"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."
Star Wars: DARPA's Death Ray Begins Testing 2015-05-27 20:29 The folly of science fiction is quickly becoming science fact.
Watch a video of this report here:
The U.S. government has given permission to the Defense Advanced Research Projects Agency, or DARPA for short, to begin field testing its High-Energy Liquid Laser Area Defense System (HELLADS).
Program manager Rich Bagnell said the solid-state laser has ‚Äėunprecedented power and beam quality for its size‚Äė. ...
Europe 2020 2015-05-27 4:13
YouTube Description: Europe is changing and not for the better. We can change this if we act now.
Source: The European Guardian
Rome's Arch of Titus Now Represents a Jewish Triumph 2015-05-27 2:48 Though not on a par with the universally recognizable Colosseum, the Arch of Titus remains one of the most iconic relics from Rome's ancient imperial glory days. The grand arch is located just south-east of the Roman Forum (main center of ancient Rome). It was opened in 82 AD by the Roman Emperor Domitian, shortly after the death of ...
IQ, Psy Ops and the "Civilization" of the Scam 2015-05-27 2:27
Cognitive dissonance is the firewall that exists in most minds when confronted with a challenge to their basic beliefs about the world. As it is human nature to avoid admitting being in error or having been duped, for most humans the ego zealously flees the admission to oneself of significant error.Challenges to our worldviews or paradigms of belief are also ...
"Europe Could be Overrun with White South Africans" 2015-05-26 23:05 Edited by Red Ice
Dear Madam Merkel: We want our brothers and sisters to come home!
Hundreds of thousands of sub-Saharan Africans are pouring into Europe, stressing the economy and social services, causing insane rates of crime and threatening to crush society in its entirety. Arab Moslems also continue to pour in under the guise of "asylum‚ÄĚ and are continuing to threaten ...