"The stated objective of the bank bailout programs is to alleviate the banks' burden of bad debts and non-performing loans. In actuality what is happening is that these massive amounts of money are being used by a handful of institutions to consolidate their position in global banking.
The exposure of the banks, largely the result of derivative trade, is estimated in the tens of trillions of dollars, to the extent that the amounts and guarantees granted by the Treasury and the Fed will not resolve the crisis. Nor are they intended to resolve the crisis.
The mainstream media suggests that the banks are being nationalized as a result of TARP, In fact, it is exactly the opposite: the State is being taken over by the banks, the State is being privatized. The establishment of a Worldwide unipolar financial system is part of the broader project of the Wall Street financial elites to establish the contours of a world government.
In a bitter irony, the recipients of the bailout under TARP and Obama's proposed $750 billion aid to financial institutions are the creditors of the federal government. The Wall Street banks are the brokers and underwriters of the US public debt, although they hold only a portion of the debt, they transact and trade in US dollar denominated public debt instruments Worldwide.
They act as creditors of the US State. They evaluate the creditworthiness of the US government, they rank the public debt through Moody's and Standard and Poor. They control the US Treasury, the Federal Reserve Board and the US Congress. They oversee and dictate fiscal and monetary policy, ensuring that the State acts in their interest.
Since the Reagan era, Wall Street dominates most areas of economic and social policy. It sets the budgetary agenda, ensuring the curtailment of social expenditures. Wall Street preaches balanced budgets but the practice has been lobbying for the elimination of corporate taxes, the granting of handouts to corporations, tax write-offs in mergers and acquisitions etc, all of which lead to a spiralling public debt.
The Federal Reserve System: Circular and Contradictory Relationship
The Federal Reserve system is a privately owned central bank. While the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned.
The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America's most powerful financial institutions.
While the Federal Reserve can create money "out of thin air", the multibillion outlays of the Treasury (including the Bush and Obama bank bailouts) will require the emission of public debt in the form of Treasury Bills and government bonds. Part of these T-Bills will of course also be held by the Fed.
US financial institutions oversee the US public debt. They are involved in the sale of treasury bills and government bonds on financial markets in the US and around the World. But they also hold part of the public debt. In this regard, they are the creditors of the US government. Part of this increased public debt required to rescue the banks will be financed or brokered by the same financial institutions which are the object of the bank rescue plan.
We are dealing with a pernicious circular relationship. When the banks pressured the Treasury to assist them in the form of a major bank rescue operation, it was understood from the outset that the banks would in turn assist the Treasury in financing the handouts of which they are the recipients.
To finance the bank bailout, the Treasury needs to run a massive budget deficit, which in turn requires a staggering increase of the US public debt.
Public opinion has been misled. The US government is in a sense financing its own indebtedness: the money granted to the banks is in part financed by borrowing from the banks.
The banks lend money to the government and with the money they lend to the government, the Treasury finances the bailout. In turn, the banks impose conditionalities on the management of the US public debt. They dictate how the money should be spent. They impose "fiscal responsibility"; they dictate massive cuts in social expenditures which result in the collapse and/or privatization of public services. They impose the privatization of urban infrastructure, roads, sewer and water systems, public recreational areas, everything is up for privatization.
The recipient banks are the beneficiaries as well as the creditors. As creditors, they will oblige the government a) to slash expenditures b) to run up the public debt through the issuing of treasury bills and government bonds.
This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The government as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks."
UK hospital accused of selling body parts for booze 2014 07 31 A leading cancer hospital is to be investigated following allegations that one of its staff members exchanged human body samples for whisky and cash.
The calls to investigate Christies NHS foundation trust came after the accusation was made by an anonymous whistleblower, prompting British MP Rosie Cooper to contact the watchdog, the Human Tissue Authority (HTA), the Manchester Evening News reports.
15 dead, over 220 injured as multiple gas explosions hit Taiwan city 2014 07 31
Several blasts have ripped through Kaohsiung, a city in south-western Taiwan, killing 15, injuring over 220 and overturning the cars in the street, the Fire Agency said. The cause is thought to be gas leaks in the sewage system.
The number of those injured is expected to rise, the Fire Department said. Many were also taken to schools across the city ...
TYPOGRAPHICAL ERROR on front page of alleged U.S. criteria for terrorist list 2014 07 31 We highlighted the recent report from Glenn Greenwald’s site, The Intercept, about the United States administration’s ’Terror Watch List’, and how "a 166-page document issued last year by the National Counterterrorism Center, spells out the government’s secret rules for putting individuals on its main terrorist database".
Read: BLACKLISTED: The Secret Government Rulebook For Labeling You a Terrorist
A reader with a sharp ...
Why is the State so obsessed by, and careless with, deadly pathogens? 2014 07 31 Earlier this month, we ran a report on the CDC anthrax blunder. As if that weren’t bad enough, there have been additional exposures since we posted that report. This time, it involved the shipment of live, highly contagious, and deadly H5N1 avian influenza samples.
As previously reported, as many as 841 scientists and staff members at a US Centers for Disease ...
‘Catastrophic’: Hedge fund billionaire Paul Singer warns of EMP 2014 07 31
Imminent: ‘Only a matter of time’ until entire electric grid destroyed by natural or man-made event…
Billionaire hedge fund manager Paul Singer is warning investors – and more broadly, lawmakers and leaders – about the potential destructive power of an electromagnetic pulse, or EMP, which could be triggered by solar events or artificially, via blasts in the atmosphere.
According to Singer, research ...