Federal Reserve Bank
The Banks Own This Place
Biding Our Time
By Greg McCoach
Tuesday, January 7th, 2014
The fraudulent criminals in the Federal Reserve and U.S. government are operating in "full smoke and mirror mode," promoting the illusion of prosperity while covering up their massive trail of lies and deceit.
There is nothing honorable or trustworthy in anything they do.
A recent admission by the Justice Department regarding crimes in the financial sector really exposes the truth. It tells us who is running the show.
In the past month, the Justice Department released the stunning admission that in determining whether or not to prosecute crimes in the financial arena, it took into account the likely systemic effect of that prosecution.
My head is still reeling from that admission. Most people would agree that that's not the Justice Department's role. And I think it's caused a really reasonable, serious, and continued undermining of trust in our markets.
Jim Chanos: Well, I think the best comment was from a senior Democratic senator a number of years ago, who simply and bluntly said, "The banks own this place."
I always tell the story that right after the Bear Stearns collapse in March of '08, the heads of all the big banks and brokers headed down to Washington immediately in April of '08 to talk to senators and other lawmakers and regulators.
As we now know, what they didn't ask for was forgiveness for their misdeeds or perhaps forbearance on capital until they could get their house in order or to work with the regulators on what was obviously a massive credit crunch coming. No, what they asked for was two things. They asked for the accounting rules to be liberalized on their hard-to-value assets and for short-sellers to be cracked down on.
That was their focus, and, by the way, both happened. There were short-selling bans shortly thereafter and the accounting profession, at the urging of Washington, changed, liberalized, the rules on hard-to-value assets in March of '09. They got what they wanted, and this tells you something.
It really is amazing to the extent that lawmakers, despite all the evidence that major legislative initiatives that banks have asked for in the last 50 years have generally been harmful to the public purse, they've generally gotten what they've asked for. You can't be too cynical.
More recently, Sen. Dick Durbin (D-Ill.) expressed his thoughts on this. Sen. Durbin has been battling the banks the last few weeks in an effort to get 60 votes lined up for bankruptcy reform. He's losing.
Last Monday night, in an interview with a radio host, he came to a stark conclusion: The banks own the Senate.
"And the banks — hard to believe in a time when we're facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place," he said on WJJG 1530 AM's "Mornings with Ray Hanania."
As I've watched this ongoing circus of stupidity and criminal behavior over the years, I've been amazed they have been able to get away with it for as long as they have without a revolt from the public.
The consequences, however, are finally catching up with them on all fronts — thus the increased desperation in everything they manufacture to keep the wolves at bay.
The latest nonsense coming from the Fed banksters is the so-called "friendly taper," which will be scaling back monthly electronic money creation by $10 billion a month starting in 2014.
Oh, hey, I'm impressed. These people must be geniuses... NOT!!!
In other words, if an intelligent person is to believe that the banksters have only been creating $85 billion a month of funny money (in reality it is much more), then reducing this amount by $10 billion means that everything is great, so let's party some more.
The reasoning touted in the mainstream media regarding this charade is almost as stupid as Al Gore stating in 2008 that the polar ice caps would be melted by 2013.
In my view, this so-called "friendly taper" is just a publicity stunt to make it look like these Keynesian economic idiots are doing something for the economy. In reality, this is just more foreshadowing of the insanity that is coming our way. The bottom line to all this is that the Fed, regardless of its rhetoric, will have to create QE till the cows come home. It's already creating more every month than it lets out to the public.
The public believes (based on the always-trustworthy media reports) that the Fed has only been creating $85 billion a month. I believe it is more than double that.
In other words, I would bet that this ridiculous announcement would be even more absurd and misleading if we really understood the truth of the matter.
I would guess that what is really happening is more like this: The Fed has been creating $200 billion a month out of thin air to keep its Ponzi scheme alive and well but letting it out to the public that it is only creating $85 billion. That means the taper nonsense is all total disinformation because what the public sees and what the Fed is actually doing are two totally different things.
http://www.wealthdaily.com/articles/the-banks-own-this-place/4923
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