Taxpayers are rightfully angrier than ever before about the state of the
U.S. economy and the government's handling of the financial crisis;
perhaps even more so than the Colonists at the original Tea Party.
After all, it appears that the only group benefiting during this
painful slide into recession are the very people who caused the crisis
-- The Banks.
On the verge of bankruptcy in 2008, the banks are now once again making record profits
paying record bonuses, while nearly every other industry struggles to
keep their head above water. The banks seem to have designed the system
where all businesses and individuals are dependent on them for credit,
and without new lending industry grinds to a halt. Given that banks can
make risk-free profits by front running
the stock market and selling $600 trillion of worthless derivatives
for monster gains, there seems to be little motivation for them to lend money at today's record-low interest rates.
Average Americans continue to be looted by this bank-controlled economic system through taxation and other more subtle ways:
The major banks warned in 2008 that their massively over-leveraged
Ponzi scheme was about to take down the world financial system, and
demanded a taxpayer bailout or else the sky would fall. Well, they got
their bailout which may be upwards of $23 trillion
direct cash infusions and accounting write-downs, which amounts to
around $76,667 for every citizen. The Federal Reserve also secretly bailed out foreign economies
to at least the tune of $500 billion.
2. Predatory Lending
-- The banks have long practiced predatory lending to Third World countries
private businesses, and individuals. This strategic over-lending
creates a situation where banks anticipate and manufacture default to
obtain real assets. Since banks lend money they don't have by making
accounting adjustments, private bankers and their cohorts could
conceivably, over time, own everything "real" in the world from money
they created out of thin air.
3. Credit Cards
-- From marketing to teenagers with "Happy Meal-style" gifts and toys at sign-up, to Mafia-style loansharking with usury interest rates
, banks use credit cards to further enslave the public. According to the credit card repayment calculator
if you owe $6,000 on a credit card with a 20 percent interest rate and
only pay the minimum payment each time, it will take you 54 years to pay
off that credit card. During those 54 years you will pay $26,168 in
interest rate charges in addition to the $6,000 in principal that you
are required to pay back. (Source
4. Stock Market
-- The Goldman Sachs-dominated scheme called "front running
is where brokers use computer programs with intricate algorithms to buy
or sell nanoseconds before large orders from the public. Originally
designed to prevent this activity, these programs have been hijacked to
"Beat the Street." It's the ultimate in insider trading, likened to a
poker player being able to see his opponent's cards. Is it any wonder
why four of the largest U.S. banks (Goldman Sachs, JPMorgan Chase, Bank
of America, and Citigroup) had zero days of trading losses
during the first quarter of 2010?
-- Although severely weakened by stock market manipulation
other fraudulent behavior, Pensions and 401(k) retirement savings plans
still represent a large portion of the people's remaining liquid wealth
-- and the banks want it
Nearly $4 trillion worth of retirement savings was wiped out in the
first weeks of 2008, where half of the losses were traditional pension
plans, while another 46 million people were riding the stock market with
401(k). It was estimated in 2009
of public sector pension plans were underfunded to the tune of $430
billion. Long term, these public pensions are reportedly underfunded by $3.5 trillion
due to banks using the contributions to prop up toxic junk.
6. Social Security
-- Social Security represents a $40 trillion unfunded liability
It is estimated that taxes must be raised substantially and benefits
must be slashed to cover this gap. Through no fault of Social Security
contributors and recipients, the government has completely mismanaged
the program while other debts eat up any chance of actually making good
on the entitlements promised to the working public. According to their
"austerity" playbook, the International Monetary Fund (IMF) recommends that the U.S. squeeze Social Security
to cover their ever-growing debts to banks.
-- The Federal Reserve's shadowy printing presses have created an estimated $23.7 trillion
in credits, grants, loans and guarantees, and that is just the paper backed by taxpayers. The fractional reserve banking
is one where banks can create loans (money) based on a fraction of
their reserves, which inherently weakens the strength of the dollar.
Inflation ends up being a hidden tax on those who worked hard, played
by the rules, and saved their pennies. You have been paying for this hidden tax
since the Federal Reserve was created in 1913, coincidentally the same
year the income tax was passed. To make matters worse, many experts
now predict that America is headed toward hyperinflation
. For an in-depth education on how money creation creates a tax on every dollar printed please watch The Money Masters
and Money as Debt
8. Commodity Prices
-- Banks use the commodity casino to manipulate food prices as
another way to line their pockets and starve the public. There is a
direct correlation between food costs and oil prices, so when they drive
up oil on speculation, food tends to follow suit. During oil's record run up to $147 per barrel in 2008, the price of rice tripled in six months. Between the ominous signs of food shortages and predictions of $200/bbl oil
in the near future, you can expect to pay much more of your hard-earned
crippled dollars to eat. Obviously, inflation -- especially
hyperinflation -- also causes commodity prices to spike, since they
trade in U.S. dollars.
9. Debt and Deficits
-- Banks make it easy for politicians to love credit as much as everyone else, only their
shiny new toys are things like pork projects for their states, wars,
and mandated private healthcare. You can almost see the commercial:
"You can have all this today, get re-elected tomorrow, and in a decade
your successor can figure out how to pay for it." Recent reports show
continued record deficits, while total debt and unfunded liabilities are figured to be $138 trillion -- around ten times annual GDP. Furthermore, the U.S. national debt has already surpassed the IMF default threshold of 90% GDP which will trigger austerity measures on the American public.
the original reasons for wars don't pan out, and the secondary reasons
don't add up, you can bet the real reason in the first place was money
Indeed, wars are the biggest moneymakers for the banks and the fastest
way for them to imprison countries with debt. Wars have historically
been manipulated by the banks funding both sides
much like they fund both political parties. In fact, some historians
suggest that the American Civil War was actually a battle between Lincoln's Greenback vs. the "oligarchy of high finance."
Ultimately, Lincoln was killed along with his Greenback and the private banking cartel ruled America once more.
All of this is leading to a loss of financial independence
masters of manipulation -- the money changers -- have rigged the system
from every angle and continue to loot all of us. We would be wise to
learn about the history of money and banking
in our economy, which is a compendium of booms and busts orchestrated
by private banks. Wars, fiat currencies that lead to inflation, and
obscure financial instruments are their tools of the trade to
consolidate wealth at the top, while the foundation of the pyramid
scheme -- the hardworking taxpayers -- are fleeced again and again.