Ron Paul & Lew Rockwell “We Have A Dictatorship When It Comes To Foreign Policy”

Debt Slavery and Banking Cartels

On the Edge with Max Keiser & Damon Vrabel

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The Trouble With T-Bills

How our last export industry might bankrupt us

Keynesians ceaselessly claim that huge deficits are not just necessary to reboot the economy, they are essentially harmless. And the bond market’s acceptance of 2009’s unprecedented deficit of $1.4 trillion seems to justify their complacency. Indeed, since the Federal Reserve is committed to maintaining a zero interest rate policy, then the consequences of borrowing trillions and trillions seem modest.

But the “new normal” of trillion-dollar deficits does pose potentially interesting questions: Will this vast issuance of new debt ever exceed demand? What happens if buyers of all this low-yield debt become scarce?

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The World Has No Money, And The Emperor Has No Clothes

Most of us are aware of the very old fairly tale by Hans Christian Andersen in which two weavers promise an emperor the finest suit of clothes imaginable, but from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”. Well, in the fairy tale it turns out that nobody wants to admit that they are “unfit” or “stupid”, so when the emperor parades before his subjects in his imaginary new suit of clothes, it takes a child to cry out: “But he isn’t wearing anything at all!” Well, many of us have been declaring that the world economy “has no clothes” for some time now, but when the anchor of NBC News declares it on national television it gets a bit more attention. During his recent appearance on The Late Show with David Letterman, NBC’s Brian Williams was asked about the world situation. His answer included this shocking statement: "The world has no money, and the Emperor has no clothes."

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Monetary Dictatorship

If you’re an American taxpayer, you should expect to receive a thank-you note from dole recipients in Greece fairly soon. The reason is that Barack Obama, working with his cohorts at the Federal Reserve, is using your money to bail out the Greek welfare state, thereby enabling dole recipients in Greece to continue receiving their dole.

The problem is that for decades the Greek government has been doing what the U.S. government and many other regimes have been doing: borrowing to the hilt to fund dole payments to welfare recipients. In the hope that Euro officials would not discover how bad things were in Greece, Greek officials were falsifying their financial reports.

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Americans Have Been Bailing Out Foreign Banks for Years … And We’re Getting Ready To Do It Again

As the Wall Street Journal points out, the Federal Reserve might open up its "swap lines" again to bail out the Europeans:

The Fed is considering whether to reopen a lending program put in place during the financial crisis in which it shipped dollars overseas through foreign central banks like the European Central Bank, Swiss National Bank and Bank of England. The central banks, in turn, lent the dollars out to banks in their home countries in need of dollar funding. It was aimed at preventing further financial contagion.

The Fed has felt that it is premature to reopen this program — which was shut down in February as the financial crisis appeared to wane — because it wasn’t clear that foreign banks were in need of dollar funds. Still, trading floors on Wall Street are abuzz with anticipation today that the Fed might use the program again as Europe’s problems take on a more global dimension.

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The international lending lines are known among central bankers as swaps.

Fed officials believe the swap program was one of its most successful interventions aimed at stemming a global crisis, when many banks overseas became strained for dollar funding. In their normal course of business, they borrowed dollars in short-term lending markets and used those dollars to finance holdings of long-term U.S. dollar assets, like Treasury or mortgage bonds. When those markets dried up, the swap lines helped to prevent overseas bank funding crises in 2008.

Fed officials see the swaps as a low-risk program, because its counterparties in these loans are foreign central banks, and not private banks. At a crescendo in the crisis in December 2008, the Fed had shipped $583 billion overseas in the form of these swaps.

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The Federal Reserve Created This Financial Mess And Now They Expect Us To Pay Higher Taxes And Have A Lower Standard Of Living So We Can Pay Interest To Them

When you watch the mainstream news, how often do you hear them identify the Federal Reserve as the ultimate source of all of our financial problems? Never? Well, there is a good reason. The Federal Reserve was created and continues to benefit the elite international bankers that are raping the United States blind financially. Many of the same financial powers own large interests in the 6 gigantic media companies that dominate U.S. mainstream media. So you won’t hear the truth from them. On this website we go on and on about how bad the U.S. national debt is. And it is really, really, really bad. But rarely do you hear from anyone who we owe all of this money to. Yeah, we owe large amounts to Japan and China and a bunch of other nations, but the biggest holder of our debt by far is the Federal Reserve. Just like the owner of your mortgage or your car loan, they expect to be paid back – with interest.

Now U.S. Federal Reserve Chairman Ben Bernanke is warning that the U.S. national debt could balloon to more than 100% of GDP by the year 2020. For those familiar with national debt statistics, that is a very, very dangerous threshold to cross. Basically the United States is in debt up to its eyeballs and the debt continues to grow at an exponential rate.

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The New War on Social Security

Suppose our top generals described the growing threat from a hostile Middle East power. The country has tens of billions of oil dollars, a growing army, chemical and biological weapons, and is in the process of developing nuclear weapons. After carefully describing the risks posed by this country, our generals suggested an immediate attack on Canada. They explain that combating this Middle East country would be difficult, but defeating Canada is easy.

This is essentially the story of the latest attack on Social Security. Everyone who looks at the projections agrees; the scary budget stories being hyped in the media and by the Wall Street crew are driven almost entirely by projections of exploding health care costs. But instead of proposing ways to fix the health care system, these deficit hawks want to attack Social Security. They tell us that fixing health care is hard. By contrast they think that cutting money from Social Security will be relatively easy.

The facts on this are straightforward and known by everyone involved in the budget debate. The U.S. health care system is broken. We pay more than twice as much per person as the average for other wealthy countries.

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A Banana Republic With No Bananas

Experts on third world banana republics from the IMF and the Federal Reserve have said the U.S. has become a third world banana republic (and see this and this).

Are they right?

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Part IV: The Financial Coup d’Etat — The Economic Elite Vs. The People of the United States of America

This is the fourth part of a six-part report.

I: Casualties of Economic Terrorism, Surveying the Damage
II: The Rise of the Economic Elite
III: Exposing Our Enemy: Meet the Economic Elite
IV: The Financial Coup d’Etat
V: Overcoming the Divide and Conquer Strategy
VI: How to Fight Back and Win: Common Ground Issues That Must Be Won

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Although most of the Economic Elite live and operate inside the US, they are not concerned for our future. To them, the entire world is theirs and they work intimately with other elites throughout the world against the interests of the US public. Ever since the days of Henry Ford, the Economic Elite have needed a thriving US middle class to increase growth and profits, but now, in the global economy, they view the US middle class as obsolete. They increasingly look globally for profits and they would rather pay cheap labor in countries like China and India. On top of the millions of jobs they have already shipped overseas to increase profits at our expense, they are planning to ship an additional 25% of current US jobs overseas as well.

They now see us as the biggest obstacle to their continued consolidation of wealth and resources. This is why they have stepped up their attack on us.

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