Thursday, March 19, 2009

The Fed in Denial as EndGame Nears

Ben Bernanke who is now chairman of the Federal Reserve System has no idea how to salvage the financial meltdown, and in fact he has no idea how to extricate the Federal Government itself from the meltdown. Bernanke’s idea is to throw another (2) trillion dollars at the banks, a secret funding planned through AIG to its trading partners (e.g. Goldman Sachs, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays and hedge funds

All indications are that the Government could very well collapse over this meltdown. The main reason: we cannot continue printing money without placing the country at risk of hyper-inflation and its result a depreciated currency. The reality is the rest of the world may: (i) refuse our currency in payment, (ii) require us to pay in Euros, or (iii) require additional collateral. The currency we use as a medium of exchange will under this tremendous pressure depreciate, and eventually it must collapse as a currency.

Foreign governments such as China to whom we owe (1) trillion dollars are already nervous. Chinese merchants have been secretly buying up American foreclosed property in bulk, for pennies on the dollar, through deals with major banks and multi billion dollar packages, and so have merchants from India.

China is owed so much money because they are our manufacturers, and we are not in balance with our trade deficit. They are capable of shutting down all foreign trade with the United States. I repeat ALL FOREIGN TRADE WITH THE UNITED STATES! If that happens it is expected that the people will riot and loot and crime will escalate, all these effects will cause the Government to move troops into the states and take control. This is exactly what is planned and what they want … Don’t fall into the trap

The very first decision to bail out AIG, made last fall, after Lehman collapsed, was made by former Treasury Secretary Henry Paulson, along with former New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke. It was allegedly because they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold (they were referring to the Credit Default Swaps). AIG's trading partners, who actually are receiving this money through our bailout payments to AIG, are Goldman Sachs, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and some dubious Hedge Funds. The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received Billions in TARP money already. TARP is the Troubled Asset Relief Program that has already paid out some 350 Billion Dollars. And because of this AIG bailout these banks continue to foreclose on American homeowners.

The public needs to know that this bailout of AIG, (e.g. Goldman Sachs, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, and Barclays) allows these predators to continue foreclosing on American Real Estate. A serious question is raised by this government involvement, what is the real motive behind these bailouts?

We have witnessed what unleashed printing presses can do. Recent history provides ample evidence of the reactionary inflation with photographs of consumers and wheelbarrows full of money to buy groceries.

The German hyper-inflation following World War I, though not the worst hyper-inflation in the 20th Century (that honor belongs to Hungary 1945-46 and Yugoslavia 1992-94), is certainly the most famous. Stories abound of people carrying money in wheelbarrows. Actually wheelbarrows were rarely, if ever used to carry money. Suitcases were the preferred method.

The inflation was triggered by a huge increase in the nation's money supply, caused in part by the heavy demands of the reparations placed upon Germany following its loss in World War I. Soon an inflationary mentality set in. Merchants would raise prices automatically. People would hoard goods, figuring the price would go up, thus causing shortages. The German Central Bank (The Reich Bank) issued vast quantities of money.

Does anyone see any similarities?

In economics, hyper-inflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value. Although there is a great deal of debate about the root causes of hyper-inflation, it becomes visible when there is an unchecked increase in the money supply. Hyper-inflation is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.

This is the endgame, the Government ,as we know it ,may well cease and a new form of government will then take its place - the police state as envisioned by George Bush and the other insiders going back decades. The same people that were around Bush and who created and manipulated this crash, are in charge of salvaging the system, they are:

1 Timothy Geithner,

2. Ben Shalom Bernanke

3. Larry Summers

4. Paul Volcker

5. Peter R. Orszag.

6. Rahm Emanuel

7. Robert E. Rubin

8. Maurice Greenberg, and of course

9. Henry Kissinger

If Obama were really an independent thinker and really wanted to change Washington, why does he have around him the same people that TRASHED OUR ECONOMY? this is equivalent to hiring a “pyromaniac” for the fire department.

What does a collapse really mean? It means that most of the social programs will cease, and the type of government will drastically change. We will see a police state invoked as the fed attempts to maintain control over an economy mired and falling into an abyss. The Government will then be run by the large corporations now surrounding Washington and close to the last Administration, where this was all set in motion. It will be a Fascist form of government similar to the governments of Germany and Italy during the Second World War, where the mega corporations and the government merge.

As the system collapses, as I believe it may, there will be leaders who will spring up, take control, and help the economy to move forward. Though it will take time, what we need and what they will do is to reopen our manufacturing here at home. Employ those who are unemployed, and create a separate medium of exchange similar to a barter system. We have lacked leadership in this country for decades it is time men of conscience came forward to lead again.

We must understand that we are engaged in a struggle for the very survival of our system of governance. No doubt, it has been corrupted, but that blame rests with us for allowing it.