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Posts Tagged ‘Too big to fail

500 Million debt-serfs: the European Union is a neo-feudal Kleptocracy

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by Charles Hugh Smith
Posted July 22, 2011 on Of Two Minds

The banks of Europe are the new Feudal Manors and Masters. All Europeans now serve them as debt-serfs in one way or another.

IF WE KNOCK DOWN ALL THE FLIMSY SCREENS OF ARTIFICE AND OBSCURING COMPLEXITY, what we see in Europe is a continent of debt-serfs, indentured to the banks under the whip of the European Union and its secular religion, the euro. I know this isn’t the pretty picture presented by the EU Overlords, of a prosperity built not just on debt, but on resolving the problem of debt with more debt, but it is the reality behind the eurozone’s phony facade of economic “freedom.”

What else can we call the stark domination of the big banks other than Neo-Feudalism? In one way or another, every one of the 27-member nations’ citizens are indentured to the big international banks at risk in Europe, most of which are based in Europe.

Amidst the confusing overlay of voices and agendas, there is really only one agenda item: save the big European banks. Everything else is just mechanics. The banks are the new feudal manor houses, the bankers are the new feudal lords, and the politicians of the EU and its influential member nations are the servile vassals who enforce the “rule of law” on the serfs.

Here is the fundamental fact: there are trillions of euros of debt which can never be paid back. In a non-feudal system, one in which the banks were not the Masters, then this fact would be recognized and acted upon: something like 50% of the debt would be written off in one fell swoop, all the banks whose assets had just been wiped out would be declared insolvent and liquidated, the remaining debt would be sized to the economic surplus of each debtor nation, and a new, decentralized banking sector of dozens of strictly limited, smaller banks would be established.

To the degree that is “impossible,” Europe is nothing but a Neo-Feudal Kleptocracy serving its Banker Lords.

The Greek worker whose pay has been slashed in the “austerity” demanded by the banks serves the Banker Lords, as does the German worker who will be paying higher taxes to bail out Germany and France’s Banker Lords. Though the German is constantly told he is bailing out Greece, the truth is Greece is just the conduit: he’s actually bailing out the EU’s Banker Lords.

We can clear up much of the purposeful obfuscation by asking: exactly what tragedy befalls Europe if all the sovereign debt in the EU was wiped off the books? The one and only “tragedy” would be the destruction of the “too big to fail” banks, not just in Europe but around the world. As the big European banks imploded, then their inability to service their counterparty obligations on various derivatives to other big banks would topple those lenders.

While the political vassals call that possibility a catastrophe, it would actually spell freedom for Europe’s 500 million debt serfs. From the lofty heights of the Manor House, then the loss of enormously concentrated power and wealth is indeed a catastrophe for the Lords and their political lackeys. But for the debt-serfs facing generations of servitude for nothing, then the destruction of the banks would be the glorious lifting of tyranny.

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You want to fix the U.S. economy? Here’s a start…

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by Charles Hugh Smith
Posted July 19, 2011
on Of Two Minds 

A SIMPLE 8-POINT PLAN WOULD RESTORE BOTH THE BANKING and the real estate sectors, and end the political dominance of the parasitic “too big to fail” banks. Craven politicos and clueless Federal Reserve economists are always bleating about how they want to fix the U.S. economy and restore “aggregate demand.” OK, here’s how to start:

1. Force all banks to mark all their assets to market at the end of each trading day, including all derivatives of all types, including over-the-counter instruments.

2. Allow citizens to discharge all mortgage and student loan debt in bankruptcy court, just like any other debt.

3. Banks must mark all their real estate to market weekly as defined by “last sales of nearby properties” adjusted for square footage and other quantifiable measures (i.e. like Zillow.com).

4. Require mortgage servicers and all owners of mortgage-backed securities to mark every asset within each pool to market weekly.

5. Any mortgage, loan or note which was fraudulently originated, packaged and sold, including the misrepresentation of risk, the manipulation of risk ratings, fraudulent documentation by any party, etc., will be discharged as uncollectable and the full value wiped off the books and title records without recourse by any of the parties.

If a bank fraudulently originated a mortgage and the buyer misrepresented material facts on the mortgage documents, then both parties lose all claim to the note and the underlying asset, the house, which reverts to the FDIC for liquidation, with the proceeds going towards creditors’ claims against the bank.

6. Any bank which misrepresents marked-to-market asset values will be fined $10 million per incident.

7. Any bank which is insolvent at the end of a trading day will be closed and taken over by the FDIC the following day, and liquidated in an orderly manner via open-market auctions of all assets, including REO (real estate owned).

8. All derivative positions held by the insolvent bank will be unwound immediately, and counterparties who fail to make good on their claims will also be closed, given to the FDIC and liquidated.

You know what this is, of course: a return to trustworthy, transparent accounting.
And you know what the consequences would be, too: all five “too big to fail” banks would instantly be declared insolvent, and most of the other top-25 big banks would also be closed and liquidated.

At least $3 trillion in impaired residential mortgage debt would be written off, maybe more, and $1 trillion in impaired commercial real estate would also be written down. Derivative losses are unknown, but let’s estimate it’s at least $1 trillion and maybe much more.

If $5.8 trillion of fantasy “value” is wiped off the nation’s books, that’s only a 10% reduction in net household and non-profit assets, which total $58 trillion. Even an $11 trillion hit would only knock off 20%. If that’s reality, if that’s what the assets are really worth in the real world, then let’s get it over with. Once we’ve restored truthful accounting and stopped living a grand series of debilitating lies, then the path will finally be clear for renewed growth.

The net result would be the destruction of the political power of the “too big to fail” banks, the clearing of the nation’s bloated, diseased real estate market, and the restoration of trust in institutions which have been completely discredited.

Bank credit would flow again, and we could insist on a healthy competitive system of 250 small banks instead of a corrupting system of 5 insolvent parasitic monsters and 20 other bloated but equally insolvent financial parasites.

Those who lied would finally get fried. At long last, those who misprepresented income, risk, etc. would actually pay some price for their malfeasance. Criminal proceedings would be a nice icing on the cake, but simply ending the pretence of solvency would go a long way to restoring banking and real estate and ending regulatory capture by TBTF banks.

What’s the downside to such a simple action plan? Oh boo-hoo, the craven politicos would lose their key campaign contributors. On the plus side, the politicos could finally wipe that brown stuff off their noses.

Cracks beneath the Façade

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by ilene
from Stock World Weekly
Posted June 26, 2011

China 

ON THURSDAY, QU XING, DIRECTOR OF THE CHINA INSTITUTE OF INTERNATIONAL STUDIES, a Foreign Ministry think tank, told reporters that China doesn’t want to see debt restructuring in the Eurozone and is working with the IMF and countries involved with the debt crisis in an attempt to avoid it. Speaking at a press conference during a visit to Hungary, Premier Wen Jiabao said, “China is a long-term investor in Europe’s sovereign debt market. In recent years we have increased by a quite big margin holdings of Euro bonds. In the future, as we have done in the past, we will support Europe and the Euro.”. Sunday, on a tour of the Chinese-owned Longbridge MG Motor factory in Birmingham, Premier Wen told BBC it will lend to European countries, and also has plans to stimulate domestic demand and reduce its foreign trade surplus.

China’s stated position prompted Zero Hedge to ask, “Will the third time be the charm for the Chinese ‘white knight’ approach to Europe, where it has so far sunk about $50 billion in bad money after good?” Saturday, Zero Hedge reported that China’s European Bailout (And TBTF) Bid Hits Overdrive, As Wen Jiabao is Now in the Market for Hungarian Bonds. “It seems China has learned from the best, and either knows something others don’t (except for the SHIBOR market of course) or is actively preparing to become Too Biggest To Fail by making sure that if something bad happens to it, literally the entire world will follow it into the depths of hell.  Sunday, ZH wrote, “As expected, China is the new IMF… All this means is that China will do everything in its power to prevent the ECB from launching an outright unsterilized monetization episode, which will double the amount of importable inflation (plunging EUR) to hit the Chinese domestic economy, and destabilize the already shaky stability, so critical for the Chinese communist party.” (China Says It Will Bail Out Insolvent European Countries.)

It’s good to know that China has its problem with inflation now solidly under control.

 

Greece

Greece has a population of just over 11 million people. Compare that to the New York City metropolitan area population estimated at 18.9 million. It may seem strange that Greece’s travails might greatly affect the global economy, but the potential repercussions from a Greek default become more significant when considering leverage and derivatives. Data from the International Monetary Fund (IMF) show that German banks are heavily leveraged, holding 32 Euros of loans for every Euro of capital they have on hand. Other banks are leveraged to the hilt as well. Belgian banks are leveraged 30-1, and French banks are leveraged 26-1. Lehman’s leverage at the time of its collapse was 31-1. U.S. Banks are paragons of sanity by comparison, with an average leverage of only 13-1. (Europe’s sickly banks) France and Germany are the countries most exposed to Greek debt through bank and private lending and government debt exposure (chart below).

Derivatives present another potential minefield. As Louise Story wrote in the NY Times,
“It’s the $616 billion question: Does the euro crisis have a hidden A.I.G.? No one seems to be sure, in large part because the world of derivatives is so murky. But the possibility that some company out there may have insured billions of dollars of European debt has added a new tension to the sovereign default debate… The looming uncertainties are whether these contracts — which insure against possibilities like a Greek default — are concentrated in the hands of a few companies, and if these companies will be able to pay out billions of dollars to cover losses during a default.” (Derivatives Cloud the Possible Fallout From a Greek Default)

Michael Hudson explored the differences between what happened to Iceland and its debt crisis, and what is currently happening in Greece:
“The fight for Europe’s future is being waged in Athens and other Greek cities to resist financial demands that are the 21st century’s version of an outright military attack. The threat of bank overlordship is not the kind of economy-killing policy that affords opportunities for heroism in armed battle, to be sure. Destructive financial policies are more like an exercise in the banality of evil – in this case, the pro-creditor assumptions of the European Central Bank (ECB), EU and IMF (egged on by the U.S. Treasury)…

“The bankers are trying to get a windfall by using the debt hammer to achieve what warfare did in times past. They are demanding privatization of public assets (on credit, with tax deductibility for interest so as to leave more cash flow to pay the bankers). This transfer of land, public utilities and interest as financial booty and tribute to creditor economies is what makes financial austerity like war in its effect…

“One would think that after fifty years of austerity programs and privatization selloffs to pay bad debts, the world had learned enough about causes and consequences. The banking profession chooses deliberately to be ignorant. ‘Good accepted practice’ is bolstered by Nobel Economics Prizes to provide a cloak of plausible deniability when markets “unexpectedly” are hollowed out and new investment slows as a result of financially bleeding economies, medieval-style, while wealth is siphoned up to the top of the economic pyramid.

“My friend David Kelley likes to cite Molly Ivins’ quip: ‘It’s hard to convince people that you are killing them for their own good.’ The EU’s attempt to do this didn’t succeed in Iceland. And like the Icelanders, the Greek protesters have had their fill of neoliberal learned ignorance that austerity, unemployment and shrinking markets are the path to prosperity, not deeper poverty. So we must ask what motivates central banks to promote tunnel-visioned managers who follow the orders and logic of a system that imposes needless suffering and waste – all to pursue the banal obsession that banks must not lose money?

“One must conclude that the EU’s new central planners (isn’t that what Hayek said was the Road to Serfdom?) are acting as class warriors by demanding that all losses are to be suffered by economies imposing debt deflation and permitting creditors to grab assets – as if this won’t make the problem worse. This ECB hard line is backed by U.S. Treasury Secretary Geithner, evidently so that U.S. institutions not lose their bets on derivative plays they have written up…” (Michael Hudson’s Whither Greece – Without a national referendum Iceland-style, EU dictates cannot be binding for more.)

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A “Lehman Moment”

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by Doug Noland
Posted June 17, 2011

http://quintet.prudentbear.com/index.php/creditbubblebulletinview?art_id=10543

ISN’T IT INCREDIBLE THAT THE FAILURE OF ONE FIRM, Lehman Brothers, almost brought down the global financial system?  It is equally incredible that, less than three years later, a small country of 11 million has the world teetering on the edge of another systemic crisis.  Today’s circumstance is a sad testament both to the instability of the international Credit “system” and to the lessons left unlearned from the previous crisis.

For about 15 months now my analysis has attempted to draw parallels between the initial subprime eruption and last year’s Greek debt crisis.  Both were the initial cracks in major Bubbles (“Mortgage/Wall Street Finance” and “Global Government Finance”).  These two weakest links – due to their role as the marginal borrower exploiting a period of system market excess – were extremely poor Credits.  On the one hand, the systemic vulnerabilities associated with a potential bursting of major Bubbles elicited aggressive policy responses to the initial subprime and Greek tumults.  On the other hand, policy had no constructive impact on the underlying quality of the debt – while significantly inciting market excesses (market price distortions, Credit and speculative excess, etc.) that exacerbated systemic fragilities.

There was heightened fear this week that the “Greek” crisis was evolving into Europe’s “Lehman Moment.”  Recalling back to 2008, the Lehman collapse was the catalyst for a crisis of confidence throughout the expansive universe of “Wall Street” risk intermediation.  Importantly, market confidence in the willingness and capacity for policymakers to backstop this multifarious system held steady virtually until the moment the Lehman bankruptcy was announced.  The marketplace had appreciated the enormous risks associated with a potential crisis of confidence throughout the securitization and derivative marketplaces, yet assumed that policymakers would simply not tolerate a failure by one of the major players in this financial daisy chain.  The global financial system almost imploded when this precarious “too big to fail” assumption was debunked.  

I have posited that the global policy response to the 2008 crisis only expanded and solidified the market’s notion of “too big to fail.”  Most in the marketplace believe that policymakers now recognize that allowing Lehman’s failure was a major policy blunder.  The expectation today is that the EU, ECB, IMF, Germany, China and the Fed will not tolerate a Greek debt default.  This faith had better not be misplaced.

While the Lehman failure proved the catalyst for the 2008 crisis, it was definitely not the root cause. The problem was instead the Trillions of unsound debt underpinning Trillions of leverage, Credit insurance, and sophisticated risk intermediation that, through “Wall Street alchemy”, had transformed really bad loans into seemingly appealing (“money-like”) debt instruments.  As soon as the market began to back away from these structures (commencing with subprime concerns), the downside of a (Hyman Minsky) “Ponzi Finance” scheme was set in motion.  And as the Bubble began to falter, the market increasingly valued huge amounts of debt based on the perception of a system backstop rather than on the fundamentals of the underlying debt instruments (largely, increasingly vulnerable mortgages).

If authorities had moved to save Lehman back in September of 2008, it would have bought some extra time – and would have changed little.  Trillions of unsound debt, distorted asset and securities markets, and a severely maladjusted economic structure ensured a major crisis.  It was only a matter of the timing and circumstances as to how the widening gulf between distorted market prices and the true underlying value of the debt was resolved.  As we are witnessing with Greek, Portuguese and Irish debt (and CDS) prices, market troubles often manifest when unanticipated policy uncertainties force the marketplace to take a clearer look at the fundamentals underpinning a debt structure – only to grimace.

The problem today is not really Greece.  A dysfunctional global Credit “system” has created tens of Trillions of unsound debt – and rapidly counting.  Aggressive “activist” policymaking has been at the heart of this unprecedented Credit inflation, and the markets today fully expect policymakers to ensure this Bubble’s perpetuation.  And, importantly, for better than two years now global fiscal and monetary policies have incited another huge round of global speculation and leveraging.  This latest Bubble gained considerable momentum with last year’s European Greek bailout and implementation of the Fed’s QE2 program.

Policymaking gave a new – and egregiously profitable – lease on life to the “global leveraged speculating community.”  Given up for dead in late-2008, hedge funds, proprietary trading desks and others have been able to exploit government-induced market distortions like never before.  With confidence that massive fiscal and monetary stimulus would ensure economic expansion, abundant marketplace liquidity, and strong inflationary biases for global securities and commodities markets, the global “risk on” trade proliferated near and far.  Re-risking and re-leveraging – through the creation of new market-based debt and attendant liquidity – fueled a self-reinforcing speculative boom.  QE2 (and other central bank liquidity operations) coupled with re-leveraging dynamics bolstered the perception that the markets had commenced a cycle that would prosper in liquidity abundance for an extended period.  Fragile underpinnings, especially in the U.S., seemed to ensure years of policy largess.

There is a big problem any time the leveraged speculating community begins to question core assumptions – certainly including the capacities of policymakers to sustain Credit booms, ensure liquid and continuous markets, and to contain Credit stress.  Think of it this way:  Enterprising market operators are incentivized into leveraged (“risk-on”) trades when they discern that policymaking is providing both a trading edge (generally an inflationary bias or predictable spread) in the marketplace and a favorable liquidity backstop availing an easy exit when necessary.  I would argue that huge speculative positions have accumulated over the past two years on assumptions that are increasingly in doubt.  This has quickly become a major market issue, and largely explains recent market action.

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Operation Empire State Rebellion resumes attack on Fed Chairman

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from Zero Hedge
Posted June 11, 2011

OPERATION EMPIRE STATE REBELLION IS BACK. Perhaps in the aftermath of the IMF “very major breach” by anonymous hackers, it is really time to make sure all external access points to FedWire and FedLine are truly safe and sound. It will be very sad if it is uncovered that this source of externally accessible portal to hundreds of billions in emergency Fed funding has been somehow compromised. Just imagine the loss of confidence in the system… Why, a global distributed attack would really stretch the Fed’s 1,200-strong police force quite thin.

Transcript, from Op ESR’s just released video:

Ninety days ago, we requested Ben Bernanke’s resignation as Federal Reserve chairman. Mr. Bernanke has not complied with our request.

  • The Federal Reserve’s policies are systematically looting the country to enrich one-tenth of one percent of the population.
  • The Federal Reserve has deliberately driven tens of millions of people into poverty.
  • The Federal Reserve is responsible for Crimes Against Humanity!
  • The Federal Reserve gave trillions of American taxpayer dollars, in secrecy, to the people who were most responsible for causing our economic crisis.
  • Our tax dollars were handed out as all-time record-breaking bonuses to top executives at the “Too Big to Fail” global banks.
  • The Federal Reserve gave American taxpayer dollars to foreign banks and corporations.
  • The Federal Reserve directly subsidized tax evasion by funneling taxpayer dollars into to the Cayman Islands.
  • The Federal Reserve gave American tax dollars to their primary dealer banks, so the banks could then lend that same money back to the US government at higher interest rates, leading to significant profits for the banks, at the further expense of the American public.
  • Through bailout programs the Federal Reserve socialized financial losses onto American taxpayers and privatized profits into the hands of global banks.
  • The Federal Reserve aids and abets trillions of dollars in accounting fraud.
  • The Federal Reserve routinely manipulates the stock market.
  • The Federal Reserve deliberately caused inflation in the price of food, gas and basic necessities, while devaluing the dollar!
  • The Federal Reserve represents the central planning force behind a global banking cartel that has deliberately impoverished people throughout the world.

US Politicians have not taken action to break up the Federal Reserve and the “Too Big To Fail” Banks.
US Politicians have not taken action to prosecute the people who caused our economic crisis.
US Politicians have not taken action to end the system of political bribery, the campaign finance and lobbying racket, which allows global bankers to control our political process.
Democrats have failed us.
Republicans have failed us.
No one is defending our interests.
We cannot remain passive while our future is going up in flames.
It is time for us to stand up for ourselves.
It is time for you to stand up for yourself.
We must restore the rule of law and fight back against the organized criminal class.
We must now launch Operation Empire State Rebellion.
The operation will commence on June 14th.
As a first step, we are calling upon you to occupy a public space until Federal Reserve Chairman Ben Bernanke steps down.

Operation Empire State Rebellion, Engaged.

Why 2011 is not 2008 – Why it is much worse

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From Michael Krieger of KAM LP
Originally posted March 10, 2011

If we are to have another contest in the near future of our national existence, I predict that the dividing line will not be Mason and Dixon but between patriotism and intelligence on the one side, and superstition, ambition and ignorance on the other. –Ulysses S. Grant

Mubarak has been an ally of ours in a number of things. And he’s been very responsible on, relative to geopolitical interest in the region, the Middle East peace efforts; the actions Egypt has taken relative to normalizing relationship with – with Israel… I would not refer to him as a dictator. –United States Vice President, Joe Biden

Stuck in a Time Capsule

I remember as a kid on several occasions putting together a time capsule as part of a school project. I am sure many of you reading this have done a similar thing at some point. The concept is simple and elegant. The group involved in creating the time capsule picks various things from their current society or culture that they feel is representative of the environment at the time and then they bury these items so that future generations can get a glimpse of what life was like for people in a prior time.

The reason humans have a desire to perform acts such as this is because our collective consciousness understands how much things change over time. Empires rise and fall, major belief systems dominate and then become discredited, broad concepts of what is considered acceptable human behavior with respect to our fellow human beings also change and vary within different cultures over time.

Everyone knows the saying “nothing is certain except death and taxes.” Actually this is garbage. Taxes may be certain in the current society we live in but there is nothing eternal about taxes. It is entirely a human creation. I would replace taxes with the word change (not Obama change, real change). From my perspective the one thing in addition to death that is certain in humanity’s existence is change. Volatile, massive change. What confuses people is that this change happens very suddenly and seemingly out of nowhere to those only paying attention to the establishment parrots that assure you all is stable and ok because they are the elites and they want things to stay the same. They want that giant boot stamped firmly on your face forever.

This is exactly where we find ourselves today. In the middle of the most profound change in the paradigm of the world as we know it that we will ever see in our lifetimes. Hosni Mubarak had been dictator of Egypt since 1981. So basically my entire life on this planet this guy had dominated the Egyptian people (with complete and total U.S. government support). He was an immovable object. Yet within a couple of weeks this guy was tossed out with relatively little violence. For someone like me that lives and breathes within the macro zeitgeist of this planet this event was absolutely extraordinary and more importantly just a small piece of the wider puzzle of the world changing all around us.

As anyone that has been reading my pieces for several years knows I have been saying for a very long time that we are in a period of immense economic, geopolitical and social change throughout the world. This change is of an order of magnitude so great that by the time this period passes (we are still very early in the process) virtually nothing about the way we live our lives and view the world will be the same. This will be the case everywhere, but nowhere will the impact be as great as in the United States.

The reason is quite simple. What we are witnessing in the Middle East is the dismantling of the American Empire, the existence of which is actually not even known to the majority of Americans as a result of highly effective media and cultural propaganda. Most Americans have lived their lives in complete ignorance that it is this American Empire rooted in a counterfeit currency that we force down the world’s throat which has given them their bloated standard of living and will therefore be completely confused about why their standard of living has collapsed once the Empire crumbles.

The entire purpose of these articles is to wake up as many people in the United States as possible to the reality of the situation we are dealing with so they can prepare for what is coming and ride out the storm as best as possible. So that people can form tighter communities and learn to help their neighbors. The biggest risk we face is not lower standards of living. That is written in stone in the near-term. The biggest risk is that the emotional trauma caused by such an event allows us to be thrown into the arms of a demagogue that promises us security, stability and strength. This is exactly how it went down in Nazi Germany.

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“How long until Obama starts writing checks?”

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by Mike Krieger, of KAM LP
Originally posted Feb 24, 2011

SOCIETY IN EVERY STATE IS A BLESSING, but government even in its best state is but a necessary evil in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities are heightened by reflecting that we furnish the means by which we suffer! Government, like dress, is the badge of lost innocence; the palaces of kings are built on the ruins of the bowers of paradise. For were the impulses of conscience clear, uniform, and irresistibly obeyed, man would need no other lawgiver; but that not being the case, he finds it necessary to surrender up a part of his property to furnish means for the protection of the rest; and this he is induced to do by the same prudence which in every other case advises him out of two evils to choose the least. Wherefore, security being the true design and end of government, it unanswerably follows that whatever form thereof appears most likely to ensure it to us, with the least expense and greatest benefit, is preferable to all others.

Thomas Paine, Common Sense (1776)

Back to the future: The “Stimulus” Act of early 2008

Let’s all take a trip back to February 13th, 2008. Our war mongering 43rd President, George W. Bush, freaked out by the impact of the subprime crisis on the U.S. economy announced the now almost forgotten “Stimulus Act of 2008.” A big part of this typical Keynesian stimulus (remember Keynesianism is not a partisan thing, it is a economic religion handed down by the Fed to both the Republican and Democratic establishment) was simply writing checks to people.

At the time, I criticized it harshly and said it would lead to massive inflation. Guess what? Oil was trading at about $93/b and five months later it topped out at $147/b for a monster gain of 58%. Then all hell broke loose.

George W. Bush should actually be a hero for most of the fake liberals and fake progressives out there that just spout meaningless drivel about how things should be without ever bothering to look into and understand how the global financial system actually works. That would be too much work. It’s much easier to just be ignorant and support “your guy” as they county goes down in flames. The reason the fake liberals and progressives should love W so much is that at least he just wrote checks to average people.

Obama is the biggest puppet of the banking oligarchs in American history. I mean, this guy’s entire administration so far has revolved around printing money and handing it out, but rather than hand it out to the people, he gave it all to the banks that cratered your children’s futures in the first place. Of course, in order to give away trillions to the financial oligarchs that should be in prison as opposed to the petty dealers caught with dime bags that fill the prison, you need to give the money away in secret.

In comes the Federal Reserve. To make matters worse, after the Fed and Obama bailed out the banksters the next way to hand out money was defined in Jackson Hole Wyoming in August of last year where Banana Ben Bernanke laid out his plan for QE2. The unstated yet stated purpose of this policy was to juice the stock market. He has succeeded wildly in this manipulation until now.

Again, it isn’t the 44 million (a new record every time the data is updated) Americans on food stamps that benefit from this policy, it is the financial oligarchs that game the system and push the stock market up until the point that retail investors finally buy the stocks from them and then they are permitted to crash. Don’t play their crooked game, don’t buy stocks, buy physical gold and silver and take this nation back from the sociopathic financial control freaks running it now.

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