slowly but surely the truth is winning out the debate. The TRUTH is that we do not and have not had anything remotely resembling a free market economy. As I have said many times before, the most important price in any economy is the price of money which is in the interest rate. In the United States we give the monopoly power on both the issuance of money itself and its interest rate to a small group of academics answerable to nobody. This group is the Federal Reserve. The head of this fascist organization is Ben Bernanke who seemingly committed perjury recently. See the quotes below.
Ben Bernanke in from of Congress stated: “The Federal Reserve will not Monetize the debt.” Audio can be found here. http://storage.denninger.net/monetize.mp3
Dallas Fed President Richard Fisher said this past Monday: “The Federal Reserve will buy $110 billion a month in Treasuries, an amount that, annualized, represents the projected deficit of the federal government for next year. For the next eight months, the nation’s central bank will be monetizing the federal debt.”
These guys are the ultimate swindlers. They say one thing and turn around and do another. More important to me however is why did Ben Bernanke just do what he did even though it was a truly desperate act. My answer is that the failure of the economy to have even a fake boom recovery with job growth risked further exposing all of the acts of financial terrorism committed by the Federal Reserve and the TBTF (too big to fail) banks. Worse, they continue to rob and pillage and therefore the Fed will do “whatever it takes” to cover it up. If that means flooding the world with dollars and destroying its value so be it. Anything so that the perpetrators of the greatest financial crime in world history do not get caught and brought to justice. But as I wrote recently, the tipping point as been breached, the Rubicon crossed, the zeitgeist of America changed and justice will be done though the heavens fall. This will really accelerate into 2011. Potential whistleblowers should start thinking about coming clean and protecting themselves now while they can.
Austerity for the Bankers before Austerity for Anyone Else
So all the rage in the media over the last few days have been the initial results from this “bi-partisan” (as if that means anything) Deficit Panel. This is a mute point because until the issue of the TBTF banks and the rule of law are dealt with there can be no return of confidence to the economy and therefore no recovery. The only thing that “austerity” will bring to the United States is civil unrest and complete collapse of the social structure. The number one thing that has to be done right here right now is immediate return to real accounting for the TBTF bank assets. If that means they are finished, then they are finished. That is how America is supposed to run. We ostensibly have the ability to deal with this situation in Dodd-Frank Act so what’s the problem? My point here is this is the most important issue in America right now. Anyone around the world that is paying even the slightest bit of attention and has a basic financial understanding knows these banks are zombies but are being kept alive because the vested interests pay off the politicians one way or the other. We need to completely hit the reset button on the big banks. As soon as we do this, we will show the world and the American people that we are serious about dealing with our problems and moving toward a real free market with the rule of law instead of the feudalistic crony capitalism we employ today. Nobel Prize winner Joseph Stiglitz seems to agree with me when he stated recently:
But there’s a broader sense of collateral damage that I think that has not really been taken on board. And that is confidence in our legal system, in our rule of law, in our system of justice. When you say the Pledge of Allegiance you say, with “justice for all.” People aren’t sure that we have justice for all. Somebody is caught for a minor drug offense, they are sent to prison for a very long time. And yet, these so-called white-collar crimes, which are not victimless, almost none of these guys, almost none of them, go to prison.”
The people we have running the show right now are not fit for the job which is why nothing changes. We have children performing tasks that require the action of men. This is just as much a social and cultural crisis as it is an economic and financial one. Until we understand that we will never solve the problems we face.
All the best,