US financial elite destroy the dollar

The value of the US dollar is crashing intentionally as the Federal Reserve has been printing money without tangible reserves for several decades. President Barack Obama has helped the bankers to come out ahead in every possible situation while pushing the middle class into poverty.

The following is a transcription of an interview with Economist specialist Max Keiser who talks about the US economy’s downfall and how the answer to fix it is easy.

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HOW BROKERS BECAME BOOKIES: THE INSIDIOUS TRANSFORMATION OF MARKETS INTO CASINOS

“You all are the house, you’re the bookie. [Your clients] are booking their bets with you. I don’t know why we need to dress it up. It’s a bet.”
- Senator Claire McCaskill, Senate Subcommittee investigating Goldman Sachs (Washington Post, April 27, 2010)

Ever since December 2008, the Federal Reserve has held short-term interest rates near zero. This was not only to try to stimulate the housing and credit markets but also to allow the federal government to increase its debt levels without increasing the interest tab picked up by the taxpayers. The total public
U.S. debt increased by nearly 50% from 2006 to the end of 2009 (from about $8.5 trillion to $12.3 trillion), but the interest bill on the debt actually dropped (from $406 billion to $383 billion), because of this reduction in interest rates.

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The heresy of the Greeks offers hope

Greece is a microcosm of a modern class war rarely reported as such.

As Britain’s political class pretends that its arranged marriage of Tweedledee to Tweedledum is democracy, the inspiration for the rest of us is Greece. It is hardly surprising that Greece is presented not as a beacon, but as a "junk country" getting its comeuppance for its "bloated public sector" and "culture of cutting corners" (Observer). The heresy of Greece is that the uprising of its ordinary people provides an authentic hope unlike that lavished upon the warlord in the White House.

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The Giant Banks, Federal Reserve and Treasury Have All Blackmailed America

As I wrote last October:

Congressmen Brad Sherman and Paul Kanjorski and Senator James Inhofe all say that the government warned of martial law if Tarp wasn't passed. And Rahm Emanuel famously said:

Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before.

Last year:

• Senator Leahy said “If we learned anything from 9/11, the biggest mistake is to pass anything they ask for just because it's an emergency"

• The New York Times wrote:
  

  “The rescue is being sold as a must-have emergency measure by an administration with a controversial record when it comes to asking Congress for special authority in time of duress."

  ***

  Mr. Paulson has argued that the powers he seeks are necessary to chase away the wolf howling at the door: a potentially swift shredding of the American financial system. That would be catastrophic for everyone, he argues, not only banks, but also ordinary Americans who depend on their finances to buy homes and cars, and to pay for college.

  Some are suspicious of Mr. Paulson’s characterizations, finding in his warnings and demands for extraordinary powers a parallel with the way the Bush administration gained authority for the war in Iraq. Then, the White House suggested that mushroom clouds could accompany Congress’s failure to act. This time, it is financial Armageddon supposedly on the doorstep.

  “This is scare tactics to try to do something that’s in the private but not the public interest,” said Allan Meltzer, a former economic adviser to President Reagan, and an expert on monetary policy at the Carnegie Mellon Tepper School of Business. “It’s terrible.”

Not Just Government

But it’s not just government . . .

If the too big to fails say that the world economy will crash and there will be martial law unless they are bailed out, politicians - most of whom don't understand finance or economics - will believe them, and sound the alarm themselves.

As Karl Denninger wrote yesterday:

[S]ounds like "Bail me out or I will crash everything."

Isn’t that analagous to walking into a bank, opening one’s coat to reveal an explosives-laced belt, and saying “gimme all the money or everyone dies!”

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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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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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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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Opinion: A folk tale – Greenspan, the blame game and elites vs. America

Alan Greenspan is an American economist and was from 1987 to 2006 the Chairman of the Federal Reserve of the United States. He currently works as a private advisor, making speeches and providing consulting for firms through his company, Greenspan Associates LLC.

The sheer fury of Americans at their upper levels of government and management is unparalleled. This recession is as close to total failure as the US has ever been. The Pursuit of Crappiness isn’t appreciated, and nor is the buck passing.

A string of powerbrokers, financial celebrities, self proclaimed geniuses, and other debris has collectively produced a virtual handbook on evasion of responsibility. Alan Greenspan, the mastermind of the past, has now come under fire as ducking responsibility for his own part in the fiascoes that nearly crippled America.

There’s a cultural history here that needs to be understood. The Great Financial Cretinism is systemic. The policies and culture that created the mega train wreck are based on the financial equivalent of Manifest Destiny. The banks weren’t the only things that thought they were too big to fail. The “elites” thought they were above and beyond everyone and everything.

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