Private Plunder

By: James Burge

Looks like the Federal Reserve didn’t care to wait until the recently defeated $700 Billion bailout plan to pass before proceeding to lend billions to banks in a sort of under the table bailout, who needs congress anyway, when good ol’Gdub is the decider.  The Federal Reserve has been lending nearly $188 Billion a day nearly quadrupling the record of almost $50 Billion set last week (makes me wonder what the record was before that).

 “This looks like the balance sheet of a central bank that is keeping the financial system on life support,” said Michael Feroli, U.S. economist with JPMorgan in New York.

Borrowings by primary dealers via the Primary Dealer Credit Facility, and through another facility created on Sunday for Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz), Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and their London-based subsidiaries, totaled $105.66 billion as of Wednesday, the Fed said.

 The term Federal Reserve is quite dubious and very deceiving, seeing as it is neither federal, nor is it responsible for any significant financial reserves.  It is a private financial institution that is printing money out of thin air, in order to save Wall Street from itself while sticking it to anyone with $US in the bank. This practice has lead other countries into times of hyperinflation due to the severe devaluing of the dollar, which seems to be paving the way for the Amero, a proposed common North American Currency, modeled after the Euro in order to farther blur the lines between Canada, the US and Mexico.  The point of this and the North American Union in general, is to exploit Canada’s Natural Resources (ie. Oil Sands) and Mexican Labour (already a large part of the US workforce, even though it is illegal) but I digress…

 

In what can only be described as a colossal conflict of interest, Vice President Dick Chaney’s investment profile seems to be betting on the devaluation of the dollar.

So, while working class Americans are loosing ground to inflation and rising energy costs, Darth Cheney will be enhancing his wealth in “Old Europe”. As Blackburn sagely notes, “Not all bad news’ is bad for everybody.”

This should put to rest once and for all the foolish notion that the “Bush Economic Plan” is anything more than a scam aimed at looting the public till. The whole deal is intended to shift the nation’s wealth from one class to another. It’s also clear that Bush-Cheney couldn’t have carried this off without the tacit approval of the thieves at the Federal Reserve who engineered the low-interest rate boondoggle to put the American people to sleep while they picked their pockets.

I’ve never been so glad not to be an American taxpayer because otherwise I would be mad, not just flabbergasted by the greed and ease at which these people operate.  This will likely turn out to be the greatest theft in the history of American Taxation. Not only are the taxpayers paying interest on loans that are valueless, and footing the bill for this rejected (but someone forgot to tell the fed) bailout plan (don’t forget the war on terror/Iraq/Afghanistan/Iran?), they are also paying the inflation tax as their dollar is farther devalued by the second.  And the only comfort they have is knowing that Dick Chaney’s portfolio will remain virtually unaffected.

Not much of a silver lining, eh…. (Hey, speaking of silver…)

 

Why, then, is the public not furious about this stealth bailout, now taking place at the blistering pace of nearly $1 trillion a week, and all to the taxpayer’s detriment? The obvious answer is that the media is not whipping the public into a frenzy about it, instead focusing its attention on a $700 billion program and allowing the public to feel like they scored a blow against Wall Street when the program gets rejected. If so, it’s time the public got wise to how the system is really being run by and for the benefit of private bankers and at the expense of the average taxpayer. Otherwise, the fleecing of the public will continue unabated even as the public thinks they’ve won the battle.

1.) the U.S. fiscal year ENDS on Sept. 30th and a NEW one starts on Oct. 1st. and
2.) The Basel-II deadline for U.S. banks to be “Basel-II compliant,” originally Sept. 1st, must surely come due on Oct. 1st, 2008.

Basel-II compliant banks in Europe and elsewhere will be forbidden to do business with non-compliant banks in the U.S., effectively bringing the non-compliant banks down.